NAV BHARAT INDUSTRIES & AGENCIES, Jaipur v. ITO, Jaipur

ITA 752/JPR/2011 | 1990-1991
Pronouncement Date: 18-11-2011 | Result: Allowed

Appeal Details

RSA Number 75223114 RSA 2011
Bench Jaipur
Appeal Number ITA 752/JPR/2011
Duration Of Justice 2 month(s) 26 day(s)
Appellant NAV BHARAT INDUSTRIES & AGENCIES, Jaipur
Respondent ITO, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 18-11-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 18-11-2011
Date Of Final Hearing 09-11-2011
Next Hearing Date 09-11-2011
Assessment Year 1990-1991
Appeal Filed On 23-08-2011
Judgment Text
1 ITA 752-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH SMC JAIPUR BEFORE SHRI R.K. GUPTA JUDICIAL MEMBER ITA NO. 752/JP/2011 ASSTT. YEAR : 1990-91. NAV BHARAT INDUSTRIES & AGENCIES VS. THE INCOME-T AX OFFICER CHORA RASTA JAIPUR. WARD 1(2) JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.C. GOKHROO & MANISH GO KHROO RESPONDENT BY : SHRI D.K. MEENA DATE OF HEARING : 09.11.2011 DATE OF PRONOUNCEMENT : 18.11.2011 ORDER DATE OF ORDER : 18/11/2011. PER R.K. GUPTA J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 1990-91. 2. THE ASSESSEE IS OBJECTING IN CONFIRMING ADDITION OF RS. 84 434/- BEING AMOUNT RECEIVED IN CASH FROM M/S. R.K. SONS JAIPUR. 3. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE SO LD MATERIAL OF RS. 84 434/- TO M/S. R.K. SONS. M/S. R.K. SONS MADE PAYMENT THROUGH ACC OUNT PAYEE CHEQUE WHICH WAS DISHONOURED. THEREAFTER ASSESSEE CREDITED THE AMO UNT OF RS. 84 434/- IN CASH ON 21.7.1989. THIS AMOUNT HAS BEEN ENTERED IN THE CAS H BOOK AT PAGE 63. ON EXAMINATION THE AO FOUND THAT IN THE BOOKS OF ACCOUNT OF M/S. R .K. SONS NO SUCH PAYMENT IN CASH 2 WAS REFLECTED ON 21.7.1989. PARTNER OF M/S. R.K. S ONS WAS EXAMINED BY THE AO AND CROSS EXAMINED BY THE LD. A/R OF THE ASSESSEE. IN THE SAID EXAMINATION AND CROSS EXAMINATION SHRI SURESH KUMAR MAINTAINED THAT NO S UCH PAYMENT WAS MADE TO THE ASSESSEE ON 21.7.1989. HOWEVER IT WAS STATED THAT THE PAYMENT WAS MADE IN CASH ON 21.7.1989 TO 24.7.1989. THEREFORE THE AO MADE THE ADDITION UNDER SECTION 68 TO THE INCOME OF THE ASSESSEE. THE LD. CIT (A) HAS CONFIR MED THE ORDER OF THE AO. 4. NOW ASSESSEE IS IN APPEAL HERE BEFORE THE TRIBUN AL. 5. AFTER CONSIDERING THE SUBMISSIONS AND PERUSING T HE MATERIAL ON RECORD I FIND THAT ASSESSEE DESERVES TO SUCCEED ON THE ISSUE INVOLVED. IT IS SEEN THAT THIS IS THE SECOND ROUND BEFORE THE TRIBUNAL AS ON EARLIER OCCASION THE MATT ER WAS SENT TO THE FILE OF AO TO EXAMINE THE ACCOUNT OF M/S. R.K. SONS. AS STATED A BOVE THE ACCOUNT OF M/S. RK SONS WAS EXAMINED AND STATEMENT OF PARTNER OF M/S. R.K. SONS WAS RECORDED. CROSS EXAMINATION WAS ALSO ALLOWED. COPY OF STATEMENT AS WELL AS CROSS EXAMINATION IS PLACED AT PAGES 36 TO 40 OF THE PAPER BOOK. FROM THE STAT EMENT OF PARTNER SHRI SURESH GUPTA IT IS FOUND THAT SHRI SURESH GUPTA HAS ADMITTED THAT THEY HAVE MADE PAYMENT IN CASH BUT IN INSTALLMENTS AND NOT OF ENTIRE PAYMENT ON 21.7.1989 AS CREDITED BY THE ASSESSEE. THE DETAILS OF PAYMENT HAS BEEN MENTIONED IN THE CROSS EXAMINATION STATEMENT PLACED AT PAGES 40 OF THE PAPER BOOK. A SPECIFIC QUESTION WAS RAISED BY THE LD. A/R OF THE ASSESSEE TO THE PARTNER OF M/S. R.K. SONS AND IT WAS ASKED T HAT ANY CASH RECEIPT WAS ISSUED BY THE ASSESSEE ON VARIOUS PAYMENTS MADE BETWEEN 21.7.1989 TO 27.7.1989. IT WAS ANSWERED THAT NO RECEIPT WAS ISSUED TO THEM. IT IS SEEN THA T ASSESSEE WHENEVER RECEIVED THE PAYMENT EITHER BY CHEQUE OR BY CASH PAYMENT RECEIP T HAS BEEN ISSUED. CHEQUE FOR RS. 84 434/- WAS RECEIVED ON 19.7.1989 WHICH WAS DISHON OURED. A RECEIPT OF THE CHEQUE WAS 3 ISSUED BY THE ASSESSEE COPY OF WHICH IS PLACED AT PAGE 30 OF THE PAPER BOOK. THEREAFTER A COPY OF RECEIPT OF RS. 84 434/- RECEIVED IN CASH IS ALSO PLACED AT PAGE 31 OF THE PAPER BOOK. IT SHOWS THAT WHENEVER ANY PAYMENT IS RECEIV ED BY CHEQUE OR BY CASH THE ASSESSEE USED TO ISSUE THE CASH RECEIPT. IT IS QUITE POSSIB LE THAT THERE MAY NOT BE CASH IN HAND IN THE BOOKS OF M/S. R.K. SONS AND ON ACCOUNT OF DISHO NOUR OF CHEQUE M/S. R.K. SONS MADE CASH PAYMENT ON 21.7.1989 TO THE ASSESSEE WHICH WAS CREDITED BY THE ASSESSEE. THEREFORE BENEFIT OF DOUBT HAS TO BE GIVEN TO THE ASSESSEE AND NOT TO THE OTHER PARTY. THE ASSESSEE IS NOT RESPONSIBLE FOR THE ACCOUNTS MAINTA INED BY THE OTHER PARTY. THE ASSESSEE HAS FIRMLY STATED THAT THEY HAVE ISSUED A RECEIPT W HEN THE AMOUNT OF RS. 84 434/- WAS RECEIVED. THEREFORE IN MY CONSIDERED VIEW THE AO AND LD. CIT (A) WERE NOT JUSTIFIED IN NOT ACCEPTING THE EXPLANATION OF THE ASSESSEE. ACC ORDINGLY I DELETE THE ADDITION OF RS. 84 434/-. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . 7. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 18. 11.2011. SD/- ( R.K. GUPTA ) JUDICIAL MEMBER JAIPUR D/- COPY FORWARDED TO :- M/S. NAV BHARAT INDUSTRIES & AGENCIES JAIPUR. THE ITO WARD 1(2) JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 752/JP/2011) BY ORDER 4 AR ITAT JAIPUR.