ITO, Faridabad v. Sh. Balvinder Singh, Faridabad

ITA 3854/DEL/2010 | 2007-2008
Pronouncement Date: 13-01-2011 | Result: Dismissed

Appeal Details

RSA Number 385420114 RSA 2010
Assessee PAN AENPB5313E
Bench Delhi
Appeal Number ITA 3854/DEL/2010
Duration Of Justice 5 month(s)
Appellant ITO, Faridabad
Respondent Sh. Balvinder Singh, Faridabad
Appeal Type Income Tax Appeal
Pronouncement Date 13-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 13-01-2011
Date Of Final Hearing 13-01-2011
Next Hearing Date 13-01-2011
Assessment Year 2007-2008
Appeal Filed On 13-08-2010
Judgment Text
ITA NO. 3854/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER I.T.A. NO. 3854/DEL/2010 A.Y. : 2007-08 INCOME TAX OFFICER WARD-II(1) BLOCK-I-B NEW CGO COMPLEX NH-4 FARIDABAD VS. M/S BALVINDER SINGH PROP. M/S BHAMBRA INTERNATIONAL H.NO. 1460 JAWAHAR COLONY NIT FARIDABAD (PAN/GIR NO. : AENPB5313E) (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. M.K. DUDEJA ADVOCATE DEPARTMENT BY : MRS. ANUSHA KHURANA SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 11/6/2 010 PERTAINING TO ASSESSMENT YEAR 2007-08. 2. THE ISSUE RAISED IS THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN DELETING THE ADDITION OF ` 23 56 362/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF BOGUS PURCHASE TRANSACTIONS. 3. ASSESSEE IN THIS CASE IS ENGAGED IN THE BUSINE SS OF TRADING OF GLASS GLASS MACHINERY AND ACCESSORIES. ASSESSING O FFICER IN THIS CASE NOTED THAT DURING THE PROCEEDINGS THE INSPECTOR OF HIS OFFICE WAS DEPUTED TO VERIFY THE CREDITORS REFLECTED IN THE BA LANCE SHEET AND IT WAS REPORTED BY THE INSPECTOR THAT ONE OF THE CRED ITORS I.E. M/S MAA DURGA TRADING COMPANY DID NOT EXIST. ASSESSING OFF ICER OBSERVED ITA NO. 3854/DEL/2010 2 THAT HE FOUND FROM THE RECORDS THAT ASSESSEE HAS C LAIMED PURCHASE FROM HIS PARTY AMOUNTING TO ` 23 56 362/- AND THE B ALANCE STANDING TO THE CREDIT OF THIS CONCERN AS ON 31.3.2007 IS SHOW N AS ` 2 75 226/-. THE ASSESSEE WAS ASKED TO FURNISH THE EVIDENCE REGA RDING THE PERSON AND GENUINENESS OF THE TRANSACTIONS AND ALSO ASKED TO PRODUCE THE OWNER OF THE CONCERN. ASSESSEE SUBMITTED THAT TH E SAID CONCERN WAS EXISTING DURING THE YEAR 2006-07 AND 2007-08. THE LAST DEALING WITH THIS CONCERN WAS STATED TO BE MADE IN THE MONTH OF OCTOBER 2007 AND SOME PAYMENT WAS MADE. PHOTOCOPY OF THE PURCHA SE BILL WAS ALSO FILED BY THE ASSESSEE AND IT WAS STATED THAT P AYMENT TO THIS CONCERN WERE MADE BY CHEQUES. ASSESSEE SUBMITTED TH AT CONFIRMATIONS FROM THE SAID PARTY WAS GIVEN AND SINC E THERE WAS NO DEALING WITH THE SAID CONCERN AFTER NOVEMBER 2007 THE PRESENT WHEREABOUTS OF THE SAID CONCERN WERE NOT KNOWN. 3.1 ASSESSING OFFICER DID NOT ACCEPT THESE CONTENT IONS. THE ASSESSING OFFICER FOUND FAULT IN THE CONFIRMATION SU BMITTED IN THIS REGARD. HE OBTAINED INFORMATION THROUGH THE ORI ENTAL BANK OF COMMERCE. FROM THERE HE HAS ASCERTAINED THAT CHEQUE S WERE CREDITED IN THE BANK ACCOUNT OF M/S MAA DURGA TRADIN G COMPANY. THE ACCOUNT WAS OPENED BY SHRI VINOD GOYAL. ASSESSING OFFICER NOTED THAT SHRI VINOD GOYAL ATTENDED HIS OFFICE ON 29.12/2009 AND HIS STATEMENT WAS RECORDED U/S 131 ON OATH. HE CLEARLY DEPOSED THAT HE HAD NO CONCERN WITH M/S MAA DURGA TRADING CO. IN THIS BACKGR OUND THE ASSESSING OFFICER PROCEEDED TO DISALLOW THE PURCHA SES AS BOGUS AND ADDED A SUM OF ` 23 56 362/- IN THIS REGARD. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (APPEALS) OBSERVED THAT HE HAS GONE THROUGH THE TRA DING AND PROFIT ITA NO. 3854/DEL/2010 3 AND LOSS ACCOUNT. HE NOTED THAT THE SIMPLE PERUSAL OF THIS ACCOUNT CLEARLY SHOWS THAT THE TRANSACTIONS OF THIS PARTY W ITH THE ASSESSEE WERE FULLY SUPPORTED BY THE BANK ENTRIES THROUGH THE ORI ENTAL BANK OF COMMERCE AS ACKNOWLEDGED BY THE ASSESSING OFFICER HIMSELF. HE OBSERVED THAT ASSESSING OFFICER HAS MADE THE ADD ITION ON THE BASIS OF INSPECTORS REPORT WHICH WAS RECORDED IN ANOTHE R CASE. HE OBSERVED THAT THE INSPECTOR REPORT WAS FOUND TO B E AMBIGUOUS EVEN AS PER HIS EXAMINATION WHICH CAN NOT BE RELIED UPON SOLELY IN DECLARING THE PARTY AS BOGUS. LD. COMMISSIONER OF INCOME TA X (APPEALS) FURTHER OBSERVED THAT ASSESSING OFFICER HAS ALREAD Y ACCEPTED THE SALES THE STOCK AND THE DECLARED RESULTS WHICH AR E BASED ON THE PURCHASES WHICH HAD GONE INTO BOTH THE STOCK AND TH E SALES AND THUS COULD NOT BEEN BRUSHED ASIDE WITHOUT REJECTING THE AUDITED VERSION OR EVEN LEGALLY WITHOUT REJECTING THE BOOKS OF ACCOUNT U/S 145 OF THE IT ACT 1961. ACCORDINGLY LD. COMMISSIONER OF INCOME TAX (APPEALS) PROCEEDED TO HOLD THAT THE SAME WERE NOT BOGUS PURCH ASES AND ACCORDINGLY HE DELETED THE ADDITION. 5. AGAINST THIS ORDER THE ASSESSEE IS IN APPEAL BE FORE US. 6. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. WE FIND THAT THE SALES AND PROFITS HAVE BEEN ACCEPTED BY THE ASSESSING OFFICER. HE HAS ONLY DOUBTED THE PURCHASES WHICH I S A PART OF THE OTHER FIGURES MENTIONED HEREINABOVE. THE DISALLOWANCE WAS MADE AS THE SAID PARTY WHICH WAS FOUND NON-EXISTENT AT THE ADDR ESS GIVEN BY THE INSPECTOR OF THE ASSESSING OFFICER. LD. COMMISSIONE R OF INCOME TAX (APPEALS) HAS GIVEN A FINDING THAT INSPECTORS REPO RT WAS AMBIGUOUS. THE ASSESSEE HAS SUBMITTED THE CONFIRMATION AND BAN K STATEMENT OF THE PARTY. THE PAYMENTS HAVE BEEN FOUND TO BE CREDIT ED IN THE BANK ITA NO. 3854/DEL/2010 4 ACCOUNT OF THE PARTY. UNDER THE CIRCUMSTANCES WE DO NOT FIND ANY INFIRMITY OR ILLEGALITY IN THE ORDER OF THE LD. COMMI SSIONER OF INCOME TAX (APPEALS). HENCE WE UPHOLD THE SAME. 7. IN THE RESULT THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13/01/2011 UP ON CONCLUSION OF HEARING. SD/- SD/- [R.P. TOLANI] [R.P. TOLANI] [R.P. TOLANI] [R.P. TOLANI] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 13/01/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES