Shri Parshottambhai Prabhudas Dhakan, Anand V. The Income tax Officer,Ward-2(4), Bhavnagar

ITA 2297/AHD/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 9806 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 08-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K M MAHESH
• Assessee Lawyers: N C AMIN
• Keywords: Salary income; Corroborative evidences

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AHMEDABAD BEFORE S/SHRI BHAVNESH SAINI, JM AND D.C.AGRAWAL, A M SHRI PURSHOTTAMBHAI PRABHUDAS DHAKAN, G-10, HRIBA VYAPAR BHAVAN, GPO ROAD, ANAND. VS. INCOME-TAX OFFICER, WARD 2(4), BHAVNAGAR. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI N. C. AMIN, AR RESPONDENT BY:- SHRI K. M. MAHESH, SR.D.R. O R D E R PER D.C. AGRAWAL, ACCOUNTANT MEMBER . THIS IS AN APPEAL FILED BY THE ASSESSEE RAISING FO LLOWING GROUNDS:- (1) THAT THE LD A.O AS WELL AS LD. CIT(A) HAS ERRED BOTH IN JAW ON THE FACTS OF THE CASE IN CONSIDERING FACTS OF THE BOO K ENTRY IN THE NAME OF BHARATKUMAR P DHAKKAN, CREDITING HIS ATE. FOR RS.1, 76,211/- BY WAY OF LOAN IN LIEU OF PURCHASE OF FURNITURE FROM THE SAID PARTY AND DEBITING THE AMOUNT IN FURNITURE A/C IN THE BUSINESS OF APPELLAN T. (2) THAT THE LEARNED A.O. AND LD. CIT(A) ALSO HAS F URTHER ERRED BOTH IN LAW AND ON THE FACTS OF THE CASE IN MAKING AN ADDIT IONS OF RS. 1,76,211/- HOLDING THE CREDIT ENTRY OF RS. 1,76,211/- IN THE A CCOUNT OF BHARATKUMAR P DHAKKAN AS NOT GENUINE AND THERE BY MADE ADDITION U /S.68 OF THE ACT. THIS DESERVES TO BE DELETED. (3) THAT THE APPELLANT HAS FURNISHED EVIDENCE IN SU PPORT OF THE CASH CREDIT AS APPEARING IN THE BOOKS OF ACCOUNTS OF APPELLANT. HOWEVER, WITHOUT PROPERLY APPRECIATING THE EVIDENCED FURNISHED BY ME DURING THE COURSE OF ASSESSMENT PROCEEDING AS WELL BEFORE APPELLATE PROC EEDINGS ,BOTH THE ITA NO.2297/AHD/2010 ASST. YEAR :2007-08 ITA NO.2297/AHD/2010 ASST. YEAR 2007-08 2 AUTHORITIES HAS WITHOUT PROPERLY APPRECIATING THE E VIDENCES CONFIRMED THE ADDITION OF RS. 1,76,211/-DESERVES TO BE DELETED. (4) ON THE FACTS AND CIRCUMSTANCES OF THE CASE OF T HE APPELLANT THE APPELLANT HAS ESTABLISHED IDENTITY, CREDITWORTHY AN D GENIUSES OF DEPOSITOR SHRL BHARATKUMAR P DHAKKAN. AND HENCE ADDITION ON T HIS ISSUE DESERVES TO BE DELETED. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS E NGAGED IN THE BUSINESS OF TRADING PRECIOUS METALS AND OTHER ALLIE D ITEMS IN HIS PROPRIETARY CONCERN RUNNING IN THE NAME OF M/S PRAB HUDAS JEWELLERS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO NOTICED THAT ASSESSEE HAS SHOWN CREDIT OF RS.1,76,211/- IN THE N AME OF SHRI BHARATKUMAR P. DHAKAN WHO IS HIS SON. ON BEING ASKE D IT WAS EXPLAINED THAT SHRI BHARATKUMAR P. DHAKAR HAD PURCHASED FURNI TURE AND PROVIDED TO THE ASSESSEE AND, THEREFORE, FURNITURE ACCOUNT HAS BEEN DEBITED AND ACCOUNT OF SHRI BHARATKUMAR P. DHAKAR HAS BEEN CRED ITED. THE AO ON THE OTHER HAND FOUND THAT SHRI BHARATKUMAR P. DHAKAN IS SHOWING SALARY INCOME OF RS.30,000/-. ASSESSEE HAS FAILED TO EXPLA IN HOW HE HAS GIVEN A CREDIT OF RS.1,76,211/- IN KIND IN THE FORM OF FURN ITURE. THUS HE FAILED TO DISCHARGE THE ONUS REGARDING LOAN APPEARING IN HIS ACCOUNT. HE ACCORDINGLY PROPOSED THE ADDITION. THE LD. CIT(A) C ONFIRMED THE ADDITION BY HOLDING THAT A SPECIFIC CLARIFICATION WITH REGAR D TO THE SOURCE OF INVESTMENT AND IDENTIFICATION OF FURNITURE WAS NOT OFFERED BY THE ASSESSEE. IN THIS REGARD LD. CIT(A) OBSERVED AS UNDER :- 5.2 I HAVE CAREFULLY CONSIDERED THE ASSESSMENT ORD ER AND THE ABOVE SUBMISSIONS OF THE APPELLANT. THE AO HAS MADE THE A DDITION FOR UNEXPLAINED UNSECURED LOAN IN THE NAME OF BHARATKUM AR P. DHAKAN WHO HAD ONLY SALARY INCOME OF RS.30,000/- PER ANNUM AND SO FAR AS OTHER SOURCE OF INCOME OF THIS PERSON IS CONCERNED HAS NO T BEEN CLEARLY BROUGHT OUT WITH ITS SUPPORTING EVIDENCES BY THE APPELLANT EITHER BEFORE THE AO OR ITA NO.2297/AHD/2010 ASST. YEAR 2007-08 3 BEFORE ME. IT IS CLAIMED BY THE APPELLANT THAT THIS UNSECURED LOAN WAS IN THE SHAPE OF FURNITURE WORTH RS.1,76,211/- AND FOR WHICH THE PAYMENT WAS MADE BY SHRI BHARATKUMAR P. DHAKAN BUT IT COULD NOT BE CLARIFIED BY THE LD. AR OF THE APPELLANT AS TO WHICH FURNITURE WAS P URCHASED BY SHRI BHARATKUMAR P. DHAKAN WHICH WAS HANDED OVER TO THE APPELLANT IN THE SAID PREMISES. SINCE A SPECIFIC CLARIFICATION WITH REGARD TO SOURCE OF INVESTMENT AND IDENTIFICATION OF FURNITURE COULD NO T BE OFFERED BY THE APPELLANT, I HOLD THAT THIS CREDIT OF UNSECURED LOA N OF RS.1,76,211/- STANDS UNEXPLAINED. THEREFORE, THE ADDITION MADE BY THE AO IS HEREBY CONFIRMED. 3. WE HAVE HEARD THE PARTIES AND CAREFULLY PERUSED THE MATERIAL ON RECORD, TO WHICH THE PARTIES DREW OUR ATTENTION. TH E ASSESSEE CLAIMED THAT SHRI BHARATKUMAR P. DHAKAN HAS WITHDRAWN THE MONEY FROM HIS BANK ACCOUNT AND FROM THAT WITHDRAWAL FURNITURE WAS PURC HASED AND GIVEN ON THE SHOP WHICH IS RUN BY HIS FATHER (I.E. THE ASSES SEE). HE DREW OUR ATTENTION TO THE COPIES OF BANK STATEMENTS WHEREIN MONEY WAS SHOWN WITHDRAWN. HOWEVER, THE LD. AR COULD NOT SHOW WHETH ER THE SAME MONEY WAS INVESTED IN PURCHASE OF FURNITURE OR IT WAS NOT UTILIZED ELSEWHERE. THE LD. AR ALSO FAILED TO SHOW WHETHER THIS EXPLANATION WAS FURNISHED BEFORE THE LOWER AUTHORITIES. WE ACCORDINGLY RESTORE THE M ATTER TO THE FILE OF LD. AO WHO WILL EXAMINE THE BANK STATEMENT OF SHRI BHAR ATKUMAR P. DHAKAN AND ASSESSEE WILL SHOW NEXUS OF WITHDRAWAL FOR PURC HASE OF FURNITURE. HE WILL PRODUCE THE NECESSARY VOUCHERS OF PURCHASE OF FURNITURE SO AS TO PROVE THAT MONEY WITHDRAWN FROM BANK ACCOUNT OF SHR I BHARATKUMAR P. DHAKAN WERE ACTUALLY UTILIZED FOR PURCHASE OF FURNI TURE. WITH THIS DIRECTION, WE RESTORE THE MATTER TO THE FILE OF AO. THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.2297/AHD/2010 ASST. YEAR 2007-08 4 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN OPEN COURT ON 24/9/10. SD/- SD/- (BHAVNESH SAINI) (D.C. AGRAWAL) JUDICIAL MEMBER ACCOUNTANT ME MBER AHMEDABAD, DATED : 24/9/10. MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD 1.DATE OF DICTATION 17/9/2010. 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 22/9/2010. MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.. 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..