ACIT - 18(3), MUMBAI V. RAJESH HASTIMAL KACHHARA, MUMBAI

ITA 2583/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0878 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2017
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 07-04-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Keywords: Accommodation entries

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO.2583/M/2016 (AY 2007 - 2008) ACIT - 18(3), MUMBAI. / VS. SHRI RAJESH HASTIMAL KACHHARA, RAMJI HOUSE, 3 RD FLOOR, 30, JAMBHULWADI, KALBADEVI ROAD, MUMBAI 400 002. ./ PAN : BECPK4426F ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : MS. BEENA SANTOSH, DR / RESPONDENT BY : SHRI JAYANT R. BHATT / DATE OF HEARING : 24.04.2017 / DATE OF PRONOUNCEMENT : 26 .04.2017 / O R D E R PER D. KARUNAKARA RAO, AM: THIS IS THE APPEAL BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) DATED 11.1.2016 FOR THE AY 2007 - 08. IN THE GROUNDS, REVENUE QUESTIONED THE CORRECTNESS OF THE RELIEF GRANTED BY THE CIT(A) IN CONNECTION WITH THE ADDITION OF RS 35 LAKHS BEING THE ACCOMMODAT ION ENTRIES FOR CASH CREDITS OBTAINED FROM BHANWARLAL JAIN GROUP CASES. 2. COMING TO THE FACTS, DURING THE ASSESSMENT PROCEEDINGS, AO NOTED THAT THERE IS CLAIM OF LOANS IN THE FY 2006 - 07 TAKEN OF RS 25 LAKHS FROM AMIT DIAMONDS AND RS 10 LAKHS FROM NAVKAR INDIA. TOTAL LOANS WORKS OUT TO RS 35 LALKS. IT IS THE ALLEGATION OF THE REVENUE AND THE AO THAT THE SAID ENTRIES CONSTITUTES ACCOMMODATION ENTRIES AND CONSIDERED THE BACKGROUND OF THE SAID CONC ERNS AND EVENTUALLY, AO MADE ADDITIONS. IN THE PROCESS, AO REJECTED EVERY DOCUMENT OR CONFIRMATION OR I T RETURNS OF THE SAID M/S AMIT DIAMONDS AND M/S NAVKAR INDIA. HOWEVER, DURING THE PROCEEDINGS BEFORE THE CIT(A), ASSESSEEE MADE VARIOUS SUBMISSIONS. APA RT FROM THE DOCUMENTARY EVIDENCES, ASSESSEE FURNISHED PROOF TO DEMONSTRATE THAT THE SAID LOANS CONSTITUTE GENUINE ONES AND THE SAID LOANS WERE ALSO REPAID TO THE SAID CONCERNS. AS PER THE DISCUSSION GIVEN IN PARA 4 AND ITS SUB PARAGRAPHS, THE CIT(A) GRANTE D RELIEF AND ALLOWED THE APPEAL OF THE ASSESSEE. 3. BEFORE ME , LD DR FOR THE REVENUE RELIED ON THE ORDER OF THE AO AND IS CRITICAL ABOUT THE ORDER OF THE CIT(A) AND THE RELIEF GRANTED BY HIM. PER CONTRA , LD AR FOR THE ASSESSEE SUBMITTED THAT THE RELIEF GR ANTED BY THE CIT(A) IS FAIR AND REASONABLE. THE FACT OF FAA APPRECIATING THE PERFECT DOCUMENTATION IE LOAN CONFIRMATIONS, REPAYMENTS OF THE SAID LOANS, BANK STATEMENTS ETC AND THE EVIDENCES FURNISHED BY THE ASSESSEE BEFORE THE REVENUE AUTHORITIES WAS HIGHL IGHTED. 4. AFTER HEARING ELABORATE ARGUMENTS OF THE PARTIES AND PERUSIN G THE ORDERS OF THE REVENUE, I FIND IT RELEVANT TO PERUSE THE CONCLUSIONS OF THE FAA AT PARA 4.2.3 OF HER ORDER ON THESE LOAN CREDITORS AND THE DOCUMENTS. ON PERUSAL , I FIND THA T THE C IT(A) FIND NO INADEQUACY ON THE DOCUMENTATION IE THE CONFIRMATION LETTERS, BANK STATEMENTS, TDS DETAILS, AFFIDAVITS, LEDGER EXTRACTS ETC FURNISHED BY THE ASSESSEE. SHE DIRECTED DELETING OF THE SAID ADDITION OF RS 35 LAKHS. ON PER USAL OF THE PAGES 285 AND 3 15 ( COPIE S OF THE CONFIRMATION LETTERS), I FIND , THEY ARE I N ORDER. AO HAS NOT BROUGHT ANY THING INCRIMINATING ABOUT THE SAID LETTERS. FURTHER , I FIND FROM THE BANK STATEMENTS AT PAGE 287 AND 317, THE PAYMENTS AND REPAYMENTS ARE MADE THROUGH THE BANKING CHA NNELS. THE ASSESSEE ALSO REPAID THE SAID LO ANS OF RS 10 LAKHS AND RS 25 LAKHS ON 3.4. 20 14 AND 15.5. 20 14 RESPECTIVELY. THERE IS NO DISPUTE ON THE FACT OF REPAYMENT OF THE LOANS TO BOTH PARTIES BY THE ASSESSEE. IN THESE FACTUAL CIRCUMSTANCES AND IN THE ABSENCE OF ANY CLINCHIN G INCRIMINATING MATERIAL, I AM OF THE VIEW THE ORDER OF THE CIT(A) IS FAIR AND REASONABLE AND IT DOES NOT CALL FOR ANY INTERFERENCE. ACCORDINGLY, THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS D ISMISSED. ORDER PRONOU NCED IN THE OPEN COURT ON 26 TH APRIL, 2017. SD/ - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 26.04.2017 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI