The DCIT, Circle-8, Surat V. Shri Nareshbhai Gordhanbhai Sarasia, Surat

ITA 1729/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85638 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 12-01-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 30-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Assessee Lawyers: M K PATEL
• Keywords: Unexplained cash credit; Assessment record
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMEDABAD , BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER. ITA NO. 1729/AHD/2011 (ASSESSMENT YEAR: 2008-09) DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE-8, ROOM NO. 414, AAYAKAR BHAVAN, MAJURA GATE, SURAT APPELLANT VS. SHRI NARESHBHAI GORDHANBHAI SARASIA 34, KANTARESHWAR SOCIETY, KATARGAM, SURAT. RESPONDENT PAN: AQQPS1935A / BY REVENUE :SHRI V. K. SINGH, SR. D.R. / BY ASSESSEE : SHRI M. K. PATEL, A.R. /DATE OF HEARING :12.01.2015 !' /DATE OF PRONOUNCEMENT : 23.01.2015 I.T.A. NO. 1729/AHD/2011 FOR A.Y. 08-09 (DCIT VS. SHRI NARESHBHAI G. SARASIA) PAGE 2 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF COMMISSIONER OF INCOME TAX (APPEALS)-I, SURAT, DATE D 21.03.2011 FOR A.Y. 2008-09 ON THE FOLLOWING GROUND : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT (A) HAS ERRED IN DELETING THE AD DITION OF RS.25,00,000/- MADE ON ACCOUNT OF DISALLOWANCE O F UNEXPLAINED CASH CREDIT U/S.68 OF THE I.T. ACT, 196 1. 2. DURING ASSESSMENT PROCEEDINGS, ASSESSING OFFICER NOTICED THAT ASSESSEE HAD TAKEN LOAN OF RS.35,00,000/- FROM SEVEN PERSONS. IN THIS REGARD, ASSESSEE SUBMITTED ALL THE DETAILS LIKE LOAN CONFIRMATIONS, COPY OF PAN, AFFIDAVITS FROM TH E PARTIES, COPY OF RETURN OF INCOME OF DEPOSITORS, PROOF OF RE PAYMENT OF LOAN BY CHEQUE ETC. IN ORDER TO VERIFY THE GENUINE NESS OF LOANS, ASSESSING OFFICER HAS ISSUED SUMMONS U/S.131 OF THE INCOME TAX ACT TO SIX DEPOSITORS OUT OF WHICH FOUR SUMMONS WERE RETURNED UNSERVED. AFTER THAT ASSESSING OFFICER VI DE HIS LETTER DTD. 20.10.2010 ASKED ASSESSEE TO PRODUCE ALL SIX D EPOSITORS. ASSESSEE COULD PRODUCE ONLY ONE CREDITOR NAMELY, JA GRUTI P. PATEL. AS OTHER FIVE CREDITORS, NAMELY, SHRI NAREND RA P. PANCHAL, SHRI ASHOKBHAI R. PATEL, SHRI MASRABHAI S. MALI, MASRABHAI S. MALI (HUF) AND SHRI PRAKANT M. BAROT W ERE NOT PRODUCED BEFORE ASSESSING OFFICER, SO, HE CAME TO T HE CONCLUSION THAT REMAINING THESE LOANS ARE NOT GENUI NE AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. I.T.A. NO. 1729/AHD/2011 FOR A.Y. 08-09 (DCIT VS. SHRI NARESHBHAI G. SARASIA) PAGE 3 3. MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AU THORITY, WHEREIN VARIOUS CONTENTIONS WERE RAISED ON BEHALF O F ASSESSEE AND HAVING CONSIDERED THE SAME, CIT(A) HAS GRANTED RELIEF TO ASSESSEE. SAME HAS BEEN OPPOSED BEFORE US ON BEHAL F OF REVENUE INTER ALIA SUBMITTING THAT CIT(A) WAS NOT J USTIFIED IN DELETING ADDITION OF RS.25 LACS MADE ON ACCOUNT OF DISALLOWANCE OF UNEXPLAINED CASH CREDIT U/S. 68 OF THE ACT. ACCORDINGLY, ORDER OF CIT(A) BE SET ASIDE AND THAT OF ASSESSING OFFICER BE RESTORED. ON OTHER HAND, LD. AUTHORIZED REPRESENTATIVE SUPPORTED THE ORDER OF CIT(A). STAN D OF ASSESSEE HAS BEEN THAT ALL DEPOSITORS WERE REGULARL Y ASSESSED TO TAX SINCE LAST SEVERAL YEARS. AFFIDAVIT OF THE DEPOSITORS CONFIRMING THE LOAN TRANSACTION WITH SHRI NARESH SA RASIYA. COPY OF PAN CARD AND ACKNOWLEDGEMENT OF INCOME TAX RETURN FILED FOR A.Y. 2008-09. BALANCE SHEET AS ON 31 ST MARCH, 2008 REFLECTING THE LOAN GIVEN TO SHRI NARESH SARASIYA. BANK STATEMENT FOR THE F.Y. 2007-08. COPY OF CASH BOOK FOR THE F.Y. 2007-08 EXPLAINING THE SOURCE OF DEPOSIT I.E. CASH AVAILABLE ON BOOKS FOR DEPOSITING IN BANK ACCOUNT. ONUS CAST UP ON ASSESSEE WAS DISCHARGED. UNDER CIRCUMSTANCES, CIT( A) WAS JUSTIFIED IN DELETING ADDITION IN QUESTION. 4. AFTER GOING THROUGH RIVAL SUBMISSIONS AND MATERI AL ON RECORD, WE FIND THAT ASSESSEE HAS SUBMITTED ALL THE NECESSARY DETAILS/EVIDENCES LIKE CONFIRMATIONS FROM THE PARTI ES COPY OF PAN, AFFIDAVITS FROM THE PARTIES, COPY OF RETURN OF INCOME OF DEPOSITORS, PROOF OF REPAYMENT OF LOAN BY CHEQUE ET C. I.T.A. NO. 1729/AHD/2011 FOR A.Y. 08-09 (DCIT VS. SHRI NARESHBHAI G. SARASIA) PAGE 4 ASSESSING OFFICER SHOULD HAVE VERIFIED LOANS FROM T HE ASSESSMENT RECORDS OF THE DEPOSITORS LYING WITH THE DEPARTMENT BUT HE FAILED TO DO SO. UNDER THESE FACTS AND CIRC UMSTANCES OF THE CASE, CIT(A) WAS JUSTIFIED IN DELETING ADDITION FOR ABOVE MENTIONED REASONS, WHICH NEEDS NO INTERFERENCE FROM OUR SIDE. WE UPHOLD THE SAME. 5. AS A RESULT, APPEAL FILED BY REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON THIS THE 23 RD DAY OF JANUARY, 2015. SD/- SD/- (ANIL CHATURVEDI) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER TRUE COPY S.K.SINHA # # # # %& %& %& %& '&' '&' '&' '&' / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. / ASSESSEE 3. ,, - / CONCERNED CIT 4. -- / CIT (A) 5. &12 %, , / DR, ITAT, AHMEDABAD 6. 256 78 / GUARD FILE. BY ORDER / # , 9/ , , ;