Shri Piyush Vinachand Shah, Bhavnagar V. The Income tax Officer, Ward-2(2), Bhavnagar

ITA 294/AHD/2017

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5668 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 03-02-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJESH MEENA
• Keywords: Accommodation entries; Retraction
• Section: 143(3); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER PIYUSH VINAYCHAND SHAH, 618 A1, NAMYA PLOT, GEETA CHOWK, KRISHNANAGAR, BHAVNAGAR - 364001 PAN: AOKPS1904F (APPELLANT) VS THE IT O , WARD - 2(2) , BHAVNAGAR (RESPONDENT) REVENUE BY : S H RI RAJESH MEENA , SR. D . R. ASSESSEE BY: NONE DATE OF HEARING : 01 - 11 - 2 018 DATE OF PRONOUNCEMENT : 29 - 11 - 2 018 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A. Y. 2013 - 14 , ARI SES FROM ORDER OF THE CIT(A) - 6, AHMEDABAD DATED 26 - 1 2 - 2 016 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2 . THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS AGAINST THE DECISION OF LD. CIT(A) I N CONFIRMING THE DISALLOWANCE OF INTEREST EXPENDITURE OF RS. 1 , 33 , 3 3 4/ - MADE BY THE ASSESSING OFFICER. 3 . THE BRI EF FACT PERTAINING TO THE ISSUE IN APPEAL IS THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS U/S. 143(3) OF THE ACT FOR THE YEAR UNDER CONS IDERATION , I T A NO . 294 / A HD/20 17 A SS ESSMENT YEAR 2013 - 14 I.T.A NO. 29 4 /AHD/20 17 A.Y. 2013 - 14 PAGE NO PIYUSH VINACHAND SHAH VS. IT O 2 THE ASSESSING OFFICER STATED THAT ASSESSEE HAS CLAIMED INTEREST EXPENDITURE IN RESPECT O F UNSECURED LOAN TAKEN FROM ALIV E OVERSEAS PV T. LTD. AND V IRAJ MERCANTILE PV T . LTD. AMOUNTING TO RS. 91 , 667/ - AND RS. 41 , 667/ - RESPECTIVELY. THE ASSESSING OFFICER HAS STATED THAT INFORMATION WAS RECEIVED FROM INVESTIGATION WING, AHMEDABAD THAT A SEARCH ACTION WAS CONDUCTED IN THE CASE PRAVIN KR . JAIN AND IT WAS PROVED THAT MS . JAIN WAS PROVIDING ACCOMMODATION ENTRIES OF VARIOUS NATURES LIKE BOGUS UNSECURED LOAN ETC . THROUGH THE CONCERNS OPERATED BY HIM. ON VERIFICATION, THE ASSESSING OFFICER NOTICED THAT ABOVE TWO ENTITIES WHO HA D PROVIDED UNSECURED LOAN S TO THE ASSESSEE W E RE OPERATED BY MR. PRAV IN JAIN. ON QUESTIONING THE AS SESSEE , THE ASSESSEE HAS ST A TED THAT MR. PRAVNI KR. JAIN RETRACTED HIS STATEMENTS AND STATED THAT HIS ENTIRE BUSINESS ACTIVITY WAS GENUINE AND DENIED OF PROVIDING ANY ACCOMMODATION ENTRIES. THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE STATING THAT MERELY FI LING RETRACTION BY MR. PRAVIN JAI N WAS NOT SUFFICIENT , THEREFORE, DISAL LOWED INTEREST EXPENDITURE OF RS . 1 , 33 ,3 34/ - AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 4. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HA D SUSTAINED THE ADDITION MADE BY THE ASSESSING OFFICER STATING THAT DURING THE COURSE OF APPELLATE PROCEEDINGS T HE ASSSESSEE WAS ASKED TO PRODUCE THE DIRECTOR OF THE COMPANY TO EXAMINE THE GENUINENESS OF THE LOAN. HOWEVER, THE ASSESSEE HAS NOT PRODUCED THE DIRECTOR, THEREFORE, THE DISALLOWANCE MADE BY THE ASSESSING OFFICER WAS JUSTIFIED. DURING THE COURSE OF APPELLATE PROCEEDINGS , NO BODY HAS ATTENDED FROM THE SIDE OF THE ASSESSSEE. HOWEVER, LD. DEPARTMENTAL REPRESENTATIVE H AS SUPPORTED THE ORDER OF OLD. CIT(A). 5 . WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIAL ON RECORD CAREFULLY. MR. PRAVIN KR. JAIN DURING THE COURSE OF SEARCH ACTION HAS ADMITTED THAT HE WAS ENGAGED IN PROVIDING ACCOMMODATION ENTRIES OF VARIOUS NATURES LIKE BOGUS UNSE CURED LOAN ETC. THROUGH HIS VARIOUS GROUP CONCERNS. THE ASSESSING OFFICER STATED THAT ASSESSEE WAS ONE OF THE I.T.A NO. 29 4 /AHD/20 17 A.Y. 2013 - 14 PAGE NO PIYUSH VINACHAND SHAH VS. IT O 3 BENEFICIARIES WHO HAD TAKEN ACCOMMODATION ENTRIES OF UNSECURED LOAN FROM M/S. OLIVE OVERSEAS PVT. LTD. AND VIRAJ MERCANTILE PVT. LTD. WHO WERE GROUP CONCERNS OF MR. PRAVIN KR. JAIN . WE HAVE NOTICED THAT DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE THE LD. CIT(A) , THE LD. CIT(A) HAS DIRECTED THE ASSESSEE TO PRODUCE THE DIRECTOR OF THE COMPANY TO SUBSTANTIATE THE WRITTEN SUBMISSION FILED BY H IM BEFORE THE LD. CIT(A) TO PROVE THE GENUINENESS OF THE LOAN TRANSACTION. HOWEVER , THE ASSESSEE HAS NOT MADE ANY COMPLIANCE TO THE QUERY RAISED BY THE LD. CIT(A) , THEREFORE , CONSIDERING THESE FACTS, WE DO NOT FIND ANY ERROR IN THE DECISION OF LD. CIT(A), THEREFORE , THE APPEAL OF THE ASSESSEE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 29 - 11 - 201 8 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 29 /11 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,