- (1.) By Court This Tax Appeal is preferred against the order of Income Tax Appellate Tribunal, Circuit Bench, Ranchi dated 08.10.2012 passed in I.T.A. No. 20/Ran/12 deleting the entire addition of Rs.36,78,410/ made by the Assessment Officer for the Assessment Year 200809 raising the following questions of law: (I) Whether on the facts and in the circumstances of the Case the learned ITAT has not erred in ignoring the facts and circumstances available before it as emerged from the finding of the decision of the CIT(A)? (II) Whether on the facts and in the circumstances of the Case the learned ITAT is justified accepting the fictitious debtors of Rs.36,78,410/ from 7 parties for which no details were furnished and the same were held as nonexistence by the AO & CIT(A)?
(2.) The Assessee filed its Return of Income for the Assessment Year 200809 on 29.03.2008 declaring loss of income of Rs.9,00,374/. The return was processed under Section 143(1) of the Income Tax Act, 1961. (i) The outstanding liability of VAT Rs.1,00,716/ was disallowed and added back to the total income; (ii)Depreciation of Plant & Machineries are disallowed and the actual cost of Plant & Machineries was treated as NIL 2. and depreciation claimed by the Assessee amounting to Rs.69,347/ was disallowed and added back to the total income; (iii)The claim of payment to sundry creditors of Rs.36,78,410/ was disallowed and the Assessing Officer opined that it is taxable in the hands of the Assessee Company and the same was added back to the total income.
(3.) Being aggrieved by the order of the Assessing Officer, the Assessee preferred appeal before the Commissioner of Income Tax (Appeals). Before the CIT(Appeals), the Assessee did not press the outstanding liability of VAT of Rs.1,00,716/. However, Ground No.(ii) i.e., disallowance of depreciation on Plant & Machinery amounting to Rs.69,347/ and Ground No.(iii) & (iv) against the addition of Rs.36,78,410/ in respect of payment to M/s. Sandeep Industries, Sundry Creditors of the Assessee Company were pressed. The CIT (Appeals) confirmed the order of the Assessing Officer holding that the amount of Rs.36,78,410/ is treated as undisclosed income of the Assessee Company and the action of the Assessing Officer in taxing the said amount was confirmed.;