2014 (7) TMI 249 - AT - Income Tax

Appeal partially allowed for 1997-98 assessment, citing non-compliance with directives.

Gupta Global Finance Ltd. Versus ITO, Ward- 12(3) New Delhi

Gupta Global Finance Ltd. Versus ITO, Ward- 12(3) New Delhi - TMI Issues:Assessment year 1997-98, additions made under section 43(3), appeal before Ld. CIT(Appeal), appeal before ITAT, notice u/s 133(6) to produce parties, non-cooperation of parties, inability to produce bank statements, addition under section 68, appeal against Ld. CIT(Appeal) order.Analysis:The appeal was filed against the order of the Ld. Commissioner of Income Tax (Appeals) for the assessment year 1997-98. The original assessment was completed on 28th March, 2000, with certain additions made under section 43(3). The assessee appealed before the Ld. CIT(Appeal), who partly allowed the appeal. Subsequently, the matter was taken to ITAT, which directed the assessing officer to re-examine the case. The assessing officer issued notices u/s 133(6) to fifteen persons, requesting their presence. However, some persons could not be located or did not cooperate, leading to difficulties in producing them.The assessing officer observed that certain persons failed to provide necessary details or their whereabouts could not be confirmed. Despite multiple attempts to gather information, some individuals were unable to produce required documents such as bank statements or share certificates due to the age of the transactions. Relying on the decision of the Delhi High Court, the assessing officer held that section 68 was applicable, as the genuineness of the cash credit was not established. Consequently, an addition of Rs. 1,79,000 was sustained.The Ld. CIT(Appeal) dismissed the appeal, emphasizing the failure to establish the creditworthiness of the parties involved. The appellant challenged this decision, arguing that since some individuals confirmed the transactions and provided share certificates, the addition should be deleted. However, the departmental representative contended that the appellant did not comply with the Tribunal's directions, justifying the sustained addition.In its final decision, the tribunal considered the submissions and evidence. It noted the specific directions given to the assessing officer to re-examine the cases of the remaining share applicants. Based on the responses received and the inability of some individuals to provide old bank statements, the tribunal partially allowed the appeal. The addition was deleted for certain individuals, considering the circumstances, but upheld for others due to non-compliance with the Tribunal's directives.In conclusion, the tribunal partially allowed the appeal, deleting the addition for some individuals while upholding it for others. The decision was pronounced on 25th June 2014.