Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: TDS :: ACCOUNTING STANDARD :: VAT Audit :: form 3cd :: cpt :: articles on VAT and GST in India :: VAT RATES :: due date for vat payment :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
From the Courts »
 M/s Fiberfill Engineers Vs. Deputy Commissioner Of Income Tax
 Commissioner Of Income Tax, Del Vs. Mrs. Tara Sinha
 Unitech Wireless (Tamil Nadu) Pvt. Ltd. Vs. Principal Commissioner Of Income Tax, New Delhi & Ors.
 Pr. Commissioner Of Income Tax – 3 Vs. Delhi State Industrial Infrastructure Development Corp. Ltd.
 CIT vs. D. K. Garg (Delhi High Court)
 The Citizens Cooperative Society Ltd vs. ACIT (Supreme Court)
 Digipro Import & Export Pvt. Ltd vs. UOI (Delhi High Court)
  CIT vs. Hindustan Petroleum Corporation Ltd (Supreme Court)
  DCIT vs. Hita Land Private Limited (ITAT Mumbai)
 GTC Industries Limited vs. ACIT (ITAT Mumbai) (Special Bench)
 Premlata Purshottam Paldiwal vs. CIT (Bombay High Court)

Income Tax Officer, Ward-1(1), Ghaziabad. Vs. Smt. W/o Shri Pramod Gupta, A-81, Chander Nagar, Ghaziabad.
August, 30th 2014
                IN THE INCOME TAX APPELLATE TRIBUNAL
                                  `A' : NEW DELHI
                     DELHI BENCH `A

           BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND
                            VARKEY, JUDICIAL MEMBER
                SHRI ABY T. VARKEY,

                              No.636/Del/2013
                          ITA No.
                                         2008-09
                       Assessment Year : 2008-


Income Tax Officer,             Vs.    Smt. Anita Gupta,
Ward-
Ward-1(1),                             W/o Shri Pramod Gupta,
Ghaziabad.                             A-81, Chander Nagar,
                                       Ghaziabad.
                                       PAN : AFVPG8914K.
      (Appellant)                         (Respondent)

              Appellant by      :     Ms. Y. Kakkar, Sr.DR.
              Respondent by     :     None.

                                 ORDER

PER G.D. AGRAWAL, VP :
       This appeal by the Revenue is directed against the order of
learned CIT(A), Ghaziabad dated 7th November, 2012 for the AY 2008-
09.


2.     Ground No.1 of the Revenue's appeal reads as under:-


       "The ld.CIT(A) has erred in law & on facts by deleting the
       addition of Rs.12,31,850/- without appreciating the fact
       that assessee has failed to discharge its onus to prove the
       identity, creditworthiness and genuineness of the
       transaction."

3.     Ground No.2 is only arguments in support of above ground of
appeal.


4.     At the time of hearing before us, none appeared on behalf of the
assessee despite the service of notice by registered post. Therefore,
we proceed to decide the appeal ex-parte qua the assessee.
                                    2                          ITA-636/Del/2013







5.    We have heard the arguments of learned DR and perused
relevant material placed before us. The Assessing Officer disallowed
20% of the creditors with the following finding in the assessment
order:-


      "Creditors :
              As per return of income you have shown nett. Income
      at Rs.227140/- against turnover Rs.2,13,96,205/- resultant
      N.P. is almost @ 1.06% which is very low for an export
      business concern and Commission income at Rs.28,945,
      interest income at Rs.21,917/- and other income at
      Rs.19,13,425/-.        You have shown creditors for
      Rs.56,90,895/- and loans for Rs.4,68,375/- (=61,59,270/-).
      Business cannot be run without any credit. Creditors are
      an inevitable part of business.          You have failed to
      discharge your onus of proving the creditors/loans. In
      absence of any details it is not possible to ascertain the
      identity, creditworthiness of the creditors/loans and
      genuineness of the transaction. To be prudent it would be
      fair if only 20% of the creditors/loans i.e. Rs.12,31,850/- are
      considered as not verifiable and added to your income.
      (Proposed addition Rs.12,31,850/-)."

6.    Learned CIT(A) deleted the addition.      The Revenue, aggrieved
with the order of learned CIT(A), is in appeal before us.


7.    After considering the arguments of learned DR and the facts of
the case, we do not find any justification to interfere with the order of
learned CIT(A).   The Assessing Officer himself has recorded that the
turnover of the assessee is more than `2 crores and in the business,
creditors are an inevitable part. However, despite observing this, he
proceeded to add 20% of the creditors/loan as unverifiable. We are
unable to accept any justification for the presumption that 20% of the
creditors are not verifiable. The addition for unexplained cash credit, if
any, can be made for a specific creditor and there cannot be a lump
sum or adhoc addition of certain percentage of the creditors.
                                   3                           ITA-636/Del/2013



Moreover, on page 19 paragraph 5.3, the CIT(A) has recorded the
following finding:-


      "During appeal, the appellant has contended that all the
      un-secured loans are old loans and the same is apparent
      from balance sheet and its ledger accounts. Thus, I agree
      that appellant's contention that no addition can be made in
      respect of un-secured loans which are only brought forward
      balances from earlier years."




8.    From the above, it is evident that all the unsecured loans are old
loans and, therefore, no addition can be made in this year in respect of
brought forward balance of those years.      In view of the above, we
uphold the order of learned CIT(A) and dismiss the appeal filed by the
Revenue.


9.    In the result, the appeal of the Revenue is dismissed.
      Decision pronounced in the open Court on 29th August, 2014.


                      Sd/-                            Sd/-
                  VARKEY)
          (ABY T. VARKEY)                           AGRAWAL)
                                              (G.D. AGRAWAL)
         JUDICIAL MEMBER                      VICE PRESIDENT

Dated : 29.08.2014
VK.

Copy forwarded to: -

1.    Appellant                Officer,
                 : Income Tax Officer,
                   Ward-1(1), Ghaziabad.
                   Ward-
2.    Respondent : Smt. Anita Gupta,
                   W/o Shri Pramod Gupta,
                   A-81, Chander Nagar, Ghaziabad.
                   A-

3.    CIT
4.    CIT(A)
5.    DR, ITAT

                              Assistant Registrar

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions