Gujarat High Court
Ariel Sarees Pvt Ltd. C/O.Po Onam Dyeing ... vs Income Tax Officer....Opponent(S) on 6 May, 2014
Author: Sonia Gokani
Bench: Akil Kureshi, Sonia Gokani
O/TAXAP/399/2014 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL NO. 399 of 2014
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ARIEL SAREES PVT LTD. C/O.PO ONAM DYEING & PTG. MILLS P
LTD....Appellant(s)
Versus
INCOME TAX OFFICER....Opponent(s)
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Appearance:
MR B S SOPARKAR, ADVOCATE for the Appellant(s) No. 1
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CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI
and
HONOURABLE MS JUSTICE SONIA GOKANI
Date : 06/05/2014
ORAL ORDER
(PER : HONOURABLE MS JUSTICE SONIA GOKANI)
1. Aggrieved by the order dated 31.5.2011 of the Income Tax Appellate Tribunal ("the Tribunal" for short) the assessee has challenged the same by way of present Tax Appeal posing following substantial questions of law for our consideration:-
"(i) Whether in the facts and circumstances of the case the Income Tax Appellate Tribunal was right in law in confirming the order of the CIT(A) on ground No.1, without discussing the findings reached by the said authority holding that there is absence of any evidence or material from the side of the assessee; even though the loans have been taken from group company through Banking Channels?
(ii) Whether in the facts and circumstances of the case the Income Tax Appellate Tribunal was right in law in confirming Ground No.1 with regard to addition of Rs.12,00,000/- u/s.68 of the Income-tax Act, 1961 though the credits have been given through Banking Channel and the identity of the creditor, creditworthiness of the creditor and genuineness of the Page 1 of 4 O/TAXAP/399/2014 ORDER transactions can be verified from the records?"
2. We have heard learned counsel Mr. B.S.Soparkar for the appellant and have examined with his assistance the material on record. Although the questions are more than one, essentially the single question is in respect of the Tribunal not allowing the request of the appellant to remand the matter to the file of the assessing officer.
3. It can be noticed that the assessee company for the assessment year 2006-07 had shown the secured loan and cash credit from the bank. The bank interest was debited and the assessee had given substantial loan amount to three parties on the ground that it was a diversion of the interest bearing funds for non- business purposes, which was added by the assessing officer.
4. Aggrieved by the same, it was challenged by the assessee before CIT(Appeals) and such addition was confirmed. When the matter travelled to the Tribunal, the Tribunal ordered thus:-
"10. It is an admitted fact that assessee did not comply with the statutory notices before the A.O and no details are furnished. It is Page 2 of 4 O/TAXAP/399/2014 ORDER also admitted that even books of accounts were not produced before the A.O or the Ld.CIT(A). The Ld. Counsel for the assessee referred to the statement of facts in which it is stated that assessee can produce books of accounts and other records before the A.O because the business activity of the assessee were closed and no details could be furnished. It is also stated on other details, that details could be filed and A.O could have verified the facts from other parties. This statement of fact would show that assessee did not produce any details and books of accounts before the A.O. No books of accounts and details were furnished before the Ld.CIT(A). If the assessee wanted that matter may be remanded to the file of the A.O assessee should have made out a case on the basis of the facts available on record but assessee did not even raised any ground of appeal before the Tribunal and no evidence or material is produced as to why the assessee did not comply with the statutory notices before the authorities below. Even before the Tribunal the assessee did not take any steps in bringing any evidence on record and even no steps have been taken for admission of the additional evidences. In the absence of any explanation or reasons and evidence, no case is made out for remanding the matter to the file of the A.O on all the grounds of appeal. The assessee throughout remained non cooperative and did not furnish any evidence or material. For cash credit/sundry creditors even no confirmation of the parties have been filed. The ratio of the order of the Tribunal or the High Court could be applied if the facts are available on record. In the absence of any facts, details and evidences on record, no reliance could be placed on the decision cited by the Ld. Counsel for the assessee. Considering the facts of the case and in the absence of any evidence or material on record, we do not find any justification to interfere with the orders of the authorities below. We confirm the order of the CIT(A) and dismiss the appeal of the assessee."Page 3 of 4
O/TAXAP/399/2014 ORDER
5. We see no reason to interfere with the order of the Tribunal. It can be noticed that the books of accounts were neither produced before the assessing officer nor before CIT(Appeals). The Tribunal also noted that no steps were taken in bringing evidence on record, even before the Tribunal and for the purpose of additional evidence, there was absence of any application. Such non-cooperative attitude of the appellant led the Tribunal not to accede to the request of the appellant. Considering these glaring facts coupled with the fact that these findings are completely based on the factual matrix and no perversity could be noticed in such findings which would have given rise to substantial question of law.
6. Tax Appeal resultantly deserves no further entertainment and the same is accordingly dismissed.
(AKIL KURESHI, J.) (MS SONIA GOKANI, J.) SUDHIR Page 4 of 4