Mohammed Abdul Aziz, V. I.T.O. Ward 1(4) Parbhani,

ITA 1093/PUN/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3315 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 1996-1997
• Appeal Filed On: 15-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, PUNE SINGLE MEMBER CASE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER I.T.A. NO. 1093/PN/2009 : A.Y. 1996-97 MOHAMMED ABDUL AZIZ S/O MOHAMMAD ABDUL SATTAR PROP. M/S. ANSARI CONSTRUCTION CO. WARD 10, MOMINPURA, PARBHANI, DIST. PARBHANI PAN APPLIED FOR APPELLANT VS. I.T.O. WARD 1(4) PARBHANI RESPONDENT APPELLANT BY : SHRI ABHAY DAMLE RESPONDENT BY: NONE ORDER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE ORDER OF THE CIT(A) AURANGABAD DATED 1 7-6-2009 FOR A.Y. 1996-97 ON THE POINT OF ADDITION OF RS. 74 ,000/-. 2. THE ASSESSEE A PROPRIETOR OF M/S. ANSARI CONSTRU CTION CO., PARBHANI, DOING THE BUSINESS OF CIVIL CONSTRUC TION. THE A.O MADE AN ADDITION OF RS. 5,55,000/- ON ACCOUNT O F UNEXPLAINED CASH CREDIT AND OTHER ADDITION RS. 1,90 ,000/-. 3. THE ADDITIONS WERE DELETED BY THE CIT(A) AND REV ENUE PREFERRED AN APPEAL BEFORE I.T.A.T. PUNE. DURING T HE COURSE OF APPELLATE PROCEEDINGS BEFORE THE I.T.A.T. THE ASSES SEE FILED AN ITA NO. 1093/PN/2009 MOHAMMED ABDUL AZIZ A.Y. 1996-97 , 2 APPLICATION SEEKING PERMISSION TO PRODUCE ADDITIONA L EVIDENCE IN SUPPORT OF CREDITORS. THE I.T.A.T. VIDE ORDER D ATED 31-7- 2006 IN ITA NO. 455/PN/2001 RESTORED THE MATTER BAC K TO THE FILE OF THE A.O WITH A DIRECTION TO EXAMINE THE VAR IOUS DOCUMENTS THAT THE ASSESSEE INTENDED TO PRODUCE BEF ORE HIM. ACCORDINGLY, FRESH ORDER U/S 143(3) WAS PASSED BY T HE A.O. DURING THE COURSE OF SET ASIDE PROCEEDINGS, ASSESSE E FURNISHED VARIOUS EVIDENCES SHOWING CREDITWORTHINESS OF CREDI TORS. ON EXAMINATION, IT WAS NOTED BY THE A.O THAT IN THE CA SE OF CREDITORS VIZ. SHRI DEELIP LOHAR, MIRZA SALIM BEG, SADHEKH A. JABBAR KHAN AND S. AKBAR ALI S. EQKBAL ALI, THE CREDITWORTHINESS WAS NOT VERIFIABLE. THE SAID CRED ITORS ARE WORKING AS MECHANICS, AND COULD NOT PRODUCE ANY EVI DENCE OF THEIR SOURCE OF INCOME. ACCORDINGLY, ADDITION OF R S. 74,000/- WAS MADE IN RESPECT OF LOAN ADVANCED BY THE ABOVE R EFERRED FOUR CREDITORS. THE DETAILS OF THE CREDITORS ARE A S UNDER: SR.NO. NAME OF THE DEPOSIT/CREDITOR AMOUNT OF DEPOSITS 1. SHRI DEELIP LOHAR, PARBHANI 19000 2. MR. MIRZA SALIK BEG, PARBHANI 19,000 3. MR. SADHEKH KHAN A. JABBAR KHAN, PARBHANI 18,000 4. MR. S. AKBAR ALI S. EKBAL ALI, PARBHANI 18,000 TOTAL 74,000 4. THE LOWER AUTHORITIES HAVE DISPUTED THE CREDITS TO THE EXTENT OF RS. 74,000/- IN THE ABSENCE OF CREDITWORT HINESS OF THE CREDITORS. THE IDENTITY AND TRANSACTION IS NOT IN DISPUTE. ITA NO. 1093/PN/2009 MOHAMMED ABDUL AZIZ A.Y. 1996-97 , 3 THE CREDITS ARE OF RS. 19,000/-, RS. 19,000-, RS. 1 8,000/- AND RS. 18,000/-. THE CREDITORS HAVE NOT DISPUTED HAVIN G MADE THE PAYMENT TO THE ASSESSEE. ONLY THE ABSENCE OF C OGENT EVIDENCE TO JUSTIFY THE SOURCE OF INCOME OF THE ABO VE CREDITORS IS THE BASIS FOR MAKING ADDITION IN QUESTION. IN T HE NORMAL CIRCUMSTANCES, THE PERSON CAN BE HELPED BY HIS RELA TIVES, FRIENDS BY THEIR OLD DEPOSITS. UNSECURED LOANS FROM FRIENDS AND RELATIVES IS NOT UNCOMMON PHENOMENA IN THE INDI AN SOCIETY. BEING MEAGERNESS OF AMOUNTYS AND FACTS AND CIRCUMSTANCES OF CASE, ADDITONS ARE NOT JUSTIFIED. ACCORDING TO ME, THE A.O HAS NOT MADE THE FULL PROOF CASE TO DIS -BELIEVE THE CREDITWORTHINESS OF THE CREDITORS. ACCORDINGLY, TH E ADDITION IN QUESTION IS DIRECTED TO BE DELETED. 5. IN THE RESULT, THE APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 21 ST SEPTEMBER 2010. SD/- (SHAILENDRAKUMAR YADAV) JUDICIAL MEMBER PUNE,DATED THE 21 ST SEPTEMBER 2010 ANKAM COPY FORWARDED TO: (1) ASSESSEE (2) DEPARTMENT (3) CIT- KOLHAPUR (4) CIT(A)- KOLHAPUR (5) THE D.R. ITAT PUNE, PUNE TRUE COPY BY ORDER, ASSISTANT REGISTRAR ITA NO. 1093/PN/2009 MOHAMMED ABDUL AZIZ A.Y. 1996-97 , 4 INCOME-TAX APPELLATE TRIBUNAL, PUNE BENCHES, PUNE