Shri Harjivanbhai C. Patel, Ahmedabad V. The Income Tax Officer, Ward-6(4), Ahmedabad

ITA 3174/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8439 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 01-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADEEP SINGH
• Assessee Lawyers: P D SHAH
• Keywords: Additional evidence
• Section: 131; 68

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA NO.3174/AHD/2016 / ASSTT. YEAR: 2010-2011 HARJIVANBHAI C.PATEL C/O. MEHTA LODHA & CO. CHARTERED ACCOUNTANTS 105, SAKAR-I, ASHRAM ROAD AHMEDABAD 380009. PAN : ABUPP 1238 N VS. ITO, WARD-6(4) AHMEDABAD. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI P.D. SHAH, AR REVENUE BY : SHRI PRADEEP SINGH, SR.DR ! / DATE OF HEARING : 16/04/2018 '#$ ! / DATE OF PRONOUNCEMENT: 18/04/2018 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST O RDER OF LD.CIT(A)-13, AHMEDABAD DATED 8.9.2016 PASSED FOR A SSTT.YEAR 2010-11. 2. SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CI T(A) HAS ERRED IN CONFIRMING ADDITION OF RS.17,45,700/- WHIC H WAS ADDED BY THE AO WITH THE AID OF SECTION 68 OF THE INCOME TAX ACT, 1961. ITA NO.3174/AHD/2016 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL HE HAS FILED HIS RETURN OF INCOME ON 8.3.2011 DECLA RING TOTAL INCOME AT RS.10,91,802/-. ON SCRUTINY OF THE ACCOUN TS, IT REVEALED TO THE AO THAT THE ASSESSEE HAS TAKEN UNSECURED LOA NS FROM TWO PERSONS VIZ. (A) BHOOMIBEN BHARATBHAI PATEL OF RS.7 ,45,700/-, AND (B) SAROJBEN P. PATEL OF RS.10,00,000/-. HE DIRECT ED THE ASSESSEE TO EXPLAIN SOURCE OF UNSECURED LOAN. HOWEVER, ACCO RDING TO THE AO, THE ASSESSEE FAILED TO EXPLAIN THE SOURCE, AND ACCORDINGLY AN ADDITION OF RS.17,45,700/- WAS MADE TO THE TOTAL IN COME OF THE ASSESSEE. APPEAL TO THE LD.CIT(A) DID NOT BRING AN Y RELIEF TO THE ASSESSEE. 4. THE LD.COUNSEL FOR THE ASSESSEE WHILE IMPUGNING ORDER OF THE LD.CIT(A) SUBMITTED DETAILS IN A BRIEF NOTE SHOWING AS TO HOW THE ASSESSEE HAS COMPLIED WITH DIRECTIONS OF THE AO FOR DISCHARGING ONUS PUT UPON HIM BY SECTION 68 OF THE ACT. RELEVA NT PART OF THESE DETAILS READS AS UNDER: THE APPELLANT MOST RESPECTFULLY CRAVES LIBERTY TO S UBMIT THE FOLLOWING WRITTEN SUBMISSION FOR YOUR KIN D PERSUAL:- NAME SMT. SAROJBEN P PATEL SMT.BHOOMIBEN PATEL PROVES NOTICE UNDER SECTION 131(1) SERVED YES YES IDENTITY COMPLIANCE OF NOTICE U/S.131(L) YES YES IDENTITY COMPLIANCE OF NOTICE U/S. 131(1) BY SELF FATHER IDENTITY IDENTITY PROOF SUBMITTED ELECTION CARD PAN CARD IDENTITY COPY 7 X 12 YES YES CREDITWORTHINESS STATEMENT UNDER SECTION 131(1) RECORDED YES YES CREDITWORTHINESS SOURCE OF THE PAYMENT MADE TO ASSESSEE AGRICULTURAL AGRICULTURAL & INTEREST CREDITWORTHINESS AFFIDAVIT FILED FOR THE CONFIRMATION OF GIVING OF T HE LOAN YES YES GENUINENESS ITA NO.3174/AHD/2016 3 RECEIPT THROUGH ACCOUNT PAYEE CHEQUE YES YES GENUINENESS COPY OF BANK STATEMENT SUBMITTED YES YES GENUINENESS 5. THE LD.COUNSEL FOR THE ASSESSEE FURTHER PLACED O N RECORD COPY OF REMAND REPORT SUBMITTED TO THE LD.CIT(A) VIDE LE TTER NO.ITO/ WD.3(2)(7)/REMAND REPORT/HCP/2016-17 DATED 27.6.201 6. IN THE REMAND REPORT, THE AO HAS ACCEPTED THE EVIDENCE SUBMITTED BY THE ASSESSEE AND RELEVANT PART OF THE OBSERVATIO N IS WORTH TO NOTE . IT READS AS UNDER: IN VIEW OF THE ABOVE FACTS AND PROVISIONS OF RULE 46A, ADDITIONAL EVIDENCE SUBMITTED BY THE ASSESSEE IS VE RIFIED. AFTER DUE VERIFICATION IT SEEM THAT THE UNSECURED L OAN GIVEN PERSONS ARE AGRICULTURISTS AND THEY HAVE GIVEN LOAN TO THE ASSESSEE THROUGH BANKING CHANNEL AND ACCOUNT PAYEE CHEQUE ONLY WHICH WAS DEBITED FROM HER ACCOUNTS ON THE OTHER HAND, LD.DR WAS NOT ABLE TO CONTROVERT THE ABOVE FACTS. 6. WE HAVE DULY CONSIDERED RIVAL CONTENTIONS AND GO NE THROUGH THE RECORD CAREFULLY. SECTION 68 OF THE INCOME TAX ACT CONTEMPLATES THAT WHERE ANY SUM IS FOUND CREDITED IN THE BOOKS O F AN ASSESSEE MAINTAINED FOR ANY PREVIOUS YEAR, AND THE ASSESSEE OFFERS NO EXPLANATION ABOUT THE NATURE AND SOURCE THEREOF, OR THE EXPLANATION OFFERED BY THE ASSESSEE IS NOT, IN THE OPINION OF T HE AO SATISFACTORY, THEN THE SUM SO CREDITED IN THE ACCOUNTS MAY BE TRE ATED AS INCOME OF THE ASSESSEE OF THAT PREVIOUS YEAR. 7. A PERUSAL OF THE SUBMISSION OF THE ASSESSEE WOUL D INDICATE THAT NOTICE UNDER SECTION 131 WAS SERVED UPON CREDI TORS. THEY HAVE APPEARED AND THEIR STATEMENTS WERE RECORDED. THEY HAVE SUBMITTED PROOF OF THEIR IDENTITY AS WELL AS AGRICU LTURE LAND HOLDING SHOWING SOURCE OF INCOME. THE LD.AO DID VERIFY THI S ASPECT IN THE ITA NO.3174/AHD/2016 4 REMAND REPORT BUT CONVINCED WITH THE EXPLANATION OF THE ASSESSEE AS DISCERNIBLE IN THE REMAND REPORT. THEREFORE, WE ARE OF THE VIEW THAT THE ASSESSEE HAS EXPLAINED THE NATURE AND SOUR CE OF CASH CREDITS, HENCE WE ALLOW APPEAL OF THE ASSESSEE AND DELETE THE ADDITION. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT ON 18 TH APRIL, 2018. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER