Shri Jitendra H.Modi, Surat V. The ACIT.,Cent.Circle-3, Surat

ITA 1322/AHD/2009

• Counselvise Citation: 132220514 RSA 2009
• Duration Of Justice: 2 year(s) 8 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 02-01-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 23-04-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: C K MISHRA
• Assessee Lawyers: H S PATEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD BEFORE SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER I.T.A. NO. 1322/ AHD/2009 (ASSESSMENT YEAR 2004-05) JITENDRA H MODI, 7, VATSLYA, NEW MARUTI ENCLAVE, NEW RANDER ROAD, ADAIAN, SURAT VS. DCIT, CENTRAL CIRCLE-3, SURAT PAN/GIR NO. : AAYPM0990K (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI H S PATEL, AR RESPONDENT BY: SHRI C K MISHRA, SR. DR DATE OF HEARING: 02.01.2012 DATE OF PRONOUNCEMENT: 19.01.2012 O R D E R PER SHRI A. K. GARODIA, AM:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF CIT (A) II, AHMEDABAD DATED 19.01.2009 FOR THE ASSESSMENT Y EAR 2004-05. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1. THE LEARNED COMMISSIONER OF INCOME TAX ( APPE AL) HAS IGNORED FACTS ON RECORD AND ERRED IN LAW IN CONFIRM ING THE ADDITION OF RS. 8,00,000/- ON ACCOUNT OF UNSECURED LOANS AS CASH CREDIT U S 68. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL ) HAS UNJUSTIFIABLY DISALLOWED RS. 22.740/- ON ACCOUNT OF INTEREST ON LOAN AND HENCE ERRED IN LAW. 3. IT IS THEREFORE PRAYED THAT A. ADDITION OF RS. 8,00,000/- ON ACCOUNT OF CASH CREDIT SHALL BE DELETED. I.T.A.NO. 1322 /AHD/2009 2 B. DISALLOWANCE OF RS. 22,740/- ON ACCOUNT OF INT EREST ON LOAN SHALL BE ALLOWED. 4. THE APPELLANT CRAVES LEAVE TO ADD, AMEND , ALT ER, DELETE, SUBSTITUTE OR MODIFY ANY OR ALL OF THE GROUND OF AP PEAL. 2. THE BRIEF FACTS REGARDING GROUND NO.1 ARE NOTED BY THE LD. CIT(A) IN PARA 3.1 OF HIS ORDER WHICH IS AS UNDER: THE ASSESSEE HAD RECEIVED UNSECURED LOANS OF RS.8 LACS FROM SHRI NARNDRA K CHAUHAN. THE ASSESSEE DID NOT FURNISH AN YTHING REGARDING CASH CREDIT I.E. IDENTITY OF DEPOSITOR, C REDITWORTHINESS AND GENUINENESS OF THE DEPOSIT. HENCE, THE A.O. MADE T HE ADDITION U/S68 OF THE ACT TREATING THE LOAN AS NOT PROVED. 3. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE CIT(A). BEFORE CIT(A), IT WAS SUBMITTED BY THE ASS ESSEE THAT THE ASSESSEE COULD NOT FURNISH CONFIRMATION FOR THE UNS ECURED LOAN FROM SHRI N. K. CHAUHAN DUE TO FLOOD IN SURAT. I IS STATED B Y LD. CIT(A) IN PARA 3.4 OF HIS ORDER THAT HE DID NOT AGREE WITH THE ASSESSE ES VIEW THAT DUE TO FLOOD IN SURAT, THE CONFIRMATION COULD NOT BE FILED . HE ALSO STATED THAT HE ASSESSEE SHOULD HAVE APPROACHED THE CREDITOR FOR TH E CONFIRMATION AFTER THE FLOOD AND SHOULD HAVE GIVEN OTHER DETAILS SUCH AS INCOME TAX RETURN, BANK ACCOUNT ETC. TO PROVE THE CREDITWORTHINESS AND GENUINENESS OF THE LOAN WHICH HE HAD FAILED TO PROVE. HE CONFIRMED TH E ASSESSMENT ORDER ON THIS ISSUE. NOW, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. REGARDING GROUND NO.2 OF THE APPEAL, THE FACTS A RE NOTED BY THE LD. CIT(A) IN PARA 3.3 OF HIS ORDER THAT THE ASSESSEE W AS GIVEN NOTICE FOR ENHANCEMENT ON 19.12.2008 ASKING THE ASSESSEE TO EX PLAIN THAT IF IT IS FOUND THAT THE LOAN IS NOT GENUINE, WHY THE CORRESP ONDING INTEREST OF RS.22,740/- BE ALSO NOT DISALLOWED AND INCOME NOT E NHANCED? IN REPLY, IT WAS SUBMITTED BY THE ASSESSEE BEFORE THE CIT(A) THA T THE LENDER HAS REFUSED TO GIVE CONFIRMATION AND THE MATTER MAY BE REMANDED TO THE A.O. I.T.A.NO. 1322 /AHD/2009 3 TO MAKE FURTHER ENQUIRY FROM THE BANK ETC. THE LD. CIT(A) WAS NOT SATISFIED AND HE MADE ADDITION ON ACCOUNT OF INTERE ST ON THIS LOAN TO THE EXTENT OF RS.22,740/- BY ENHANCING THE INCOME OF TH E ASSESSEE. 5. BEFORE US ALSO, THE ASSESSEE COULD NOT BRING ON RECORD ANY MATERIAL TO SHOW THE IDENTITY OF THE LOAN CREDITOR OR HIS CR EDITWORTHINESS AND GENUINENESS OF TRANSACTION AND HENCE, WE DO NOT FIN D ANY REASON TO INTERFERE IN THE ORDER OF LD. CIT(A) ON BOTH THE IS SUES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. 7. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE M ENTIONED HEREINABOVE. SD./- SD./- (MUKUL KUMAR SHRAWAT) (A. K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER SP COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD BY ORDER 6. THE GUARD FILE AR,ITAT,AHMEDABAD 1. DATE OF DICTATION 11/01/2012 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 12/01/2012.OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 19/01 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.23/1 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 23/01/2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER. .