Eastern Foods Pvt. Ltd, Cuttack v. ACIT, Cuttack

ITA 251/CTK/2013 | 2009-2010
Pronouncement Date: 22-04-2014 | Result: Allowed

Appeal Details

RSA Number 25122114 RSA 2013
Assessee PAN AABCE3445M
Bench Cuttack
Appeal Number ITA 251/CTK/2013
Duration Of Justice 1 year(s) 5 day(s)
Appellant Eastern Foods Pvt. Ltd, Cuttack
Respondent ACIT, Cuttack
Appeal Type Income Tax Appeal
Pronouncement Date 22-04-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 22-04-2014
Assessment Year 2009-2010
Appeal Filed On 16-04-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK .. .. BEFORE SHRI P.K.BANSAL A M & SHRI D.T.GARASIA J M ./ ITA NO. 251 / C TK /20 1 3 ( / ASSESSMENT YEAR : 200 9 - 10 ) M/S EASTERN FOODS PVT. LTD. NEW INDUSTRIAL ESTATE JAGATPUR CUTTACK - 754 021 VS. ACIT CIRCLE - 1(1) CUTTACK ./ ./ PAN/GIR NO. : A ABCE 3445 M ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : NONE /REVENUE BY : SHRI S.C.MOHANTY / DATE OF HEARING : 2 2 ND APRIL 201 4 / DATE OF PRONOUNCEMENT : 22 ND APRIL 201 4 / O R D E R PER BENCH : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) DATED 30 - 1 - 2013 . 2 . THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES TO THE ADDITION OF RS.26 34 679/ - APPEARING IN THE BALANCE SHEET AS SUNDRY CREDITORS. 3 . NONE APPEARED ON BEHALF OF THE ASSESSEE EVEN THE NOTICE WAS SENT TO ASSESSEE. 4 . SINCE THE ISSUE INVOLVED IS COVERED BY THE DECISION OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. SRIDEV ITA NO. 251 /201 3 2 ENTERPRISES 192 ITR 165 WE THEREFORE PROCEED TO DISPOSE OF THE APPEAL AFTER HEARING LEARNED DR. 5 . WE HEARD R IVAL SUBMISSIONS MADE BY THE LEARNED DR AND CAREFULLY CONSIDERED THE SAME ALONGWITH THE ORDER OF THE AUTHORITIES BELOW. WE NOTED FROM THE ORDER OF THE CIT(A) THAT THE ADDITION HAS BEEN MADE BY THE AO AND IN APP EAL THE CIT(A) SUSTAINED THE SAME RELATING TO THE CLOSING BALANCE IN RESPECT OF THE SUNDRY CREDITORS OF 63 PARTIES TOTALING TO RS. 26 34 679/ - . THE DETAILS OF WHICH ARE AVAILABLE AT PAGES 3 & 4 OF THE ORDER OF THE CIT(A) . FROM THE SAID DETAILS IT IS APPARE NT THAT THESE CLOSING BALANCES HAVE ARISEN OUT OF THE OPENING BALANCES AS ON 1 - 4 - 2008. IT IS APPARENT FROM THESE DETAILS THAT THE ASSESSEE HAS NOT CREDITED ANY SUM IN HIS BOOKS OF ACCOUNT DURING THE YEAR. THE PROVISIONS OF SECTION 68 WHICH LAYS DOWN THE RU LE OF LAW THAT IF ANY SUM IS FOUND CREDITED IN THE BOOKS OF AN ASSESSEE MAINTAINED FOR ANY PREVIOUS YEAR AND THE ASSESSEE OFFERS NO EXPLANATION ABOUT THE NATURE AND SOURCE THEREOF OR THE EXPLANATION OFFERED BY HIM IS NOT IN THE OPINION OF THE ASSESSING OFFICER SATISFACTORY THE SUM SO CREDITED MAY BE CHARGED TO INCOME - TAX AS THE INCOME OF THE ASSESSEE OF THAT PREVIOUS YEAR. THE SUM WHICH HAS BEEN ADDED BY THE ASSESSING OFFICER WAS NOT CREDITED IN THE BOOKS OF THE ASSESSEE DURING THE ASSESSMEN T YEAR. THE SUM WHICH PERTAINS TO OUTSTANDING BALANCE OF THE CREDITORS ARE COMING OUT OF THE ASSESSMENT YEAR 2008 - 09. SINCE THE SAME HAS NOT BEEN CREDITED DURING THE YEAR IN VIEW OF THE PROVISIONS SECTION 68 THIS CANNOT BE ADDED IN THE INCOME OF THE ITA NO. 251 /201 3 3 ASSESS EE DURING THE YEAR. OUR AFORESAID VIEW IS DULY SUPPORTED BY THE DECISION OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF SRIDEV ENTERPRISES (SUPRA) . WE THEREFORE SET ASIDE THE ORDER OF THE CIT(A) AND DELETE THE ADDITION MADE BY THE ASSESSING OFFICER. 6 . IN THE RESULT APPEAL FILED BY THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 2 ND APRIL 201 4 . 22 ND APRIL 2014 SD/ - SD/ - ( .. ) ( D.T.GARASIA ) ( .. ) ( P.K.BANSAL ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK ; DATED 22 / 0 4 /2014 . . /PKM . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER / ( ASSTT. REGISTRAR) / ITAT CUTTACK 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) CUTTACK 4. / CIT CUTTACK 5. / DR ITAT CUTTACK 6. / GUARD FILE. //TRUE C OPY//