Shri Abidali Sabbirali Chidi, Kalol V. Income Tax Officer, Ward-4, Mehsana

ITA 2152/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8602 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 28-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence
• Section: 68

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B . . , , BEFORE SHRI A.D. JAIN, VICE-PRESIDENT AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO.2152/AHD/2017 !' #! / ASSTT. YEAR: 2014-15 SHRI ABIDALI SABBIRALI CHIDI C/O. HOTEL PRESTIGAGE BILESHWARPURA, CHHATRAL TAL: KALOL 382 729 PAN : AIYPC 5742 M VS. ITO, WARD-4 MEHSANA. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI SUNIL TALATI, AR REVENUE BY : SHRI JAYANT JHAVERI, SR.DR ! / DATE OF HEARING : 10/04/2019 '#$ ! / DATE OF PRONOUNCEMENT: 10/04/2019 %& / O R D E R PER A.D. JAIN, VICE-PRESIDENT: ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST T HE ORDER OF THE LD.CIT(A), GANDHINAGAR DATED 7.8.2017 PASSED FO R THE ASSTT.YEAR 2014-15. 2. THOUGH THE ASSESSEE HAS TAKEN FOUR GROUNDS OF AP PEAL, BUT HIS GRIEVANCE REVOLVES AROUND A SINGLE ISSUE WHEREB Y HE HAS PLEADED THAT THE LD.CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.5.00 LAKHS WHICH WAS ADDED BY THE AO WITH THE AI D OF SECTION 68 OF THE INCOME TAX ACT. ITA NO.2152/AHD/2017 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS FILED HIS RETURN OF INCOME ON 25.5.2015 ELECTRONICALLY DECLAR ING TOTAL INCOME AT RS.2,77,440/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY ASSESSMENT AND NOTICE UNDER SECTION 14 3(2) WAS ISSUED AND SERVED UPON THE ASSESSEE. ON SCRUTINY O F THE ACCOUNTS, IT REVEALED TO THE AO THAT THE ASSESSEE H AS RECEIVED RS.5,00,000/- FROM SHRI KULSUMBEN SHABIRBHAI SHELIY A, AND RS.2,00,000/- FROM SABBIRBHAI JIVABHAI SHELIYA. AC CORDING TO THE AO, THE ASSESSEE FAILED TO FULFILL THE REQUIREMENT CONTEMPLATED UNDER SECTION 68 OF THE INCOME TAX ACT, HENCE HE MA DE AN ADDITION OF RS.7,00,000/-. ON APPEAL, THE ASSESSEE FILED ADDITIONAL EVIDENCE UNDER RULE 46A OF THE INCOME TAX RULES, 19 62 WHICH WERE TAKEN ON RECORD AND REMAND REPORT WAS CALLED F ROM THE AO. THE ASSESSEE HAS FILED CONFIRMATION, BANK STATEMENT AND ALL OTHER DETAILS. IT WAS CONTENDED THAT THE LOAN WAS RECEIV ED FROM THE MOTHERS ACCOUNT BY CHEQUE, DETAILS OF THE BANK STA TEMENTS WERE GIVEN. HE HAS GIVEN COPIES OF INCOME-TAX RETURNS O F THE CREDITORS. BUT SOMEHOW, THE LD.CIT(A) WAS NOT SATISFIED WITH TH E EXPLANATION OF THE ASSESSEE AND OBSERVED THAT CASH DEPOSITS IN THE ACCOUNTS OF THE CREDITORS BEFORE THE ISSUE OF CHEQUES. 4. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, W E HAVE GONE THROUGH THE RECORD CAREFULLY. SECTION 68 OF THE INCOME TAX ACT CONTEMPLATES THAT WHERE ANY SUM IS FOUND CREDITED I N THE BOOKS OF AN ASSESSEE MAINTAINED FOR ANY PREVIOUS YEAR, AND THE ASSESSEE OFFERS NO EXPLANATION ABOUT THE NATURE AND SOURCE THEREOF, OR THE EXPLANATION OFFERED BY THE ASSESSEE IS NOT, IN THE OPINION OF T HE AO SATISFACTORY, THEN THE SUM SO CREDITED IN THE ACCOUNTS MAY BE TRE ATED AS INCOME OF THE ASSESSEE OF THAT PREVIOUS YEAR. ITA NO.2152/AHD/2017 3 5. IT EMERGES FROM THE RECORD THAT IN ORDER TO FULF ILL INGREDIENTS UNDER SECTION 68 OF THE ACT, THE ASSESSEE HAS SUBMI TTED CONFIRMATION, BANK STATEMENT, COPIES OF THE RETURN FROM THE CREDITORS. THUS, HE HAS PROVED IDENTITY, GENUINENE SS OF THE TRANSACTION, AND BY SUBMITTING INCOME-TAX RETURN PR OVED CREDIT- WORTHINESS. CONTRARY TO THE ABOVE EVIDENCE NO INQU IRY WAS MADE BY THE REVENUE OFFICIALS, AND THEREFORE, THERE IS N OTHING POSSESSED BY THE AO, BUT DOUBTING THE MATERIAL BROUGHT ON REC ORD BY THE ASSESSEE. CONSIDERING ALL THESE MATERIAL, WE ARE S ATISFIED THAT THE ASSESSEE HAS EXPLAINED SOURCES OF THE CASH CREDIT A S WELL AS PROVED CREDIT WORTHINESS, GENUINENESS OF THE TRANSA CTION, HENCE NO ADDITION UNDER SECTION 68 REQUIRED TO BE MADE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT ON 10 TH APRIL, 2019. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (A.D. JAIN) VICE-PRESIDENT