DCIT, Shimla V. Sh. Dheeraj Goel, Shimla

ITA 2/CHANDI/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73423 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 21-01-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 03-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 2/CHD/2011 ASSESSMENT YEAR : 2004-05 D.C.I.T. CIRCLE, SHIMLA VS. DHEERAJ GOEL M/S MOON HOTEL PVT LTD 20, THE MALL SHIMLA ABJPG 7363 A (APPELLANT) (RESPONDENT) APPELLANT BY SHRI AKHILESH GUPTA RESPONDENT BY: NONE DATE OF HEARING 2 1.1.2014 DATE OF PRONOUNCEMENT 27.1.2 014 O R D E R PER T.R.SOOD, A.M THIS APPEAL IS DIRECTED AGAINST THE ORDER DATED 27.10.2010 OF THE LD CIT(A), SHIMLA. 2. IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLOW ING GROUNDS: ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD . CIT(A) ERRED IN DELETING THE ADDITION OF RS. 17,30,000/- MADE AS UNDISCLOSED INVESTMENT, WITHOUT APPRECIATING THAT THE ASSESSEE HAD NOT PRODUCED BOOKS OF ACCOUNTS AND HAD NOT SHOWN ANY A CCOUNTING RECORD IN RESPECT OF THE AMOUNT ADVANCED? 3 NONE APPEARED DESPITE NOTICE. IT WAS SEEN FROM T HE PERUSAL OF THE RECORD THAT ON EARLIER OCCASIONS ALS O, ONLY ADJOURNMENTS HAVE BEEN TAKEN. THEREFORE WE PROCEED ED TO HEAR THE APPEAL ON EX-PARTE BASIS. 4 THE REVENUE WAS HEARD. 5 AFTER CONSIDERING THE SUBMISSIONS OF LD. D.R. FOR THE REVENUE AND THE RELEVANT MATERIAL ON RECORD, WE FIN D THAT DURING ASSESSMENT PROCEEDINGS IT WAS NOTICED BY THE ASSESSING 2 OFFICER THAT IN CASE OF ASHOK KUMAR GOEL FATHER OF THE ASSESSEE, IT WAS FOUND THAT HE HAS SHOWN THE RECEIP T OF UNSECURED LOAN AMOUNTING TO RS. 7,65,000/- FROM THE ASSESSEE. IN THE CONFIRMATION FILED BY THE SHRI ASHOK KUMAR G OEL IT WAS FURTHER NOTICED THAT THERE WAS OPENING BALANCE OF R S. 9,65,000/- PAYABLE TO THE ASSESSEE AS ON 1.4.2003. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF THESE L OANS. AFTER MANY ADJOURNMENTS COPY OF STATEMENT OF AFFAIR S AS ON 31.3.2004 WAS FILED. IN THE STATEMENT OF AFFAIRS TH E ASSESSEE HAS SHOWN CLOSING CASH OF RS. 9,04,918/- AND IT WAS EXPLAINED THAT LOAN OF RS. 7,65,000/- WAS GIVEN OUT OF THIS C ASH TO ASHOK KUMAR GOEL. HOWEVER, THE ASSESSING OFFICER NOTICE D THAT THIS LOAN WAS NOT SHOWN IN THE STATEMENT OF AFFAIRS. MO REOVER THE ASSESSEE HAS ALSO GIVEN A SUM OF RS. 9,65,000/- TO SHRI ASHOK KUMAR GOEL IN EARLIER YEARS. SINCE THE BOOKS OF AC COUNTS ETC. WERE NOT PRODUCED, THEREFORE ACCORDING TO THE ASSES SING OFFICER THE SOURCE OF LOAN WAS NOT EXPLAINED AND ACCORDINGL Y HE ADDED A SUM OF RS. 17,30,000/- TO THE INCOME OF THE ASSES SEE. 6 ON APPEAL BEFORE THE LD. CIT(A) IT WAS SUBMITTED THAT ADDITION WAS TOTALLY ARBITRARY. FIRST OF ALL THE AMOUNT OF RS. 9,65,000/- WAS AN OPENING BALANCE AS ON 1.4.2003 AN D THEREFORE THE SAME COULD NOT BE INVESTIGATED DURING THE CURRENT YEAR. IN RESPECT OF THE LOAN OF RS. 7,65,000/- GIV EN DURING THE YEAR, IT WAS STATED THAT THE SAME HAS BEEN RECEIVED BACK DURING THE YEAR AND THE SOURCE OF LOAN WAS A LOAN F ROM HP FINANCIAL CORPORATION. 7 THE LD. CIT(A) DECIDED THE ISSUE AFTER EXAMINING THE SUBMISSIONS MADE IN PARA 14, 14,1 AND 14.2 WHICH AR E AS UNDER: 3 14 THE UNDERSIGNED HAS CONSIDERED THE FACTS AS WELL AS THE SUBMISSIONS OF THE APPELLANT. DURING ASSESSMENT PRO CEEDINGS IN THE CASE OF SHRI ASHOK KUMAR GOEL, FATHER OF THE AP PELLANT, IT WAS FOUND THAT THE APPELLANT HAD ADVANCED UNSECURED LOA N OF RS. 7,65,000/- IN APRIL, 2004 IN CASH TO HIS FATHER. O PENING BALACE OF RS. 9,65,000/- AS ON 1.4.2003 PAYABLE TO THE ASSESS EE WAS ALSO SHOWN. 14.1 DURING APPEAL, THE APPELLANT CLAIMED TO HAVE A DVANCED RS. 7,65,000/- TO HIS FATHER IN CASH OUT OF WITHDRAWAL FROM PNB ACCOUNT NO.6709 THE MALL, SHIMLA. THE S ORUCE WAS D ISBURSEMENT OF LOAN OF RS. 9,50,000/- FROM HPFC ON 14.3.2003 AS UNDER: PBN ACCOUNT NO. 6709, THE MALL, SHIMLA DATE PARTICULARS CHEQUE N. DEBIT RS. CREDIT RS. 17.3.2003 BY TRF -- -- 9,50,000 18.3.2003 HARJAS 381360 5,00,000 22.3.2003 HARJAS 380362 4,50,000 14.2 THE BALANCE SHEET AS ON 31.3.2003 SHOWED CASH IN HAND UNDER THE HEAD CURRENT ASSETS AT RS. 14,04,918/- KE EPING IN VIEW THE DISBURSEMENT OF LOAN OF RS. 9,50,000 FROM HPFC ON 14.3.2003 AND WITHDRAWAL FROM THE ACCOUNT OF THE APPELLANT AS WELL AS THE AVAILABILITY OF CASH IN HAND AS ON 1.4.2003, THE UN SECURED LOAN OF RS. 7,65,000/- IS HELD AS EXPLAINED. THE BALANCE A MOUNT OF RS. 9,65,000/- IS OPENING BALANCE AS ON 1.4.2003. THER EFORE NO ADDITION IS CALLED FOR ON THIS ACCOUNT. AS A RESUL T, THIS GROUND OF APPEAL IS ALLOWED. ABOVE CLEARLY SHOW THAT THE LD. CIT(A) HAS ALLOWED THE RELIEF BECAUSE THE SOURCE OF LOAN WAS SATISFACTORILY EXPL AINED BEFORE THE LD. CIT(A), THEREFORE WE FIND NOTHING WRONG WIT H THE ORDER OF THE LD. CIT(A) AND CONFIRM THE SAME. 8 IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 27.1.2014 SD/- SD/- (SUSHMA CHOWLA) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 27 .1.2014 SURESH COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT/THE C IT(A)/THE DR 4