ITO,, Chandigarh v. M/s Skyguard Holding Pvt. Ltd.,`, Chandigarh

ITA 958/CHANDI/2010 | 2006-2007
Pronouncement Date: 31-03-2011 | Result: Dismissed

Appeal Details

RSA Number 95821514 RSA 2010
Assessee PAN AACCS1672B
Bench Chandigarh
Appeal Number ITA 958/CHANDI/2010
Duration Of Justice 9 month(s) 8 day(s)
Appellant ITO,, Chandigarh
Respondent M/s Skyguard Holding Pvt. Ltd.,`, Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 31-03-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 31-03-2011
Date Of Final Hearing 31-03-2011
Next Hearing Date 31-03-2011
Assessment Year 2006-2007
Appeal Filed On 22-06-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL: B BENCH: CH ANDIGARH BEFORE SHRI D K SRIVASTAVA AM AND MS. SUSHMA CHOWL A JM ITA NO. 958/CHANDI/2010 ASSESSMENT YEAR: 2006-07 I.T.O. WARD 1(3) CHANDIGARH V. M/S SKYGUARD HOL DING PVT LTD SCF 26 SECTOR 8 CHANDIGARH PAN: AACCS 1672B APPELLANT BY: SMT. JAISHREE SHARMA RESPONDENT BY: SHRI VINEET KRISHAN ORDER D K SRIVASTAVA: THE APPEAL FILED BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A) ON 31.3.2010 ON THE FOLLO WING GROUNDS: 1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E OF THE CASE THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 17 15 906/- MADE BY THE AO ON ACCOUNT OF INTEREST @ 12% PER ANNUM. THE ASSESSEE COULD NOT FURNISH ANY SUPPORTING EVIDENCE IN RESPECT OF EXPEDIENCY OF THE SE LOANS WHICH WERE ADVANCED FOR NON-BUSINESS PURPOSES. 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS. 72 000/- MADE B Y THE AO ON ACCOUNT OF SALARY WAGES AND BONUS. THE ASSESSEE COULD NOT PROVE THE G ENUINENESS OF THESE EXPENDITURE DURING THE ASSESSMENT PROCEEDINGS. 3 IT IS PRAYED THAT THE ORDER OF THE LD. CIT(A) BE CANCELLED AND THAT OF THE AO BE RESTORED. 2. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY CON SIDERED THEIR SUBMISSIONS. 3. APROPOS GROUND NO 1 THE AO CALCULATED INTEREST @ 12% ON THE INTEREST FREE ADVANCES GIVEN FOR NON-BUSINESS PURPOSES AND ADDED THE SAME TO THE INCOME WHICH ON APPEAL HAS BEEN DELETED. AT THE TIME OF HEARING T HE LEARNED COUNSEL FOR THE ASSESSEE FILED A COPY OF ANNUAL ACCOUNTS AND SUBMITTED THAT THE ASSESSEE HAD NOT CLAIMED ANY INTEREST AS EXPENDITURE AND THEREFORE THE AO WAS CO MPLETELY UNJUSTIFIED IN MAKING THE IMPUGNED ADDITION. THE FACTS AS AFORE-STATED BY THE LEARNED COUNSEL FOR THE ASSESSEE HAVE NOT BEEN REBUTTED BY THE DEPARTMENT. THE INCOM E AND EXPENDITURE ACCOUNT FILED BY THE ASSESSEE INDICATES THAT THE ASSESSEE HAS NOT DE BITED ANY INTEREST TO THE SAID ACCOUNT. IN THIS VIEW OF THE MATTER THE AO WAS NOT JUSTIFIE D IN MAKING THE IMPUGNED ADDITION. GROUND NO. 1 TAKEN BY THE DEPARTMENT IS DISMISSED. 5. APROPOS GROUND NO. 2 TAKEN BY THE DEPARTMENT TH E LD. CIT(A) HAS DELETED THE IMPUGNED ADDITION/DISALLOWANCE MADE BY THE AO WITH THE FOLLOWING OBSERVATIONS: 13 I HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIO NS AND THE ASSESSMENT RECORD AND OTHER MATERIAL FILED BEFORE ME. I FIND THAT THE ORIGINAL VOUCHERS WERE FILED AT THE TIME OF ASSESSMENT PROCEEDINGS WHICH W ERE TAKEN ON RECORD BY THE AO. I HAVE EXAMINED THE VOUCHERS AND I DO NOT FIND ANY CONCLUSIVE EVIDENCE TO SAY THAT THESE WERE FABRICATED. THE LEAST THAT WAS REQUIRED WAS TO FURTHER 1246/CHANDI/2010 2 2 CORROBORATE THE DEFICIENCIES IF ANY WITH SOME EVIDE NCE RATHER THAN DISALLOWING 50% OF THE EXPENSES ON ESTIMATES. IN MY VIEW THE ADDITION CANNOT BE SUSTAINED. THE ADDITION SO MADE IS THEREFORE DELETED ALLOWING ASSESSEES 5 TH GROUND OF APPEAL 6. THE DEPARTMENT HAS NOT BEEN ABLE TO REBUT THE AF ORESAID FINDINGS RECORDED BY THE LD. CIT(A). IN THIS VIEW OF THE MATTER THE ORDER PASSED BY THE LD. CIT(A) IN THIS BEHALF IS CONFIRMED. GROUND NO. 2 IS DISMISSED. ORDER PRONOUNCED ON MARCH 2011 (SUSHMA CHOWLA) (D K SRIVASTAVA) JUDICIAL MEMBER ACCOUNTANT MEM BER CHANDIGARH: THE MARCH 2011 SURESH COPY TO: 1. THE APPELLANT I.T.O. WARD 1(3) CHANDIGARH 2. THE RESPONDENT M/S SKYGUARD HOLDING PVT LTD. CH ANDIGARH 3. THE CIT(A) CHANDIGARH 4. THE LD. CIT CHANDIGARH 5. THE D.R INCOME-TAX DEPARTMENT CHANDIGARH TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT CHANDIGARH