Smt. Alkaben D. Patel, Anand V. The Income Tax Officer, Ward-1, Anand

ITA 2110/AHD/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6016 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 15-07-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: O P PATHAK
• Assessee Lawyers: D H PATEL
• Section: 68

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA NO. 2110/AHD/2014 / ASSESSMENT YEAR: 2010-11 SMT.ALKABEN D. PATEL 1, JALARAM BUILDING OLD COURT ROAD ANAND 388 001. VS DCIT, MEHSANA CIRCLE MEHSANA. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI D.H. PATEL, AR REVENUE BY : SHRI O.P. PATHAK, SR.DR / DATE OF HEARING : 23/02/2018 /DATE OF PRONOUNCEMENT : 01/03/2018 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF ASSES SEE AGAINST ORDER OF LD.CIT(A)-II, BARODA DATED 2.1.2014 FOR THE ASST T.YEAR 2010-11. 2. GROUND OF APPEAL TAKEN BY THE ASSESSEE IS ARGUME NTATIVE IN NATURE. IN BRIEF HER GRIEVANCE IS THAT THE LD.CIT( A) HAS ERRED IN CONFIRMING ADDITION OF RS.3,74,000/-. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL ENGAGED IN THE BUSINESS OF SUPPLY OF LABOURERS AND OFFICE S TAFF. SHE HAS FILED HER RETURN OF INCOME ON 27.9.2010 DECLARING TOTAL INCOM E AT RS.3,31,622/-. IT ITA NO.2110/AHD/2014 - 2 - CAME TO THE NOTICE OF THE AO THAT SHE HAS TAKEN UNS ECURED LOANS FROM FOLLOWING FIVE PERSONS: I) SHRI RAMESH P. HARIJAN RS.19,000/- II) SHRI SURESHBHAI N. PATEL RS.3,00,000/- III) VISHNUBHAI U. TALPADA RS.19,000/- IV) NATVAR J. HARIJAN RS.18,000/- V) NAYANA B. MISTRY RS.18,000/- ACCORDING TO THE LD.AO, ASSESSEE FAILED TO DISCHARG E ONUS CAST UPON HER BY VIRTUE OF SECTION 68 OF THE INCOME TAX ACT, HENC E HE MADE ADDITION. APPEAL TO THE LD.CIT(A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. 4. BEFORE US, HER HUSBAND SHRI D.H.PATEL FILED POWE R OF ATTORNEY ON BEHALF OF HIS WIFE FOR APPEARING BEFORE THE TRIBUNA L. HE ADMITTED THAT OUT OF FIVE CREDITORS ASSESSEE COULD NOT SUBMIT ANY EXPLANATION OR CONFIRMATION FROM RAMESH P. HARIJAN, NATVAR J. HARIJ AN AND VISHNUBHAI TALPADA. WITH REGARD TO OTHER VIZ. SURESHBHAI N. P ATEL AND NAYANA B. MISTRY THE ASSESSEE HAS FILED CONFIRMATION, PAN, DE TAILS OF THEIR LAND HOLDING. REPLIES OF THE ASSESSEE VIDE LETTER DATED 17.12.2013 IS AVAILABLE ON APPEAL PAPERS. SIMILARLY, PHOTO COPY OF PAN CAR D OF SHRI PATEL SURESHKUMAR PATEL BEARING PAN NO.ANQPP 2186 D HAVE BEEN PLACED ON RECORD. COPY OF FORM NO.7/12 EXHIBITING LAND HO LDING OWNED BY SHRI SURESHKUMAR PATEL HAS BEEN PLACED ON RECORD. SHRI D.H.PATEL CONTENDED THAT AS FAR AS LOANS TAKEN FROM SURESH PATEL IS CON CERNED, ASSESSEE HAS FULFILLED INGREDIENTS OF SECTION 68 AND NO ADDITION BE MADE. HE ALSO CONTENDED THAT AS FAR AS SHRI VISHNUBHAI TALPADA IS CONCERNED THE ITA NO.2110/AHD/2014 - 3 - ASSESSEE HAS REPAID LOAN OF RS.19,000/- ON 6.12.201 0 BEFORE ASSESSMENT WAS COMPLETED AND SAID EMPLOYEE HAS LEFT JOB OF THE ASSESSEE. ON THE OTHER HAND, THE LD.DR RELIED UPON THE ORDERS OF THE REVENUE AUTHORITIES BELOW. 5. WE HAVE DULY CONSIDERED RIVAL CONTENTIONS AND GO NE THROUGH THE RECORD CAREFULLY. SECTION 68 OF THE INCOME TAX ACT CONTEMPLATES THAT WHERE ANY SUM IS FOUND CREDITED IN THE BOOKS OF AN ASSESSEE MAINTAINED FOR ANY PREVIOUS YEAR, AND THE ASSESSEE OFFERS NO E XPLANATION ABOUT THE NATURE AND SOURCE THEREOF, OR THE EXPLANATION OFFER ED BY THE ASSESSEE IS NOT, IN THE OPINION OF THE AO SATISFACTORY, THEN TH E SUM SO CREDITED IN THE ACCOUNTS MAY BE TREATED AS INCOME OF THE ASSESSEE O F THAT PREVIOUS YEAR. 6. ASSESSEE IS REQUIRED TO PROVE IDENTITY OF THE CR EDITORS, THEIR CREDIT- WORTHINESS AND GENUINENESS OF THE TRANSACTION. SO FAR AS SHRI RAMESH HARIJAN, NATVAR HARIJAN AND VISHNUBHAI TALPADA ARE CONCERNED, ASSESSEE FAILED TO FILE ANY CONFIRMATION, THEREFORE HE FAILED TO PROVE GENUINENESS AS WELL AS CREDIT-WORTHINESS OF THESE C REDITORS. LOANS TAKEN FROM THESE THREE PERSONS ARE TO BE TREATED AS UNEXP LAINED CREDIT AND ADDITION TO THIS EXTENT IS CONFIRMED. AS FAR AS LOAN TAKEN FROM SURESHBHAI PATEL AND NAY ANA B. MISTRY ARE CONCERNED, THE ASSESSEE HAS SUBMITTED THEIR CON FIRMATION, THEIR PAN AND OTHER DETAILS. THEREFORE, SHE HAS DISCHARGED O NUS CAST UPON HER BY VIRTUE OF SECTION 68 AND ADDITION TO THE EXTENT I.E . RS.3,00,000/- (UNSECURED LOANS FROM SHRI SURESHBHAI N. PATEL) AND RS.18,000/- ITA NO.2110/AHD/2014 - 4 - (UNSECURED LOAN FROM NAYANA B. MISTRY) ARE TREATED AS GENUINE AND ADDITION TO THIS EXTENT IS DELETED. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON 1 ST MARCH, 2018. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED, 01/03/2018