Goutam Ganeshmalji Jain, Hyderabad V. ITO., Ward-7(4), Hyderabad

ITA 1402/HYD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2464 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 08-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 13-08-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: L R AMJI RAO
• Assessee Lawyers: D BALAJI
• Section: 143(3); 68

Judgement Text

ITA NO 1402 OF 2014GOU TAM GANESHMALJI JAIN HYDERABAD. PAGE 1 OF 6 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.1402/HYD/2014 (ASSESSMENT YEAR: 2010-11) SHRI GOUTAM GANESHMALJI JAIN HYDERABAD PAN: ACJPJ 5371 J VS ITO WARD 7 ( 4 ) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI D. BALAJI FOR REVENUE : SHRI L. RAMJI RAO, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2010-11. IN T HIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF T HE LEARNED CIT (A)-VI, HYDERABAD, DATED 19.05.2014 CONFIRMING THE ADDITION OF RS.11,80,500 MADE BY THE AO TOWARDS UNEXPLAINED CRE DITS INTO HIS ACCOUNT HELD WITH THE SYNDICATE BANK. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL, FILED HIS RETURN OF INCOME FOR THE A.Y 2010-11 ON 30.07.2010 ADMITTING INCOME OF RS.1,53,830 AFTER CL AIMING DEDUCTION OF RS.43,500 UNDER CHAPTER VIA OF THE ACT . THE CASE WAS SELECTED FOR SCRUTINY THROUGH CASS. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE ASSESSEE WAS DIRECTED TO FILE DATE OF HEARING: 24.10.2017 DATE OF PRONOUNCEMENT: 03 . 1 1 .2017 ITA NO 1402 OF 2014GOU TAM GANESHMALJI JAIN HYDERABAD. PAGE 2 OF 6 BRIEF NARRATION OF SOURCES FOR DEPOSITS AND DESTINA TION OF WITHDRAWAL OF FUNDS AS APPEARING IN HIS SYNDICATE B ANK A/C. 3. THE ASSESSEE SUBMITTED THAT THESE DEPOSITS REPRE SENT THE SUNDRY ADVANCES RECEIVED BACK. THE AO OBSERVED THAT THE ASSESSEE DID NOT FURNISH THE NAME AND COMPLETE MAIL ING ADDRESS OF THE PARTIES FROM WHOM SUCH ADVANCES WERE STATED TO HAVE BEEN RECEIVED BACK, THE DATES OF LENDING, MODE OF LENDIN G, AMOUNT LENT, DATES OF RECEIPTS OF SUCH LOANS AND SOURCES OF RECE IPTS ETC. THE ASSESSEE FILED A LETTER ON 30.01.2013 GIVING THE NA MES OF THE EIGHT PARTIES, THEIR ADDRESSES AND THE AMOUNTS STATED TO HAVE BEEN RECEIVED FROM THEM. THE OTHER DETAILS SUCH AS ACTUA L DATES OF LENDING THE MONEY, MODE OF LENDING AMOUNT ALONG WIT H THE DATES OF RECEIVING BACK OF SUCH LOAN AMOUNT WERE NOT FURN ISHED. THE AO, THEREFORE, ADDRESSED A LETTER DIRECTLY TO THE E IGHT PARTIES CALLING FOR THE DETAILS ALONG WITH THEIR PAN AND AS SESSMENT DETAILS. IN RESPECT OF TWO PARTIES I.E. (A) SHRI JEEVAN SINGH, MANDAVER (RAJ.) AND (B) SRI MOOL SINGH, MANDAVER (RAJ.), THE NOTICES WERE RETURNED UNSERVED AND IN TWO CASES I.E. (A) SRI SHIVAJI APPANNA TODKAR AND (B) S RI DINESH CHANDRA NAGLA THE CONFIRMATIONS WERE RECEIVED AND I N THE REMAINING CASES, THERE WAS NO RESPONSE. THE ASSESSE E WAS THEREFORE, ASKED TO PRODUCE THOSE EIGHT PARTIES FRO M WHOM THE ASSESSEE HAS STATED TO HAVE RECEIVED BACK SUNDRY AD VANCES, FOR EXAMINATION. THE ASSESSEE, HOWEVER, DID NOT PRODUCE EVEN A SINGLE PARTY FOR EXAMINATION, NOR DID HE EXPRESS HI S INABILITY TO PRODUCE THEM. IN VIEW OF THE SAME, THE AO TREATED T HE ENTIRE CASH DEPOSITS OF RS.11,80,500 ON VARIOUS DATES INTO THE ASSESSEES ITA NO 1402 OF 2014GOU TAM GANESHMALJI JAIN HYDERABAD. PAGE 3 OF 6 BANK A/C WITH SYNDICATE BANK AS UNEXPLAINED CASH CR EDITS AND BROUGHT IT TO TAX. 4. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFO RE THE CIT (A) WHO CONFIRMED THE ORDER OF THE AO BY OBSERV ING THAT THE ASSESSEE IS NOT MAINTAINING ANY BOOKS OF ACCOUNT AN D HAS ONLY FURNISHED CONFIRMATIONS FROM FEW PARTIES BUT HAS NO T ESTABLISHED THE IDENTITY OR GENUINENESS OF THE TRANSACTIONS. AG GRIEVED, THE ASSESSEE IS IN SECOND APPEAL BEFORE US. 5. THE LEARNED COUNSEL FOR THE ASSESSEE, WHILE REIT ERATING THE SUBMISSIONS MADE BY THE ASSESSEE BEFORE THE AUT HORITIES BELOW, SUBMITTED THAT THESE CASH DEPOSITS REPRESENT THE REPAYMENT OF LOAN AND ADVANCES GIVEN BY THE ASSESSE E TO THE EIGHT PARTIES IN THE EARLIER A.Y. HE HAS ALSO FILED BEFOR E US, THE COPY OF THE CONFIRMATION LETTERS PARTICULARLY FROM ONE MR. MOTILAL, GIVING HIS COMPLETE POSTAL ADDRESS TO STATE THAT THE ASSES SEE HAS FURNISHED THE CORRECT ADDRESS OF THE PARTIES. HE AL SO FILED THE COPIES OF THE STATEMENT OF THE ASSESSEE FOR THE PRE CEDING THREE YEARS WHEREIN THESE PARTIES ARE SHOWN AS SUNDRY DEB TORS. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE SHOULD BE GIVEN AN OPPORTUNITY TO SUBSTANTIATE HIS CLAIM, AS ACCORDING TO HIM, THE AO AND THE CIT (A) HAVE NOT C ONSIDERED THE CONFIRMATION LETTERS FILED BY THE RESPECTIVE PARTIE S AND ALSO THE ASSESSEES ACCOUNTS FOR THE EARLIER FINANCIAL YEARS WHEREIN THE SAID PARTIES ARE SHOWN AS SUNDRY DEBTORS. ITA NO 1402 OF 2014GOU TAM GANESHMALJI JAIN HYDERABAD. PAGE 4 OF 6 6. THE LEARNED DR, ON THE OTHER HAND, SUBMITTED THA T THE ASSESSEE HAS NOT PRODUCED EITHER THE PARTIES TO EST ABLISH THEIR IDENTITY NOR ANY EVIDENCE SUCH AS AN AGREEMENT FOR LENDING OF MONEY, TO ESTABLISH THE IDENTITY OF THE PARTIES AND THE GENUINENESS OF THE TRANSACTIONS. HE SUBMITTED THAT ALL THE DEPOSITS ARE CASH DEPOSITS AND THEREFORE, THE ONUS WAS ON THE ASSESSEE TO ESTABLISH THE NATURE AND SOURCE OF SUCH DEPOSITS AND THE ASSESSEE HAS FAILED TO ESTABLISH THE SAME EITHE R BEFORE THE AO OR BEFORE THE CIT (A). 7. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND, THAT THERE WERE CASH DEPOSITS I NTO THE ASSESSEES BANK A/C HELD WITH THE SYNDICATE BANK. T HE ASSESSEE WAS DIRECTED TO EXPLAIN THE NATURE OF THE DEPOSITS ALONG WITH THE ADDRESS OF THE PARTIES AND OTHER DETAILS. THE ASSES SEE, EXCEPT FOR FILING THE CONFIRMATION LETTERS, FAILED TO FULFIL T HE OTHER REQUIREMENTS U/S 68 OF THE I.T. ACT. THE ASSESSEE D ID NOT PRODUCE EVEN A SINGLE PARTY FOR EXAMINATION BEFORE THE AO. AS POINTED OUT BY THE CIT (A), THE ASSESSEE HAS NOT BEEN MAINTAINI NG ANY BOOKS OF ACCOUNT AND THEREFORE, THE ASSESSEES CONTENTION THAT THESE PARTIES WERE HIS SUNDRY DEBTORS FROM THE EARLIER A. YS IS NOT BORNE BY ANY EVIDENCE. IN SUCH CIRCUMSTANCES, THE ONUS WA S ON THE ASSESSEE TO ESTABLISH ITS CLAIM WITH EVIDENCE, PART ICULARLY WHEN THE NOTICES COULD NOT BE SERVED ON TWO PARTIES ON T HE ADDRESSES GIVEN BY THE ASSESSEE AND WHERE THE OTHER PARTIES D ID NOT RESPOND TO THE NOTICES. EVEN IN THE CASES, WHERE THE NOTICE S WERE SERVED AND CONFIRMATIONS WERE FILED, BUT ONLY THE IDENTITY HAS BEEN PROVED BUT NOT THE GENUINENESS OF THE TRANSACTION. BOTH THE REQUIREMENTS OF SECTION 68 HAVE TO BE FULFILLED. IN ORDER TO PROVE ITA NO 1402 OF 2014GOU TAM GANESHMALJI JAIN HYDERABAD. PAGE 5 OF 6 THE GENUINENESS OF THE LOAN TRANSACTIONS, THE ASSES SEE COULD HAVE PRODUCED PROOF OF SOME RECEIPT OF INTEREST. BUT WE FIND THAT THE ASSESSEE HAS NOT REFLECTED ANY INTEREST INCOME FROM THESE PARTIES AND THEREFORE, HIS CONTENTION THAT THEY WERE SUNDRY DEBTORS FROM WHOM THE MONEY HAS BEEN RECEIVED BACK IS NOT CREDIB LE. WE ALSO DO NOT FIND ANY REASON TO REMIT THE ISSUE BACK TO T HE FILE OF THE AO OR THE CIT (A) FOR THE SIMPLE REASON THAT THE ASSES SEE HAS NOT FILED ANY EVIDENCE TO SUBSTANTIATE HIS CLAIM EVEN BEFORE US. THE EVIDENCE WHICH HAS NOW BEEN FILED BEFORE US WAS ALR EADY FILED BEFORE THE LOWER AUTHORITIES AND HAS ALREADY BEEN C ONSIDERED BY THEM. NO USEFUL PURPOSE WOULD BE SERVED BY SENDING THE MATTER BACK TO THE FILE OF THE AO AT THIS STAGE. THEREFORE , WE SEE NO REASON TO INTERFERE WITH THE ORDER OF THE CIT (A) O N THIS ISSUE. THE ASSESSEES APPEAL IS THEREFORE, DISMISSED. 8. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD NOVEMBER, 2017. SD/- SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 3 RD NOVEMBER, 2017. VINODAN/SPS ITA NO 1402 OF 2014GOU TAM GANESHMALJI JAIN HYDERABAD. PAGE 6 OF 6 COPY TO: 1 SHRI GOUTAM GANESHMALJI, 15-8-201 & 203/4 SAI RAJ A ESTATES, BEGUMBAZAR, HYDERABAD 500012 2 I.T.O WARD 7(4) 2 ND FLOOR, IT TOWERS, MASAB TANK, HYDERABAD 500028 3 CIT (A)-VI HYDERABAD 4 CIT VI HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER