ITO, SRIGANGANAGAR V. Shri Surender Kumar Chhabra, KESRISINGHPUR

ITA 25/JODH/2014

• Counselvise Citation: 2523314 RSA 2014
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 13-06-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 06-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N A JOSHI
• Assessee Lawyers: N R MERTIA

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL : JODHPUR BENCH : JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER. ITA NO. 25 /JODH/2014 (A.Y. 200 9 - 1 0 ) ITO , WARD - 3, VS. SURENDER KUMAR CHHABRA, SRIGANGANAGAR . 12 , CHHOTI, DHAN MANDI, KESHRISINGHPUR. PAN NO. ABZPK 1692 A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI N.R. MERTIA . DEPARTMENT BY : SHRI N.A. JOSHI - D.R. DATE OF HEARING : 13 / 0 6 /201 4 . DATE OF PRONOUNCEMENT : 28 /0 7 /201 4 . O R D E R PER N.K. SAINI, A.M TH IS IS AN APPEAL BY THE DEPARTMENT AGAINST THE ORDER DATED 03 / 1 0/2013 OF L D . CIT(A), BIKANER . THE FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN: 1. DELETING ADDITION OF RS. 12,91,870/ - MADE ON ACCOUNT OF CASH DEPOSITS BY ACCEPTING IT AS A WITHDRAWAL FROM CAPITAL ACCOUNT. 2 2. DELET I NG THE ADDITION OF RS. 1,48,440/ - MADE U/S 68 OF THE I.T. ACT, 1961 . 2 THE FIRST ISSUE IN THIS APPEAL RELATES TO THE DELETION OF ADDITION OF RS. 12,91,870/ - MADE BY THE ASSESSING OFFICER ON ACCOUNT OF CASH DEPOSITS . 3. FACTS RELATING TO THIS ISSUE, IN BRIEF, ARE THAT THE ASSESSEE FILED THE RETURN OF INCOME ON 22/03/2010 DECLARING THE INCOME OF R S. 97,550/ - . LATER ON, CASE WAS SELE C TED FOR SCRUTINY . DURING THE COURSE OF ASSESSMENT PROCEEDINGS , THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAD MADE CASH TRANSACTION S OF RS. 12,91,8 7 0/ - WITH HIS SAVING BANK ACCOUNT MAINTAINED WITH SBBJ. THE SUBMISSION OF THE ASSESSEE WAS THAT THE DEPOSIT IN THIS ACCOUNT WAS FROM HIS CAPITAL ACCOUNT OF THE FIRM M/S. CHHABRA FOOTWEAR . THE ASSESSING OFFICER DID NOT FIND MERIT IN TH E SUBMISSION OF THE ASSESSEE AND MADE THE ADDITION OF RS. 12,91,870/ - . 4. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) AND REITERATED THE SUBMISSIONS MADE BEFORE THE ASSESSING OFFICER . THE ASSESSEE ALSO FILED COPY OF HIS CAPITAL ACCOUNT , SAVING BANK ACCOUNT AND BANK PASS BOOK. THE LEARNED CIT(A), AFTER CO NSIDERING THE SUBMISSIONS OF THE ASSESSEE, OBSERVED THAT THE CASH AMOUNT, DEPOSITED IN THE SAVING 3 BANK ACCOUNT WAS WITHDRAWN FROM THE CAPITAL ACCOUNT O F PROPRIETOR SHRI SURENDER KUMAR . ACCORDINGLY , THE ADDITION MADE BY THE ASSESSING OFFICER WAS DELETED . NOW THE DEPARTMENT IS IN APPEAL. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. IN THE PRESENT CASE , IT APPEARS THAT THE ASSESSEE WAS A PROPRIETOR OF M/S. CHHABRA FOOTWEAR AND THE IMPUGNED AMOUNT WAS DEPOSITED IN THE SAVING BANK ACCOUNT OUT OF THE WITHDRAWALS MADE FROM THE SAID PROPRIETARY CONCERN . THIS FACT WAS VERIFIED BY THE LD. CIT(A), WHO CATEGORICALLY STATED THAT THE CASH AMOUNT DEPOSITED TO THE SAVING BANK ACCOUNT W AS WITHDRAWN FROM THE CAPITAL ACCOUNT OF PROPRIETOR SHRI SURENDER KUMAR (THE ASSESSEE) . THEREFORE, WE DO NOT SEE ANY MERIT IN THIS GROUND OF THE DEPARTMENTAL APPEAL. 6 . THE NEXT ISSUE VIDE GROUND NO. 2 OF THIS APPEAL RELATES TO THE DELETION OF ADDITION OF RS. 1,48,440/ - . 7 . FACTS RELATING TO THIS ISSUE, IN BRIEF, ARE THAT THE ASSESSING OFFICER MADE THE IMPUGNED ADDITION BY OBSERVING THAT THE ADDRESSES OF THE CREDITORS GIVEN BY THE ASSESSEE WERE EITHER INCOMPLETE OR CREDITORS WERE 4 NOT AVAILABLE ON THE SAID ADDRESSES. HE , THEREFORE, MADE THE ADDITION OF RS. 1,48,440/ - . 8 . BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) AND SUBMITTED THE COPY OF ACCOUNT OF THE FOLLOWING FOUR SUNDRY CREDITORS : - 1. M/S. KRISHNA TRADING CO. 2. M/S. VIKAS TRADING CO. 3. M/S. SHRI BALAJI FOOTWEARS. 4. M/S. RAHUL FOOTWEARS. IT WAS SUBMITTED THAT THERE WAS NO CREDIT IN THOSE ACCOUNTS FOR THE YEAR UNDER CONSIDERATION . IT WAS ALSO STATED THAT THE ASSESSEE PURCHASED THE GOODS FOR HIS BUSINESS IN THE LAST YEARS, HOWEVER, DID NOT PURCHASE ANY GOODS FROM THE ABOVE PARTIES DURING THIS YEAR, BUT ONLY PAYMENTS WERE MADE. IT WAS ALSO STATED THAT THE ASSESSEE FILED THE RETURN OF INCOME U/S 44AF OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT IN SHORT) SHOWING THE NET PROFIT @ 5% . 9 . THE LEARNED CIT(A), AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, OBSERVED THAT THE ADDITION MADE BY THE ASSESSING OFFICER WAS IN ROUTINE AND PERFUNCTORY MANNER WITHOUT BRINGING ON RECORD ANY MATERIAL TO JUSTIFY THE ADDITION MADE . LD. CIT(A) FURTHER OBSERVED THAT 5 THE ASSESSEE HAD PURCHASED ONLY GOODS FROM THE ABOVE PARTIES AND MADE THE PAYMENTS IN THIS YEAR, SO THE ADDITION WAS U NJUSTIFIED . ACCORDINGLY , THE ADDITION MADE BY THE ASSESSING OFFICER WAS DELETED. NOW THE DEPARTMENT IS IN APPEAL. 10 . WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE, THE CONTENTION OF THE ASSESSEE THAT THE PURCHASES WERE MADE IN THE EARLIER YEARS AND THE PAYMENTS WERE MADE TO THE FOUR PARTIES IN THIS YEAR, HAD NOT BEEN CONTROVERTED , T HE INCOME DECLARED BY THE ASSESSEE U/S 44AF OF THE ACT WAS ACCEPT ED AND EVEN THE PURCHASES WERE NOT DOUBTED, THEREFORE, THE PAYMENTS MADE TO THE PARTIES FROM WHOM PURCHASES WERE MADE CANNOT BE ADDED BY CONSIDERING THE SAME AS UNDISCLOSED INCOME OF THE ASSESSEE . IN THAT VIEW OF THE MATTER, WE DO NOT SEE ANY MERIT IN THIS GROUND OF THE DEPARTMENTAL APPEAL. 11 . IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMISSED . ( ORDER PRONOUNCED IN THE COURT ON 28 TH JULY , 201 4) . SD/ - SD/ - ( HARI OM MARATHA ) (N.K.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 28 TH JULY, 2014. 6 VR/ - COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE LD. CIT 4. THE CIT(A) 5. THE D.R SR. PRIVATE SECRETARY , ITAT, JODHPUR .