Shri Deepakbhai B. Gajera, Baroda V. The Income Tax Officer, Ward-1(2)(1), Baroda

ITA 2161/AHD/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6112 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 17-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: ANIL R SHAH; KINJAL SHAH ARS
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

, SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 2161/AHD/2016 ( ASSESSMENT YEAR : 2012-13) SHRI DEEPAKBHAI B. GAJERA PROP: M/S AMBICA ELECTRIC, 14, SAMRUDHI RES-CUM- PLAZA, NR. MARKARPURA DEPOT, BARODA - 390010 / VS. ITO, WARD 1(2)(1), AYKAR BHAWAN, RACE COURSE, BARODA - 390007 ./ ./ PAN/GIR NO. : AFWPP3545A ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI ANIL R SHAH & MS. KINJAL SHAH, A.RS. / RESPONDENT BY : SMT. SONIA KUMAR, SR.D.R. DATE OF HEARING 22/01/2019 !'# / DATE OF PRONOUNCEMENT 29/01/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-5, VADODAR A (CIT(A) IN SHORT), DATED 11.04.2016 ARISING IN THE ASSESSMENT ORDER DATED 27.01.2015 PASSED BY THE ASSESSING OFFICER (AO) UND ER S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AY 20 12-13. ITA NO. 2161/AHD/16 [SHRI DEEPAKBHAI B. GAJERA VS. ITO] A.Y. 2012-13 - 2 - 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE READ AS UNDER: 1. THE ASSESSMENT ORDER PASSED BY THE LEARNED ASSE SSING OFFICER IS AGAINST THE LAW AND FACTS OF THE CASE. 2. THE LD. CIT(A) HAS GROSSLY ERRED IN LAW AND ON F ACTS IN CONFIRMING THE ADDITION OF RS.5,00,000/- MADE BY AS SESSING OFFICER AS AN UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT CON SIDERING THAT YOUR APPELLANT FAILED TO PROVE THE CREDIT WORTHINESS/ CA PACITY OF THE DEPOSITOR AND FURTHER ERRED IN DISALLOWING THE INTE REST OF RS.52,549/- ON SUCH UNSECURED LOAN. BOTH THE LOWER AUTHORITIES HAVE NOT APPRECIATED EVIDENCES AND SUBMISSIONS MADE BY APPEL LANT. THE LD. CIT(A) OUGHT TO HAVE DELETED ADDITION MADE BY ASSES SING OFFICER. 3. WHEN THE MATTER WAS CALLED FOR HEARING, THE LEA RNED AR FOR THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE ASSESSEE HAD OBTAINED LOAN OF RS.5 LAKHS FROM LENDER SMT. KAVITA BHARAT SANGHANI. THE LEARNED AR POINTED OUT THAT THE AFORESAID LOAN IS SUPPORTED BY THE LOAN CONFIRMATION, THE RETURN OF INCOME OF THE LENDER AS WELL AS HER BANK STATEMENTS. THE LEARNED AR SUBMITTED THAT THE ASSE SSEE HAS DULY PAID INTEREST ON THE AFORESAID LOAN TILL DATE AND LOAN A LSO STANDS REPAID IN THE SUBSEQUENT FY ON 12.10.2012. THE REPAYMENT IS ALSO SUPPORTED BY THE BANK STATEMENT. THE LEARNED AR THUS SUBMITTED THAT IN THE CIRCUMSTANCES, THERE WAS NO JUSTIFICATION FOR REVEN UE TO DOUBT THE BONAFIDES OF THE TRANSACTIONS AND HOLD THE ISSUE AG AINST THE ASSESSEE. 4. THE LEARNED DR, ON THE OTHER HAND, RELIED UPON T HE ORDERS OF THE LOWER AUTHORITIES. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. AT THE OUTSET, WE NOTICE THAT THERE IS A MARGINAL DELAY OF 22 DAYS IN FILING THE APPEAL BEFORE THE TRIBUNAL. THE DELAY IS CONDONED ON THE BASIS OF REASONING PROVIDED BY THE ASSESSEE FOR SUCH SMALL D ELAY. ON MERITS, WE FIND THAT THE LOAN OBTAINED IS BACKED BY DOCUMEN TARY EVIDENCES AND IS ALSO REPAID ALONGWITH INTEREST. THE OVERWHE LMING FACT OF THE REPAYMENT TRANSGRESSES ALL DOUBTFUL CONSIDERATION A S MAY BE PERCEIVED ITA NO. 2161/AHD/16 [SHRI DEEPAKBHAI B. GAJERA VS. ITO] A.Y. 2012-13 - 3 - BY THE REVENUE. THUS, WE SET ASIDE THE ORDER OF TH E CIT(A) AND DIRECT THE AO TO DELETE THE ADDITION MADE ON THIS SCORE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 29/01/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 29/01/20 19