AMIT KUMAR NATHANI, BANGALORE V. ITO, W- 1(1), MUZAFFARPUR

ITA 120/PAT/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9639 (ITAT-PATNA)
• Duration Of Justice: 1 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 22-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY KUMAR
• Assessee Lawyers: ASHISH AGARWAL
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH SMC , PATNA BEFORE SH. N. K. SAINI, ACCOUNTANT MEMBER ITA NO. 120/PAT./2016 : ASSTT. YEAR : 2012 - 1 3 AMIT KUMAR NATHANI, FLAT NO. - 38, MARUTHI AVENUE, BASAVANNA LANE, BANGALORE, KARNATAKA - 560028 VS INCOME TAX OFFICER, WARD - 1(1), MUZAFFARPUR (APPELLANT) (RESPONDENT) PAN NO. A A NPN0477H ASSESSEE BY : SH. ASHISH AGARWAL, ADV. REVENUE BY : SH. ABHAY KUMAR , SR. DR DATE OF HEARING : 05.03 .201 8 DATE OF PRONOUNCEMENT : 05 . 0 3 .201 8 ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 14.09.2016 OF LD. CIT(A) , MUZAFFARPUR . 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1.FOR THAT THE LD. CIT(A) HAS ERRED I N SUSTAINING THE ADDITION OF RS.5,00,000/ - ON ACCOUNT OF LOAN RECEIVED FROM SANKALP DALMIA U/S 68 OF THE INCOME TAX ACT UNDER THE HEAD CASH CREDIT. 2. FOR THAT THE LD. CIT(A) HAS ERRED IN SUSTAINING THE ADDITION OF RS.5,00,000/ - ON ACCOUNT OF LOAN RECEIVE D FROM POONAM MAWANDIA U/S 68 OF THE INCOME TAX ACT UNDER THE HEAD CASH CREDIT. 3. FOR THAT THE LD. CIT(A) HAS ERRED IN SUSTAINING THE DISALLOWANCE OF INTEREST ON UNSECURED LOAN OF RS.13,414/ - . 4. FOR THAT OTHER GROUNDS, IF ANY, SHALL BE URGED AT THE TIM E OF HEARING OF THE APPEAL. 3. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL RELATES TO THE SUSTENANCE OF ADDITION OF RS.10,00,000/ - MADE BY THE AO U/S 68 OF THE INCOME TAX ACT, 1961 ITA NO. 120/PAT. /201 6 AMIT KUMAR N ATHANI 2 (HERE INAFTER REFERRED TO AS THE ACT) ON ACCOUNT OF LOAN OF RS.5,00, 000/ - EACH RECEIVED FROM SH. SANKALP DALMIA AND SMT. POONAM MAWANDIA AND THE DISALLOWANCE OF RS.13,414/ - ON ACCOUNT OF INTEREST ON THE AFORESAID LOANS. 4. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE E - FILED THE RETURN OF INCOME ON 17.08.2013 DECLARI NG AN INCOME OF RS.4,90,150/ - WHICH WAS PROCESSED U/S 143(1) OF THE ACT. LATER ON, THE CASE WAS SELECTED FOR SCRUTINY. THE AO OBSERVED THAT THE ASSESSEE RECEIVED THE LOAN OF RS.5,00,000/ - FROM SH. SANKALP DALMIA AND FURNISHED LOAN CONFORMATION, COPY OF ITR - V, COMPUTATION OF INCOME, COPY OF BANK STATEMENT, CAPITAL A/C AND BALANCE SHEET. THE AO OBSERVED THAT SH. SANKALP DALMIA DEPOSITED THE AMOUNT IN CASH ON VARIOUS DATES BEFORE GIVING THE LOAN TO THE ASSESSEE. ACCORDING TO HIM, THE LOAN CREDITOR DID NOT HAVE SUF FICIENT FUND TO GIVE THE LOAN. HE , THEREFORE, MADE THE ADDITION IN THE HANDS OF THE ASSESSEE. SIMILAR ADDITION WAS MADE ON ACCOUNT OF LOAN OF RS.5,00,000/ - RECEIVED FROM SMT. POONAM MAWANDIA. THE AO WAS OF THE VIEW THAT THE LOANS REMAINED UNVERIFIED. H E ALSO DISALLOWED THE INTEREST CREDITED TO SH. SANKALP DALMIA AMOUNTING TO RS.4,044/ - AND SMT. POONAM MAWANDIA AMOUNTING TO RS.9,370/ - . 5 . BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO SUSTAINED THE ADDITION MADE BY THE AO. 6. NO W THE ASSESSEE IS IN APPEAL. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW AND FURTHER SUBMITTED THAT THE ASSESSEE FURNISHED ALL THE DOCUMENTS IN THE FORM OF CONFIRMATION , ITR NUMBER, BANK STATEMENTS, T HE AO DID NOT ASK THE ASSESSEE TO PRODUCE THE DEPOSITORS WHO WERE THE PERSONS OF MEANS HAVING SUFFICIENT AMOUNT IN THEIR BANK ACCOUNT. THEREFORE, THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION MADE BY THE AO. 7. IN HIS RIVAL SUBMISSIONS, THE LD. SR . DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. ITA NO. 120/PAT. /201 6 AMIT KUMAR N ATHANI 3 8. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT APPEARS THAT THE ASSESSEE RECEIVED LOANS THROUGH ACCOUNT PAYEE CHEQUE FRO M SH. SANKALP DALMIA AND SMT. POONAM MAWANDIA. THE ASSESSEE ALSO FILED COPY OF BANK ACCOUNT, CONFIRMATION OF LOAN AND PAN NUMBER OF THE DEPOSITOR S . THE AO DID NOT ASK THE ASSESSEE TO PRODUCE THE PERSONS WHO HAD GIVEN THE LOAN TO THE ASSESSEE. THE ENTRY OF RECEIVING THE LOAN WAS REFLECTED IN THE BOOKS OF ACCOUNT WHICH WERE NOT REJECTED. THE DEPOSITORS WERE HAVING SUFFICIENT BALANCE IN THEIR RESPECTIVE BANK ACCOUNT, IF THERE WAS ANY DOUBT IN THE MIND OF THE AO, HE COULD HAVE ASK ED THE ASSESSEE TO PRODUCE THE DEPOSITORS OR COULD HAVE OBTAINED THE REPORT FROM THE CONCERNED AO WHERE THE LOAN GIVERS WERE ASSESSED AND THE ASSESSEE FURNISHED THE ADDRESS ES OF THE PERSONS FROM WHOM HE HAD RECEIVED THE LOANS. I, THEREFORE, DEEM IT APPROPRIATE TO DELETE THE ADDITION MAD E BY THE AO AND SUSTAINED BY THE LD. CIT(A) ON ACCOUNT OF LOANS TAKEN BY THE ASSESSEE AMOUNTING TO RS.5,00,000/ - EACH FROM SH. SANKALP DALMIA AND SMT. POONAM MAWANDIA. SINCE, THE INTEREST WAS ALSO DISALLOWED BY THE AO ON THE AFORESAID LOANS, T HEREFORE, THE SAME IS ALSO DIRECTED TO BE DELETED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. (ORD E R PRONOUNCED IN THE COU RT ON 05 /0 3 /2018 ) SD/ - (N. K. SAINI) ACCOUNTANT MEMBER DAT ED: 05 /03 /2018 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR