Shri Prabhudas Nagarbhai, Ahmedabad V. The Income tax Officer,Ward-6(1), Ahmedabad

ITA 3008/AHD/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 72851 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 26-12-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 03-11-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: O P BATHEJA
• Assessee Lawyers: S N DIVATIA
• Keywords: Unexplained cash credit; Additional evidence
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: SRI G.C. GUPTA, VICE PRESIDENT AND SHRI ANIL CHATURVEDI, ACCOUNTA NT MEMBER PATEL PRABHUDAS NAGARBHAI C/O SHREE RAM GINNING FACTORY, NADIAD ROAD, AT DHOKKA, AHMEDABAD PAN: ACYPP 8473 G (APPELLANT) VS ITO, WARD-6(1) AHMEDABAD (RESPONDENT) REVENUE BY: SRI O.P. BATHEJA, SR.D.R. ASSESSEE BY: SRI S.N. DIVATIA, A.R. DATE OF HEARING : 26-12-2013 DATE OF PRONOUNCEMENT : 10-01-20 14 / ORDER PER : G.C. GUPTA, VICE PRESIDENT:- THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A)-XVI AHMEDABAD DATED 01-09-2010 FOR A.Y. 200 6-07. ITA NO. 3008/AHD/2010 ASSESSMENT YEAR 2006-07 I.T.A NO.3008/AHD/2010 A.Y. 2006-07 PAGE NO PATEL PRABHUDAS NAGARBHAI VS. ITO 2 2. THE LEARNED COUNSEL OF THE ASSESSEE SUBMITTED TH AT THE ONLY EFFECTIVE GROUNDS OF APPEAL ARE GROUND NOS. 2.1, 4.1 AND 4.2 WHICH READ AS UNDER:- 2.1 THE LD. CIT(A) HAS GIVEN GRIEVOUSLY ERRED IN L AW AND ON FATS IN CONFIRMING THE FOLLOWING ADDITIONS/DISALLOWANCES:- 1. UNEXPLAINED CASH CREDIT RS. 1,50,000/- 2. AGRICULTURAL INCOME RS. 30,000/- 4.1 THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND ON FACTS IN CONFIRMING THE DEPOSIT OF RS. 2 LACS FROM SHRI MAHE NDRA PATEL AS UNEXPLAINED. 4.2 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) OUGHT NOT TO HAVE UPHELD THE DEPOSIT OF RS. 2 LACS FROM SHRI MAHENDRA PATEL AS UNEXPLAINED. 3. LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT T HESE GROUNDS OF APPEAL RELATES TO 3 ADDITIONS NAMELY UNEXPLAINED CA SH CREDIT OF RS. 1.5 LACS, DEPOSIT OF RS. 2 LACS FROM SRI MAHENDRA PATEL AND A GRICULTURAL INCOME OF RS. 30,000/-. HE SUBMITTED THAT THE CREDITOR SHI BALD EVBHAI I PATEL MADE DEPOSIT OF RS. 1.5 LACS AND HAS FILED HIS CONFIRMAT ION AND WAS AN AGRICULTURIST AND AGRICULTURAL INCOME WAS EXEMPT FROM INCOME TAX AND THEREFORE HAS NOT FILED HIS RETURN OF INCOME. HE SUBMITTED THAT THE REVENUE AUTHORITIES HAVE ASSESSED THE AMOUNT AS INCOME IN THE HANDS OF ASSES SEE BY HOLDING THAT SRI BALDEVBHAI I PATEL DID NOT HAVE ANY PAN NO. AND THE CREDITABILITY OF THE DEPOSITOR COULD NOT BE PROVED BY THE ASSESSEE. HE SUBMITTED THAT THE IDENTITY OF SRI BALDEVBHAI I PATEL WAS PROVED BEYO ND DOUBT BY FILING THE COPY OF IDENTITY CARD ISSUED BY THE ELECTION COMMIS SION OF INDIA AND ALSO COPY OF PASS-PORT ISSUED BY THE REGIONAL PASSPORT A UTHORITY. THE CROP CERTIFICATE OF THE DEPOSITOR WAS ALSO FILED BEFORE CIT(A) AND A COPY OF THESE DOCUMENTS HAVE BEEN FILED IN THE COMPILATION BEFORE THE TRIBUNAL. LD. DR I.T.A NO.3008/AHD/2010 A.Y. 2006-07 PAGE NO PATEL PRABHUDAS NAGARBHAI VS. ITO 3 HAS RELIED ON THE ORDERS OF AO AND CIT(A) ON THE IS SUE OF ADDITION OF SRI BALDEVBHAI I PATEL. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE ORDERS OF AO AND CIT(A) AND COPIES OF VARIOUS DOCUMENTS FI LED IN THE COMPILATION BY THE ASSESSEE. WE FIND THAT THE IDENTITY OF THE CREDITOR SRI BALDEVBHAI I PATEL HAS BEEN PROVED BY THE ASSESSEE BEYOND DOUBT. THE DEPOSITOR HAS CONFIRMED THE FACT OF THE DEPOSIT MADE WITH THE ASS ESSEE. THE ASSESSEE WAS AN AGRICULTURIST AND HIS INCOME FROM AGRICULTURAL O PERATIONS WERE EXEMPT UNDER PROVISIONS OF THE ACT AND THEREFORE THE NON-A VAILABILITY OF PAN NO. SHOULD NOT BE CONSTRUED AGAINST THE ASSESSEE. THE CROP CERTIFICATE OF THE DEPOSITOR WITH THE LAND DETAILS WERE FILED BEFORE T HE CIT(A). IN THESE FACTS AND IN VIEW OF THE ABSENCE OF ANY ADVERSE MATERIAL BROUGHT ON RECORD BY THE REVENUE, WE ARE OF THE VIEW THAT THE ASSESSEE HAS D ISCHARGED ITS ONUS OF PROVING IDENTITY, CREDITWORTHINESS OF THE DEPOSITOR AND GENUINENESS OF THE TRANSACTION AND ACCORDINGLY THE ADDITION OF RS. 1.5 LACS AS UNEXPLAINED DEPOSIT OF SRI BALDEVBHAI I PATEL IS DELETED. 5. THE SECOND ISSUE IS WITH REGARD TO ADDITION OF R S 2 LACS IN THE ACCOUNT OF SRI MAHENDRABHAI B PATEL HUF. LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS FILED THE IDENTICAL EVIDENCE AS IN THE CASE OF SRI BALDEVBHAI I PATEL WITH REGARD TO THIS CREDIT E NTRY AND THEREFORE NO ADDITION U/S. 68 SHOULD HAVE BEEN BY THE AO. LD. D R RELIED ON THE ORDERS OF AO AND CIT(A). WE HAVE CONSIDERED THE RIVAL SUBMIS SIONS AND PERUSED THE ORDERS OF AO AND CIT(A) AND HAVE PERUSED THE COPY O F VARIOUS DOCUMENTS FILED BY THE ASSESSEE IN THE COMPILATION BEFORE THE TRIBUNAL. WE FIND THAT THE I.T.A NO.3008/AHD/2010 A.Y. 2006-07 PAGE NO PATEL PRABHUDAS NAGARBHAI VS. ITO 4 IDENTITY OF THE CREDITOR IN QUESTION IS NOT IN DISP UTE. THE ASSESSEE HAS FILED CONFIRMATION LETTER BEFORE THE AO OF THE DEPOSITOR. THE AMOUNT WAS DEPOSITED BY ACCOUNT PAYEE CHEQUE ON PEOPLES CO-OP ERATIVE BANK LTD AND IT WAS CLAIMED THAT THE SAME WAS FROM SAVINGS FROM AGRICULTURAL INCOME. THE ASSESSEE IS CLOSELY RELATED TO THE DEPOSITOR AN D THEREFORE NO INTEREST WAS CHARGED ON THE DEPOSIT AMOUNT. THE COPY OF SAVING ACCOUNT OF THE CREDITOR SRI MAHENDRABHAI BALDEVBHAI PATEL HUF HAS BEEN FILE D IN THE COMPILATION BEFORE THE TRIBUNAL. THE EVIDENCE OF LAND HOLDING AND THE CROP CERTIFICATES OF THE DEPOSITOR WAS FILED BEFORE THE CIT(A). MERE LY BECAUSE THE DEPOSITOR WAS NOT HAVING PAN NO AS HIS INCOME FROM AGRICULTUR AL OPERATION WAS EXEMPT FROM INCOME TAX, IS NO GROUND TO CONCLUDE TH AT THE CREDIT ENTRY WAS NOT GENUINE. THE COPIES OF THE AGRICULTURAL PRODUC E, SALE BILLS WERE ALSO FILED BY THE ASSESSEE BEFORE THE CIT(A) WITH REQUEST TO A DMIT AS ADDITIONAL EVIDENCE. IN THESE FACTS OF THE CASE, WE HOLD THAT THE ASSESSEE HAS DISCHARGED ITS ONUS OF PROVING IDENTITY, CREDITWORTHINESS OF T HE DEPOSITOR AND THE GENUINENESS OF THE TRANSACTION OF THE CREDIT ENTRY AND ACCORDINGLY THE ADDITION OF RS. 2 LACS IN THE ACCOUNT OF SRI MAHEN DRABHAI BALDEVBHAI PATEL HUF IS DELETED. 6. THE OTHER ADDITION OF RS. 30,000/- WAS ON ACCOUN T OF AGRICULTURAL INCOME. WE HAVE HEARD THE PARTIES ON THE ISSUE. W E FIND THAT THE ONLY GROUND ON WHICH THE ADDITION WAS SUSTAINED BY CIT(A ) WAS THAT THE AMOUNT OF RS. 30,000/- WAS NOT EVIDENCED BY THE CORRESPOND ING SALE BILL AND MERELY HOLDING OF LAND DOES NOT SHOW THAT THERE IS AGRICUL TURAL INCOME. WE FIND THAT THE ASSESSEE HAS FILED EVIDENCE IN THE FORM OF FILI NG OF COPY OF FORM NO. 7 & FROM NO. 12 EVIDENCING AGRICULTURAL LAND HOLDING AN D THE AGRICULTURAL INCOME I.T.A NO.3008/AHD/2010 A.Y. 2006-07 PAGE NO PATEL PRABHUDAS NAGARBHAI VS. ITO 5 SHOWN BY THE ASSESSEE BEING NOT EXCESSIVE, NO ADDIT ION COULD BE MADE BY THE REVENUE. IN THE FACTS OF THE CASE WE ARE OF THE V IEW THAT THE ADDITION OF RS. 30,000/- HOLDING AS THE SAME AS NON-AGRICULTURAL IN COME IN THE FACTS AND CIRCUMSTANCES OF THE CASE WAS NOT JUSTIFIED AND THE SAME IS ACCORDINGLY DELETED AND THE GROUND NO. 2.1, 4.1 AND 4.2 OF THE ASSESSEE ARE ALLOWED. 7. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOW ED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( G.C. GUPTA) ACCOUNTANT MEMBER V ICE PRESIDENT AHMEDABAD : DATED 10/01/2014 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/ , / ,