ACIT, Ghaziabad v. M/s New Jassar Transport Co., Ghaziabad

ITA 2615/DEL/2010 | 2005-2006
Pronouncement Date: 25-02-2011 | Result: Allowed

Appeal Details

RSA Number 261520114 RSA 2010
Bench Delhi
Appeal Number ITA 2615/DEL/2010
Duration Of Justice 8 month(s) 23 day(s)
Appellant ACIT, Ghaziabad
Respondent M/s New Jassar Transport Co., Ghaziabad
Appeal Type Income Tax Appeal
Pronouncement Date 25-02-2011
Appeal Filed By Department
Order Result Allowed
Bench Allotted F
Tribunal Order Date 25-02-2011
Date Of Final Hearing 02-02-2011
Next Hearing Date 02-02-2011
Assessment Year 2005-2006
Appeal Filed On 01-06-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F : NEW DELHI) BEFORE SHRI G.E. VEERABHADRAPPA HONBLE VICE PRES IDENT AND SHRI A.D. JAIN JUDICIAL MEMBER ITA NO.2615/DEL./2010 (ASSESSMENT YEAR : 2005-06) ADDL. CIT RANGE I VS. M/S NEW JASSAR TRANSPORT CO. GHAZIABAD. KARAMCHARI GATE LOWER BAZAR MODINAGAR GHAZIABAD (PAN/GIR NO.AAAFN9032B) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VINOD KUMAR GOEL ADV. REVENUE BY : SHRI H.K. LAL SR.DR ORDER PER A.D. JAIN: JM THIS IS DEPARTMENTS APPEAL FOR AY 2005-06 CONTENDI NG THAT THE CIT(A) HAS ERRED IN DELETING THE ADDITION MADE BY TH E AO IN RESPECT OF HIRING CHARGES OF `5 90 000 DESPITE THE FACT THAT TH E RECIPIENTS WERE NOT KNOWN THE PAYMENT HAD BEEN MADE IN CASH NO BOO KS OF ACCOUNT WERE MAINTAINED BY THE ASSESSEE AND THE VOUCHERS PRODUCE D WERE ALSO NOT VERIFIABLE. 2. THE AO OBSERVED THAT PAYMENT OF HIRING CHARGES OF `5 90 300 BY THE ASSESSEE WAS IN ADDITION TO PAYMENT OF FREIGHT AMOUN TING TO `59 66 750 AND OIL LUBRICANTS EXPENSES OF `19 90 680. IT WAS OBSERVED THAT IN ITS REPLY DATED 24.12.2007 THE ASSESSEE HAD STAT ED BEFORE THE AO TO HAVE PRODUCED BOOKS OF ACCOUNT ALONG WITH THE VOUCHERS BUT ACTUALLY IT WAS NOT SO DONE WHICH FACT WAS ALSO RECOR DED BY THE AO IN THE ORDER SHEET ENTRY DATED 24.12.2007. THE AO NOTI CED THAT THE ASSESSEE DID NOT OWN ANY TRUCK FOR TRANSPORTATION; THAT TRUCKS WERE HIRED FOR WHICH FREIGHT WAS PAID AND EXPENSES OF OIL AND LUBRICANTS WERE ALSO BORNE BY THE ASSESSEE; THAT THEREFORE THERE W AS NO QUESTION 2 OF PAYMENT OF HIRING CHARGES; THAT THE ASSESSEE HAD STATE D ITS NET PROFIT FOR AY 2005-06 TO BE 5.15% AS AGAINST THAT OF 8.54% FOR AY 2004- 05; AND THAT NO EXPLANATION WAS OFFERED CONCERNING T HIS DECLINE. 3. BY VIRTUE OF THE IMPUGNED ORDER THE CIT(A) DELE TED THE DISALLOWANCE OF `5 90 300. AGGRIEVED THE DEPARTMEN T IS IN APPEAL. 4. CHALLENGING THE IMPUGNED ORDER LD.DR HAS ARGUED THAT ILLEGALLY DELETING THE DISALLOWANCE CORRECTLY MADE BY THE AO THE CIT(A) HAS FAILED TO APPRECIATE THAT THE RECIPIENTS OF THE PAYM ENT ARE NOT KNOWN; THAT THE CIT(A) ALSO DID NOT CONSIDER THAT THE PAYMEN T WAS MADE IN CASH; THAT THE CIT(A) ALSO REMAINED OBLIVIOUSLY OF THE FACT THAT NO BOOKS OF ACCOUNT WERE MAINTAINED BY THE ASSESSEE AND EVE N THE VOUCHERS PRODUCED WERE NOT VERIFIABLE. 5. ON THE OTHER HAND LD.AR FOR THE ASSESSEE STRONGLY SUP PORTED THE ORDER UNDER APPEAL. IT HAS BEEN SUBMITTED THAT ALL T HE REQUISITE EVIDENCE WAS PRODUCED IN THE REMAND PROCEEDINGS ORDER ED BY THE CIT(A); THAT IT WAS AFTER CONSIDERING THE REMAND REPO RT FILED BY THE AO THAT THE CIT(A) ORDERED THE DELETION OF THE DISALLOW ANCE. 6. IN THIS REGARD IT IS SEEN THAT IN THE REMAND PROCE EDINGS THE ASSESSEE PRODUCED THE BOOKS OF ACCOUNT. NO DISCREPANCY W AS FOUND THEREIN. VOUCHERS WERE ALSO PRODUCED. HOWEVER IN T HE IMPUGNED ORDER THE CIT(A) HAS NOT MADE ANY OBSERVATION REGARD ING THE BOOKS OF ACCOUNT AND THE VOUCHERS PRODUCED BY THE ASSESSEE WHERE AS IN THE REMAND REPORT THE AO HAD OBSERVED THAT THE VOUCHERS WERE SELF-MADE AND THERE WERE NO SPECIFICATIONS CONCERNING THE NAMES AND ADDRESSES OF THE RECIPIENTS. 7. IN THIS VIEW OF THE MATTER THE ISSUE REQUIRES TO BE REMITTED TO THE FILE OF THE CIT(A) TO BE DECIDED AFRESH IN ACCOR DANCE WITH LAW ON CONSIDERING AND MAKING OBSERVATIONS ON THE BOOKS OF ACC OUNT AND VOUCHERS PRODUCED BY THE ASSESSEE IN THE REMAND PROCEEDI NGS. WE ORDER ACCORDINGLY. THE LD.COUNSEL FOR THE ASSESSEE HAS B ROUGHT TO OUR ATTENTION THE COMPLETE DETAILS OF THE PAYMENT. COP IES THEREOF ARE AT 3 PAGES 15-21 OF THE ASSESSEES PAPER BOOK. THESE DETAILS AR E STATED TO HAVE BEEN FILED BEFORE THE AO WHEN THE CIT(A) REMAN DED THE MATTER TO THE AO. THE CIT(A) SHALL ALSO KEEP IN MIND THESE DETA ILS WHILE DECIDING THE ISSUE. 8. IN THE RESULT FOR STATISTICAL PURPOSES THE APPEAL O F THE DEPARTMENT IS TREATED AS ALLOWED. 9. ORDER PRONOUNCED IN OPEN COURT ON 25.02.2011. SD/- SD/- (G.E. VEERABHADRAPPA) (A.D.JAIN) VICE PRESIDENT JUDICIAL MEMBER DELHI DATED : FEB. 25 2011. SKB COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A) GHAZIABAD. 5.CIT(ITAT) NEW DELHI. AR/ITAT