Mrs Manisha Makhija, Asansol V. ITO, Wd-2(2), Asansol, Asansol

ITA 189/KOL/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7891 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2014
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 03-02-2014
• Court: TRIBUNAL
• Department Lawyers: K K TRIPATHI
• Assessee Lawyers: ASHOK SWAIKA
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

, SM C , IN THE INCOME TAX APPELLATE TRIBUNAL SM C BENCH: KOLKATA ( ) BEFORE , ) [BEFORE SHRI MAHAVIR SINGH, JM] / I.T.A NO. 1 89 /KOL/20 1 4 / ASSESSMENT YEAR : 20 0 6 - 0 7 MRS. MANISHA MAKHIJA VS. INCOME - TAX OFFICER, WD - 2(2), ASANSOL (PAN:AJPPM7483H) ( /APPELLANT ) ( / RESPONDENT ) DATE OF HEARING: 2 8 . 11 .201 4 DATE OF PRONOUNCEMENT: 02 . 1 2 .201 4 FOR THE APPELLANT : SHRI ASHOK SWAIKA, CA FOR THE RESPONDENT : SHRI K. K. TRIPATHI , JCIT, SR. DR / ORDER THIS APPEAL BY ASSESSEE IS ARI SING OUT OF ORDER OF CIT(A) , ASANSOL IN APPEAL NO. 165 /CIT(A) /A SL/W - 2(2)/ASL/08 - 09 DATED 03 . 12 .201 3 . ASSESSMENT WAS FRAMED BY ITO, WARD - 2(2), ASANSOL U/S. 143(3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR 200 6 - 0 7 VIDE HIS ORDER DATED 25 .1 1 .20 08 . 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGAINST THE ORDER OF CIT(A) CONFIRMING THE ADDITION MADE BY AO ON ACCOUNT OF CASH CREDIT FROM NINE PERSONS I.E. EACH RS.18,000/ - TOTALING RS.1,62,000/ - . 3. I HAVE BOTH THE SIDES AND GONE THROUGH FACTS AND CIRCU MSTANCES OF THE CASE. BRIEFLY STATED FACTS ARE THAT THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTICED FROM THE CASH FLOW STATEMENT THAT THERE ARE UNEXPLAINED CASH CREDIT TO THE EXTENT OF RS.2,58,580/ - . ACCORDING TO AO, AS THE ASSESSEE FAILED TO EXPLAIN THE CASH CREDITS HE MADE ADDITION U/S. 68 OF THE ACT TO THE TUNE OF RS.2,58,580/ - . THE CIT(A) RESTRICTED THE ADDITION AT RS.1,62,000/ - . BEFORE AO NOTHING WAS EXPLAINED BY THE ASSESSEE. BEFORE CIT(A) THE ASSESSEE EXPLAINED THAT DURING THE REMAND PROCEEDINGS AND EVEN IN REMAND REPORT DATED 25.03.2010 BY THE AO HE HAS VERIFIED NINE PERSONS FROM WHOM LOAN TO THE TUNE OF RS.18,000/ - EACH IS RECEIVED BY THE ASSESSEE. THE AO REQUIRED THE ASSESSEE TO FILE THE FOLLOWING OF THE CASH CREDITORS: I) COPY O F PAN (BOTH SIDE) II) COPY OF RETURN OF INCOME FILED FOR THE AY. 2005 - 06 AND 2006 - 07 III) MONTH WISE/DATE WISE CASH FLOW STATEMENT FOR THE AY 2005 - 06 AND 2006 - 07 2 ITA NO.1 89 /K/2014 MRS. MANISHA MAKHIJA AY 200 6 - 0 7 IV) LEGIBLE COPY OF YOUR ALL BANK STATEMENTS FOR THE ABOVE MENTIONED TWO YEARS. ALL THESE CASH CREDITORS REPLIED, WHICH WERE RECEIVED BY THE AO DURING REMAND PROCEEDINGS. THE AO NOTED THAT THESE PARTIES HAVE FURNISHED PROOF OF IDENTITY AND ACCEPTED THE TRANSACTION MADE WITH THE ASSESSEE BUT COULD NOT FURNISH MONTH WISE/DATE WISE CASH FLOW STAT EMENT AND COPIES OF BANK STATEMENT. IN TERM OF THIS, THE AO TREATED THESE CASH CREDITORS AS UNEXPLAINED EVEN DURING REMAND PROCEEDINGS. THE ASSESSEE S CONTENTION BEFORE CIT(A) AND BEFORE ME ALSO WAS THAT THE ASSESSEE HAS CONSTRUCTED A HOUSE AND FOR THE S AME SHE HAS RECEIVED A CASH LOAN OF RS.1,62,000/ - FROM NINE PERSONS @ RS.18,000/ - EACH AND SHE FILED COMPLETE PAN, DETAILS OF INCOME TAX PARTICULARS LIKE ACKNOWLEDGEMENT OF RETURN OF INCOME AND BALANCE SHEET AND CASH FLOW STATEMENT OF THE RESPECTIVE CREDIT ORS. EVEN NOW BEFORE US ASSESSEE FILED COMPLETE DETAILS IN HER PAPER BOOK CONSISTS OF PAGES 1 TO 93, WHEREIN COMPLETE DETAILS OF CREDITORS IN RESPECT TO THE SE CASH CREDITS IS AVAILABLE. DUE TO SMALLNESS OF THE AMOUNT OF CASH CREDITS, I AM OF THE VIEW THA T THIS IS ENOUGH TO PROVE THAT THE RESPECTIVE CREDITORS HAVE ENCLOSED THE BALANCE SHEET WITH THE RETURN OF INCOME FILED BY THEM WHEREIN THIS AMOUNT IS DISCLOSED. ONCE THIS IS THE POSITION, I HAVE NO HESITATION IN ACCEPTING THE CASH CREDIT AS GENUINE. ACC ORDINGLY, I DELETE THE ADDITION AND ALLOW THIS APPEAL OF ASSESSEE. 4 . IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED . 5 . ORDER IS PRONOUNCED IN THE OPEN COURT ON 0 2 . 1 2 . 2 0 1 4 S D / - , (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 2 N D DECEMBER , 201 4 JD.(SR.P.S.) - COPY OF THE ORDER FORWARDED TO: 1 . / A PPELLANT MRS. MANISHA MAKHIJA, C/O SUNIL KUMAR, DHADKA ROAD, ASANSOL - 713302 2 / RESPONDENT ITO, WARD - 2(2), ASANSOL 3 . ( )/ THE CIT(A), ASANSOL 4. 5. / CIT ASANSOL / DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, / BY ORDER, /ASSTT. REGISTRAR .