M/s. Piyare Lal Hari Singh, New Delhi v. ITO, New Delhi

ITA 4346/DEL/2009 | 2006-2007
Pronouncement Date: 29-01-2010 | Result: Allowed

Appeal Details

RSA Number 434620114 RSA 2009
Assessee PAN AABFM1478K
Bench Delhi
Appeal Number ITA 4346/DEL/2009
Duration Of Justice 2 month(s) 16 day(s)
Appellant M/s. Piyare Lal Hari Singh, New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 29-01-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted F
Tribunal Order Date 29-01-2010
Date Of Final Hearing 13-01-2010
Next Hearing Date 13-01-2010
Assessment Year 2006-2007
Appeal Filed On 13-11-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F: NEW DELHI BEFORE SHRI C.L. SETHI JUDICIAL MEMBER & SHRI SHAMIM YAHYA ACCOUNTANT MEMBER ITA NO. 4346/DEL/2009 ASSESSMENT YEAR : 2006-07 M/S. PIYARE LAL HARI SINGH 1/200 SADAR BAZAR DELHI CANTT. NEW DELHI VS. INCOME TAX OFFICER WARD 38(3) NEW DELHI. (APPELLANT) (RESPONDENT) PAN : AABFM 1478 K APPELLANT BY : SHRI V.K. DHING RA CA RESPONDENT BY : SHRI ISHTIYAQUE AHMAD SR. DR O R D E R PER: C.L. SETHI J.M. THE ASSESSEE IS IN APPEAL AGAINST THE ORDER DATED 09.06.2009 PASSED BY THE LD. CIT(A) IN THE MATTER OF AN ASSESSMENT MA DE U/S. 143(3) OF THE INCOME TAX ACT 1961 (THE ACT) FOR THE A.Y. 2006- 07. 2. THE ONLY EFFECTIVE GROUND RAISED BY THE ASSESSEE IS AS UNDER:- THE LEARNED CIT(APPEALS) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF THE AO WHI LE MAKING AN ESTIMATED ADDITION OF RS. 3 00 000/- ON ACCOUNT OF MISC. PURCHASES WITHOUT ANY JUSTIFICATION AND MATERIAL ON RECORD. 3. THE ASSESSEE FILED ITS RETURN OF INCOME DECLARIN G TOTAL INCOME AT RS. 67 674/- ON 310.10.2006. THE CASE WAS SELECTED FOR SCRUTINY. NOTICE U/S. 143(2) DATED 11.09.2007 WAS ISSUED AND SERVED UPON THE ASSESSEE. AFTER ITA NO. 4346/DEL/2009 PAGE 2 OF 4 HEARING THE ASSESSEE AND CONSIDERING THE MATERIALS ON RECORD THE AO COMPLETED THE ASSESSMENT U/S. 143(3) OF THE ACT BY DETERMINING THE TOTAL INCOME AT RS. 3 83 930/-. IN THE ASSESSMENT THE A O HAS MADE THE ADDITION OF RS. 3 00 000/- BEING DISALLOWANCE OUT O F PURCHASES FOR WANT OF PROOF. 4. THE ASSESSEE IS A PARTNERSHIP FIRM ENGAGED IN TH E BUSINESS OF CIVIL CONSTRUCTION. THE ASSESSEE IS CONSTRUCTING RESIDEN TIAL COMPLEXES MAINLY FOR M2K INFRASTRUCTURE LTD. AND TODAY HOME INFRASTR UCTURE PVT. LTD. THE ASSESSEE HAD SHOWN GROSS CONTRACT RECEIPTS OF RS. 74 18 185/- AND CLOSING WORK-IN-PROGRESS AT RS. 1 72 75 000/-. THE ASSESSEE GOT ITS ACCOUNTS AUDITED AS REQUIRED U/S. 44AB OF THE ACT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS VARIOUS DETAILS CALLED FOR WERE FILED AND WERE ALSO EXAMINED BY THE AO. THE ASSESSEE WAS ASKED INTER-ALIA TO FILE DETAILS OF MATERIAL PURCHASE. THE ASSESSEE FILED A LIST OF PARTIES SHOWING PURCHASES OF RS. 92 23 235/-. COPY OF BILLS IN THI S REGARD WERE PRODUCED AND IN RESPECT OF SOME OF PARTIES COPY THEREOF WAS ALSO FILED. IT WAS NOTICED BY THE AO THAT AN AMOUNT OF RS. 13 03 7071/ - HAD SHOWN UNDER MISCELLANEOUS EXPENSES. NO DETAILS WERE FILED IN T HIS REGARD. IN THE ABSENCE OF DETAILS AND KEEPING IN VIEW THE LOW PROF IT RATE DECLARED BY THE ASSESSEE AN AMOUNT OF RS. 3 00 000/- WAS DISALLOWE D BY THE AO FOR WANT OF PROPER EVIDENCES. ITA NO. 4346/DEL/2009 PAGE 3 OF 4 5. ON AN APPEAL THE CIT(A) CONFIRMED THE AOS ORD ER BY OBSERVING THAT THE DETAILS FILED BY THE ASSESSEE WERE NOT SU PPORTED BY ANY EVIDENCE OR DETAILS. THE ASSESSEE FILED ONLY BREAK-UP OF TH ESE AMOUNTS AND AMOUNTS HAVE BEEN MENTIONED AGAINST SOME OF THE PAR TIES. THE CIT(A) THEREFORE CONFIRMED THE ADDITION. 6. HENCE THE ASSESSEE IS IN APPEAL BEFORE US. 7. WE HAVE HEARD BOTH THE PARTIES AND HAVE CAREFULL Y PERUSED THE ORDERS OF THE AUTHORITIES BELOW. 8. AS ALREADY NOTED ABOVE THE ASSESSEE ENGAGED IN THE BUSINESS OF CIVIL CONSTRUCTION IN THE COURSE OF WHICH THE ASSES SEE USED TO MAKE PURCHASES OF RAW MATERIALS ETC. MISCELLANEOUS PURC HASES WERE MADE TO THE EXTENT OF RS. 13 03 071/- AND BREAK-UP OF THES E DETAILS WERE FILED BY THE ASSESSEE. NAME OF THE PARTIES WERE ALSO MENTIO NED. THESE ARE THE MISCELLANEOUS PURCHASES MADE BY THE ASSESSEE DURING THE YEAR WHICH WERE NOT SUPPORTED BY ANY BILLS. HOWEVER THE AO H AS NOT POINTED OUT ANY ITEM OF THE AFORESAID AMOUNT OFO RS. 13 03 071/ - WHICH COULD BE SAID TO BE IN THE NATURE OF SHAM OR BOGUS PURCHASES. OU T OF THE AFORESAID AMOUNT OF RS. 13 03 071/- THE AO HIMSELF ACCEPTED THE PURCHASES OF RS. 10 03 071/-. HE HAS NOT GIVEN ANY REASON AS TO WHY LUMP-SUM AMOUNT OF RS. 3 00 000/- HAS BEEN CONSIDERED FOR THE PURPOSE OF DISALLOWANCE. THE AO HAS NOT MADE ANY ENQUIRY FROM THE RESPECTIVE PAR TIES. THE PAYMENT ITA NO. 4346/DEL/2009 PAGE 4 OF 4 MADE TOWARDS PURCHASES HAS NOT BEEN DOUBTED. WE T HEREFORE DO NOT FIND ANY BASIS TO DISALLOW THE LUMP-SUM AMOUNT OF RS. 3 00 000/- OUT OF THE MISCELLANEOUS PURCHASES OF RS. 13 03 071/-. THE AO SHOULD HAVE POINTED OUT SOME ADEQUATE MATERIAL IN SUPPORT OF HIS ACTION OF DISALLOWING THE LUMP-SUM AMOUNT OF RS. 3 00 000/- OUT OF THE TOTAL PURCHASES OF RS. 13 03 071/-. WE THEREFORE DELETE THE DISALLOWANC E AND DIRECT THE AO TO MODIFY THE ASSESSMENT ORDER ACCORDINGLY. 9. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 10. THIS DECISION IS PRONOUNCED IN THE OPEN COURT O N 29 TH JANUARY 2010. SD/- (SHAMIM YAHYA) ACCOUNTANT MEMBER SD/- (C.L. SETHI) JUDICIAL MEMBER DATED: 29 TH JANUARY 2010 *NITASHA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT NEW DELHI. BY ORDER DEPUTY REGISTRAR