Case Number: ITA 5542/DEL/2019
Appellant: ACIT, Circle 26(2), New Delhi
Respondent: Vishal Chain & Jewellery Pvt. Ltd., New Delhi
Assessment Year: 2006-07
Result: Appeal Dismissed
Case Filed on: 2019-06-25
Order Type: Final Tribunal Order
Date of Order: 2023-02-08
Pronounced on: 2023-02-08
The case in question pertains to an appeal filed by the Assistant Commissioner of Income Tax (ACIT), Circle 26(2), New Delhi against Vishal Chain & Jewellery Pvt. Ltd., New Delhi. The appeal relates to the assessment year 2006-07. The primary contention of the appeal was centered around certain tax discrepancies which prompted the filing of the appeal by the ACIT.
The appeal was filed by the ACIT against the order passed by the Commissioner of Income Tax (Appeals)-34, New Delhi, on the grounds of disputing the tax assessments and subsequent orders that were unfavorable to the department. The case was part of a broader effort by the department to address discrepancies and seek redressal in higher appellate forums.
The case was heard before the Income Tax Appellate Tribunal (Delhi Bench “F”) in New Delhi on 8th February 2023. The bench was comprised of Shri N.K. Billaiya, Accountant Member, and Ms. Astha Chandra, Judicial Member. The hearing was attended by Shri Vivek Vardhan, Senior Departmental Representative (DR), while Shri Y P Rawala, CA, represented the respondent, Vishal Chain & Jewellery Pvt. Ltd.
The ACIT filed the appeal against the order of the CIT(A) for the assessment year 2006-07. The ACIT contested the findings and sought a revision of the assessments which were initially decided in favor of Vishal Chain & Jewellery Pvt. Ltd. The dispute primarily involved the applicability and interpretation of certain tax provisions and the resultant tax liabilities.
The Revenue raised several grounds of appeal, challenging the deletion of additions made by the Assessing Officer (AO) regarding purchases from M/s Bajaji Chain & Co. and M/s Bengali Chain & Co., which were treated as bogus by the AO. The Revenue argued that the CIT(A) had erred in law and on facts by deleting these additions without appreciating the detailed findings given by the AO in the remand report.
The Tribunal reviewed the contentions of the revenue and the applicable evidence. It noted that the CIT(A) had provided opportunities to both the AO and the appellant for presenting their cases. The evidences furnished by the appellant during the appellate proceedings in respect of purchases from Bengali Chain & Co. and Balaji Chain & Co. were sent to the AO for his comments. The AO made detailed investigations and issued summons under section 131 to both parties, who confirmed that the appellant had made purchases from them and furnished necessary evidences in support of the transactions.
The Tribunal observed that the AO had not justified the additions in respect of purchases made from both parties at Rs. 2,17,64,152/-. The CIT(A) had rightly deleted the addition made by the AO based on the furnished documents and confirmations from the concerned parties.
The appeal filed by the ACIT, Circle 26(2), New Delhi against Vishal Chain & Jewellery Pvt. Ltd. was dismissed as the Tribunal found no merit in the arguments presented by the Revenue. The Tribunal held that the CIT(A) had provided ample opportunities to both parties and made the decision based on substantial evidence confirming the genuineness of the transactions. Consequently, the Tribunal upheld the order of the CIT(A) deleting the additions made by the AO.
The order was pronounced in the open court on 8th February 2023 by the bench comprising Shri N.K. Billaiya, Accountant Member, and Ms. Astha Chandra, Judicial Member.
Members Present:
Shri N.K. Billaiya, Accountant Member
Ms. Astha Chandra, Judicial Member
Document Reference:
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)-34, New Delhi
5. DR: ITAT
ASSISTANT REGISTRAR, ITAT NEW DELHI
Appeal by ACIT Circle 26(2) against Vishal Chain & Jewellery Pvt. Ltd. in ITA No. 5542/DEL/2019
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