Shri Kiritbhai Ratansingh Mankadia, Baroda V. The Income tax Officer,Ward-3(1), Baroda

ITA 2744/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94796 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-11-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 04-11-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Keywords: Unexplained cash credit
• Section: 143(3); 131; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: S H RI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER SHRI KIRITBHAI RATANSINGH MANKADIA, PROP. OF AMAR BOREWELL, AT & PO UDALPUR TAL. SAVLI, BARODA PAN: ALWPM3982C (APPELLANT) VS INCOME TAX OFFICER, WARD 3(1), 303, AAYAKAR BHAVAN, RACE COURSE CIRCLE, BARODA (RESPONDENT) REVENUE BY : S H RI DINESH SINGH , SR. D . R. ASSESSEE BY: S H RI SUNIL TALATI , A.R. DATE OF HEARING : 27 - 11 - 2 015 DATE OF PRONOUNCEMENT : 30 - 11 - 2 015 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2007 - 08, AR ISES FROM ORDER OF THE CIT(A) - II, BARODA DATED 08 - 09 - 2011 IN APPEAL NO. CAB/II - 203 /09 - 10, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SH ORT THE ACT . I T A NO . 2744 / A HD/20 11 A SSESSMENT YEAR 200 7 - 08 I.T.A NO. 2744 /AHD/20 11 A.Y. 2007 - 08 PAGE NO SHRI KIRITBHAI RATANSINGH MANKADIA VS. ITO 2 2. THE SOLE SUBSTANTIVE GROUND RAISED IN THE INSTANT APPEAL CHALLENGES SECTION 68 ADDITION OF UNEXPLAINED CASH CREDIT AMOUNTING TO RS . 6,28,470/ - MADE BY ASSESSING O FFICER IN ASSESSMENT ORDER DATED 30 - 11 - 2009 AND CONFIRMED IN LOWER APPELLAT E PROCEEDINGS . FACTS OF THE CASE ARE IN A NARROW COMPASS. THIS ASSESSEE IS ENGAGED IN BOREWELL BUSINESS. THE ASSESSING OFFICER NOTICED HIS LEDGER ACCOUNT REVEALING UNSECURED CASH LOAN DEPOSITS FROM 35 PARTIES AMOUNTING TO RS. 6,28,470/ - . HE SOUGHT TO V ERIFY IDENTITY , GENUINENESS AND CREDITWORTHINESS THEREOF. THE ASSESSEE FILED CONFIRMATION OF 26 PARITIES. SUMMONS ISSUED TO THEM U/S. 131 OF THE ACT RETURNED UN - SERVED IN FIVE CASES. THE ASSESSEE GOT RECORDED STATEMENT OF 12 CREDITORS CONFIRMING TO HAVE ADVANCED A GROSS SUM OF RS. 2,33,300/ - . THE INDIVIDUAL TRANSACTION AS SEEN IN ASSESSMENT ORDER INVOLV ED SUMS BETWEEN RS. 19,000/ - TO 19,900/ - . HOWEVER, NONE OF THEM WAS ABLE TO THROW LIGHT ON DATE OF LENDING INSTANCES AND THEIR SOURCE BY WAY OF AGRICULT URAL INCOME REVENUE RECORD. THE ASSESSEE FURTHER PRODUCED SEVEN PERSONS QUA A TOTAL SUM OF RS. 1,33,800/ - WHO DEPOSED IN IDENTICAL TERMS WITHOUT ANY PROOF OF INCOME. THE ASSESSING OFFICER TOOK INTO ACCOUNT ALL THESE FACTS AND CIRCUMSTANCES FOR HOLDING TH AT ASSESSEE S VERSION IN SUPPORT OF ITS UNSECURED LOANS LACKED GENUINENESS ELEMENT . THIS MADE HIM TO INVOKE SECTION 68 OF THE ACT RESULTING IN THE IMPUGNED ADDITION OF UNEXPLAINED CASH CREDIT AMOUNTING TO RS. 6,28,470/ - . THE CIT(A) UPHOLDS THIS ADDITION. I.T.A NO. 2744 /AHD/20 11 A.Y. 2007 - 08 PAGE NO SHRI KIRITBHAI RATANSINGH MANKADIA VS. ITO 3 3 . WE HAVE HEARD BOTH THE PARTIES. CASE FILE PERUSED . RELEVANT FACTS NARRATED PARAGRAPHS ARE NOT REPEATED FOR THE SAKE OF BREVITY. THE ASSESSEE S FAILURE IN PROVING GENUINENESS ELEMENT IN ITS SOURCE OF CREDITOR S GENUINENESS CONTINUES RIGHT FROM SCRU TINY UPTO THE TRIBUNAL. WE HOLD IN THESE FACTS AND CIRCUMSTANCES THAT HE HAS NOT BEEN ABLE TO REBUT THE LOWER AUTHORITIES FINDINGS DOUBTING GENUINENESS IN EXPLANATION TENDERED WITH SUPPORTIVE EVIDENCE. WE UPHOL D LOWER APPELLATE ORDER UNDER CHALLENGE IN THESE FACTS . SOLE SUBSTANTIVE GROUND RAISED IN THIS APPEAL FAILS. 4. THIS ASSESSEE S APPEAL IS DISMISSED ORDER PR ONOUNCED IN THE OPEN C OURT ON 30 - 11 - 2015 SD/ - SD/ - ( PRAMOD KUMAR ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 30 /11 /2015 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,