ITO WD 3(1), KALYAN V. PANKAJ M. PATEL,

ITA 2005/MUM/2010

• Counselvise Citation: 200519914 RSA 2010
• Duration Of Justice: 1 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 25-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 12-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURESH KUMAR
• Section: 69C; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI, J. SUDHAKAR REDDY, ACCOUNTANT MEMBER A ND SMT. ASHA VIJAYRAGHAVAN, JUDICIAL MEMBER ITA NO.2005/MUM./2010 (ASSESSMENT YEAR : 2006-07 ) DATE OF HEARING: 25.4.2011 INCOME TAX OFFICER, WARD-3(1) RANI MANSION, MURBAD ROAD KALYAN .. APPELLANT V/S SHRI PANKAJ M. PATEL C/203, AMBIKA NAGAR AYODHYA NAGARI MANPADA ROAD, DOMBIVLI (E) .... RESPONDENT REVENUE BY : MR. SURESH KUMAR ASSESSEE BY : NONE O R D E R PER J. SUDHAKAR REDDY, A.M. THIS APPEAL FILED BY THE REVENUE, IS DIRECTED AGAIN ST THE IMPUGNED ORDER DATED 30 TH NOVEMBER 2009, PASSED BY THE COMMISSIONER (APPEALS ) I, THANE, FOR ASSESSMENT YEAR 2006-07. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE ISS UANCE OF NOTICE BY RAPD AND THE ACKNOWLEDGE IS ON RECORD. THERE IS NO PETITION FOR ADJOURNMENT EITHER. UNDER THESE CIRCUMSTANCES, WE PROCEED TO DI SPOSE OFF THIS APPEAL EX- PARTE, QUA THE RESPONDENT ASSESSEE AFTER HEARING TH E LEARNED DEPARTMENTAL REPRESENTATIVE. 3. HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE, MR. SURENDER KUMAR, SR. D.R. THE SOLE GROUND ON WHICH THE REVENUE HAS F ILED THIS APPEAL IS AGAINST THE DELETION OF ADDITION MADE BY THE ASSESS ING OFFICER UNDER SECTION 68 OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT ). THE COMMISSIONER (APPEALS), AT PARA-4.4 IN HIS ORDER, HELD AS FOLLOW S:- PANKAJ M. PATEL ITA NO.2005/MUM./2009 2 4.4 FROM THE VERIFICATION OF THE DETAILS AND BANK A CCOUNT AND ALSO THE LEDGER ACCOUNT IN RESPECT OF THE LOAN PARTIES, I FIND THAT THERE ARE NO FRESH LOANS OBTAINED DURING THE YEAR EXCEPT A SU M OF ` 23,000 OBTAINED FROM ONE CHOPDA CONSTRUCTION. ALL THE OTHE R LOANS HAVE BEEN OBTAINED BY THE APPELLANT DURING THE PERIOD PRIOR T O THE A.Y. UNDER CONSIDERATION. THE BALANCE SHEET FOR THE A.Y. 05-06 ALSO REFLECTS A TOTAL UNSECURED LOAN OF ` 37,88,034 AS AGAINST ` 42,00,208 IN THE A.Y. 06- 07. THE BALANCE OF NEW LOANS AS ON 31.3.2006, INCLU DES ` 4,54,562 OF INTEREST CREDITED TO THE LOAN PARTIES. THE BANK ACC OUNT IN RESPECT OF THE ASSESSEE ALSO REVEALS THAT THESE LOAN WERE OBTA INED DURING THE PREVIOUS YEARS. ACCORDINGLY, I DIRECT THE A.O. TO D ELETE THE ADDITION MADE ON THIS ACCOUNT. FURTHER, THE ADDITION MADE UN DER SECTION 69C ON ACCOUNT OF INTEREST THEREON IS ALSO DIRECTED TO BE DELETED. 4. AS NO FRESH LOANS ARE OBTAINED DURING THE YEAR, THE QUESTION OF MAKING ADDITION UNDER SECTION 68 OF THE ACT, DOES NOT ARIS E. CONSEQUENTLY, WE UPHOLD THE ORDER OF THE COMMISSIONER (APPEALS). THU S, THIS GROUND OF APPEAL BY THE REVENUE IS DISMISSED. 5. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27.4.2011 SD/- ASHA VIJAYRAGHAVAN JUDICIAL MEMBER SD/- J. SUDHAKAR REDDY ACCOUNTANT MEMBER MUMBAI, DATED: 27.4.2011 COPY TO : (1) THE ASSESSEE (2) THE RESPONDENT (3) THE CIT(A), MUMBAI, CONCERNED (4) THE CIT, MUMBAI CITY CONCERNED (5) THE DR, C BENCH, ITAT, MUMBAI TRUE COPY BY ORDER PRADEEP J. CHOWDHURY ASSISTANT REGISTRAR SR. PRIVATE SECRETARY ITAT, MUMBAI BENCHES, MUMBAI