Vikash Chand Gupta, Varanasi V. ITO, Varanasi

ITA 259/ALLD/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1256 (ITAT-ALLAHABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 12-07-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAMESH CHANDRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH ALLAHABAD BEFORE SHRI P.K. BANSAL , ACCOUNTANT MEMBER I TA NO. 259 /ALLD/ 20 1 3 ASSESSMENT YEAR: 2009 - 10 VIKASH CHAND GUPTA, VS. CIT(A), VARANASI. SHIVDASPUR, LAHARTARA, VARANASI PAN: AGHPG 22 87P (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI RAMESH CHANDRA , DR. DATE OF HEARING: 2 7 .08.2015 ORDER PER : P.K. BANSAL ACCOUNTANT MEMBER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - VARANASI DATED 06 . 05 .2013 FOR ASSESSMENT YEAR 2009 - 10. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. WE THEREFORE DECIDE TO DISPOSE OF THE APPEAL AFTER HEARING THE LEARNED DR . THE GROUNDS NO.1 AND 5 AR E GENERAL IN NATURE , THEREFORE , DOES NOT REQUIRE ANY ADJUDICATION. THE REST OF THE GROUNDS READ AS UNDER: 2. BECAUSE THE LEARNED COMMISSIONE R OF INCOME - TAX(APPEALS) HAS ERRED IN CONFIRMING THE ADDITIONS ON ACCOUNT OF CASH - CREDITS OF VIJAY SHANKAR R S.1,25, 000 / - AND SANTOSH KUMAR GUPTA R S.L,0 0,000/ - RESPECTIVELY WITHOUT GOING THROUGH THE EVIDENCES ON RECORD WHICH GO ON TO PROVE THE GENUINENESS OF THE CREDITS. 2 3. BECAUSE THE LEARNED COMMISSIONER OF LNCOME - TAX(APPE AL S) HAS ERRED IN CONFIRMING AD - HOC DISALLOWA NCES OF RS.41,860/ - , O UT OF TOTAL EXPENDITURE OF RS.3,33,094/ - UNDER VARIOUS HEADS OF EXPENSES WITHOUT APPRECIATING THAT LEGALLY NO SUCH DISALLOWANCES CAN BE MADE IN AUDITED CASE WITHOUT POINTING OUT SPECIFIC ITEM OF INADMISSIBLE NATURE. 4. BECAUSE THE LE ARNED COMMISSIONER OF INCOME - TAX(APPEALS) HAS FAILED TO APPRECIATE THAT ALL EXPENSES CLAIMED ARE FULLY VOUCHED, VERIFIABLE AND AUDITED AND THE DISALLOWANCES ARE MADE SIMPLY ON CONJECTURES AND SURMISES WITHOUT GIVING WEIGHTAGE OF BINDING AUTHORITY OF JURISD ICTIONAL ITAT IN ACIT, CIRCLE - 2(2), LUCKNOW VS. M/S. CHANDRA CONFECTIONERY (P.) LTD., A - 32, NIRALA NAGAR, LUCKNOW. 3. GROUND NO.2 RELATE TO SUSTAINING OF THE ADDITION OF RS.2,25,000/ - ON ACCOUNT OF CASH CREDIT U/S.68 OF THE INCOME TAX ACT. 4. WE HEARD T HE LEARNED DR AND GONE THROUGH THE ORDER OF THE TAX AUTHORITIES BELOW. WE NOTED THAT THE ASSESSEE DURING THE YEAR HAS RECEIVED UNSECURED LOAN FROM SANTOSH KUMAR GUPTA AMOUNTING TO RS.1 LAC AND SHRI VIJAY SHANKAR AMOUNTING TO RS.1,25,000/ - U/S.68 OF THE INC OME TAX ACT ONUS IS ON THE ASSESSEE TO PROVE THE IDENTITY , CREDITWORTHINESS OF THE LENDER AS WELL AS GENUINENESS OF THE TRANSACTION. ALTHOUGH THE LOAN HAS BEEN ADVANCED BY BOTH THE PARTIES THROUGH CHEQUE AND BOTH THE PARTIES ARE INCOME TAX ASSESSEE S . THE I DENTITY OF THE PARTIES ARE PROVED BUT WE NOTED THAT IN THE CASE OF SHRI SANTOSH KUMAR GUPTA , SHRI 3 SANTOSH KUMAR GUPTA HAS ADVANCED RS.50,000/ - EACH ON 17.03.2009 AND 19.03.2009 VIDE CHEQUE NO.46782 AND 46783 OUT OF ALLAHABAD BANK . P RIOR TO THE ADVANCE OF T HE SAID LOAN THE ASSESSEE HAS DEPOSITED THE CASH AMOUNTING TO RS.25,000/ - EACH ON 26.02.2009, 27.02.2009 AND 9.3.2009 AND RS.30,000/ - ON 17.03.2009 RESPECTIVELY . T HIS CLEARLY PROVES THAT THE AMOUNT HAS BEEN ADVANCED BY SHRI SANTOSH KUMAR GUPTA OUT OF CASH BEING DEPOSITED BY HIM IN HIS BANK ACCOUNT FOR WHICH THE ASSESSEE COULD NOT EXPLAIN ANY SOURCE. UNDER THESE FACTS, WE CONFIRM THE ADDITION OF RS.1 LAC SIMILARLY IN RESPECT OF SHRI VIJAY SHANKAR MAURYA. WE NOTED THAT SHRI VIJAY SHANKAR MAURYA HAS HAVING AN OPENING BALANCE IN HIS BANK ACCOUNT OF RS.33 , 462 / - BUT PRIOR TO THE ADVANCE BEING MADE TO THE ASSESSEE THROUGH TWO CHEQUES DATED 7.3.2009 AND 17.3.2009 FOR RS.50,000/ - AND RS.70,000/ - HAS DEPOSITED A SUM OF RS.1 LAC IN CASH, I.E., RS.25,000/ - EACH ON 19.2. 2009, 20.2.2009, 26.2.2009 AND 6.3.2009 EVEN RS.25,000/ - WAS ALSO DEPOSITED BY HIM IN CASH IN HIS BANK ACCOUNT ON 17.3.2009 BUT SINCE THE OPENING BALANCE WAS RS.30,462/ - WE ARE TAKING ONLY A SUM OF RS.1 LAC FOR WHICH IT COULD BE SAID THAT SOURCES COULD NOT BE EXPLAINED. ALL THESE TRANSACTIONS ARE APPARENT FROM THE BANK ACCOUNT OF SHRI VIJAY SHANKAR MAURYA BEING NO.1655 WITH ALLAHABAD BANK. WE THEREFORE REDUCE THE ADDITION IN HIS CASE TO RS.1 LAC. WE THEREFORE SUSTAIN THE ADDITION TO THE EXTENT OF RS.2 LAC I N RESPECT OF THE CASH 4 CREDIT RS.1 LAC FOR THE LOAN TAKEN FROM SHRI VIJAY SHANKAR MAURYA AND RS.1 LAC F OR THE LOAN TAKEN FROM SANTOSH KUMAR GUPTA. THUS THIS GROUND IS DIRECTLY ALLOWED. 5. GROUNDS NO.3 AND 4 RELATE TO THE ADHOC DISALLOWANCE OF RS.41 , 860 / - . 6. A FTER HEARING THE LEARNED DR AND GOING THROUGH THE PAPER BOOK OF THE ASSESSEE AS WELL AS THE ORDER OF THE TAX AUTHORITIES BELOW , W E NOTED THAT THE ASSESSEE HAS GIVEN COMPLETE DETAIL S OF VARIOUS EXPENSES INCURRED BY HIM IN THE ABSENCE OF VOUCHER BEING HAND MADE. THE ASSESSING OFFICER TOOK THE VIEW THAT THE EXPENSES CLAIMED IN THE P&L ACCOUNT ARE NOT FULLY VERIFIABLE . H E ACCORDINGLY ESTIMATED THE DISALLOWANCE AT RS.41 , 860 / - OUT OF EXPENDITURE TO RS.3 , 33 , 09 4/ - CLAIMED BY THE ASSESSEE UNDER VARIOUS HEADS . O NCE THE ASSESSEE HAS SUBMITTED THE DETAILS AND THE EXPENSES WERE NOT VERIFIABLE THE ASSESSING OFFICER SHOULD HAVE SPECIFICALLY POINTED OUT THE SPECIFIC DISALLOWANCE. THE DISALLOWANCE IN OUR OPINION MADE BY THE ASSESSING OFFICER IS AN ADHOC DISALLOWANCE. O NCE THE ASSESSING OFFICER HAS ACCEPTED THE GENUIN EN ITY OF THE EXPENDITURE INCURRED BY THE ASSESSEE , T HE ASSESSING OFFICER CANNOT MADE ADHOC DISALLOWANCE . W E ACCORDINGLY DELETE THE SAME. 5 6. THUS, THE GROUNDS NO.3 AND 4 STAND ALLOWED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 / 9 /201 5 . SD/ - (P.K. BANSAL) ACCOUNTANT MEMBER DATED: 11 / 9 /201 5 PRABHAT KUMAR KESARWANI, SR.P.S. COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR