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M/s Rita Plastics Pvt. Ltd., A-53, Vishal Enclave, New Delhi-110027 Vs. Income Tax officer, Ward 15(4), New Delhi.
July, 16th 2019
ITA No. 3000/D/2016
Assessment year 2011-12


            IN THE INCOME TAX APPELLATE TRIBUNAL
                  DELHI BENCH `E' NEW DELHI

BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER
                       AND
      SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER

                           ITA NO. 3000/DEL/2016
                          Assessment Year: 2011-12
    M/s Rita Plastics Pvt. Ltd.,             Income Tax officer,
    A-53, Vishal Enclave,                    Ward 15(4),
    New Delhi-110027                   vs    New Delhi.
    (PAN: AABCR3215J)

    Appellant                                Respondent

                     Assessee by : Shri Dharender Kumar, CA
                   Department by: Ms Rinku Singh, Sr. DR

                                   Date of hearing : 15.07.2019
                           Date of pronouncement : 15.07.2019

                               ORDER

PER SUDHANSHU SRIVASTAVA, JM:
        This appeal is preferred by the assessee against the order of

the ld. C.I.T.(A)-7, New Delhi dated 25.04.2016 pertaining to

assessment year 2011-12 on the following grounds: -

  "(1) That the order of the Learned CIT (Appeals)-7, New
      Delhi is arbitrary, biased and bad in law and in facts
      and circumstances of the case in so far as it confirms
      the order of the Assessing Officer.

  (2)    That the Learned CIT(appeals) has grossly erred in
        confirming the action of the Assessing Officer in
        making an addition of Rs. 45,46,161/- under section
        41(1) of the Act without appreciating evidence brought
        on record during the course of appellate proceedings
        establishing the outstanding balance of the creditors.

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ITA No. 3000/D/2016
Assessment year 2011-12




  2.1 That the Learned CIT (appeals) has grossly erred in
      confirming the addition made by the Assessing Officer
      under section 41(1) of the Act by incorrectly concluding
      that the liabilities of sundry creditors as at 31.03.2011
      did not subsist in spite of the clinching evidence
      having been filed during the course of appellate
      proceedings to establish the existence of trading
      liability.

  (3)    That the appellant craves to add, alter or delete the
        above grounds of appeal at the time of hearing."







2.0     The brief facts of the case are that during the year, the

assessee company was engaged in the business of manufacturing

of corrugated boards and boxes. The return of income was filed

declaring the income at Nil and after initially processing the

return u/s 143(3) of the Income Tax Act, 1961 (hereinafter called

'the Act'), the case was selected for scrutiny. During the course of

assessment proceedings, the Assessing Officer noticed that there

was a remission of liability u/s 41(1) to the tune of Rs.

45,46,161/-         and the assessee was asked to file confirmation

from the creditors regarding the same.         However, the assessee

could not file any supporting evidences in this regard nor were

any supporting bills or books of accounts produced before the

Assessing Officer.        The Assessing Officer proceeded to add this

amount to the income of the assessee along with some other


                                     2
ITA No. 3000/D/2016
Assessment year 2011-12


additions.        The assessee's appeal against the additions was

dismissed because of the reason that the assessee could not file

supporting evidences with respect to the remission of liability u/s

41(1) of the Act.

2.1      Now, the assessee is in appeal before this Tribunal and has

challenged       the      confirmation       of   the   addition   by   the   ld.

Commissioner of Income Tax(A).

2.2 The ld. AR submitted that the ld. Commissioner of Income

Tax(A) was incorrect in confirming the addition by incorrectly

concluding that the liabilities of sundry creditors as on 31.3.2011

did not subsist although clinching evidence had been filed during

the course of appellate proceedings to establish the existence of

the trade liability.        The ld. AR submitted that in view of the

evidences filed before the ld. Commissioner of Income Tax(A), the

assessee should be allowed the benefit of remission of trade

liability.

3.0      In response, the ld. Sr. DR vehemently supported the order

of both the lower authorities.

3.1      On a query from the Bench, both the parties before us

agreed that the issue can be restored to the file of the lower









                                         3
ITA No. 3000/D/2016
Assessment year 2011-12


authorities       for     re-examination   and   re-appreciation   of   the

evidences.

3.2      Therefore, in view of the facts of the case and the

concurrence of both the parties, we deem it appropriate to restore

the file to the office of the ld. Commissioner of Income Tax(A) to

re-examine the issue after duly considering the evidences which

the assessee might file in support of its claim and, thereafter,

pass an order in accordance with law after giving due opportunity

to the assessee.

4. In the result, the appeal of the assessee stands allowed for

statistical purposes.

 Order pronounced in the open court on 15th July, 2019.


          Sd/-                                        Sd/-

 (B.R.R. KUMAR)                            (SUDHANSHU SRIVASTAVA)
ACCOUNTANT MEMBER                             JUDICIAL MEMBER


Dated: 15th JULY, 2019
`GS'




                                       4
ITA No. 3000/D/2016
Assessment year 2011-12


Copy forwarded to: -

       1)     Appellant
       2)     Respondent
       3)     CIT(A)
       4)     CIT
       5)     DR
                     By Order
                                                    ASSTT. REGISTRAR


Date of dictation

Date on which the typed draft is placed before the
dictating Member
Date on which the typed draft is placed before the Other
Member

Date on which the approved draft comes to the Sr.PS/PS
Date on which the fair order is placed before the
Dictating Member for pronouncement

Date on which the fair order comes back to the Sr.PS/PS
Date on which the final order is uploaded on the website
of ITAT
Date on which the file goes to the Bench Clerk
Date on which the file goes to the Head Clerk

The date on which the file goes to the Assistant
Registrar for signature on the order
Date of dispatch of the Order




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