Case Number: ITA 1681/DEL/2019
Appellant: Jwala Strips & Tubes Pvt Ltd, Faridabad
Respondent: ITO Ward-13(3), New Delhi
Assessment Year: 2010-11
Case Filed On: 2019-02-28
Order Type: Final Tribunal Order
Date of Order: 2020-08-07
Pronounced On: 2020-08-07
The case of Jwala Strips & Tubes Pvt Ltd vs ITO Ward-13(3), New Delhi (ITA 1681/DEL/2019) involves an appeal made by Jwala Strips & Tubes Pvt Ltd against the additions made by the Assessing Officer (AO) for the assessment year 2010-11. Filed on 28th February 2019, the case was adjudicated by the Income Tax Appellate Tribunal (ITAT) in New Delhi. The final tribunal order was issued on 7th August 2020, with the judgment pronounced on the same day.
Jwala Strips & Tubes Pvt Ltd, based in Faridabad, Haryana, did not file its return of income for the assessment year 2010-11. The AO received information that the company was a non-filer and had significant cash deposits in its bank account that were not disclosed. To verify these deposits, a notice under Section 148 was issued on 6th February 2014. Subsequently, the assessment was framed under Sections 147/143(3) on 30th March 2015, determining the total income at Rs. 12,30,750/- by making an addition of Rs. 28,51,021/- under Section 68 of the Income Tax Act.
The appellant raised several grounds of appeal, including:
The ITAT, comprising Sh. Bhavnesh Saini, Judicial Member, and Sh. Anil Chaturvedi, Accountant Member, examined the appeal on 30th July 2020. The tribunal noted that despite multiple opportunities, the appellant did not furnish the required details to substantiate the source of the cash deposits. The CIT(A) had also noted the non-compliance of the appellant with the notices and adjournments.
The tribunal found that the appellant failed to produce necessary documents such as ledger accounts and bills/vouchers to support the claim of cash deposits arising from sales. The appellant’s non-filing of annual returns with the Registrar of Companies (ROC) after the assessment year 2008-09 further weakened their case.
The tribunal concluded that there was no merit in the appellant’s submission and upheld the findings of the lower authorities. The appeal was dismissed, with the tribunal stating:
Considering the totality of the aforesaid facts, we find no reason to interfere with the order of CIT(A). Thus the grounds of the assessee are dismissed.
In the result the appeal of assessee is dismissed.
Order pronounced in the open court on 07.08.2020.
-Sd/- (BHAVNESH SAINI) JUDICIAL MEMBER
-Sd/- (ANIL CHATURVEDI) ACCOUNTANT MEMBER
This case highlights the importance of compliance with procedural requirements and the necessity of providing sufficient evidence to support claims in tax litigation. Similar cases emphasize the consequences of non-compliance and inadequate documentation in tax assessments.
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