Asstt.Commissioner of Income Tax,Amravati Circle, Amaravati V. M/s. Shriram Construction Company, Amaravati

ITA 207/NAG/2009

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1922 (ITAT-NAGPUR)
• Duration Of Justice: 3 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-10-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 11-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMESH GOWANDE
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR , BENCH , ( E - COURT), MUMBAI , BEFORE SHRI R.K.GUPTA , J M & SHRI D.KARUNAKA R RAO , A M ITA NO. 207 / N AG / 20 09 ( ASSESSMENT YEAR : 200 6 - 20 0 7 ) ACIT, AMRAVATI CIRCLE, AAYAKAR BHAVAN, AMBA PETH, AMRAVATI, MAHARASHTRA. VS. M/S SHRIRAM CONSTRUCTION COMPANY , ANJANGAON SURJI, DISTRICT AMRAVATI, MAHARASHTRA. PAN/GIR NO. : A A DFS 4580 Q ( APPELLANT ) .. ( RESPONDENT ) /REVENUE BY : MR. RAMESH GOWANDE /A SSESSEE BY : NONE DATE OF HEARING : 10 TH DEC ., 2012 DATE OF PRONOUNCEMENT : 2 ND JAN . ,201 3 O R D E R P ER SHRI R.K.G UPTA, JM : TH E DEPARTMENT HAS PREFERRED THIS APPEAL BEFORE THE ITAT NAGPUR BENCH, NAGPUR, AGAINST THE ORDER DATED 30 - 6 - 2009 OF LEANED CIT(A) - II , NAGPUR (MAHARASHTRA) RELA TING TO THE ASSESSMENT YEAR 200 6 - 0 7 , WHICH HAS BEEN HEARD THROUGH E - COURT, MUMBAI. 2 . THE DEPARTMENT IS OBJECTING IN DELETING THE ADDITION OF RS. 25,00,000/ - AND RS. 1,90,000/ - , WHICH WERE MADE BY THE ASSESSING OFFICER AFTER REJECT ING BOOKS OF ACCOUNTS. ITA NO. 207 /20 09 2 3 . LEARNED DR ON BEHALF OF THE DEPARTMENT, WHO APPEARED BEFORE THE E - COURT, HAS PLACED RELIANCE ON THE ORDER OF THE ASSESSING OFFICER. 4 . ON THE OTHER HAND, NONE APPEARED ON BEHALF OF THE ASSESSEE. HENCE, THE APPEAL IS HEARD AND D ISPOSED OF AFTER CONSIDERING THE ORDER OF THE AUTHORITIES BELOW AND THE MATERIAL AVAILABLE ON RECORD. 5 . THE ASSESSMENT IN THIS CASE WAS COMPLETED ON 29 - 12 - 2008 . VARIOUS ADDITIONS WERE MADE BY THE AO INCLUDING ADDITION UNDER SECTION 68. THE TOTAL ADDITIO N UNDER SECTION 68 WAS MADE AT RS. 35,30,000/ - . THE ASSESSEE FILED DETAILS OF TOTAL ADDITION OF RS. 35,30,000/ - WHICH COMPRISE OF FOUR ITEMS I.E. RS. 8,00,000/ - RECEIVED FROM N.K.BUILDER, AKOLA, RS. 40,000/ - SHOWN AS REFUND OF SECURITY DEPOSIT FROM ZILLA PARIS HAD, AMRAVATI, RS. 25,00,000/ - AND RS. 1,90,000/ - APPEARED IN THE C REDIT BALANCE IN THE ACCOUNT OF SHRI SAKHARKAR. THE AMOUNT OF RS. 25,00,000/ - AND RS. 1,90,000/ - WAS DELETED BY THE LEARNED CIT(A) AFTER OBTAINING THE REMAND REPORT AND NOW, THE DEPARTMENT HAS FILED THE APPEAL AGAINST THE DELETION OF THESE TOW AMOUNTS . 6 . IT WAS EXPLAINED BEFORE THE CIT(A) THAT THE AMOUNT OF RS. 26,90,000/ - WAS RELATED TO SHRI SAKHARKAR AND THESE AMOUNTS WERE RECEIVED FROM HIM FROM HIS CURRENT ACCOUNT MAINTAINED WITH KHAMGAON U RBAN BANK. THE PROOF OF RECEIPTS OF THESE SUMS WAS PRODUCED FOR VERIFICATION, WHICH ARE ON RECORD AND THE AO HAD GOT VERIFIED ALSO DURING THE COURSE OF HEARING. IT WAS FURTHER SUBMITTED THAT THESE TWO ITA NO. 207 /20 09 3 SUMS WERE, IN FACT, NOT IN NATURE OF DEPOSIT, WHICH WAS IN NATURE OF ARRANGEMENT TO MEET THE PROBABLE EXPENDITURE BY WAY OF PAYMENT TO HIS CREDITOR. THIS MONEY WAS REPAID ALSO . THIS FACT WAS ALSO EXPLAINED BEFORE THE AO. LEARNED CIT(A) SOUGHT REMAND REPORT FROM AO IN RESPECT TO ALL THE CASH CREDITORS. REGARDIN G ADDITION OF RS. 25,00,000/ - AND RS. 1,90,000/ - , THE AO HAS STATED THAT HE HAS VERIFIED THE STATEMENT OF KHAMGAON URBAN BANK AND ENTRIES ARE APPEARING IN THE BANK ACCOUNT, WHICH WAS TRANSFERRED IN THE NAME OF SAKHARKAR AND FROM THAT ACCOUNT, THE AMOUNTS WER E TRANSFERRED IN THE ACCOUNT OF ASSESSEE. A REPLY FROM THE ASSESSEE IN RESPECT TO REMAND REPORT SENT BY THE AO WAS ALSO FILED. AFTER CONSIDERING THE SUBMISSIONS AND REMAND REPORT SENT BY THE AO, LEARNED CIT(A) GAVE FOLLOWING FINDINGS RECORDED IN PARA 8.13( C) AT PAGE 16 OF THIS ORDER, WHICH ARE AS UNDER : - 8.13(C) ADDITIONS OF RS. 25,00,000/ - AND RS. 1,90,000/ - THE ADDITION OF THE ABOVE TWO SUMS TOTALING TO RS. 26,90,000/ - WAS MADE AS UNEXPLAINED CASH CREDITS IN THE ACCOUNT OF SHRI SAKHARKAR. THE FULL FACTS OF THE CASE HAVE BEEN EXPLAINED IN THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE. IT IS EXPLAINED THAT SUMS OF RS. 26,90,000/ - WERE TRANSFERRED THROUGH BANK. COPY OF BANK ACCOUNT IN PROOF OF TRANSFER OF THOSE FUNDS, HAVE ALREADY BEEN PRODUCED BEFORE THE AS SESSING OFFICER. THESE FACTS HAVE BEEN VERIFIED BY THE ASSESSING OFFICER. THE ASSESSING OFFICER HAS NOW AGAIN VERIFIED THE FACTS AND CONFIRMED THAT THE TRANSACTIONS ARE VERIFIABLE FROM RECORD. THE ASSESSING OFFICER IN HIS REMAND REPORT HAS ACCEPTED THAT CR EDITS OF RS. 25,00,000/ - AND RS. 1,90,000/ - ARE NOT CASH CREDITS AND THAT THOSE ARE DULY REFLECTED IN BANK STATEMENTS. THE ASSESSING OFFICERS REMARKS, IN HIS REMAND REPORT ON PAGE 5, HAS ALREADY BEEN REPRODUCED IN THE EARLIER PAGES OF THIS ORDER. AS THE ASS ESSING OFFICER HIMSELF IN REMAND REPORT, HAS ACCEPTED THAT THESE SUMS OF RS. 26,90,000/ - ARE NOT CASH CREDIT, THE ADDITION MADE U/S 68 OF THE ACT IN RESPECT OF THOSE SUMS IS NOT JUSTIFIED AND HENCE IS HEREBY DELETED. ITA NO. 207 /20 09 4 IN VIEW OF THE ABOVE, THE ENTIRE ADDITI ON OF RS. 35,30,000/ - MADE BY THE AO UNDER SECTION 68 OF THE ACT ON ACCOUNT OF UNEXPLAINED CASH CREDIT APPEARING IN THE NAME OF SHRI SAKHARKAR OF AKOLA IS DELETED. THE APPEAL OF THE ASSESSEE ON 5 TH GROUND IS ALLOWED. THE ABOVE FINDING S OF THE LEARNED CIT( A) NEITHER COULD BE CONTROVERTED, NOR THERE ANY OTHER MATERIAL TO CONTROVERT THE FINDING S OF THE LEARNED CI T (A) OR TO ESTABLISH OTHERWISE. THE AO HAS VERIFIED DURING THE REMAND REPORT THAT TRANSACTIONS ARE GENUINE AND THEY WERE TRANSFERRED ENTRY FROM URBAN BANK AKOLA. COPY OF THE ENTRIES WERE VERIFIABLE, THEREFORE, THIS WAS NOT A CASE OF ADDITION UNDER SECTION 68 OF THE ACT. 7 . IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, AND IN VIEW OF THE REASONING GIVEN BY THE LEARNED CIT(A) , WE HOLD THAT L EARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF RS. 25,00,000/ - AND RS. 1,90,000/ - , TOTALING TO RS. 26,90,000/ - . ACCORDINGLY, WE CONFIRM THE ORDER OF LEARNED CIT(A) . 8 . RESULTANTLY , APPEAL OF THE DEPARTMENT IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 ND D AY OF JAN . 201 3 . 201 3 SD/ - SD/ - ( ) ( D.KARUNAKAR RAO ) ( ) ( R.K.GUPTA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 02 / 01 / 201 3 . ITA NO. 207 /20 09 5 /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPON DENT. 3. / THE CIT(A) , MUMBAI / NAGPUR . 4. / CIT 5. / DR, ITAT, MUMBAI / NAGPUR . 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI