Simran Kiran Chugh, Surat V. The Income Tax Officer, Ward 2(2), Surat

ITA 1438/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8889 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-01-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 15-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH MEENA
• Assessee Lawyers: M K PATEL
• Keywords: Unexplained cash credit; Corroborative evidences
• Section: 142(1); 68

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ ITA NO. 1438/AHD/2013 / ASSESSMENT YEAR : 2005-06 SIMRAN KIRAN CHUGH, X-3157, SURAT TEXTILE MARKET, RING ROAD, SURAT-395001 PAN : AANPG 4851 G VS THE INCOME-TAX OFFICER, WARD 2 (2), SURAT / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI M.K. PATEL, AR REVENUE BY : SHRI OM PRAKASH MEENA, SR DR / DATE OF HEARING : 23/01/2017 / DATE OF PRONOUNCEMENT: 20/03/2017 / O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, SURAT DATE D 26.03.2013, PASSED FOR ASSESSMENT YEAR 2005-06. 2. THE SOLITARY GROUND RAISED BY THE ASSESSEE READ S AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A S WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF INCOME-TAX (AP PEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN L EVYING PENALTY OF RS.34,767/- U/S 271(1)(C) OF THE INCOME-TAX ACT, 19 61. 3. THE BRIEF FACTS OF THE CASE ARE THAT, FOR THE YE AR UNDER CONSIDERATION, THE ASSESSEE FILED RETURN OF INCOME ON 31.10.2005 D ECLARING TOTAL INCOME AT RS.75,590/-. THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY AND THE ASSESSEE WAS SPECIFICALLY ASKED, VIDE NOTICE U/S 142(1) DATE D 25.06.2007, TO FILE THE ITA NO. 1438/AHD/2013 SIMRAN KIRAN CHUGH VS. ITO AY : 2005-06 2 CONFIRMATION OF THE UNSECURED LOANS TAKEN DURING TH E YEAR UNDER CONSIDERATION AND ALSO REQUESTED TO FURNISH NECESSA RY EVIDENCES TO PROVE THE CREDIT WORTHINESS OF THE DEPOSITORS. IN RESPONS E TO THIS ON VARIOUS DATES ASSESSEE HAS FILED THE DETAILS REGARDING CONFIRMATI ON OF UNSECURED LOANS BUT FAILED TO FILE THE CONFIRMATION OF M/S HIRANAND & C OMPANY AMOUNTING TO RS. 40,000/- AND M/S KIRAN TEXTILE AMOUNTING TO PS. 1,00,000/-. THEREFORE, THE ASSESSEE WAS AGAIN REQUESTED TO FILE THE CONFIR MATION ALONG WITH BANK STATEMENT OF THE AFORESAID DEPOSITORS AND ALSO REQU ESTED TO PRODUCE THE AFORESAID DEPOSITORS FOR VERIFICATION BEFORE ASSESS ING OFFICER. HOWEVER, THE ASSESSEE AGAIN FAILED TO FILE THE CONFIRMATION OF R EMAINING DEPOSITORS AND OTHER SUPPORTING EVIDENCES WHICH CAN PROVE THE IDEN TITY OF THE CREDITORS, CAPACITY OF PERSON WHO HAS INVESTED MONEY, GENUINEN ESS AND CORRECTNESS OF THE TRANSACTION. HOWEVER, THE ASSESSEE HAD AGREED B EFORE THE ASSESSING OFFICER FOR THE PROPOSED ADDITION OF RS, 1,40,000/- AS UNEXPLAINED CASH CREDITS. THE ASSESSMENT WAS SUBSEQUENTLY FINALIZE D VIDE ORDER DATED 28.12.2007 BY DETERMINING TOTAL INCOME AT RS.2,55,2 40/-, WHICH INCLUDES AN ADDITION OF RS.1,40,000/- ON ACCOUNT OF UNEXPLAINED CASH CREDITS. PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT WERE ALSO INIT IATED ON THE SAID ADDITION OF RS.1,40,000/- WHICH WAS MADE BY THE ASSESSING OF FICER ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT. THEREAF TER, VIDE ORDER DATED 28.03.2011, THE ASSESSING OFFICER IMPOSED PENALTY O F RS.34,767/- U/S 271(1)(C) OF THE ACT BEING 100% OF TAX SOUGHT TO BE EVADED. 4. AGGRIEVED, THE ASSESSEE PREFERRED FIRST STATUTOR Y APPEAL BEFORE THE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS OF TH E ASSESSEE, DISMISSED THE APPEAL OF THE ASSESSEE BY FOLLOWING OBSERVATION S:- .NOT A SINGLE DETAIL OR EVIDENCE TO EXPLAIN THE CASH CREDIT HAS BEEN SUBMITTED OR EXPLAINED BY APPELLANT. DESPITE OF GIV ING SUFFICIENT OPPORTUNITIES BY AO, APPELLANT FAILED TO AVAIL THEM . IN ABSENCE OF ANY EXPLANATION OR ANY DETAILS, IT CAN BE VERY WELL CON CLUDED THAT THE APPELLANT ITA NO. 1438/AHD/2013 SIMRAN KIRAN CHUGH VS. ITO AY : 2005-06 3 HAS FURNISHED INACCURATE PARTICULARS AND CO NCEALED THE INCOME WILLFULLY. MERELY BY DISCLOSING THE NAMES AND AMOUNTS IN BALAN CE SHEET DOES NOT SUFFICE TO SAVE THE APPELLANT FROM THE PROVISIONS O F SECTION 271(1)(C) OF THE ACT. THE APPELLANT HAS FAILED TO DISCHARGE HER ONU S OF ESTABLISHING THE CASH CREDITS AS GENUINE AND ONCE THE CASH CREDITS ARE HE LD AS INGENUINE IN FINALITY, IT CAN BE VERY WELL CONCLUDED THAT THE APPELLANT HA S AVOIDED AND CONCEALED THE PARTICULARS OF INCOME UPTO THAT EXTENT. IN VIEW OF THIS, I HOLD THAT THE PENALTY OF RS. 34,767/- LEVIED BY AO IS JUSTIFIABLE AND DESERVES TO BE CONFIRMED. I, THEREFORE, CONFIRM THE PENALTY LEVIED BY AO AND DISMISS THE GROUND OF APPEAL. 5. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE AS SESSEE IS NOW IN APPEAL BEFORE US. 6. WE HAVE CAREFULLY CONSIDERED THE RELEVANT RECORD AND HEARD THE RIVAL CONTENTIONS. IN THIS CASE, THE ASSESSEE IS STATED TO HAVE GIVEN NAME, ADDRESS AND PAN ETC OF THE CREDITORS BEFORE THE LOWER AUTHO RITIES AND, AS PER LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE WAS NOT AFFO RDED AMPLE OPPORTUNITY TO PLEAD HER CASE BEFORE THE AUTHORITIES BELOW. THE REFORE, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) A ND REMIT THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER WHO WILL VERIFY T HE NAMES, ADDRESS AND PAN ETC OF THE CREDITORS AND VERIFY GENUINENESS AND CORRECTNESS OF THE TRANSACTIONS AND THEREAFTER DECIDE THE MATTER IN AC CORDANCE WITH LAW AFTER PROVIDING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEIN G HEARD. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 20 TH MARCH, 2017 AT AHMEDABAD. SD/- SD/- N.K. BILLAIYA (ACCOUNTANT MEMBER) MAHAVIR PRASAD (JUDICIAL MEMBER) AHMEDABAD; DATED 20/03/2017 ITA NO. 1438/AHD/2013 SIMRAN KIRAN CHUGH VS. ITO AY : 2005-06 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD