Shri Mohanlal Patidar, Indore V. The I.T.O., Dhar

ITA 306/IND/2010

• Counselvise Citation: 30622714 RSA 2010
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2001-2002
• Appeal Filed On: 13-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN DEWAN
• Assessee Lawyers: GIRISH AGARWAL S
• Keywords: Onus to prove

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARMA, A.M. PAN NO. : ABCPP6306P I.T.A.NO. 306 / IND /20 10 A.Y. : 2001 - 02 SHRI MOHANLAL PATIDAR, BLOCK COLONY, INCOME - TAX OFFICER, DHAR GANDH WANI, VS INDORE. APPELLANT RESPONDENT APPELLANT BY : SHRI ASHISH GOYAL AND SHRI GIRISH AGARWAL, ADVOCATES RESPONDENT BY : SHRI ARUN DEWAN , SR. DR O R D E R PER R. C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) DATED 3 RD FEBRUARY, 2010, FOR THE ASSESSMENT YEAR 200 1 - 02 , IN THE MATTER OF LEVY OF PENALTY U/S 271(1)(C) OF THE INCOME - TAX ACT, 1961, AMOUNTING TO RS. 71,057/ - . 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. THE AO HAS LEVIED PEN ALTY WITH REGARD TO CASH - : 2 : - 2 CREDITOR SHOWN BY THE ASSESSEE AMOUNTING TO RS. 1,58,230/ - . DURING THE COURSE OF ASSESSMENT, THE ASSESSEE HAS FURNISHED FULL DETAILS OF THE CREDITORS OUT OF WHICH TWO WERE INCOME TAX ASSESSEES AND THE REMAINING AMOUNTS PERTAINED TO DEPOSITS FROM THE LABOURERS WHO WERE FROM U.P. AND BIHAR. THESE PERSONS WERE NOT GIVEN LOANS TO THE ASSESSEE, BUT THEY HAD DEPOSITED THE AMOUNT WITH THE ASSESSEE AS THEY HAD NO PLACE TO KEEP THEIR SAVINGS. THE CONTENTION OF THE LOWER AUTHORITIES THAT THE SE LABOURERS WERE NOT HAVING PAN NUMBERS, IS OF NO SUBSTANCE, IN SO FAR AS THEIR INCOME WAS NOT TAXABLE. GENUINENESS OF THE CREDIT WAS NOT DOUBTED. WE ALSO FOUND THAT THESE LABOURERS WERE PAID SUBSEQUENTLY IN THE NEXT YEAR AS IS EVIDENT FORM PAGE NO.11 OF THE PAPER BOOK. P.B.NO.14 IS THE LIST OF ANNEXURE WHEREIN NO CREDITS WERE REFLECTED. THE REPAYMENT TO THESE PARTIES WAS ALSO NOT DOUBTED. KEEPING IN VIEW THE EXPLANATION FURNISHED BY THE ASSESSEE AND TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE DO NOT FIND ANY MERIT FOR IMPOSITION OF PENALTY WITH REGARD TO CASH CREDIT S FOR WHICH THE ASSESSEE HAS DULY DISCHARGED HIS BURDEN TO PROVE THEIR GENUINENESS, MERELY BECAUSE THE ADDITION WAS MADE IN - : 3 : - 3 QUANTUM PROCEEDINGS WILL NOT LEAD TO THE INFERENCE THAT TH E ASSESSEE HAS CONCEALED PARTICULARS OF INCOME. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 20 TH JU LY , 2011. S D/ - S D/ - (JOGINDER SINGH) ( R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 20 TH JU LY , 2011 . CPU* 207