Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

The Deputy Commissioner of Income Tax, Central Circle III, Madurai Versus Shri P. Panjurajan and M/s Sony Fireworks Pvt. Ltd.

2016 (5) TMI 468 - ITAT CHENNAI

Addition of income on protective assessment - Held that:- M/s Ajantha Trading Corporation being a limb of M/s Sony Fireworks Private Limited, the income of M/s Ajantha Trading Corporation has t be assessed only in the hands of M/s Sony Fireworks Private Limited. In the absence of partnership deed before the authorities below, this Tribunal is of the considered opinion that the income of M/s Ajantha Trading Corporation has rightly been assessed in the hands of M/s Sony Fireworks Private Limited. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

- Dated:- 1-4-2016 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER For The Appellant : Shri M.S.V.M. Prasad, CIT For The Respondent : Shri V. Rajasekaran, CA ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: All the appeals of the Revenue in respect of two independent assessees are arising out of the search conducted by the Revenue. The respective assessees have also filed crossobjections against the orders of the CIT(Appeals). Therefore, we heard all the appeals .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

thorities. M/s Ajantha Trading Corporation is one of the sister concerns of M/s Sony Fireworks Private Limited. M/s Ajantha Trading Corporation has not filed any return of income till the date of search. Shri P. Panjurajan and Shri Sundarappa Nadar were partners in the partnership firm M/s Ajantha Trading Corporation. The partnership firm M/s Ajantha Trading Corporation involved itself in second sales of fireworks. During the assessment proceeding, the assessee claimed before the Assessing Offic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

so filed a revised return before the Assessing Officer. However, the request of the assessee was rejected by the Assessing Officer and the income of M/s Ajantha Trading Corporation was substantively assessed in the hands of M/s Sony Fireworks Private Limited. However, the very same income was protectively assessed in the hands of Shri P. Panjurajan also in his individual capacity. 4. First, let s take Revenue s appeal in I.T.A. No.2017/Mds/2013 for assessment year 2005-06. 5. Shri M.S.V.M. Prasa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

22/- from the total addition of ₹ 44,76,271/-, confirmed the disallowance of ₹ 18,06,969/-. According to the Ld. D.R., the CIT(Appeals) committed an error in observing that the new credits to the extent of ₹ 25,65,922/- was already allowed for the assessment year 2003-04. Therefore, the CIT(Appeals) is not justified in deleting the addition of ₹ 11,19,465/- and also ₹ 25,65,922/-. 6. On the contrary, Shri V. Rajasekaran, the Ld. Departmental Representative, submitte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tire advance was already offered as income. Therefore, no addition is called for. 7. We have considered the rival submissions on either side and perused the relevant material available on record. After considering the advance of ₹ 25,65,922/- for the assessment year 2003-04 and advance of ₹ 1,13,380/- for the assessment year 2004-05, the balance remaining to be taxed is only ₹ 18,06,969/-. In the absence of any material available on record, this Tribunal is of the considered op .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

income in the hands of M/s Sony Fireworks Private Limited. The assessee-company M/s Sony Fireworks Private Limited is trading in fireworks. Similarly, M/s Ajantha Trading Corporation is also trading in fireworks. Therefore, the advance said to be received and income accrued to M/s Ajantha Trading Corporation need to be assessed in the hands of the assessee-firm. Accordingly, a sum of ₹ 2,07,80,111/- was assessed substantively in the hands of M/s Sony Fireworks Private Limited. However, pro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that income of M/s Ajantha Trading Corporation has to be assessed only in his hands. Therefore, according to the Ld. representative, the CIT(Appeals) ought to have deleted the addition made by the Assessing Officer. 10. We have considered the rival submissions on either side and perused the relevant material available on record. M/s Ajantha Trading Corporation, a partnership firm, was said to be constituted by two persons including Shri P. Panjurajan. However, the partnership deed was not filed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hands of M/s Sony Fireworks Private Limited. This Tribunal is of the considered opinion that M/s Ajantha Trading Corporation needs to be assessed in the hands of M/s Sony Fireworks Private Limited and not in the hands of Shri P. Panjurajan. Now the only contention of the Revenue before this Tribunal is that the bank OD limit was considered in deleting the addition of ₹ 1,66,66,283/-, this Tribunal is of the considered opinion that it is found on record that there was transfer from sister c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ording to the Ld. D.R., even if the name of the customers are same as before the earlier assessment year, the credits introduced during the year under consideration were fresh credits, therefore, these are all different credits than the earlier one. The CIT(Appeals), however, deleted the addition on the ground that these represent the credits found in the earlier assessment year. 12. On the contrary, Shri V. Rajasekaran, the Ld. representative for the assessee, submitted that the income of M/s A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion. According to the Ld. representative, the entire income has to be assessed only in the hands of Shri P. Panjurajan and not in the hands of M/s Sony Fireworks Private Limited. 13. We have considered the rival submissions on either side and perused the relevant material available on record. The CIT(Appeals) after considering the Profit & Loss account and the entire credit statements filed by the assessee, found that there was negative figure. Therefore, there is no accretion to the credit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for sale of fireworks. M/s Ajantha Trading Corporation being a sister concern of the assessee, in the absence of material document of the partnership of the M/s Ajantha Trading Corporation and the assessee, the income has to be assessed in the hands of M/s Sony Fireworks Private Limited substantively. Therefore, the contention of the assessee that it has to be assessed in the hands of Shri P. Panjurajan was rightly rejected. This Tribunal is of the considered opinion that the income of M/s Ajant .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vised return claiming the income of M/s Ajantha Trading Corporation as his income. This Tribunal is of the considered opinion that M/s Ajantha Trading Corporation received advance on behalf of M/s Sony Fireworks Private Limited for supply of fireworks. In the absence of any partnership deed, the contention of the assessee that it has to be assessed in the hands of Shri P. Panjurajan cannot be sustained. As discussed earlier, income of M/s Ajantha Trading Corporation has to be assessed either in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

anjurajan. Therefore, this Tribunal do not find any merit in the cross-objections of the assessee. 15. Now coming to Revenue s appeals in the case of Shri P. Panjurajan, we have heard Shri M.S.V.M. Prasad, the Ld. Departmental Representative and Shri V. Rajasekaran, the Ld. representative for the assessee. The CIT(Appeals) deleted the addition on the ground that substantive addition made in the hands of M/s Sony Fireworks Private Limited was confirmed. Admittedly, substantive assessment was made .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version