The ITO, Ward-1, Navsari V. Mrs. Bharti Shashikant Gandhi, Navsari

ITA 1785/AHD/2010

• Counselvise Citation: 178520514 RSA 2010
• Duration Of Justice: 4 year(s) 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 04-06-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 26-05-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJNISH K VOHRA
• Assessee Lawyers: TUSHAR HEMANI
• Keywords: Unexplained cash credit; Third party statement
• Section: 68

Judgement Text

, , , , C, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, C BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ # ## #. .. .# ## #. . . . % % % %, , , , &' ( & ' &' ( & ' &' ( & ' &' ( & ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND N.S. SAINI, ACCOUNTANT MEMBER) ITA NO.1785/AHD/2010 [ASSTT.YEAR : 2006-2007] ITO, WARD-1 NAVSARI. /VS. M/S. BHARTI SHASHIKANT GANDHI 8/407, LANGGDAWAD TAROTA BAZAR, NAVSARI. PAN : ABPPQ 8795 E ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ( . / &/ REVENUE BY : SHRI RAJNISH K. VOHRA, SR.DR 12 . / &/ ASSESSEE BY : SHRI TUSHAR HEMANI 3 . 24'/ DATE OF HEARING : 4 TH JUNE, 2014 567 . 24'/ DATE OF PRONOUNCEMENT : 4.7.2014 &8 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2006-2007 IS DIRECTED AGAIN ST THE ORDER OF THE CIT(A). 2. THE ONLY GROUND OF THE APPEAL OF THE REVENUE IS AS UNDER: ITA NO.1785/AHD/2010 -2- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD.CIT(A) ERRED IN DELETING THE ADDITION OF RS.14,8 1,000/- ON ACCOUNT UNEXPLAINED CASH CREDIT U/S.68 OF THE IT. ACT. 3. THE LEARNED DR SUBMITTED THAT THE ADDITION FOR C ASH CREDITS UNDER SECTION 68 WERE MADE FOR THE REASON THAT THE ASSESSEE FURNI SHED ONLY NAMES AND ADDRESSES OF THE CREDITORS AND NO OTHER DETAILS WER E FILED. THE ASSESSEE FAILED TO FILE FURTHER DETAILS, SUCH AS BANK ACCOUNT, CONTRA CONFIRMATIONS, NAME OF THE NRIS FROM WHOM SUCH AMOUNTS WERE RECEIVED, MODE OF RECEIPTS ETC. HE SUBMITTED THAT THE ASSESSEE HAS ADMITTED BEFORE THE CIT(A) THAT IT COULD FURNISH ONLY THE NAMES AND ADDRESSES OF THE SAID PERSONS DU RING THE ASSESSMENT PROCEEDINGS. THE LEARNED COUNSEL FOR THE ASSESSEE HAS RELIED ON THE ORDER OF THE CIT(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND HAVE PE RUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE ASSESSEE HAS F ILED THE NAMES AND ADDRESSES OF CREDITOR PARTIES AND COULD NOT FILE FU RTHER EVIDENCE TO PROVE THE CREDIT-WORTHINESS OF THE DEPOSITORS AND GENUINENESS OF THE TRANSACTION. IN THIS CASE ONLY THE IDENTITY OF CREDITORS HAS BEEN PLACED ON RECORD. IN PARA 6.4 OF THE IMPUGNED ORDER OF THE CIT(A), HE HAS RECORDED THAT THE ASSESSEE HAS FURNISHED THE NAMES AND ADDRESSES OF THE SAID CREDITORS DURIN G THE COURSE OF ASSESSMENT PROCEEDINGS. HOWEVER, WE FIND THAT IN THE ABSENCE OF OTHER EVIDENCES TO SUBSTANTIATE THE CASE OF THE ASSESSEE REGARDING CRE DIT-WORTHINESS OF THE DEPOSITORS AS WELL AS THE GENUINENESS OF THE TRANSA CTION, THE CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDITION MADE BY THE AO. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW THAT THE ASSESSEE SHOULD BE GIVEN ONE MORE OPPORTUNITY TO PROVE ITS CASE, AND ACCORDI NGLY, WE RESTORE THE ISSUE IN THE GROUND OF THE APPEAL OF THE REVENUE TO THE FILE OF THE AO WITH DIRECTION TO FRAME A FRESH ASSESSMENT IN ACCORDANCE WITH LAW AFT ER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESS EE IS DIRECTED TO CO-OPERATE WITH THE DEPARTMENT IN THE MATTER OF FINALIZATION O F ITS ASSESSMENT AND FURNISH ITA NO.1785/AHD/2010 -3- WHATEVER EVIDENCE, IT MAY RELY, IN SUPPORT OF ITS C ASE REGARDING CREDIT ENTRIES. WE DIRECT ACCORDINGLY. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( # ## #. .. .# ## #. . . . % % % % /N.S.SAINI) &' ( &' ( &' ( &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD