Rainbow Fabart Pvt. Ltd., New Delhi v. DCIT, New Delhi

ITA 5358/DEL/2012 | 2009-2010
Pronouncement Date: 05-07-2013 | Result: Allowed

Appeal Details

RSA Number 535820114 RSA 2012
Assessee PAN AACCR4098N
Bench Delhi
Appeal Number ITA 5358/DEL/2012
Duration Of Justice 8 month(s) 17 day(s)
Appellant Rainbow Fabart Pvt. Ltd., New Delhi
Respondent DCIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 05-07-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted F
Tribunal Order Date 05-07-2013
Date Of Final Hearing 28-05-2013
Next Hearing Date 28-05-2013
Assessment Year 2009-2010
Appeal Filed On 19-10-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F: NEW DELHI BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER & SHRI S.V. MEHROTRA ACCOUNTANT MEMBER ITA NO.5358/DEL/2012 ASSESSMENT YEAR: 2009-10 M/S RAINBOW FABART P. LTD. 109 ASHIRWAD COMPLEX D-1 K-84 GREEN PARK NEW DELHI. PAN NO. AACCR4098N VS. DCIT COMPANY CIRCLE 15(1) NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. K.V.S. GUPTA ADV. RESPONDENT BY: SH. BHIM SINGH SR. DR O R D E R PER S.V. MEHROTRA A.M. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER DATED 31/08/2012 OF CIT(A)-XVIII NEW DELHI FOR A.Y . 2009-10. 2. BRIEF FACTS OF THE CASE ARE THAT IN THE RELEVANT ASSESSMENT YEAR THE ASSESSEE COMPANY WAS ENGAGED IN THE BUSINESS OF EXP ORT OF READYMADE GARMENTS. THE ASSESSEE HAD FILED ITS RETURN OF INC OME DECLARING TOTAL INCOME OF RS. 3 63 33 946/-. IN THE COURSE OF ASSE SSMENT PROCEEDINGS THE ASSESSING OFFICER NOTICED THAT ASSESSEE HAD FURNISH ED THE LIST OF PARTIES FROM WHOM JOB WORK/FABRICATION WAS GOT DONE. IN OR DER TO EXAMINE THE SAME ON TEST CHECK BASIS HE ISSUED NOTICES U/S 133 (6) OF THE ACT. THE AO ITA NO. 5358/DEL/2012- RAINBOW FABART P. L TD. 2 HAS POINTED OUT THAT NO COMPLIANCE WAS MADE IN THE CASE OF M/S NEHRU STYLE TO WHOM THE ASSESSEE HAD ALLEGEDLY PAID JOB W ORK/FABRICATION CHARGES AMOUNTING TO RS. 24 03 144/-. HE HAS FURTH ER OBSERVED THAT THE ASSESSEE EVEN FAILED TO PRODUCE COPY OF BILLS OF TH E PARTY. HE THEREFORE DISALLOWED THE ASSESSEES CLAIM OF RS. 24 03 144/- OBSERVING THAT ASSESSEE FAILED TO ESTABLISH THE GENUINENESS OF THE PARTY AND THE EXPENDITURE CLAIMED IN RESPECT OF THIS PARTY REMAI NED UNVERIFIED. 3. BEFORE LD. CIT(A) THE ASSESSEE CLAIMED THAT (A) IT HAD SUBMITTED COPIES OF BILLS OF ALL THE PARTIES INCLUDING M/S NE HRU STYLE (B) IT HAD ALSO PRODUCED THE CERTIFICATE OF THE PARTY WHEREIN THE PARTY HAD CONFIRMED THAT THEY HAD DONE JOB WORK OF THE ASSESSEE (C) COPY OF THE ASSESSEES BANK STATEMENT REFLECTING THE PAYMENTS MADE TO THIS PART Y (D) COPIES OF INVOICES RAISED BY THE PARTY (E) COPIES OF TDS CERTIFICATE. 3.1 LD. CIT(A) REQUIRED THE ASSESSEE TO PRODUCE THE FOLLOWING: I. ORIGINAL CHALLANS VIDE WHICH GOODS HAD BEEN SENT TO M/S NEHRU STYLE FOR PROCESSING AND GOODS HAVE BEEN RECEIVED BACK; II. CERTIFICATE FROM THE BANK THAT THE CHEQUES ISSU ED FROM THE ASSESSEES BANK ACCOUNT HAD BEEN ISSUED IN FAVOUR O F M/S NEHRU STYLE; III. COPY OF BANK ACCOUNT AND INCOME TAX RETURN OF M/S NEHRU STYLE. 3.2 LD. CIT(A) HAS OBSERVED THAT IN RESPONSE THE AS SESSEE HAD ONLY PRODUCED BILLS OF M/S NEHRU STYLE BUT DID NOT PRODU CE ANY OTHER CONFORMITY EVIDENCE. HE FURTHER POINTED OUT THAT BANK ONLY CE RTIFIED THAT THE CHEQUES HAD BEEN ISSUED FROM THE BANK ACCOUNT OF THE ASSESS EE BUT COULD NOT ITA NO. 5358/DEL/2012- RAINBOW FABART P. L TD. 3 SPECIFY THE NAME OF THE PARTY IN WHOSE FAVOUR THE C HEQUES HAD BEEN ISSUED. FURTHER THE ASSESSEE WAS UNABLE TO PRODUCE THE BANK ACCOUNT OF M/S NEHRU STYLE TO SHOW THAT CHEQUES HAD BEEN DEPOS ITED IN THEIR BANK ACCOUNT OR THEIR INCOME TAX RETURN FOR THE RELEVANT PERIOD. HE FURTHER POINTED OUT THAT PARTY ALSO DID NOT RESPOND TO NOTI CE U/S 133(6) ISSUED BY THE AO. IN VIEW OF THESE FACTS LD. CIT(A) CONFIRM ED THE ADDITION. 4. LD. COUNSEL SUBMITTED THAT BEFORE AO VIDE LETTER DATED 19.12.2011 THE ASSESSE HAD SUBMITTED THE CERTIFICATE DATED 15. 12.2011 IN ORIGINAL CONFIRMING JOB WORK DONE FOR THE ASSESSEE BY M/S NE HRU STYLE. LD. COUNSEL FURTHER REFERRED TO PAGE 5 OF PAPER BOOK WHEREIN T HE CERTIFICATE ISSUED BY NEHRU STYLE IS CONTAINED. 5. HE REFERRED TO THE LETTER OF STATE BANK OF IND IA DATED 24 TH AUGUST 2011 WHEREIN THEY HAD CONFIRMED THE PAYMENTS BEING MADE FROM ASSESSEES BANK ACCOUNT BUT THE NAME OF PARTY TO W HOM THE CHEQUES WERE ISSUED COULD NOT BE CONFIRMED BECAUSE OF OLD RECORD S BEING NOT AVAILABLE WITH THEM. LD. COUNSEL FURTHER REFERRED TO THE LED GER ACCOUNT OF M/S NEHRU STYLE IN ITS BOOKS OF ACCOUNT CONTAINED AT PAGES 22 3 TO 227 TO DEMONSTRATE THAT REGULAR TRANSACTIONS REGARDING EMBROIDERY CHAR GES WERE MADE WITH THE PARTY AND THE REGULAR PAYMENTS WERE MADE TO THE PAR TY. 6. LD. DR SUBMITTED THAT BILLS WERE NOT PRODUCED BE FORE AO WHICH WERE PRODUCED BEFORE LD. CIT(A). ITA NO. 5358/DEL/2012- RAINBOW FABART P. L TD. 4 6.1 WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND HAVE PERUSED THE RECORD OF THE CASE. WE FIND FROM THE O RDER OF LD. CIT(A) THAT ORIGINAL BILLS WERE PRODUCED BEFORE HER. BUT NO OT HER CONFORMITY EVIDENCE WAS PRODUCED. HOWEVER CONFORMITY LETTER IS CONTAI NED AT PAGE 5 OF THE PAPER BOOK. LD. CIT(A) HAD REQUIRED THE ASSESSEE T O PRODUCE VARIOUS DOCUMENTS NOTED EARLIER BUT SINCE THOSE DOCUMENTS COULD NOT BE PRODUCED AS THE TRANSACTIONS WERE OVER WITH THE SAI D PARTY SHE HAS DRAWN ADVERSE INFERENCE. SINCE THE BILLS WERE PRODUCED B EFORE HER THEREFORE LD. CIT(A) SHOULD HAVE CALLED FOR A REMAND REPORT FROM THE AO BEFORE DISALLOWING THE ASSESSEES CLAIM. UNDER THESE CIRC UMSTANCES KEEPING IN VIEW THE EVIDENCE PRODUCED BEFORE AO AS WELL AS BEF ORE LD. CIT(A) AND ALSO TAKING INTO CONSIDERATION THE FACT THAT THE BA NK HAS NOT GIVEN COMPLETE DETAILS ON THE GROUND OF THE RECORDS BEING OLD WE CONSIDER IT IN THE INTEREST OF JUSTICE THAT THE MATTER BE RESTORED BACK TO THE FILE OF AO FOR DENOVO CONSIDERATION OF THIS ISSUE. WE DIRECT ACCORDINGLY . 7. IN THE RESULT THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05/07/2013 SD/- SD/- (R.P. TOLANI) JUDICIAL MEMBER (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 05/07/2013 *KAVITA ITA NO. 5358/DEL/2012- RAINBOW FABART P. L TD. 5 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT NEW DELHI. TRUE COPY BY ORDER ASSISTANT REGISTRAR