ACIT, V. M/s Samridhi Travels,

ITA 150/RAN/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85458 (ITAT-RANCHI)
• Duration Of Justice: 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2014
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 21-04-2014
• Court: TRIBUNAL
• Department Lawyers: DEEPAK ROSHAN SR S C LD
• Assessee Lawyers: ANJALI JAIN; ARPITA JAIN LD ARS
• Keywords: Unexplained cash credit
• Section: 133A; 68

Judgement Text

1 ITA NO.150/RAN/14 M/S. SAMRIDHI TRAVELS INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, RANCHI BEFORE HON'BLE SHRI H.L. KARWA, PRESIDENT , AND HON'BLE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO. 150 /RAN/ 14 ASSESSMENT YEAR 2009 - 10 A.C.I.T CIR - 1, RANCHI VS. M/S. SAMRIDHI TRAVELS ( APPLICANT ) ( RESPONDENT ) FOR THE DEPARTMENT: SHRI DEEPAK ROSHAN, SR.S.C/LD.DR FOR THE ASSESSEE : SHRI ANJALI JAIN & ARPITA JAIN, LD.ARS DATE OF H EARING : 05 - 12 - 2014 DATE OF PRONOUNCEMENT: 05 - 12 - 14 O R D E R SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 17.01.2014 PASSED BY LD CIT(A) AND I T RELATES TO THE ASSESSMENT YEAR 2009 - 10. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN DELETING THE FOLLOWING ADDITIONS MADE U/S 68 OF THE ACT. ( A ) UNSECURED LOAN RS.3.00 LAKHS ( B ) UNEXPLAINED CASH CREDIT RS.7,50,395/ - . 2. THE ASSESSEE IS E NGAGED IN THE TRAVEL AGENCY BUSINESS AND PROVIDES BUS, CAR, HOTEL ARRANGEMENT, PACKAGE TOURS ETC. THE DEPARTMENT CARRIED OUT SURVEY OPERATION U/S 133A OF THE ACT ON 19.12.2008. DURING THE COURSE OF ASSESSMENT PROCEEDING, THE AO MADE ENQUIRIES ABOUT RS.3, 00,000/ - PAID TO SUSHILA DEVI, WHICH APPEARED IN THE LEDGER ACCOUNT OF M/S BHARAT ELECTRONICS. THE ASSESSEE SUBMITTED THAT THE AMOUNT RECEIVED FROM M/S BHARAT ELECTRONICS WAS USED TO MAKE THE PAYMENT TO 2 ITA NO.150/RAN/14 M/S. SAMRIDHI TRAVELS SUSHILA DEVI. THOUGH THE ASSESSEE EXPLAINED THAT TH E PAYMENT MADE TO SUSHILA DEVI WAS WRONGLY DEBITED TO THE ACCOUNT OF M/S BHARAT ELECTRONICS AND LATER ON THE SAME WAS CORRECTED, YET THE AO TOOK THE VIEW THAT THE EXPLANATIONS GIVEN BY THE ASSESSEE ARE NOT ACCEPTABLE. BY REMOVING THE AMOUNT PAID TO SUSHIL A DEVI FROM THE ACCOUNT OF M/S BHARAT ELECTRONICS, THE ACCOUNT OF M/S BHARAT ELECTRONICS RESULTED IN A CREDIT BALANCE OF RS.3.00 LAKHS AND THE ASSESSING OFFICER ASSESSED THE SAME U/S 68 OF THE ACT AS UNEXPLAINED CREDIT. IN THE APPELLATE PROCEEDINGS, THE LD CIT(A) ACCEPTED THE EXPLANATIONS OF THE ASSESSEE WITHOUT CARRYING OUT ANY EXAMINATION AND ACCORDINGLY DELETED THE ADDITION. 3 . WE HEARD LD D.R, WHO MAIN LY CONTENDED THAT THE EXPLANATION OF THE ASSESSEE REQUIRES VERIFICATION. WE ALSO NOTICE THAT THE SUBMISSIONS MADE BY THE ASSESSEE IN THIS REGARD HAS NOT BEEN VERIFIED EITHER BY THE AO OR BY LD CIT(A). ACCORDINGLY, WE SET ASIDE THE ORDER OF LD CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO EXAMINE THIS ISSUE AFRESH BY DULY CONSIDERING THE INFORMATION AND EXPLANATIONS FURNISHED BY THE ASSESSEE AND TAKE APPROPRIATE DECISION IN ACCORDANCE WITH THE LAW. 4. THE NEXT ISSUE RELATES TO THE ADDITION OF RS.7,50,395/ - , BEING THE AMOUNT INTRODUCED BY A PA RTNER NAMED SHRI B.K.TRIPATHI. THOUGH THE ASSESSEE FURNISHED THE SOURCES RELATING TO THE ABOVE SAID AMOUNT AS THE LOANS TAKEN FROM THREE BANKS AND ALSO HIS PAST SAVINGS, YET THE AO DID NOT ACCEPT THE SAID EXPLANATIONS ON THE REASONING THAT SHRI B.K.TRIPAT HI WAS NOT PREPARING BALANCE SHEET. THE LD CIT(A), HOWEVER, DELETED THIS ADDITION BY FOLLOWING THE DECISION OF CO - ORDINATE BENCH RENDERED IN THE 3 ITA NO.150/RAN/14 M/S. SAMRIDHI TRAVELS CASE OF M/S M.P.L. CONSTRUCTION CO. DALTONGANJ VS. ITO (ITA NO.05/RAN/2008 DATED 23.9.2008), WHEREIN THE TRIBU NAL HAD EXPRESSED THE VIEW THAT THE ACTION IS REQUIRED TO BE TAKEN IN THE HANDS OF THE PARTNER. 5. WE HEARD THE PARTIES AND PERUSED THE RECORD. WE NOTICE THAT THE ASSESSING OFFICER HAS REJECTED THE EXPLANATIONS OF THE ASSESSEE ONLY FOR THE REASON THAT SHRI B.K.TRIPATHI DID NOT PREPARE BALANCE SHEET. HOWEVER, THE FACT THAT HE HAS BEEN FURNISHING RETURN OF INCOME SINCE 1986 HAS NOT BEEN REJECTED. FURTHER, THE FACT OF AVAILING LOAN FROM THREE BANKS HAS ALSO NOT BEEN REJECTED. ON THE BASIS OF THE INCOME RETURNED BY SHRI B.K.TRIPATHI, IT WAS CLAIMED THAT HE WAS HAVING CASH BALANCE. HOWEVER, THE AO HAS FAILED TO VERIFY THE SAID CLAIM ALSO. IN OUR VIEW, ON VERIFICATION OF THE QUANTUM OF INCOME DECLARED, ONE CAN REASONABLY ASSESS THE AVAILABLE CASH BALANCE . THE AGGREGATE AMOUNT OF LOAN AVAILED BY SHRI B.K.TRIPATHI FROM BANKS WAS RS.7.29 LAKHS. BESIDES HE IS ALSO CLAIMING TO POSSESS PAST SAVINGS. ACCORDINGLY, I N THESE SET OF FACTS, WE ARE OF THE VIEW THAT THE PARTNER SHRI B.K.TRIPATHI HAS SUFFICIENTLY EXP LAINED HIS CREDIT WORTHINESS. ACCORDINGLY, WE UPHOLD THE DECISION TAKEN BY LD CIT(A) ON THIS ISSUE. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05 - 12 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DATED 05 - 12 - - 2014 4 ITA NO.150/RAN/14 M/S. SAMRIDHI TRAVELS COPY OF THE ORDER FORWARDED TO: 1 . APPLICANT : 2 RESPONDENT : I 3 . CIT, 4 . CIT(A), 5 . DR, ITAT, RANCHI **PP/SPS / TRUE COPY] BY ORDER, ASSTT REGISTRAR.