Zahoor Ikram, Jaunpur V. ITO, Jaunpur

ITA 198/ALLD/2012

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9600 (ITAT-ALLAHABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 14-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UMESH PATHAK
• Assessee Lawyers: KAILASH NATH SINGH
• Keywords: Business expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, ALLAHABAD BENCH, ALLAHABAD BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AN D SHRI C. N. PRASAD, JUDICIAL MEMBER ITA NO. 198/ALLD/2012 ASSESSMENT YEAR: 2008-09 SHRI ZAHOOR IKRAM PROP. M/S. IKRAM & COMPANY, CHAHGANJ, JAUNPUR PAN/TAN:-AABPI1204R VS. ITO JAUNPUR (APPELLANT) (RESPO NDENT) ASSESSEE BY : SHRI KAILASH NATH SINGH REVENUE BY : SHRI UMESH PATHAK DATE OF HEARING : 30.04.2015 DATE OF PRONOUNCEMENT : 30.04.2015 O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE, AGAINST THE ORD ER OF THE LD. CIT(A)-1 LUCKNOW, DATED 27.02.2012 FOR THE A.YS. 2008-09 AND GROUNDS RELATE TO CONFIRMING THE ADDITION OF RS.38,223/-, THE INTEREST RELATABLE TO THE AMOUNT OF LOAN UTILIZED FOR NON BUSINESS PURPOSES. 2. THE RELEVANT FACTS ARE THAT, DURING THE ASSESSME NT PROCEEDINGS, THE AO NOTICED THE ASSESSEE MAINTAINS CASH CREDIT ACCOUNT WITH UNION BANK OF INDIA, JAUNPUR. HE ALSO NOTICED THAT THE AMOUNT OF RS. 4 L AKH WAS DRAWN FROM THE SAID ACCOUNT TO MAKE FDR. FURTHER, ANOTHER AMOUNT OF RS. 77,794/- WAS PAID OUT OF THE SAID ACCOUNT FOR TOWARDS THE LIFE INSURANCE PREMIUM . AO ADDED THIS AMOUNTS IN THE TOTAL INCOME OF THE ASSESSEE ON FINDING THAT THESE AMOUNTS WERE UTILIZED FOR NON BUSINESS PURPOSE. THE LD. CIT(A) DELETED THE SAME. REVENUE IS NOT IN APPEAL AGAINST THE SAID DELETION. FURTHER, ASSESSING OFFIC ER ALSO MADE ANOTHER DISALLOWANCE OF RS.38,223/- TOWARDS THE INTEREST RELATABLE TO TH E SAID AMOUNT OF RS.4,77,794/-, WHICH WAS EVENTUALLY DELETED BY THE AO/ LD. CIT(A). THE SAID INTEREST WAS ITA NO. 198/ALLD/2012 ASSESSMENT YEAR: 2008-09 2 DISALLOWED BY THE AO AND THE SAME IS CONFIRMED BY T HE LD. CIT(A) AS PER PARA 5 OF THE IMPUGNED, THE SAME READS AS UNDER:- AS REGARDS THE ADDITION OF RS.38,223/- BEING PARTI AL DISALLOWANCE OF CLAIM FOR INTEREST TREATING IT AS NON BUSINESS EXPENDITURE, T HE DISALLOWANCE IS FOUND TO BE PROPER AND IN ORDER. THE RESULTANT ADDITION OF R S.38,223/- IS THEREFORE, CONFIRMED. 3. BEFORE US, LEARNED COUNSEL FOR THE ASSESSEE DEMO NSTRATED THAT THE SAID AMOUNT OF RS.38,223/- IS DISALLOWED BY THE AO ATTRI BUTING THE SAME TOWARDS WITHDRAWALS FROM THE CASH CREDIT ACCOUNT AMOUNTING TO RS.4,77,794/-. CONSIDERING THE DECISION OF THE LD. CIT(A) ON THE ADDITION OF R S.4,77,794/- THE DISALLOWANCE OF RS.38,223/- SHOULD ALSO HAVE BEEN DELETED BY THE LD . CIT(A). 4. AFTER HEARING BOTH THE PARTIES AND APPRECIATING THE FACTS OF THE CASE AND CONNECTION BETWEEN THE INTEREST AMOUNT OF RS.38,223 /- AND THE ADDITION OF RS.4,77,794/-, WE FIND THAT THE ORDER OF THE LD. CI T(A) HAS TO BE REVERSED ON THIS ISSUE. ACCORDINGLY, GROUND RAISED BY THE ASSESSEE I S ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF APRIL, 2015. SD/- SD/- (C. N. PRASAD) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER ALLAHABAD, DATED: 30.04.2015 *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, ALLAHABAD THE CIT(A) CONCERNED, ALLAHABAD THE DR BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, ALLAHABAD.