Shri Sitaram Dalchand Somani, Ahmedabad V. The Income Tax Officer, Ward 11(4), Ahmedabad

ITA 2006/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9269 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-02-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 26-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Source of fund
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.2006/AHD/2013 (ASSESSMENT YEAR:2009-10) SITARAM DALCHAND SOMANI 150, NEW CLOTH MARKET, AHMEDABAD 380002 APPELLANT VS. THE INCOME-TAX OFFICER, WARD 11(4), AHMEDABAD RESPONDENT PAN: ADKPS6345P /BY ASSESSEE : SHRI GAURAV NAHTA, C.A. /BY REVENUE : SHRI RAJDEEP SINGH, SR. D.R. /DATE OF HEARING : 01.02.2017 /DATE OF PRONOUNCEMENT : 08.02.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2009-10 ARISES AGAINST CIT(A)-XVI, AHMEDABADS ORDER DATED 22.05.2013 PASS ED IN APPEAL NO. CIT(A)-XVI/ITO/WD.11(4)/401/11-12, IN PROCEEDINGS U /S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. ITA NO. 2006/AHD/2013 (SITARAM D. SOMANI VS. ITO) A.Y. 2009-10 - 2 - 2. THE ASSESSEES SOLE SUBSTANTIVE GROUND CHALLENGE S BOTH THE LOWER AUTHORITIES ACTION IN ADDING AN AMOUNT OF RS.3LACS BY INVOKING SECTION 68 IN THE NATURE OF UNEXPLAINED CASH CREDITS. THERE DOES NOT APPEAR TO BE MUCH DISPUTE SO FAR AS THE RELEVANT FACTS ARE CONCERNED. THE ASSESSING OFFICER NOTICED THE ASSESSEE TO HAVE ACCEPTED LOANS FROM HI S FAMILY MEMBERS. HE ISSUED A SHOW CAUSE NOTICE DATED 30.11.2011 INTER A LIA STATING THEREIN THAT ALTHOUGH HE HAD RECEIVED LOANS OF RS.2.40LACS ON TH REE OCCASIONS BY CHEQUES FROM HIS WIFE SMT. SUMANDEVI S SOMANI, SHE HOWEVER HAD DEPOSITED CASH AMOUNTS OF THE VERY SUMS ON FIVE DATES IN THE SAME PERIOD. THE ASSESSING OFFICER FURTHER EMPHASIZE THAT THE SAME WAS THE CAS E SO FAR AS THE OTHER CREDITOR MRS. BABITA DEVI SOMANI (ASSESSEES BROTHE RS WIFE) WAS CONCERNED INVOLVING CASH AMOUNT OF RS.60,000/- DEPOSITED ON 1 2.03.2009 FOLLOWED BY CHEQUE PAYMENT OF EQUAL SUM MADE TO THE ASSESSEE ON THE SAME DATE. THE ASSESSING OFFICER ACCORDINGLY SOUGHT TO ADD THE ABO VE STATED AGGREGATE SUM OF RS.3LACS. 3. THE ASSESSEE FILED ITS REPLY BEFORE THE ASSESSIN G OFFICER INTER ALIA PLEADING THAT BOTH OF HIS FAMILY MEMBERS/CREDITORS WERE REGULARLY ASSESSED TO TAX HAVING THEIR RESPECTIVE SOURCES OF INCOME. HE FILED THEIR CONFIRMATIONS ALONG WITH INCOME TAX RETURNS. THE ASSESSING OFFIC ER HOWEVER REJECTED THE SAID EXPLANATION AFTER HOLDING THAT THE ASSESSEE HA D AVAILED LOANS FROM HIS FAMILY MEMBERS WHOSE CONFIRMATIONS WERE EASILY AVAI LABLE. AND ALSO THAT THEY HAD FURTHER DEPOSITED CASH AMOUNTS IN THEIR BA NK ACCOUNTS BEFORE ISSUING THE CHEQUES IN QUESTION TO THE ASSESSEE ON THE SAME DAY. THE ASSESSING OFFICER THUS INVOKED SECTION 68 OF THE ACT TO TREAT THE LOAN AMOUNT IN QUESTION AS UNEXPLAINED CASH CREDITS. THE CIT(A) C ONFIRMS THE SAME. 4. WE HAVE HEARD BOTH THE LEARNED REPRESENTATIVES R EITERATING THEIR RESPECTIVE STANDS. CASE FILE PERUSED. THE ONLY DI SPUTE BETWEEN THE PARTIES IS ABOUT CORRECTNESS OF SECTION 68 ADDITION OF UNEXPLA INED CASH CREDITS ITA NO. 2006/AHD/2013 (SITARAM D. SOMANI VS. ITO) A.Y. 2009-10 - 3 - AMOUNTING TO RS.3LACS AS RECEIVED FROM ASSESSEES W IFE AND SISTER-IN-LAW THROUGH BANKING CHANNEL. THE ASSESSING OFFICER AS WELL AS CIT(A) ARE OF THE VIEW THAT THE ASSESSEE HAS TAKEN LOANS FROM FAMILY MEMBERS WHOSE CONFIRMATIONS ARE EASILY AVAILABLE AND ALSO THAT T HEY HAVE DEPOSITED CORRESPONDING CASH SUMS IN THEIR RESPECTIVE BANK AC COUNTS. IT IS THUS CLEAR THAT IDENTITY IS NOWHERE IN DISPUTE SO FAR AS BOTH OF THE ASSESSEES FAMILY MEMBERS ARE CONCERNED. THE ASSESSEE HAD FURTHER FI LED THEIR CONFIRMATIONS AS WELL BEFORE THE ASSESSING OFFICER. HE TAKES US TO THE RELEVANT PAPER BOOK ON RECORD COMPRISING OF COPY OF INCOME TAX RETURN, COM PUTATION OF INCOME, BANK STATEMENTS AND BALANCE SHEETS OF BOTH THE ABOVE STA TED PARTIES TO EXPLAIN THEIR SOURCE OF INCOME/LOAN AMOUNTS. ALL THIS EVIDENCE H AS GONE UNREBUTTED AT REVENUES END. IT IS THUS CLEAR THAT THE SAID TWO FAMILY MEMBERS HAD SUFFICIENT CASH IN HAND TO DEPOSIT THE SAME IN THEI R RESPECTIVE BANK ACCOUNTS AND ADVANCE THE SUMS IN QUESTION TO THE ASSESSEE. WE ACCORDINGLY CONCLUDE THAT THE ASSESSEES EVIDENCE SATISFIES GENUINENESS/ CREDITWORTHINESS TESTS AS WELL. WE THUS DIRECT THE ASSESSING AUTHORITY TO DE LETE THE IMPUGNED ADDITION OF RS.3LACS IN THE NATURE OF UNEXPLAINED CASH CREDI TS. 5. THIS ASSESSEES APPEAL IS ALLOWED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 08 TH DAY OF FEBRUARY, 2017.] SD/- SD/- ( AMARJIT SINGH ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 08/02/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ITA NO. 2006/AHD/2013 (SITARAM D. SOMANI VS. ITO) A.Y. 2009-10 - 4 - ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0