Saroj Vinodkumar Anand, Ahmedabad V. The Income tax Officer,Ward-7(1), Ahmedabad

ITA 21/AHD/2012

• Counselvise Citation: 2120514 RSA 2012
• Duration Of Justice: 2 year(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-12-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 04-01-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DK MISHR A
• Assessee Lawyers: M K PATEL
• Keywords: Salary income; Valuation report

Judgement Text

, , , , SMC, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, SMC BENCH . .. . . .. . , ! ! ! ! BEFORE SHRI G.C. GUPTA, VICE-PRESIDENT ITA NO.21/AHD/2012 [ASSTT.YEAR : 2007-2008] SAROJ VINODKUMAR ANAND A-301, SHREE KRISHNA COMPLEX OPP: MAMTA HOSPITAL, BOPAL AHMEDABAD 380058. PAN : AGAPA 0451 B /VS. ITO, WARD-7(1) AHMEDABAD. ( (( (#$ #$ #$ #$ / APPELLANT) ( (( (%&#$ %&#$ %&#$ %&#$ / RESPONDENT) '() * + !/ ASSESSEE BY : SHRI M.K. PATEL -. * + !/ REVENUE BY : SHRI D.K. MISHRA, SR.DR ./ * )01/ DATE OF HEARING : 16 TH DECEMBER, 2013 234 * )01/ DATE OF PRONOUNCEMENT : 03-02-2014 !5 / O R D E R THIS APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2007-08 IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-XIV, AHMED ABAD DATED 25.10.2011. 2. THE GROUND OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: 1. THAT THE LD.CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.3,74,000/- MADE U/ S.68 OF THE ACT. ITA NO.21/AHD/2012 2. THAT ON FACTS, EVIDENCE ON RECORD AND IN LAW, IT OUGHT TO HAVE BEEN HELD THAT THE ASSESSEE HAS DULY DISCHARGE D ITS BURDEN AND ENTIRE ADDITION OUGHT TO HAVE BEEN DELETED, AS PRAYED FOR. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THESE GROUNDS OF APPEAL CONSISTED OF THREE CREDIT ENTRIES OF S/SH RI ARJUNSINGH RAJPUT, RAJENDRA BAWA AND SHANKERJI S. THAKORE. REGARDING CREDIT ENTRY OF ` 1,02,000/- OF SHRI ARJUNSINGH RAJPUT, HE SUBMITTED THAT HE HAS PURCHASED 12 TOLAS OF GOLD AT ` 8500/- PER TOLA AND HAS MADE CASH PAYMENT TO THE ASSESSEE, AND HAS FILED HIS CONFIRMA TION LETTER ALONG WITH PAN COPY AND IDENTITY CARD ISSUED BY ELECTION COMM ISSION OF INDIA. SHRI ARJUN SINGH RAJPUT HAS SUBMITTED IN THE STATEM ENT RECORDED BY THE AO THAT HIS MONTHLY INCOME IS ` 10,000/- AND THERE WERE FOUR FAMILY MEMBERS WHOSE HOUSE-HOLD EXPENSES ARE OF ` 5,000/- IN A MONTH. REGARDING CREDIT ENTRY OF RAJENDRA BAWA, THE LEARNE D COUNSEL FOR THE ASSESSEE SUBMITTED THAT SHRI RAJENDRA BAWA HAS FILE D CONFIRMATION LETTER REGARDING PURCHASE OF GOLD FOR ` 1,02,000/- FROM THE ASSESSEE AND HAS FILED HIS PAN COPY AND HAS ALSO ADMITTED IN HIS STATEMENT RECORDED BY THE AO THAT HE HAS WORKING WITH RELIANCE TEXTILE DIVISION, NARODA AND GETTING SALARY OF ABOUT ` 3,00,000/- PER ANNUM AND HOUSEHOLD EXPENSES WERE OF ` 10,000/- TO ` 12,000/- PER MONTH, AND HAS PAID AMOUNT TO THE ASSE SSEE FOR PURCHASE OF GOLD OUT OF THE SAVING. REGARDING THE CREDIT OF ` 1,70,000/- OF SHANKERJI S. THAKORE, THE LEARNED COUNSEL FOR THE A SSESSEE SUBMITTED THAT HE HAS FILED CONFIRMATION LETTER THAT HE HAS PURCHA SED 20 TOLAS OF GOLD FROM THE ASSESSEE AND HAS FILED COPY OF DRIVING LIC ENCE, PAN AND IDENTITY CARD ISSUED BY L.M. COLLEGE OF PHARMACY WHEREIN HE WAS EMPLOYED AS A LECTURER. THE SAID DEPONENT IN HIS STATEMENT RECOR DED BY THE AO HAS CONFIRMED THAT HE WAS LECTURER IN L.M. COLLEGE OF P HARMACY, AHMEDABAD DURING THE RELEVANT PERIOD AND WAS GETTING ` 30,000/- PER MONTH AS SALARY AND GOLD WAS PURCHASED FROM HIS SAVINGS FROM SALARY INCOME. ITA NO.21/AHD/2012 4. THE LEARNED DR HAS OPPOSED THE SUBMISSION OF THE LEARNED COUNSEL OF THE ASSESSEE. HE REFERRED TO THE RELEVANT PARAS OF THE ORDERS OF THE AO AND THE CIT(A) IN SUPPORT OF THE CASE OF THE REVENU E. HE SUBMITTED THAT THERE IS NO REASON THAT WHY THE GOLD WAS NOT SOLD B Y THE ASSESSEE TO ANY REGISTERED JEWELERS AND WHY NO VALUATION REPORT WAS PLACED ON RECORD. HE SUBMITTED THAT IT IS NOT UNDERSTANDABLE THAT FRI ENDS WILL PURCHASE THE GOLD FROM THE ASSESSEE INSTEAD OF BUYING THE SAME F ROM OPEN MARKET. HE SUBMITTED THAT THE CREDIT-WORTHINESS AND THE GENUIN ENESS OF THE TRANSACTIONS WAS NOT PROVED BY THE ASSESSEE. HE RE LIED ON THE ORDERS OF THE AO AND THE CIT(A). 5. I HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A) AND ALSO COPIES OF VARIOUS DOCUME NTARY EVIDENCES FILED BY THE ASSESSEE BEFORE THE REVENUE AUTHORITIE S, AND COPIES OF WHICH HAVE BEEN FILED BEFORE THE TRIBUNAL. REGARDING T HE CREDIT OF ` 1,02,000/- OF SHRI ARJUNSINGH RAJPUT, FROM THE PERUSAL OF HIS STATEMENT RECORDED ON OATH BY THE AO, I FIND THAT HIS TOTAL INCOME WAS ` 10,000/- PER MONTH AND HAS FOUR FAMILY MEMBERS AND HAS NO BANK ACCOUNT ETC . HE HAS STATED IN HIS STATEMENT THAT HE WAS DELIVERING MILK, AND THER EFORE, HAVING ACQUAINTED WITH THE ASSESSEE, FROM WHOM HE HAS PURC HASED THE JEWELLERY. I FIND THAT THE INCOME OF SHRI ARJUNSINGH RAJPUT ST ATED TO BE ABOUT ` 10,000/- PER MONTH AND NATURE OF HIS BUSINESS OF DE LIVERING MILK TO THE ASSESSEE DOES NOT INSPITE CONFIDENCE, AND CREDIT-WO RTHINESS OF THE PERSON CONCERNED COULD NOT PROVED BY THE ASSESSEE. THE AS SESSEE WAS ABLE TO PROVE IDENTITY OF SHRI ARJUNSINGH RAJPUT, BUT THE C REDIT-WORTHINESS AND GENUINENESS OF THE TRANSACTION HAVE ALSO TO BE PROV ED BY THE ASSESSEE IN THIS CASE, AND SINCE THE SAME HAS NOT BEEN PROVED, I HOLD THAT THE PREPONDERANCE OF PROBABILITIES IS IN FAVOUR OF THE REVENUE AND THE ITA NO.21/AHD/2012 ADDITION OF ` 1,02,000/- WAS RIGHTLY MADE BY THE DEPARTMENT, WHIC H IS CONFIRMED AND THE GROUNDS OF THE ASSESSEE TO THAT E XTENT IS DISMISSED. REGARDING THE CREDIT OF ` 1,02,000/- OF SHRI RAJENDRA BAWA, I FIND THAT HE HAS PURCHASED GOLD FROM THE ASSESSEE AND HA S FILED CONFIRMATION ALONG WITH COPY OF PAN BEFORE THE AO. IN HIS STATE MENT RECORDED BY THE AO, HE HAS STATED THAT HE WAS EMPLOYEE DURING THE P ERIOD WITH THE RELIANCE TEXTILE DIVISION, NARODA AND HIS INCOME IS ABOUT ` 3,00,000/- P.A. HE HAS STATED HIS HOUSEHOLD EXPENSES TO THE E XTENT OF ` 10,000/- TO ` 12,000/- PER MONTH. THERE IS NO EVIDENCE BROUGHT O N RECORD TO CONTROVERT THE CONTENTS OF THE STATEMENT MADE BY TH E SAID SHRI RAJENDRA BAWA. HIS INCOME IS SUFFICIENT TO PURCHASE GOLD WO RTH ` 1,02,000/- FROM THE ASSESSEE. IN THESE FACTS, I HOLD THAT THE ASSE SSEE HAS DISCHARGED ITS ONUS BY PROVING THE IDENTITY OF THE PERSON CONCERNE D AND CREDIT- WORTHINESS AND GENUINENESS OF THE TRANSACTION. ACC ORDINGLY, THE ADDITION OF ` 1,02,000/- PERTAINED TO SHRI RAJENDRA BAWA IS DELET ED AND THE GROUNDS OF THE APPEAL OF THE ASSESSEE ARE PARTLY AL LOWED. REGARDING THE ADDITION OF ` 1,70,000/- OF SHRI SHANKERJI S. THAKORE, I FIND THAT HE HAS FILED HIS CONFIRMATION ALONG WIT H COPY OF DRIVING LICENCE, PAN CARD, IDENTITY CARD ISSUED BY THE ELEC TION COMMISSION OF INDIA AND IDENTITY CARD ISSUED BY L.M. COLLEGE OF P HARMACY, AHMEDABAD. IN HIS STATEMENT RECORDED BY THE AO ON OATH, HE HAS STATED THAT HE WAS GETTING SALARY OF ` 30,000/- PER MONTH AS LECTURER WITH L.M. COLLEGE OF PHARMACY DURING THE RELEVANT PERIOD. IN THESE FACT S, I AM OF THE CONSIDERED VIEW THAT HIS SAVING FROM SALARY IS SUFF ICIENT TO PURCHASE GOLD FROM THE ASSESSEE WORTH ` 1,70,000/- AND ACCORDINGLY, I HOLD THAT SINCE IDENTITY AND CREDIT-WORTHINESS OF SHRI SHANKERJI S. THAKORE ALONGWITH GENUINENESS OF THE TRANSACTION HAS BEEN PROVED BY T HE ASSESSEE, THE ITA NO.21/AHD/2012 ADDITION MADE OF ` 1,70,000/- IS DELETED AND THE GROUNDS OF THE APPEAL OF THE ASSESSEE ARE PARTLY ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- ( . .. . . .. . /G.C. GUPTA) /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD