M/s J.J.Marketing Services,, v. I.T.O.,

ITA 80/RAN/2013 | 2008-2009
Pronouncement Date: 27-11-2014

Appeal Details

RSA Number 8025114 RSA 2013
Assessee PAN AAAAL5716F
Bench Ranchi
Appeal Number ITA 80/RAN/2013
Duration Of Justice 1 year(s) 3 month(s) 19 day(s)
Appellant M/s J.J.Marketing Services,,
Respondent I.T.O.,
Appeal Type Income Tax Appeal
Pronouncement Date 27-11-2014
Appeal Filed By Assessee
Bench Allotted DB
Tribunal Order Date 27-11-2014
Assessment Year 2008-2009
Appeal Filed On 07-08-2013
Judgment Text
INCOME TAX APPELLATE TRIBUNAL CIRCUIT BENCH RANCHI BEFORE HON'BLE SHRI H.L. KARWA PRESIDENT AND HON'BLE SHRI B.R. BASKARAN ACCOUNTANT M EMBER ITA NO . 8 0 /RAN/201 3 A.Y 2008 - 09 M/S. J.J MARKETING SERVICES VS. I. T.O WARD 1(3) DHANBAD WELFARE SOCIETY D UMKA PAN: A A A AL5716F ( APPELLANT ) ( RESPONDENT ) FOR THE APPELLANT :SH RI VINAY KR.JALAN FCS LD.AR FOR THE RESPONDENT : SHRI RAKESH KR. DAS JCIT LD.DR DATE OF HEARING : 2 7 - 11 - 2014 DATE OF PRONOUNCEMENT: 2 7 - 11 - 201 4 ORDER SHRI B.R. BASKARAN ACCOUNTANT MEMBER : THIS APPEAL F ILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 2 3 - 05 - 2013 PASSED BY LD. CIT(A) AND IT RELATES TO THE ASSESSMENT YEAR 2008 - 09. 2. THE ASSESSEE IS A GGRIEVED BY THE DECISION OF THE LD.CIT(A) IN CONFIRMING THE ADDITION OF RS.11 LAKHS MADE BY THE ASSESSING OFFICER U/S.68 OF THE ACT. 3. W E HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. WE NOTICE THAT THE ASSESSEE IS A FRANCHISE OF M/S. BSNL [ M/S. BHARAT SANHAR NIGAM LIMITED GOVT. OF INDIA UNDERTAKING ] FOR SELLING OF S IM CARDS AND RE - CHARGE COUPONS ETC. ACCORDING TO THE LD.AR THE ASSESSEE IS A WHOLESALE DISTRIBUTOR OF S IM CARDS AND RE - CHARGE COUPONS ETC. IT HAD ENTERED INTO BUSINESS ARR ANGEMENT WITH MANY SMALL DEALERS WHO WERE RUNNING PAN SHOPS AND TEA SHOPS ETC. ACCORDING TO THE LD.AR THE ASSESSEE HAD COLLECTED DEPOSITS FROM ITS CUSTOMERS WHICH WERE APPROXIMATELY RS. 20 000/ - FROM PER PERSON. IN THAT PROCESS THE ASSESSEE COLLECTED SECURITY DEPOSITS AGGREGATING TO RS.11 LAKH . THE SAME WAS DULY DISCLOSED BY THE ASSESSEE IN ITS BALANCE SHEET AS ADVANCE RECEIVED FROM ITS CUSTOMERS . AT THE TIME OF ASSESSMENT PROCEEDINGS THE ASSESSEE COULD NOT 2 ITA NO . 8 0 /RAN/13 M/S. J.J MARKETING SERVICES FURNISH THE FULL DETAILS RELATING TO THE CU STOMERS. HENCE THE ASSESSING OFFICER ASSESSED THE ENTIRE AMOUNT OF RS. 11 LAKHS AS UNEXPLAINED CASH CREDIT U/S. 68 OF THE ACT. THE LD. CIT(A) ALSO CONFIRMED THE SAME. 4. THE LD.AR APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE FILED FU LL DETAILS RELATING TO THE SAID ADVANCE OF RS. 11 LAKHS BEFORE THE LD.CIT(A) IN THE APPELLATE PROCEEDINGS. ACCORDINGLY THE LD.CIT(A) CALLED FOR THE REMAND REPORT FROM THE ASSESSING OFFICER. DURING THE COURSE OF REMAND PROCEEDINGS THE ASSESSING OFFICER I SSUED SUMMONS TO THE CUSTOMERS OF THE ASSESSEE. BUT THERE WAS NO PROPER RESPONSE FROM MANY OF THEM. ACCORDINGLY THE ASSESSING OFFICER CAME TO THE CONCLUSION THAT THE ASSESSEE HAS FAILED TO PROVE THE CLAIM OF ADVANCE RECEIVED FROM THE CUSTOMERS. ACCORDINGL Y THE LD.CIT(A) ALSO CONFIRMED THE SAID ADDITION MADE BY THE ASSESSING OFFICER U/S. 68 OF THE ACT. 5. THE LD.AR FURTHER SUBMITTED THAT THE CUSTOMERS OF THE ASSESSEE ARE SMALL PAN SHOP S AND TEA SHOP S OWNERS ETC . THEY ARE NOT ASSESSED TO INCOME - TAX. HE NCE OUT OF FEAR THEY MIGHT NOT HAVE RESPONDED TO THE NOTICES ISSUED BY THE ASSESSING OFFICER . HE FURTHER SUBMITTED THAT THE ASSESSEE WOULD BE IN POSITION TO PROVE THE BUSINESS DEALING S ENTERED BY IT WITH ITS CUSTOMERS. HE SUBMITTED THAT THE ASSESSEE H AS COLLECTED THE ADVANCE FROM ITS CUSTOMERS AS A MATTER OF BUSINESS PRUDENCE . HENCE THE BUSINESS DEALINGS ENTERED WITH THE CUSTOMERS WOULD PROVE THE GENUINENESS OF THE RECEIPTS OF DEPOSITS. 6. ON THE CONTRARY THE LD.DR PLACED HIS STRONG RELIANCE ON TH E ORDER PASSED BY THE LD.CIT(A). 7. ON CONSIDERATION OF THE RIVAL SUBMISSIONS WE ARE OF THE VIEW THAT THERE IS SOME FORCE IN THE SUBMISSIONS MADE BY THE LD.AR . THE FACT THAT THE ASSESSEE IS A FRANCHISE OF M/S. BSNL GOVT OF INDIA UNDERTAKING IS NOT D ISPUTED . IT IS ALSO UNDISPUTED FACT THAT QUESTION OF UNACCOUNTED PURCHASE/SALES IN RESPECT OF BSNL S IM CARDS AND RECHARGE COUPONS DOES NOT ARISE AT ALL. IT IS ALSO A FACT THAT THE ASSESSEE HAS DONE ITS BUSINESS THROUGH THE PETTY BUSINESS M E N WHO ARE RU NNING 3 ITA NO . 8 0 /RAN/13 M/S. J.J MARKETING SERVICES PAN STALL AND TEA STALL ETC . WHOSE PERMANENCY COULD NOT BE ENSURE D BY ANY ONE. UNDER THE SET OF FACTS THERE IS MERIT IN THE SUBMISSION OF THE ASSESSEE THAT THE ASSESSEE WAS CONSTRAINED TO TAKE ADVANCE AMOUNT FROM ITS CUSTOMERS IN ORDER TO ENSURE PROPER BUSINESS DEALING S FROM THE SAID PETTY SHOP OWNERS. HENCE THE DIFFICULTY EXPRESSED BY THE ASSESSEE ABOUT THE OBTAINING OF CONFIRMATION LETTERS FROM THE SAID PETTY SHOP OWNERS IS UNDERSTANDABL E . UNDER THESE CIRCUMSTANCES WE ARE OF THE VIEW THAT THE CLAIM OF ADVANCE RECEIPT FROM THE CUSTOMERS COULD BE VERIFIED BY EXAMINING THE TRADE DEALINGS BETWEEN THE ASSESSEE AND THE SAID CUSTOMERS . DURING THE COURSE OF HEARING THE LD.AR ALSO SUBMITTED THAT HE WAS IN POSITION TO FURNISH THE DETAILS OF BUSINESS C ARRIED ON BY THE AS S ES S EE FROM THE CUSTOMERS FROM WHOM THE ADVANCE WAS RECEIVED. IN OUR VIEW IF THE ASSESSEE HAS CARRIED OUT THE BUSINESS TRANSACTION WITH THE PARTIES FROM WHOM THE SAID ADVANCES WERE RECEIVED IT MAY BE CONSIDERED THAT THE ASSESSEE HAS P ROVED ABOUT THE GENUINENESS OF THE ADVANCE RECEIPTS IN VIEW OF THE PECULIAR FACTS AND CIRCUMSTANCES PREVAILING IN THE INSTANT CASE. ACCORDINGLY WE SET ASIDE THE ORDER OF THE LD.CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE ASSESSING OFFIC ER WITH THE DIRECTION TO EXAMINE THE BUSINESS DEALING S CARRIED ON BY THE ASSESSEE WITH THE SAID PARTIES FROM WHOM THE ADVANCES WERE RECEIVED BY THE ASSESSEE. IF THE ASSESSEE IS ABLE TO SATISFY ABOUT ITS BUSINESS DEALINGS WITH ITS CUSTOMERS THEN THE CLAI M OF ADVANCE RECEIPT S FROM THE SAID CUSTOMERS MAY BE ACCEPTED. WE ORDER ACCORDINGLY. 8 . IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. PRONOUNCED ACCORDINGLY ON 27 - 11 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DT. 2 7 - 11 - 2014 PLACE : RANCHI PP SR. PS 4 ITA NO . 8 0 /RAN/13 M/S. J.J MARKETING SERVICES COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT : M/S. J.J MARKETING SERVICES C/O SHRI VINAY KR.JALAN 48 CART SARAI ROAD UPPER BAZAR RANCHI 2 THE RESPONDENT: THE ITO W 1(3) D BAD 3. .THE CIT 4.THE CIT(A) 5.DR ITAT CIRCUIT BENCH RANCHI 6. GUARD FILE. TRUE CO PY BY ORDER ASSTT. REGISTRAR 5 ITA NO . 8 0 /RAN/13 M/S. J.J MARKETING SERVICES 1. DATE OF DICTATION ............. 2 7 - 11 - 2014 ....................... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ........................OTHE R MEMBER ... 28 .... - 11 - 2014 ........................ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. ..................... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT................................. . 2 7 - 11 - 2014 ................................................... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S ................ 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK ....................................... 7. DATE ON WHICH THE FI LE GOES TO THE HEAD CLERK ......................................... 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................................................................................................. 9 . DATE OF DESPATCH OF THE ORDER ..............................................................