ITO 24(1)(4), MUMBAI V. FARZANA NIYAS KHAN, MUMBAI

ITA 3128/MUM/2010

• Counselvise Citation: 312819914 RSA 2010
• Duration Of Justice: 3 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 05-03-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 22-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MRS SANJUKTA CHOUDHU RY
• Keywords: Non compliance
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL F , BENCH , MUMBAI , BEFORE SHRI R.K.GUPTA , J M & SHRI R.S.SYAL , A M TA NO. 3128 / MUM / 20 1 0 ( ASSESSMENT YEAR : 200 6 - 07 ) ITO 24(1)(4) , MUMBAI - 51 VS. MS.FARZANA NIYAZ KHAN, ROOM NO. 1316, CH.147, GATE NO. 8, M.H.B. COLONY, MALAWANI, MALAD(W) , MUMBAI - 64 PAN/GIR NO. : A NQPK 1600 D ( APP ELLANT ) .. ( RESPONDENT ) /REVENUE BY : ANURAG SHRIVASTAVA /ASSESSEE BY : PRAMOD KUMAR PARIDA & MRS. SANJUKTA CHOUDHU RY DATE OF HEARING : 5 TH AUGUST , 201 3 DATE OF PRONOUNCEMENT : 7 TH AUGUST , 2013 O R D E R P ER SHRI R.K.G UPTA, JM : TH IS APPEAL HA S BEEN PREFERRED BY THE DEPARTMENT AGAINST THE ORDER DATED 12 - 20 - 2010, PASSED BY THE LEARNED CIT ( A) - 34 , MUMBAI , RELATING TO ASSESSMENT YEAR 2006 - 07 . 2 . THE DEPARTMENT IS OBJECTING IN DELETING THE ADDITION OF RS. 15,85,582/ - MADE BY THE AO ON ACCOUNT OF LOAN TAKEN BY THE ASSESSEE. 3 . DURING THE ASSESSMENT PROCEEDING, THE AO NOTICED THAT THE ASSESSEE HAS TAKEN LOAN FROM ONE SHRI AJAY PATEL. THE ASSESSEE WAS REQUIRED TO PROVE THE GENUINENESS OF THE LOAN TAKEN BY THE ASSESSEE I TA NO. 3128 / 20 10 2 WITH EVIDENCES. IT WAS STATED THAT THE LOAN HAS BEEN RECEIVED THROUGH PROPER BANKING CHANNEL, HOWEVER, NO EVIDENCE WAS FILED BEFORE THE AO. THEREFORE, THE AO WHILE PASSING TH E ASSESSMENT UNDER SECTION 144 MADE ADDITION OF RS. 15,85,582/ - , WHICH WAS CHALLENGED BEFORE THE CIT(A) . 4 . ADDIT IONAL EVIDENCES UNDER SECTION 4 6 A WERE FILED. IT WAS EXPLAINED THAT THE ASSESSEE HAS PURCHASED A FLAT ADMEASURING 55.7 SQ.MTRS. FOR RS.14,68 ,250/ - AND SHE HAS PAID STAMP DUTY OF RS.1,68,330/ - AND FURTHER REGISTRATION CHARGES OF RS.30,000/ - AND COPYING CHARGES 1520/ - . IT WAS EXPLAINED THAT THE LOAN OF RS.15,85,582/ - WAS TAKEN FROM SHRI AJAY PATEL (NRI), WHO IS FRIEND OF THE ASSESSEE. IT WAS FUR THER EXPLAINED THAT THE ASSESSEE IS NOT MUCH EDUCATED AND SHE KEPT IN DARK BY HER CHARTERED ACCOUNTANT, THEREFORE, NON COMPLIANCE BEFORE THE AO SHOULD BE CONDONED AND NEW EVIDENCE FILED IN APPELLATE PROCEEDINGS SHOULD BE ADMITTED. SINCE THE EVIDENCE IN THE FORM OF AFFIDAVIT OF THE ASSESSEE AND PAPERS OF WESTERN UNION BANK SUGGESTING THAT THE MONEY WAS SENT FROM U.K. AND CONFIRMATION LETTER OF SHRI AJAY PATEL AS WELL AS LETTERS OF CAR LOANS AND COPY OF PASSPORT OF SHRI AJAY PATEL WERE ALSO FILED BEFORE THE C IT(A). ALL THESE DETAILS WERE SENT TO THE AO FOR HIS REMAND REPORT. THE REMAND REPORT DATED 20 - 11 - 2009 WAS RECEIVED BY THE CIT(A). AFTER CONSIDERING THE REMAND REPORT AND SUBMISSION OF THE ASSESSEE, THE CIT(A) FOUND THAT ONUS LAY UPON THE ASSESSEE HAS DULL Y BEEN DISCHARGED. MR. AJAY PATEL, WHO GAVE LOAN TO THE ASSESSEE HAS CONFIRMED THE AMOUNT OF LOAN GIVEN I TA NO. 3128 / 20 10 3 BY HIM. THE AMOUNT WAS RECEIVED THROUGH PROPER BANKING CHANNEL. ALL THE DETAILS LIKE BANK PASSBOOK, PASSPORT OF THE CREDITORS WERE EXAMINED BY THE CIT(A ) AND THE CIT(A) FOUND THAT THE LOAN IS GENUINE. ACCORDINGLY, HE DELETED THE ADDITION MADE BY THE AO. NOW, THE DEPARTMENT IS IN APPEAL HERE BEFORE THE TRIBUNAL. 5 . LEARNED DR PLACED RELIANCE ON THE ORDER OF AO. ON THE OTHER HAND, LEARNED COUNSEL OF THE A SSESSEE PLACED RELIANCE ON THE ORDER OF CIT(A) . FURTHER ATTENTION OF THE BENCH WAS DRAWN ON VARIOUS DETAILS FILED BEFORE THE CIT(A), COPIES OF WHICH ARE PLACED ON RECORD ALONG WITH COPY OF REMAND REPORT. 6 . AFTER EXAMINING THE ORDER OF AO AND CIT(A) AND OTHER DETAILS, WE FOUND NO INFIRMITY IN THE FINDINGS OF CIT(A) . WE NOTED THAT THE CIT(A) HAS ASCERTAINED THAT THE CREDITOR, WHO IS A BRITISH CITIZEN HAS GIVEN LOAN THROUGH PROPER BANKING CHANNEL. THE AO HAS NOT BROUGHT ANYTHING ADVERSE ON RECORD THAT THE L OAN TRANSACTIONS ARE NOT GENUINE. THE CREDITWORTHINESS OF MR. AJAY PATEL WAS ALSO FOUND TO BE GENUINE AS THE CONFIRMATION WAS FILED AND SOURCE WAS ALSO EXPLAINED. NO CONTRARY MATERIAL WAS BROUGHT ON RECORD FOR HOLDING THAT THE LOAN IS NOT GENUINE. THEREFOR E, WE SEE NO REASON TO INTERFERE IN THE FINDINGS OF THE LEARNED CIT(A) , WHICH IN OUR CONSIDERED VIEW, ARE FINDINGS OF FACT. ACCORDINGLY, WE CONFIRM THE ORDER OF THE LEARNED CIT(A) IN THIS RESPECT. 7 . RESULTANTLY , APPEAL OF THE DEPARTMENT IS DISMISSED . I TA NO. 3128 / 20 10 4 ORDER PRONOUNCED IN THE OPEN COURT ON THIS 7 TH DAY OF AUG . 201 3 . SD/ - ( ) ( R.S.SYAL ) SD/ - ( ) ( R.K.GUPTA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 07/08 / 2013 /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE C I T(A) , MUMBAI . 4. / C I T 5. / DR, ITAT, MUMBAI . 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( /ASSTT. REGISTRAR) / ITAT, MUMBAI