The ACIT,GNR Circle, Gandhinagar V. Shri Pramukhbhai Dahyabhai Patel, Gandhinagar

ITA 30/AHD/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 67632 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 05-09-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 04-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P JANGID
• Assessee Lawyers: VISHNU P PATEL
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ITA NO. 30/AHD/2013) A.Y: 2009-10 ACIT, GANDHINAGAR VS SHRI PRAMUKHBHAI DAHYABHAI PATEL. PAN: ANFPP8868F (APPELLANT) (RESPONDENT) REVENUE BY : SHRI J.P. JANGID, SR. D.R. ASSESSEE(S) BY : SHRI VISHNU P. PATEL, A.R. DATE OF HEARING : 05/09/ 2013 DATE OF PRONOUNCEMENT : 13/09/2013 O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE ARISING FROM THE ORDER OF LEARNED CIT(A), GANDHINAGAR, DATED 12.10.2012. THE GROUND RAISED BY THE REVENUE IS HEREBY REPRODUCED AS UNDER : 'THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS I N DELETING THE ADDITION MADE BY THE AO AMOUNTING TO RS.57,50,000/- U/S. 687 OF T HE ACT. 2. FACTS IN BRIEF AS EMERGED FROM THE CORRESPONDING ASSESSMENT ORDER PASSED U/S. 143(3), DATED 29.12.2011 WERE THAT THE ASSESSEE INDIVIDUAL CAPACITY IS IN THE BUSINESS OF DEVELOPMENT OF THE P ROPERTY. THE ASSESSEE IS ALSO ENGAGED IN THE BUSINESS OF LAND DEALING. IT WAS NOTED BY THE AO THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSES SEE HAS PURCHASED LAND FROM CERTAIN PARTIES WHICH WERE SOLD TO VARIOUS PAR TIES. THE ASSESSEE HAS ALSO RECEIVED UNSECURED LOAN AS PER AO. THE ASSESSE E HAS ASKED TO FURNISH THE CONFIRMATION, PAN AND COMPLETE ADDRESS OF THOSE DEPOSITORS. ITA NO.30/AHD/2013 ACIT GANDHINAGAR VS. SHRI PRAMUKHBHAI D. PATEL A.Y. 2009-10 - 2 - ADMITTEDLY, SOME OF THE PARTIES HAVE FURNISHED THE CONFIRMATION BEFORE THE AO. IN A BRIEF AND CRYPTIC MANNER, THE AO HAS A SSESSED THE ENTIRE AMOUNT OF RS.57,50,000/- IN THE FOLLOWING MANNER: HOWEVER, SUBMISSION FILED BY THE ASSESSEE ON 15.12. 2011 IN REPONSES TO SHOW CAUSE NOTICE ISSUED ON 05.12.2011 BY THE UNDER SIGNED REGARDING DETAILS OF LOANS AND ADVANCES RECEIVED/ GIVEN BY/ TO ASSESS EE ALONGWITH RETURN OF EACH THIRD PARTIES WITH CONFIRMATION IS NOT ACCEPTA BLE AS COMPLETE/REQUIRED DETAILS HAS NOT BEEN FURNISHED IN PROPER MANNER AND ASSESSEE IS FAILED TO ESTABLISHED GENUINENESS, CREDITWORTHINESS AND CORRE CTNESS OF THE SAID TRANSACTION. MOREOVER, ASSESSEE HAS NOT GIVEN PAN A ND COMPLETE ADDRESS OF THE PERSONS AMOUNTING TO RS.57,50,000/-. THATSWAY, THE GENUINENESS, CREDITWORTHINESS AND CORRECTNESS OF THE DETAILS CAN NOT BE CHECKED OUT. HENCE SUM CREDITED OF RS.57,50,000/- IN THE BOOKS OF ACCO UNTS MAINTAINED BY THE ASSESSEE IS TREATED AS UNEXPLAINED CASH CREDIT AND EXPLANATION OFFERED BY ASSESSEE IS NOT SATISFACTORY AND SAME IS ADDED IN T HE TOTAL INCOME OF THE ASSESSEE. THE CHART PROVIDED BY THE ASSESSEE IS ENC LOSED AS EVIDENCE AND MARKED AS ANNEXURE-1. 3. WHEN THE MATTER WAS CARRIED BEFORE LEARNED CIT(A ), IT WAS EXPLAINED THAT THE AMOUNT IN QUESTION PERTAINS TO T HE LAND DEALING WITH THE FARMERS. AFTER ASCERTAINING THOSE FACTS AND AFT ER GRANTING AN OPPORTUNITY OF HEARING TO THE REVENUE DEPARTMENT, L EARNED CIT(A) HAS HELD AS UNDER: PRIMA FACIE, THE CONTENTION OF THE APPELLANT THAT THE AO HAS ADDED THE PAYMENTS AGAINST PURCHASE OF PROPERTY TO DIFFERENT PERSONS APPEARED CORRECT. THE AO IN HIS DISCUSSION HAD MIXED LOANS AND ADVANC ES RECEIVED/ GIVEN BY/TO ASSESSEE WHILE DISCUSSING THE ADDITION IN PARA.6, P AGE-2 OF THE ASSESSMENT ORDER. THE AO HAS ALSO MADE THE ADDITION OF RS.57,5 0,000/- WITHOUT GIVING A CLEAR LIST OF THE CREDITS SOUGHT TO BE ADDED AS UNE XPLAINED. THE AO HAS REFERRED TO CHART PROVIDED BY ASSESSEE AS EVIDENCE AND MARKED AS ANNEXURE- 1 WHILE ADDING THIS SUM. THERE WAS NO ANNEXURE-1 T O THE ORDER ACCORDING TO THE APPELLANT AND THE ADDITIONS WERE APPARENTLY REF ERRING TO ANNEXURE-2, 4 PAGES WHEREIN CERTAIN ENTRIES WERE CITED AND TOTALE D AS RS.57,50,000/- WRITTEN IN PEN AT THE BOTTOM. TO ASCERTAIN THE FACTS, THE ACIT, GANDHINAGAR WAS R EQUESTED TO ATTEND WITH THE ASSESSMENT FILES. SHRI URJIT SHAH, THE PRESENT ACIT, GANDHINAGAR ATTENDED ON 11.10.2012 AND IT WAS NOTED THAT THERE WAS NO AN NEXURE-1 TO THE ASSESSMENT ORDER AND THE ADDITIONS WERE REFERRING T O ANNEXURE-2, 4 PAGES WHEREIN CERTAIN ENTRIES WERE CIRCLED AND TOTALIZED AS RS.57,50,000/- WRITTEN IN PEN AT THE BOTTOM. ITA NO.30/AHD/2013 ACIT GANDHINAGAR VS. SHRI PRAMUKHBHAI D. PATEL A.Y. 2009-10 - 3 - ALL THE ENTRIES WHICH HAVE BEEN ADDED IN FACT PERTA INED TO PAYMENTS MADE BY THE APPELLANT AGAINST THE PURCHASE OF LANDS. THE CR EDIT AND DEBIT HAS BEEN SHOWN IN THE LIST FURNISHED BY THE ASSESSEE, INDICA TING DEBITS FOR PAYMENT AND CREDITS FOR LAND PURCHASED AGAINST THE PAYMENT. I A GREE WITH THE APPELLANT THAT WHEN THE PAYMENTS ARE ALL SHOWN IN THE BOOKS O F ACCOUNT, NO ADDITION CAN BE MADE U/S 68, ESPECIALLY AS ALL THE TRANSACTIONS DEPICTED ARE SUPPORTED BY DULY REGISTERED SALE DEEDS. EVEN THE PAYMENTS ARE B Y CHEQUES DULY REFLECTED IN THE BOOKS OF ACCOUNTS. EVEN OTHERWISE, THERE IS NO QUESTION OF ANY UNEXPLAINED CREDITS. NO LOAN OR ADVANCE HAS BEEN TA KEN. APPARENTLY, AS DISCUSSED EARLIER, THE AO HAS BADLY MIXED UP HIS FA CTS AND HAD MIXED LOANS AND ADVANCES RECEIVED/GIVEN BY/TO ASSESSEE WHILE DI SCUSSING THE ADDITION IN PARA 6, PAGE-2 OF THE ASSESSMENT ORDER. THIS HAS RE SULTED IN TOTALLY UNCALLED FOR ADDITION. THE ADDITION IS, THEREFORE, DIRECTED TO BE DELETED. 4. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI AL AVAILABLE ON RECORD. 5. THE ASSESSEE HAS FURNISHED A COMPILATION CONTAIN ING THE DETAILS OF THE LAND PURCHASED AND THE PAYMENTS MADE. THE ASSES SEE HAS ALSO FURNISHED THE COPIES OF ACCOUNT OF THOSE FARMERS. O N PERUSAL OF THOSE ACCOUNTS, IT IS EVIDENT THAT THE ASSESSEE HAS PURCH ASED THE LAND FROM THE FARMERS TO WHOM THE ADVANCES WERE GIVEN BY ACCOUNT PAYEE CHEQUES. SALE OF LAND WAS EXECUTED IN FAVOUR OF THE ASSESSEE THROUGH REGISTERED SALE DEED. THE SUMMARY OF THOSE ALLEGED LOANS AND A DVANCES ALONG WITH PHOTOCOPIES OF THE DEEDS ARE ENCLOSED. IT HAS ALSO BEEN NARRATED THAT IN RESPECT OF INVESTMENT IN THE PROPERTY, AN ACCOUNT H AS BEEN MADE AND DEBIT ENTRIES OF ACCOUNT PAYEE CHEQUES IN FAVOUR OF THE FARMERS WAS MADE AND THEREAFTER A CREDIT ENTRY WAS PASSED ON EXECUTI ON OF THE SALE DEED WHICH HAS RESULTED INTO SQUAR UP OF THAT ACCOUNT. 6. IN OUR CONSIDERED OPINION, THE AO FAULTED IN UND ERSTANDING THE BUSINESS TRANSACTION OF THE ASSESSEE AND WRONGLY TA XED THE SAME IN THE ITA NO.30/AHD/2013 ACIT GANDHINAGAR VS. SHRI PRAMUKHBHAI D. PATEL A.Y. 2009-10 - 4 - HANDS OF THE ASSESSEE. WE, THEREFORE, AFFIRM THE FI NDINGS ON FACTS OF LEARNED CIT(A) AND DISMISS THIS GROUND OF THE REVEN UE. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (ANIL CHATURVEDI) (MUKUL KR. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 13/09/2013 PRABHAT KR. KESARWANI, SR.P.S. TRUE COPY COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A)-III, AHMEDABAD 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, (DY./ASSTT.REGISTRAR) ITAT, AHMEDABAD