Jawahar Sardar Kirad, Pune V. Income-tax Officer, Ward - 5 (1), Pune

ITA 1247/PUN/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2575 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 19-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: IS DIRECTED AGAINS T PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT . . , I TA NO. 1 247 /PUN/201 9 / ASSESSMENT YEAR : 20 07 - 08 JAWAHAR SARDAR KIRAD 107/8, TIMB ER MARKET, PUNE 411042 PAN: A CDPK9332L VS. ITO , WARD 5(1) , PUNE APPELLANT RESPONDENT / ORDER PER R.S.SYAL, VP : THIS APPE AL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(APPEALS) - 4 , PUNE ON 07 .0 5 .201 9 IN RELATION TO THE ASSESSMENT YEAR 20 07 - 08 . 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS. 2,88,398 . A SSESSEE BY NONE RE VENUE BY SHRI SUDHENDU DAS DATE OF HEARING 2 6 - 1 1 - 2020 DATE OF PRONOUNCEMENT 27 - 1 1 - 2020 ITA NO . 1247 /PUN/ 20 1 9 JAWAHAR S. KIRAN 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TILES AND TRANSPORT SERVICE. HE FILED RETURN DECLARING TOTAL INCOME OF RS.6,40,166. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO CALLED FOR A COPY OF ACCOUNT OF THE ASSESSEE IN THE BOOKS OF M/S. H.R. JOHNSON (INDIA LTD.). ON COMPARISON OF THE SAME WITH THE ACCOUNT OF THIS PARTY IN THE BOOKS OF ACCOUNT OF THE ASSESSEE, THE AO FOUND THAT THERE WAS DIFFERENCE IN TWO BALANCE S. ON BEING CALLED UPON TO EXPLAIN THE DIFFERENCE, THE AS SESSEE TENDERED SOME EXPLANATION. NOT SATISFIED, THE AO MADE ADDITION OF RS.8,44,130 T REATING SUCH A DIFFERENCE AS CHARGEABLE TO TAX U/S 41(1) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). IN THE FIRST APPEAL, THE LD. CIT(A) ACCEPTE D THE ASSESSEES CONTENTION AN ENT TO THE OPENING BALANCE AND DELETED THE ADDITION OF RS. 5,41,811 . AS REGARDS ONE ENTRY OF RS.2,88,398 DATED 30 - 03 - 2007 ON ACCOUNT OF PAYMENT MADE BY CHEQUE, THE ASSESSEE SUBMITTED THAT THE SAID CHEQUE DEPOSITED GOT DISHONOUR ED ON 03 - 04 - 2007 AND THAT IS WHY THE ASSESSEE DID NOT RECORD THIS TRANSACTION IN HIS BOOKS OF ACCOUNT. THE LD. CIT(A) SUSTAINED THE ADDITION AT THE TOTAL DIFFERENTIAL AMOUNT OF RS. 3,01,319 INCLUDING THE ITA NO . 1247 /PUN/ 20 1 9 JAWAHAR S. KIRAN 3 DIFFERENCE ON ACCOUNT OF THIS ENTRY AMOUNTING TO RS. 2,88,398. THE ASSESSEE IS AGGRIEVED BY THE CONFIRMATION OF ADDITION TO THE EXTENT OF RS.2,88,398. 4. I HAVE HEARD LD. DR THROUGH VIRTUAL COURT AND PERUSED THE RELEVANT MATERIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF ASSESSEE, DESPITE NOTICES. AS SUCH, I AM PROCEEDING TO DECIDE THE APPEAL EX - PARTE QUA THE ASSESSEE. 5. IT IS OBSERVED THAT THE DIFFERENCE OF RS.2,88,398 IS ON ACCOUNT OF AN ENTRY DATED 30 - 03 - 2007 RECORDED IN THE BOOKS OF M/S. H.R. JOHNSON (INDIA LTD.) , BUT NOT FOUND IN THE BOOKS O F THE ASSESSEE. THE ASSESSEE SUBMITTED THAT IT WAS TOWARDS CHEQUE ISSUED BY THE ASSESSEE ON 30 - 03 - 2007 WHICH GOT DISHONOURED ON 03 - 04 - 2007 , WHICH WAS NOT RECORDED IN HIS BOOKS . SUCH AN EXPLANATION TENDERED BY THE ASSESSEE HAS NOT BEEN CONTROVERTED BY THE AUTHORITIES BELOW. ONCE A CHEQUE WAS ISSUED, WHICH GOT DISHONOURED AND THE ASSESSEE DID NOT RECORD EITHER OF THE TRANSACTIONS, IT CANNOT BE SAID THAT THIS TRANSACTION AMOUNTS TO ASSESSEES INCOME CHARGEABLE TO TAX. SINCE THE TRANSACTION WAS CANCELLED AND THE ASSESSEE DID NOT RECORD EITHER OF THE TRANSACTIONS ITA NO . 1247 /PUN/ 20 1 9 JAWAHAR S. KIRAN 4 WHICH M/S. H.R. JOHNSON (INDIA LTD.) RECORDED ON 30 - 03 - 2007, I AM SATISFIED THAT THIS DOES NOT LEAD TO GENERATION OF ANY INCOME IN THE HANDS OF ASSESSEE. THE IMPUGNED ORDER ON THIS SCORE IS OVERTURNED AND THE ADDITION TO THIS EXTENT IS DELETED. 6 . IN THE RESULT, THE APPEAL IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH NOVEM BER , 2020 . SD/ - (R.S.SYAL) / VICE PRESIDENT PUNE ; DATED : 27 TH NOVEMBER , 2020 GCVSR / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT 3. THE CIT (APPEALS) - 4 , PUNE . 4. THE PR. CIT - 3 , PUNE . 5. , , - , / DR, ITAT, SMC BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, / / TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO . 1247 /PUN/ 20 1 9 JAWAHAR S. KIRAN 5 DATE 1. DRAFT DICTATED ON 2 6 - 1 1 - 2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 2 6 - 1 1 - 2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSS ED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON W HICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *