JAGDISH PRASAD ATAL, Jaipur V. ITO, Jaipur

ITA 204/JPR/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5151 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Appeal Filed On: 04-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMAADDL CIT DR DHK
• Keywords: Salary income
• Section: 142(1); 148

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 204/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 SHRI JAGDISH PRASAD ATAL 439, MAHESH NAGAR JAIPUR CUKE VS. THE ITO WARD- 2 (4) JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AHFPA 6297 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: WRITTEN SUBMISSION JKTLO DH VKSJ LS@ REVENUE BY:SHRI R.A. VERMA,ADDL.CIT - DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 12/07/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 15/07/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDE R OF THE LD. CIT(A)-I, JAIPUR DATED 30-12-2015 FOR THE ASSESS MENT YEAR 2007-08 RAISING THEREIN FOLLOWING GROUNDS:- (1) THAT ON THE FACTS AND IN CIRCUMSTANCES OF THE C ASE AS WELL AS THE LD. CIT(A) HAS GROSSLY ERRED IN CONFIRM ING THE ADDITION MADE BY THE ASSESSING OFFICER IN THE NAME OF SHRI HARI RAM AT RS. 4.00 LACS AS UNEXPLAINED INCOME WHE REAS THE ASSESSEE HAD GIVEN ONLY LOAN OF RS. 40,000/-. T HUS THE ADDITION OF RS. 4.00 LACS CONFIRMED BY THE LD. CIT( A) DESERVES TO BE DELETED. ITA NO. 204/JP/2016 SHRI JAGDISH PRASAD ATAL VS. ITO, WARD- 2 (4), JAIP UR . 2 (2) THAT ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AS WELL AS THE LD. CIT(A) HAS GROSSLY ERRED IN CONFIRMING THE ADDITION OF RS. 30,000/- MADE BY THE ASSESSING OFFICER AS UNEXPLAINED INCOME WHEREAS THE ASSESSEE HAS GIVEN LOAN OF RS. 30,000/- TO SHRI MAD ANLAL OUT OF SALE PROCEED OF AGRICULTURAL INCOME AT RS. 31,50 0/-. THUS ADDITION OF RS. 30,000/- IN THE NAME OF SHRI MADANL AL CONFIRMED BY THE LD. CIT(A) DESERVES TO BE DELETED. 2.1 NONE APPEARED ON BEHALF OF THE ASSESSEE. CONSEQ UENTLY I HAVE NO OTHER ALTERNATIVE EXCEPT TO DECIDE THE APPEAL ON ME RITS, EX PARTE QUA THE ASSESSEE, AFTER HEARING LD. DR AND AFTER PERUSAL OF THE MATERIALS AVAILABLE ON RECORD. 3.1 BRIEF FACTS OF THE CASE ARE THAT ASSESSEE FILED HIS RETURN OF INCOME ON 27-07-2007 DECLARING TOTAL INCOME OF RS. 81,474/ - WHICH WAS PROCESSED U/S 143(1) OF THE ACT . THE CASE OF THE A SSESSEE HAD BEEN REOPENED DUE TO CONCEALMENT OF PARTICULARS OF INCOM E OF RS. 5,10,000/- . AFTER RECORDING THE REASON U/S 148 OF THE ACT, THE CASE OF THE ASSESSEE WAS TAKEN UP FOR SCRUTINY U/S 148 OF THE ACT AND NOTICE WAS ISSUED ON 22-09- 2012. IN RESPONSE TO THE NOTICE U/S 148, THE ASSESS EE HAD FILED THE RETURN ON 18-06-2013. FURTHER NOTICE U/S 143(2) AND 142(1) WERE ISSUED ALONGWITH QUERY LETTER ON 16-07-2013 AND THE LD. AR OF THE ASSESSEE ATTENDED THE PROCEEDINGS AND FILED THE WRITTEN SUBM ISSION ALONGWITH OTHER ITA NO. 204/JP/2016 SHRI JAGDISH PRASAD ATAL VS. ITO, WARD- 2 (4), JAIP UR . 3 DOCUMENTS REQUIRED BY THE ASSESSEE. IT IS NOTED THA T THE CASE OF THE ASSESSEE WAS REOPENED ON THE BASIS OF THE ENQUIRY R EPORT RECEIVED FROM ITO (INV.) JAIPUR VIDE HIS OFFICE LETTER NO. 849 DA TED 10-11-201 AND IT IS GATHERED THAT DURING THE YEAR THE ASSESSEE HAD GIVE N LOAN OF RS. 5,10,000/- FOR WHICH NO SUPPORTIVE DOCUMENTS WERE FURNISHED. D URING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE HAS SUBMITTED THE FOLLOWING INFORMATION BEFORE THE AO. 1. THE ASSESSEE HAS GIVEN LOAN TO SHRI HARI RAM AT RS. 40,000/- OUT OF CASH BALANCE AVAILABLE WITH THE ASS ESSEE BUT THE LOAN WAS NOT REPAID BY SHRI HARI RAM. THEREFORE, TH E ASSESSEE HAD FILED CASE IN THE COURT FOR RS. 40,000/- ONLY IN OR DER TO GET LOAN MONEY OF RS. 40,000/-. IN SUPPORT OF THIS CONTENTIO N, THE PHOTO COPY OF FIR FILED BY SHRI HARI RAM IS ENCLOSED WHIC H SHOWS THAT LOAN WAS GIVEN ONLY RS. 40,000/- AND NOT RS. 4,00,0 00/- 2. THE ASSESSEE HAD GIVEN LOAN OF RS. 80,000/- TO S HRI KAMLESH SINGH ON 15-01-2007 OUT OF WITHDRAWAL FROM WIFES JOINT ACCOUNT. 3. THE ASSESSEE HAD GIVEN LOAN OF RS. 30,000/- TO S HRI MADAN LAL ON 5-01-2007 OUT OF SALE PROCEED OF AGRIC ULTURAL PRODUCE OF RS. 31,500/ HOWEVER, THE AO AFTER GOING THROUGH THE DOCUMENTS F ILED BY THE ASSESSEE AND WRITTEN SUBMISSION OBSERVED THAT THE ASSESSEE H IMSELF HAS FILED THE RECOVERY SUIT FOR RS. 4.00 LACS AGAINST SHRI HARI R AM BEFORE THE ADJ COURT NO. 15, JAIPUR. THUS THE CONTENTION OF THE AS SESSEE REGARDING ITA NO. 204/JP/2016 SHRI JAGDISH PRASAD ATAL VS. ITO, WARD- 2 (4), JAIP UR . 4 CLAIMING THE AMOUNT OF RS. 40,000/- INSTEAD OF RS. 4,00,000/- ON THE BASIS OF THE FIR FILED BY SHRI HARI RAM WAS NOT FOUND CON VINCING TO THE AO. THE AO FURTHER OBSERVED AS TO LOAN ADVANCED TO SHRI KAMLESH SINGH BY THE ASSESSEE FROM HIS WIFE ACCOUNT WHICH WAS FOUND EXPLAINABLE AS THERE WAS CASH DEPOSIT IN THE SAID ACCOUNT BEFORE WITHDRA WAL OF SAID AMOUNT. THE AO OBSERVED THAT THE ASSESSEE HAS CLAIMED TO GI VE LOAN OF RS. 30,000/- TO SHRI MADAN LAL OUT OF AGRICULTURAL RECEIPTS OF RS. 31,500/- BUT THE AO ON VERIFICATION OF ORIGINAL RETURN FOUND THAT THE ASSESSEE HAD NOT DISCLOSED ANY AGRICULTURE INCOME AND HE HAS NOT PRODUCED ANY PROOF OF SALE OF AGRICULTURE PRODUCE DURING ASSESSMENT PR OCEEDINGS. IN VIEW OF THESE FACTS, THE AO DID NOT FIND THE CONTENTIONS OF THE ASSESSEE ACCEPTABLE AND MADE THE ADDITION OF RS. 5.10 LACS TO THE TOTAL INCOME OF THE ASSESSEE. 3.2 BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTE R BEFORE THE LD. CIT(A) WHO HAS PARTLY CONFIRMED THE ADDITION BY OBS ERVING AS UNDER:- 3.1.2. (I) I HAVE CAREFULLY PERUSED THE SUBMISSIO N OF THE APPELLANT AND THE MATERIAL PLACED ON RECORD. THE AO MADE ADDITION OF RS. 5.10 LACS AS UNDISCLOSED INCOM E OF THE APPELLANT ON ACCOUNT OF FOLLOWING ADVANCES MADE BY THE APPELLANT DURING THE YEAR UNDER CONSIDERATION. SHRI HARI RAM 4,00,000/- SHRI KAMLESH SINGH 80,000/- SHRI MADAN LAL 30,000/- ITA NO. 204/JP/2016 SHRI JAGDISH PRASAD ATAL VS. ITO, WARD- 2 (4), JAIP UR . 5 (II) DURING THE APPELLATE PROCEEDINGS, IT WAS SUBMITTED BY THE APPELLANT THAT IT HAD GIVEN A LOAN OF RS. 40,000/- ONLY TO SHRI HARIRAM WHEREAS THE AO MADE A DDITION OF RS. 4,00,000/- ON ACCOUNT OF LOAN GIVEN TO SHRI HARIRAM. IN SUPPORT OF ITS CLAIM, THE APPELLANT FILED A COPY OF FIR FILED B SHRI HARIRAM AGAINST THE APPELLANT WHEREIN IT HAS BEEN STATED THAT SHRI HARIRAM HAD TAKEN A LOAN OF RS. 40 ,000/- FROM THE APPELLANT AND AS A SECURITY TWO BANK SIGN ED CHEQUES WERE PROVIDED TO THE APPELLANT BY SHRI HARI RAM. IN THE FIR, IT HAS BEEN ALLGE4D THAT THE APPELLANT FIL LED RS. 4,00,000/- IN THE BANK CHEQUE AND DEPOSITED IN HIS BANK ACCOUNT ALSO. IT IS TO BE NOTED FROM THE ASSESSMENT ORDER THAT APPELLANT HAS FILED A RECOVERY SUIT FOR RS. 4,00,00 0/- AGAINST SHRI HARIRAM BEFORE THE ADJ COURT NO. 15, JAIPUR. I N VIEW OF THE ABOVE AND LOOKING TO THE CONDUCT OF THE APPE LLANT, IT IS CLEAR THAT THE APPELLANT HAD GIVEN A LOAN OF RS. 4, 00,000/- TO SHRI HARIRAM OUT OF ITS UNDISCLOSED SOURCE OF INCOM E AND THUS THE ADDITION MADE BY THE AO IS HEREBY SUSTAINE D. THE APPELLANT CANNOT BE ALLOWED TO BLOW HOT AND COLD AT THE SAME TIME. EVEN THE APPELLANT HAS NOT EXPLAINED THE SOUR CE OF RS. 40,000/- CLAIMED TO BE GIVEN ADVANCE TO SHRI HARIRA M (III) THE AO MADE ADDITION OF RS. 80,000/- ON ACCOU NT OF LOAN TO SHRI KAMLESH SINGH. DURING APPELLATE PROCEE DINGS, IT WAS SUBMITTED BY THE APPELLANT THAT RS. 80,000/- WE RE WITHDRAWN ON 09-01-2007 FROM HIS WIFES JOINT ACCOU NT AND THE SAME WAS ADVANCED TO SHRI KAMLESH SINGH ON 15-0 1- 2007. IN SUPPORT OF ITS CONTENTION, THE A FILED A C OPY OF BANK ACCOUNT IN THE NAME OF SMT. KAMLI DEVI AND SHRI J.P . ATAL WHEREIN A SUM OF RS. 80,000/- WAS WITHDRAWN BY SHRI J.P. ATAL ON 09-01-2007. THEREFORE, THE SOURCE OF LOAN O F RS. 80,000/- GIVEN TO SHRI KAMLESH SING STANDS EXPLAINE D AND THUS THE ADDITION OF RS. 80,000/- MADE BY THE AO DE SERVES TO BE DELETED. (IV) THE AO MADE ADDITION OF RS. 30,000/- ON ACCOUN T OF LOAN GIVEN TO SHRI MADAN LAL ON 5-01-2007 AND THE S OURCE WAS CLAIMED TO BE OUT OF SALE PRODUCE OF RS. 31,500 /-. THE SAME SUBMISSIONS WERE MADE BEFORE THE AO AND IT HAS BEEN ITA NO. 204/JP/2016 SHRI JAGDISH PRASAD ATAL VS. ITO, WARD- 2 (4), JAIP UR . 6 OBSERVED BY THE AO THAT ON VERIFICATION OF ORIGINAL RETURN OF INCOME OF THE APPELLANT, IT IS OBSERVED THAT IT HAS NOT DISCLOSED ANY AGRICULTURAL INCOME AND THE APPELLANT HAS NOT PRODUCED ANY EVIDENCE REGARDING SALE OF AGRICULTURA L PRODUCE. DURING THE APPELLATE PROCEEDINGS, THE APPE LLANT HAS NOT CONTROVERTED THE FINDINGS OF THE AO AND NEITHER FILED A COPY OF RETURN OF INCOME EVIDENCING SALE OF AGRICUL TURAL PRODUCE OF RS. 31,500/- NOR ANY EVIDENCE REGARDING SALE OF AGRICULTURAL PRODUCE. IN VIEW OF THE ABOVE, I DO NO T FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE AO AND TH US THE ADDITION OF RS. 30,000/- IS HEREBY SUSTAINED. 3.3 IN THIS APPEAL, IT IS OBSERVED THAT ASSESSEE TH ROUGH WRITTEN SUBMISSION PRAYED TO DELETE THE REMAINING ADDITIONS IN RESPECT OF SHRI HARI RAM AMOUNTING TO RS. 4.00 LACS AND IN RES PECT OF SHRI MADAN LAL AMOUNTING TO RS. 30,000/- I.E. TOTALING TO RS. 4.30 LACS 3.4 THE LD. DR RELIED ON THE ORDER OF THE LD. CIT(A ). 3.5 I HAVE HEARD THE LD. DR AND PERUSED THE MATERIA LS AVAILABLE ON RECORD INCLUDING THE WRITTEN SUBMISSION OF THE ASSE SSEE. IT EMERGES FROM THE RECORD PLACED BEFORE ME THAT THE ASSESSEE HAD G IVEN LOAN TO SHRI HARI RAM AMOUNTING TO RS. 40,000/- ON 24-05-2006 AFTER W ITHDRAWING A SUM OF RS. 50,000/- FROM THE RAILWAY EMPLOYEES COOPERA TIVE BANK LTD. , JAIPUR BEARING SAVING BANK ACCOUNT NO.10541 ON 22-0 5-2006. SINCE THE LOAN WAS NOT REPAID BY SHRI HARI RAM, A CASE WAS FI LED IN THE COURT FOR RS. 4.00 LACS ONLY IN ORDER TO GET THE LOAN AMOUNT OF RS. 40,000/- AS WELL ITA NO. 204/JP/2016 SHRI JAGDISH PRASAD ATAL VS. ITO, WARD- 2 (4), JAIP UR . 7 AS COURT EXPENSES. IT ALSO APPEARS FROM THE COPY OF THE FIR FILED BY SHRI HARI RAM THAT THE LOAN WAS GIVEN BY THE ASSESSEE TO SHRI HARI RAM AMOUNTING TO RS. 40,000/- ON 24-05-2006 AFTER WITHD RAWING THE SUM OF RS. 50,000/- FROM THE BANK ON 22-05-2006. CONCLUSIV ELY I FIND FROM THE RECORDS THAT THE LOAN AMOUNT WAS AT RS. 40,000/- AN D NOT AT RS. 4.00 LACS. HENCE, I DIRECT TO DELETE THE ADDITION OF RS. 4.00 LACS CONFIRMED BY THE LD. CIT(A) IN ASSESSEE'S ACCOUNT. 3.5.1 AS REGARDS THE LOAN AMOUNT OF RS. 30,000/- GI VEN ON 5-01-2007 IN THE CASE OF SHRI MADAN LAL OUT OF SALE OF AGRICULTU RAL PRODUCE, THE ASSESSEE HAS SHOWN AGRICULTURAL INCOME OF RS. 31,50 0/- IN THE RETURN FILED IN RESPONSE TO NOTICE U/S 148. IT IS NOTED THAT THE AO HAS ASSESSED THE AGRICULTURAL INCOME AT RS. 31,500/- WHILE COMPLETIN G ASSESSMENT ON 29-10-2013 AT RS. 6,74,530 WHICH CAN BE SEEN FROM T HE FOLLOWING DETAILS. A) SALARY INCOME 128448.00 B) INCOME FROM OTHER SOURCES 75037.00 GROSS TOTAL INCOME 203485.00 C) LESS:DEDUCTION UNDER CHAPTER VIA 70454.00 TOTAL INCOME 133031.00 D) ADD: AGRICULTURAL INCOME 31500.00 TAXABLE INCOME 164531.00 E) ADD:ADDITION MADE BY AO 510000.00 F) TAXABLE INCOME 674531.00 ITA NO. 204/JP/2016 SHRI JAGDISH PRASAD ATAL VS. ITO, WARD- 2 (4), JAIP UR . 8 THE ASSESSEE HAS FILED THE COPY OF JAMABANDI WITH T HE WRITTEN SUBMISSION. HENCE, IT APPEARS FROM THE RECORDS THAT THE ASSESSE E HAD GIVEN LOAN OF RS. 30,000/- TO SHRI MADAN LAL ON 5-01-2007 OUT OF SALE OF AGRICULTURAL PRODUCE. HENCE, IN VIEW OF THE ABOVE DELIBERATIONS, THE ADDITION OF RS. 30,000/- CONFIRMED BY THE LD. CIT(A) AS TO LOAN IN THE CASE OF SHRI MADAN LAL IS DIRECTED TO BE DELETED. 3.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 15/07/ 2016 SD/- HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 15 /07/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI JAGDISH PRASAD ATAL, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- 2 (4), JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 204/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR