Kishanchand Chellaram v. CIT

Royal Aircon Private Limited, Mumbai vs. Income Tax Officer Ward-15(3)(1), Mumbai

In the result, appeal filed by the assessee for assessment year 2012-

Bench: Shri G.S. Pannu (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2012-13 M/S Royal Aircon Pvt. Ltd., The Ito, A-304, Silver Brich, Ward 15(3)(1), Vasant Garden, Mulund (West), Mumbai Mumbai - 400082 Vs. Pan: Aaecr0058A (Appellant) (Respondent) Assessee By : Shri Devendra Jain (Ar) Revenue By : Ms. N. Hemalatha (Sr. Dr) Date Of Hearing: 11/04/2018 Date Of Pronouncement: 27/04/2018

…providing any opportunity of cross examination of the witnesses or documents relied upon by the Assessing Officer and thus violating the law laid down by Honorable Supreme Court in the case of 3 Assessment Year: 2012-13 Kishanchand Chellaram v. CIt (1980) 125 ITR 713 and Andaman Timber Industries v. Commissioner of Central Excise (Civil Appeal No. 4228 of 2006). 2. Without prejudice to ground no. 1, in the facts and in the circumstances of the case and in law, the Learned CIT (A) has erred in upholding disallowance of 15% of purchases from M/s Swastik Trading Company, which is not a hawala dealer. 3. Without…

Bhinmal Contractors Property & Land Developers P. Ltd, Mumbai vs. ACIT 4(1), Mumbai

In the result, appeals are allowed in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Ram Lal Negi, Jm

…Land Developers P. Ltd • CIT V Chandanlal Keshawlal & Co. (1960) 38 ITR 601 (SC) • JK Woolen Mfrs V CIT (1969) 72 ITR 612 (SC) • Alluminium Corp of India Ltd V CIT (1972) 86 ITR 11 (SC) • OMKAR SAHAY MOHEMMAD SAIL 37 ITR 151 (SC) • Kishanchand Chelaram vs CIT 125 ITR 713 (SC) • Friends Clearing Agency (P) Ltd V CIT 237 CTR 464/332 ITR 269 • CIT v. SSP (P) Ltd {2011] 202 Taxman 386/14 taxmann.com 87(Punj & Har) • CIT Faridabad vs.S.S.P. (P.) Ltd. [2011] 14 taxmann.com 87 (Punj. & Har.) 32. Keeping in view the facts and circumstances vis-à-vis nature of assessee’s business and fact that labour payment have been mad…

Shubhangi Sudhakar Telawane, Mumbai vs. Assistant Commissioner of Income Tax, Circle-3, Mumbai

In the result, appeal filed by the assessee for assessment year 2011-

Bench: Shri G.S. Pannu (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2011-12 Shubhangi Sudhakar Telawane, The Acit, Circle-3, Prop. Telawane Cromtek, Room No. 2, B Wing, A-1002, Greeshma Residency-2, 6Th Floor, Ashar It Park, Opp. Dyansadhana Vidya Mandir, Vs. Road No. 16Z, Midc, Thane - 400604 Thane (West) Pan: Abipt2788D (Appellant) (Respondent) Assessee By : Shri Devendra Jain (Ar) Revenue By : Ms. N. Hemalatha (Sr. Dr) Date Of Hearing: 12/04/2018 Date Of Pronouncement: 25/04/2018

…without providing any opportunity of cross examination of the witnesses or providing the copy of documents relied upon by the Assessing Officer and thus violating the law laid down by Honorable Supreme Court in the case of Kishanchand Chellaram v. CIT (1980) 125 ITR 713 and Andaman Timber Industries v. Commissioner of Central Excise (Civil Appeal No. 4228 of 2006). 5. In the facts and in the circumstances of the case and in law, the Learned CIT (A) has erred in sustaining addition of Rs. 10,03,995/- being entire alleged bogus purchases, merely on surmises and conjectures relying upon non jurisdictional High Cour…

DCIT 4(3)(2), Mumbai vs. Sunrise Metallic (India) P.Ld, Mumbai

In the result, appeal of Revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm Dcit 4(3)(2) Vs. M/S. Sunrise Metallic R.No.649, 6Th Floor (India) Pvt. Ltd., Aayakar Bhavan Shiva Industrial Estate, Mumbai – 400 020 Near Tata Power House Lake Road, Bhandup (W) Mumbai – 400 078 Pan/Gir No.Aajcs2965E Appellant) Respondent) ..

…cross examine such party so that all sides of the question are properly brought on record. These rights of the assessee are based on the concept of natural justice. In this regard, reference is made to and reliance is placed on- i) KishanchandChellaramVs CIT 125 ITR 713 (SC), ii) CIT Vs East Coast Commercial Co. Ltd. 63 ITR 449 (SC) iii) C. Vasantlal and Co. Vs CIT 45 ITR 206 (SC) and iv) Dhakeshwari Cotton Mills Ltd. Vs. CIT 26 ITR 75 (SC). 7 M/s. Sunrise Metallic (India) Pvt. Ltd., In view of above judicial pronouncements, any assessment passed in violation of principles of natural justice is void in the sco…

Jet Chemicals P.Ltd, Kalyan vs. Ast CIT Cir 1, Kalyan

Bench: Shri G. S. Pannu, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 3707/Mum/2017, (निर्धारणवर्ा / Assessment Year: 2010-11)

…and K.P. Varghese Vrs. ITO (1981) 131 ITR 579 (SC). Apart from above, we have further noticed that the AO had relied on third party information without affording the assessee to cross examination. Reliance is placed on Kishan Chand Chella Ram Vrs. CIT (1980) 125 ITR 713 (SC) and the observation of third party cannot be the basis of addition. In this respect, we placed reliance in the case of ITO Vrs. Permanand (2008) 25 SOT 11. In the case of Mather & Platt (India) Ltd Vrs. CIT 168 ITR 493 Cal. wherein it was held that if the payments were made by account payee cheques then this fact would overshadow all other s…

Prajwal Arvind Kamath, Thane vs. DCIT Cir. 3, Thane

In the result, appeal of the assessee is partly allowed

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Blemrs. Prajwal Arvind Kamath V. Dy. Commissioner Of Income Tax 2004, Fiona, Hiranandani Estate Circle – 3, Thane Ghodbunder Road, Patlipada Mumbai Thana – 400 607 Pan No: Aiupk 5845 K (Appellant) (Respondent) Assessee By : Shri Devendra Jain Department By : Shri Purushottam Kumar

…refore he submitted that the Assessment Order dated 20.02.2014 is bad in law as held in following cases: (a) Andaman Timber Industries v. CCE (SC) [Appeal No. 4228 of 2016]. (b) H R Mehta v. ACIT [72 taxmann.com 110 (Bombay)] (c) Kishanchand Chellaram v. CIT [125 ITR 713] He further submitted that the said DDIT(Inv) report is prior to the date of passing original assessment order. The department never relied on the said report before the CIT(A) or ITAT in the 1st round. 5 Mrs. Prajwal Arvind Kamath 7. Ld. Counsel for the assessee further inviting our attention to the order of the co-ordinate 'F' Bench of Mumbai…