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.
1
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
5
|
