M/s. L.G. Industries, Bhavnagar V. The ACIT., Circle-2, Bhavnagar

ITA 245/AHD/2006

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9144 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-08-2009
• Assessment Year: 1997-1998
• Appeal Filed On: 01-02-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P M SHUKLA SENIOR

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'B' (BEFORE S/SHRI P K BANSAL AND MAHAVIR SINGH) ITA NO.245/AHD/2006 (ASSESSMENT YEAR: 1997-98) M/S L G INDUSTRIES, 206, MADHAV DARSHAN, WAGHAWADI ROAD, BHAVNAGAR V/S THE ASSISTANT COMMISSIONER OF INCOME- TAX, CIRCLE-2, BHAVNAGAR (APPELLANT) (RESPONDENT) PAN NO.: AAAFL 9664 P APPELLANT BY :- SHRI SANJAY R SHAH RESPONDENT BY:- SHRI P M SHUKLA, SENIOR DR O R D E R PER P K BANSAL (ACCOUNTANT MEMBER) : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT( A) DATED 02- 12-2005 BY TAKING THE FOLLOWING EFFECTIVE GROUND OF APPEAL: THE LEARNED AO HAS ERRED ON FACTS AND IN LAW IN MA KING AN ADDITION OF RS.13,00,000/- ON ACCOUNT OF CASH CREDIT AND MAK ING A DISALLOWANCE OF INTEREST OF RS.1,19,411/- ON THE SA ID CASH CREDIT AND THE CIT(A) HAS ERRED IN CONFIRMING BOTH. 2 AT THE OUTSET, BOTH THE LEARNED AR AND THE LEARN ED DR AGREED THAT THE FACTS AND ISSUE INVOLVED IN THE PRE SENT CASE ARE EXACTLY SIMILAR WITH THOSE IN THE ASSESSEES OWN CA SE FOR AY 2 1995-96 IN ITA NO.784/RJT/2003 WITH C O NO.25/RJT/2 006, ORDER DATED 14-03-2009. 3 WE HAVE HEARD BOTH THE PARTIES AND HAVE CAREFULL Y CONSIDERED THEIR RIVAL SUBMISSIONS. WE HAVE ALSO GO NE THROUGH THE ORDER OF THE TAX AUTHORITIES BELOW AS WELL AS T HE ORDER OF THE ITAT AHMEDABAD BENCH-D IN THE ASSESSEES OWN CASE F OR AY 1995-96 IN REVENUES APPEAL IN ITA NO.784/RJT/2003 WITH C O NO.25/RJT/2006, WHEREIN THE TRIBUNAL VIDE PARA-5 OF ITS ORDER DATED 14-03-2008, HAS DELETED THE ADDITION, OBSERVI NG AS UNDER:- 5 AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE T RIBUNAL. WE HAVE HEARD THE PARTIES AND CONSIDERED THE RIVAL SUB MISSIONS. IN SO FAR AS THE ASSESSEE IS CONCERNED, THE AMOUNT WAS RECEIV ED BY IT FROM M/S AFTAB ENTERPRISE BY CHEQUE AND THE SOURCE OF M/S AF TAB ENTERPRISES WAS THE PAYMENT OF AN EQUIVALENT AMOUNT BY M/S AGGA RWAL INDUSTRIES ON 8.2.1995. THEREFORE, THE ASSESSEE HAS EXPLAINED THE SOURCE SATISFACTORILY. WHY THE PAYMENT OF RS.10.00 LAKHS M ADE BY M/S AGGARWAL INDUSTRIES TO M/S AFTAB ENTERPRISES, IS NO T THE CONCERN OF THE AO. BE THAT AS IT MAY, IT WAS RECEIVED BY M/S A FTAB ENTERPRISES BY CHEQUE AND OUT OF THE PROCEEDS OF THAT CHEQUE, THE PARTY HAS MADE PAYMENT TO THE ASSESSEE. FURTHER, THERE IS NO MATER IAL ON RECORD TO SUGGEST THAT EITHER DURING THE SEARCH PROCEEDINGS O R THEREAFTER, THERE WAS ANY MATERIAL TO THE EFFECT THAT THE TRANSACTION WAS NOT GENUINE OR THERE WAS ANY DOUBT IN RESPECT OF THE SAID LOAN. IN THESE CIRCUMSTANCES, IN OUR OPINION, THE CIT(A) WAS JUSTI FIED IN ALLOWING THE CLAIM OF THE ASSESSEE IN DELETING THE ADDITION AND, CONSEQUENTLY, ALLOWING THE INTEREST THEREOF. SINCE THE FACTS AND ISSUE INVOLVED IN THE PRESENT A SSESSMENT YEAR ARE ADMITTEDLY EXACTLY SIMILAR AND, THEREFORE, RESP ECTFULLY 3 FOLLOWING THE SAID DECISION OF THIS TRIBUNAL, WE RE VERSE THE ORDER OF THE CIT(A) AND DIRECT THE AO TO DELETE THE IMPUG NED ADDITION. 4 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 04-09-2009 SD/- SD/- (MAHAVIR SINGH) JUDICIAL MEMBER (P K BANSAL) ACCOUNTANT MEMBER DATE : 04-09-2009 COPY OF THE ORDER FORWARDED TO : 1. M/S L G INDUSTRIES, 206, MADHAV DARSHAN, WAGHAWA DI ROAD, BHAVNAGAR 2. THE ACIT, CIRCLE-2, BHAVNAGAR 3. THE CIT CONCERNED 4. THE CIT(A)-XVIII, AHMEDABAD 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER DY.R/AR, ITAT, AHMEDABAD