Sh. Hemant Surana, New Delhi V. JCIT, New Delhi

ITA 3101/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4863 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 03-05-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 20-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DR RAKESH GUPTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI C BEN CH, NEW DELHI BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER. ITA NO. 3101/DEL/2014 [A.Y. 2007-08] SHRI HEMANT SURANA VS. THE JCIT A 401, DEFENCE COLONY RANGE - 37 NEW DELHI NEW DELHI PAN : AATDS 4960 N [APPELLANT] [RESPONDENT] DATE OF HEARING : 29.08.2017 DATE OF PRONOUNCEMENT : 30.08.2017 ASSESSEE BY : DR. RAKESH GUPTA , ADV REVENUE BY : SHRI ARUN KUMAR YADAV, SR.DR ORDER PER B.P. JAIN, ACCOUNTANT MEMBER: THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF THE LD. CIT(A)-XXVIII, NEW DELHI VIDE ORDER DATED 31.03.201 4 FOR ASSESSMENT YEAR 2007-08. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTAN CES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN C ONFIRMING THE ACTION OF LD. AO IN MAKING ADDITION OF RS. 11,00,00 0/- ON - 2- ITA NO. 3101/DEL/2014 ACCOUNT OF UNSECURED LOAN AND THAT TOO BY RECORDING INCORRECT FACTS AND FINDINGS AND BY DISREGARDING THE SUBMISSI ONS AND VARIOUS EVIDENCES FILED BY THE ASSESSEE AND WITHOUT BRINGING ANYTHING CONTRARY ON RECORD. 1. THAT IN ANY CASE AND IN ANY VIEW OF THE MATTER, AC TION OF LD. CIT(A) IN CONFIRMING THE ACTION OF LD. AO IN MAKING ADDITION OF RS. 11,00,000/- ON ACCOUNT OF UNSECURED LOAN IS BEY OND JURISDICTION, ILLEGAL, BAD IN LAW AND AGAINST THE F ACTS AND CIRCUMSTANCES OF THE CASE AND THE SAME IS NOT SUSTA INABLE ON VARIOUS LEGAL AND FACTUAL GROUNDS. 3. BRIEF FACTS OF THE CASE ARE THAT AS PER ASSESSME NT ORDER ARE THAT THE ASSESSEE DID NOT FURNISH ANY DETAILS, CONFIRMAT IONS, RETURN, BALANCE SHEET, BANK STATEMENT, P & L ACCOUNT IN RESPECT OF UNSECURED LOANS APPEARING IN THE BALANCE SHEET. HE WAS TIME AND AGA IN DIRECTED BY THE ASSESSING OFFICER TO PROVE THE GENUINENESS OF THE U NSECURED LOANS BUT NO DETAILS WERE FILED BY HIM. THE ASSESSING OFFICER THEREFORE TREATED RS.11 LACS SHOWN IN THE BALANCE SHEET RECEIVED FROM ANJANA VOHRA AS NOT GENUINE AND ADDED IT TO THE TOTAL INCOME. THE C OMMISSIONER OF INCOME TAX(A) CONFIRMED THE ADDITION ON THE BASIS T HAT THE APPELLANT FAILED TO COMPLY AND FILE EVIDENCE IN RESPECT OF TH E LOAN SHOWN. BEFORE THE ITAT THE ASSESSEE SUBMITTED AN AFFIDAVIT OF MR S. ANJANA VOHRA, HER CONFIRMATION AND PAN DETAILS. THE ITAT RESTORED THE MATTER TO THE FILE - 3- ITA NO. 3101/DEL/2014 OF THE COMMISSIONER OF INCOME TAX(A) WITH THE DIREC TIONS TO RE-DECIDE THE APPEAL BY PASSING SPEAKING ORDER AS TO WHETHER OR NOT THE IDENTITY AND CREDITWORTHINESS OF THE AFORESAID CREDITORS AND GENUINENESS OF THE TRANSACTION IS ESTABLISHED. 4. BEFORE THE LD. CIT(A), THE ASSESSEE FILED VARIOU S EVIDENCES TO PROVE THE GENUINENESS OF THE TRANSACTION AND REMAND REPORT WAS TAKEN FROM THE ASSESSING OFFICER AND ON PERUSAL OF THE SA ME, THE LD. CIT(A) DISMISSED THE GROUND OF APPEAL OF THE ASSESSEE. 5. WE HAVE HEARD THE PARTIES AND PERUSED THE FACTS OF THE CASE. IN FACT, THE ONLY GRIEVANCE AS PER THE ORDER OF THE LD . CIT(A) AT PAGE 10 IS THAT NOTHING HAD BEEN STATED REGARDING THE SOURCE F ROM WHICH CHEQUE NO. 629957 OF RS. 11 LAKHS HAS BEEN RECEIVED. FROM THE PERUSAL OF THE BANK STATEMENT, AT PAGES 9 AND 10 OF LD. CIT(A)S O RDER, IT IS EVIDENT FROM THE COPY OF BANK ACCOUNT OF SMT. ANJANA VOHRA THAT ON 27.01.2006 GOT TWO FDRS MATURED EACH AMOUNTING TO R S. 5,50,075/-, WHICH WERE CREDITED IN THE BANK AND A CHEQUE OF RS . 11 LAKHS WAS GIVEN TO THE ASSESSEE VIDE CHEQUE NO. 558063. THER E IS NO DISPUTE REGARDING THE FACT THAT THE SAID AMOUNT WAS RECEIVE D BACK ON 27.03.2006 VIDE CHEQUE NO.629957 BY SMT. ANJANA VOH RA FOR WHICH THE - 4- ITA NO. 3101/DEL/2014 SOURCE IS TREATED BY THE LD. CIT(A) AS NOT TO HAVE BEEN EXPLAINED. THE ASSESSEE HAD FILED COPY OF BANK ACCOUNT OF SMT. ANJ ANA VOHRA AND THAT OF THE ASSESSEE BEFORE THE AUTHORITIES BELOW, WHICH IS NOT IN DISPUTE. ON PERUSAL OF HT BANK ACCOUNT OF THE ASSESSEE, IT I S EVIDENT THAT ON 27.03.2006, A CHEQUE BEARING NO. 629957 OF RS. 11 L AKHS HAS BEEN DEBITED BY THE BANK I.E. STATE BANK OF PATIALA, DEF ENCE COLONY, NEW DELHI AND WHICH CHEQUE HAD BEEN RECEIVED BY SMT. AN JANA VOHRA HERSELF IN HER BANK ACCOUNT IS ALSO EVIDENT FROM HE R BANK ACCOUNT. SINCE THE ASSESSEE HIMSELF HAD GIVEN THIS AMOUNT TO SMT. ANJANA VOHRA, THEREFORE, THE CREDITWORTHINESS, GENUINENESS AND IDENTITY OF THE TRANSACTION STANDS PROVED AND THERE CANNOT BE A NY DISPUTE TO THIS EXTENT. 6. EVEN THE ASSESSEE HAS PROCEEDED TO GIVE THE SOUR CE OF SMT. ANJANA VOHRA BEFORE THE LD. CIT(A) WHICH ARE AS UND ER: COPY OF AFFIDAVIT OF SMT ANJANA VOHRA GIVING THE AD DRESS, PAN, AMOUNT ADVANCED, BALANCE OUTSTANDING, SOURCES OF FUNDS, MODE OF PAYMENT, DETAILS OF BANK ACCOUNT FRO M WHERE SHE HAS WITHDRAWN THE AMOUNT. IN THE SAID AFFIDAVIT SMT. ANJANA VOHRA HAS DEPOSED THAT SHE DI D NOT POSSESS OLD PASS BOOK FOR RELEVANT PERIOD AND HAD A PPLIED TO THE BANK FOR COPY OF THE SAME. - 5- ITA NO. 3101/DEL/2014 THE CONFIRMED COPY OF ACCOUNT OF SMT. ANJANA VOHRA IN THE BOOKS OF ASSESSEE FOR THE RELEVANT PERIOD. COPY OF LETTER DATED 24-12-2009 OF SMT. ANJANA VOHR A ADDRESSED TO THE MANAGER OF CANARA BANK REQUESTING FOR RE-ISSUANCE OF PASS BOOK. THE COPY OF PAN DETAILS OF SMT. ANJANA VOHRA DOWNLO ADED FROM THE SITE OF INCOME TAX DEPARTMENT, INCOMETAXINDIA.GOV.IN. THE STATEMENT OF FACTS FILED BEFORE HON'BLE CIT(A) AT THE TIME OF QUANTUM PROCEEDINGS THE PHOTOCOPY OF PASS BOOK OF SMT. ANJANA VOHRA WIT H CANARA BANK REFLECTING THE WITHDRAWAL OF RS. 11,00, 000/-. THE ASSESSEE'S SUBMISSIONS FILED BEFORE HON'BLE INC OME TAX APPELLATE TRIBUNAL WITH RESPECT TO LOAN OF RS.11,00 ,000/- RECEIVED FROM SMT. ANJANA VOHRA. COPY OF BANK STATEMENT OF ASSESSEE WITH HDFC BANK SHOWING THE REPAYMENT OF LOAN AMOUNTING TO RS.11,00,000/- BY THE ASSESSEE TO SMT. ANJANA VOHRA 7. THEREFORE, IN ALL FAIRNESS AND CIRCUMSTANCES OF THE PRESENT CASE, THE ASSESSEE HAS PROVED THE SOURCE OF SMT. ANJANA V OHRA IN THE ABSENCE OF ANY DEFECT BEING POINTED OUT BY THE LD. CIT(A) AND ALSO THE DEPOSIT OF RS. 11 LAKHS ON 27.03.2006 AS DISCUSSED HEREINBEFORE. - 6- ITA NO. 3101/DEL/2014 THEREFORE, UNDER SUCH FACTS AND CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) IS NOT JUSTIFIED IN SUSTAINING THE ADDITION OF RS. 11 LAKHS WHICH IS DIRECTED TO BE DELETED. THUS THE GROUNDS RAISED B Y THE ASSESSEE ARE ALLOWED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30.0 8.2017. SD/- SD/- [KULDIP SINGH] [B.P. JAIN] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30 TH AUGUST, 2017 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI