M/s. YARNIKA CHEMICALS PVT. LTD., Bhopal V. THE ACIT 3(1), Bhopal

ITA 329/IND/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5764 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 02-05-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G S GAUTAM
• Assessee Lawyers: N D PATWA
• Keywords: Onus to prove
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO. 329/IND/2014 A.Y. : 2007-08 M/S.YARNIKA CHEMICALS PVT.LTD., BHOPAL. ACIT, 3(1), VS. BHOPAL APPELLANT RESPONDENT PAN NO. AAACY2677C A PPELLANT S BY : SHRI ASHISH GOYAL AND SHRI N. D. PATWA, CA RESPONDENT BY : SHRI G.S.GAUTAM, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-II, BHOPAL, DATED 03.02.2014 FOR THE ASSE SSMENT YEAR 2007-08. DATE OF HEARING : 29 . 12 . 201 5 . DATE OF PRONOUNCEMENT : 08 . 0 2 .201 6 M/S.YARNIKA CHEMICALS PVT.LTD., BHOPAL VS. ACIT, 3 (1), BHOPAL I.T.A.NO. 329/IND.2014 A.Y. 2007-08 2 2 2. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS GROUND NOL.2, WHICH READS AS UNDER :- 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD LOWER AUTHORITIES HAVE ERRED IN MAKING ADDITION OF RS. 2,52,000/- U/S 68 OF INCOME-TAX ACT. THE LOAN OF THE AMOUNT OF RS. 2,52,000/- TAKEN AND ACCEPTED AND VARIOUS IDENTIFIED, ESTABLISHED AND FINANCIALLY SOUND PERSONS WERE GENUINE AND HENCE THE ADDITION FOR THE SAID AMOUNT IS NEITHER JUSTIFIED NOR SUSTAINABL E IN LAW. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE H AS FILED THE RETURN OF INCOME ON 31.10.2007 DECLARING THE INCOME OF RS. 87,167/-. DURING THE YEAR UNDER CONSIDERATIO N, THE ASSESSEE HAS DECLARED UNSECURED LOANS OF RS. 4,46,0 00/- AS PER ITS BALANCE SHEET. THE AO HAS MADE THE IMPUGNED ADDITION OF RS. 2,52,000/- BY MENTIONING AS UNDER :- 4. DURING THE ASSESSMENT PROCEEDINGS, VIDE ORDER SH EET ENTRY DATED 16.11.2009 AND ALSO VIDE QUESTIONNAIRE U/S 142(1) DATED 17.04.2009 ASSESSEE WAS ASKED TO GIVE M/S.YARNIKA CHEMICALS PVT.LTD., BHOPAL VS. ACIT, 3 (1), BHOPAL I.T.A.NO. 329/IND.2014 A.Y. 2007-08 3 3 DETAILS OF UNSECURED LOANS ALONG WITH THEIR CONFIRM ATION LETTER, BANK PASS BOOK, RETURN OF INCOME ETC. TO ES TABLISH IDENTITY & CREDITWORTHINESS OF THE PERSON AND GENUI NENESS OF THE TRANSACTION. HE WAS ALSO ASKED TO PRODUCE TH E LENDER FOR VERIFICATION. 4. IN RESPONSE TO WHICH ASSESSEE GIVEN PARTIAL SUBMISS ION FROM WHICH IT IS NOT POSSIBLE TO VERIFY IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE LOAN TAKEN. ALSO THE ASSESSEE PRODUCE ONLY ONE LENDER ANITA BHA TT FOR VERIFICATION OUT OF 23 LENDERS. HENCE FOLLOWING LOAN ARE TREATED TO NON GENUINE LOAN. S.NO. NAME OF CREDITOR AMOUNT( RS.) PARTICULARS 1. ARUN PAL 18,000/- FURNISHED ONLY CONFIRMATION LETTER ONLY 2. C.P.JAISWAL 18,000/- NOTHING SUBMITTED 3. CHRISTY JOHN 18,000/- NOTHING SUBMITTED 4. DEVRAJ BARUA 18,000/- NOTHING SUBMITTED 5. JYOTI ARORA 18,000/- NOTHING SUBMITTED 6. PRATIK SARKAR 18,000/- ONLY CONFIRMATION LETTER 7. RAVI MAHESHWARI 18,000/- NOTHING SUBMITTED 8. ROOP NARAYAN MAHESHWARI 18,000/- NOTHING SUBMITTED M/S.YARNIKA CHEMICALS PVT.LTD., BHOPAL VS. ACIT, 3 (1), BHOPAL I.T.A.NO. 329/IND.2014 A.Y. 2007-08 4 4 9. SANTOSH KEKRE 18,000/- NOTHING SUBMITTED 10. SUNITA BHATT 18,000/- FURNISHED ONLY CONFIRMATION LETTER 11. VANDANA MAHESHWARI 18,000/- NOTHING SUBMITTED 12. VISHAL ARORA 18,000/- NOTHING SUBMITTED 13. YASMIN BARUA 18,000/- NO ITR, NO BANK A/C 14. SURESH KEMCHANDANI 18,000/- NOTHING SUBMITTED TOTAL 2,52,000/- ON ACCOUNT OF THIS ASSESSEE FAILED TO DISCHARGE ITS ONUS TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENES S OF THE TRANSACTION. HENCE ABOVE UNSECURED LOAN OF RS. 2,52,000/- IS TREATED AS UNEXPLAINED LOAN CREDIT AN D ADDED BACK TO INCOME OF THE ASSESSEE. 5. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS CONFIRMED THE ADDITION. 6. THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT TH E ASSESSEE HAS TAKEN CASH LOANS OF RS. 20,000/- AND T HE ASSESSEE IS NOT RESTRICTED BY ANY PROVISIONS OF THE INCOME-TAX ACT, 1961. THE ASSESSEE HAS FILED CONFIRMATION LETT ERS, COPY OF M/S.YARNIKA CHEMICALS PVT.LTD., BHOPAL VS. ACIT, 3 (1), BHOPAL I.T.A.NO. 329/IND.2014 A.Y. 2007-08 5 5 PAN NOS. AND IF THE ASSESSEE HOLDS PAN NOS. AND FIL ES OF RETURN, IT IS SUFFICIENT TO PROVE THE CREDITWORTHIN ESS OF THE LOANS. THEREFORE, IT MAY BE ALLOWED. 7. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PART IES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT AS PER THE CHART , WHICH IS REPRODUCED IN THE CIT(A )S ORDER, WHICH READS AS UNDER :- NAME OF LENDER ADDRESS PAN NO. AMOUNT OF ADDITION ARUN PAL SAKET NAGAR, BHOPAL NIL 18,000/- C.P.JAISWAL A-61, MINAL RESIDENCY, J.K. ROAD, BHOPAL ACZPJ2770K 18000/- CHRISTY JOHN 256, INDRAPURI, BHOPAL NIL 18000/- DEVRAJ BARUA FLAT NO.58, DDA SFS POCKET, SECTOR-5, DWARKA, NEW DELHI AFCPB5102R 18000/- JYOTI ARORA NEHRU MARG, CIVIL LINES, JHANSI AQIPA7036J 18000/- PRATIK SARKAR SAKET NAGAR, BHOPAL AQYPS2649K 18000/ - RAVI MAHESHWARI K-12, INDRAPRASTHA COLONY, SUNCITY, AIRPORT ROAD, BHOPAL NIL 18000/- ROOP NARAYAN BISANI(MAHESHWARI) RESIDENT AT MAKSI AGYPB6330J 18000/- SANTOSH KEHKRE E-4/402, ARORA COLONY, BHOPAL AURPK2513K 18000/- SUNITA BHATT J.M. 88/3, B, SAKET NAGAR, BHOPAL. NIL 18000/- SURESH KHEMCHANDANI S-2, MEGHA APARTMENTS, 102, BRIGHT COLONY IDGAH HILLS, BHOPAL ABSPK4984G 18000/- VANDANA BISANI (MAHESHWARI) RESIDENT AT MAKSI ACMPB4126G 18000/- VISHAL ARORA H.NO. 86/4, CIVIL LINES, JHANSI. AGYPA9520H 18000/- YASHMIN BARUA 122, RACHNA NAGAR, BHOPAL ANUPS3521R 18000/- M/S.YARNIKA CHEMICALS PVT.LTD., BHOPAL VS. ACIT, 3 (1), BHOPAL I.T.A.NO. 329/IND.2014 A.Y. 2007-08 6 6 8. FROM THE ABOVE CHART, I FIND THAT IN THE CASE OF AR UN PAL, NO PAN WAS SUBMITTED. IN THE CASE OF CHRISTY J OHN, NO PAN WAS SUBMITTED, IN THE CASE OF RAVI MAHESHWARI, NO PAN WAS SUBMITTED AND IN THE CASE OF SUNITA BHATT, NO P AN WAS SUBMITTED. THEREFORE, I AM OF THE OPINION THAT THES E FOUR CREDITORS HAVE NOT PRODUCED EVEN PAN AND THEY WERE ALSO NOT PRODUCED PERSONALLY. THEREFORE, I CONFIRM THE ADDIT ION IN RESPECT OF FOUR PERSONS, THAT COMES TO RS. 72,000/- . IN RESPECT OF REST OF THE CREDITORS, THE ASSESSEE HAS SUBMITTE D PAN NOS. AND THE ASSESSEE HAS ALSO FILED CONFIRMATION LETTER S FROM THE ABOVE LENDERS. THEREFORE, IF THE AO DID NOT SATISFY WITH THE EXPLANATION OF THE ASSESSEE, THEY SHOULD HAVE BEEN CALLED PERSONALLY WHICH THE AO DID NOT. THEREFORE, I AM OF THE VIEW THAT THEY HAVE DISCHARGED THEIR BURDEN. THEREFORE, IN RESPECT OF REST OF THE LENDERS CREDITWORTHINESS, IDENTITY OF THE LENDERS IS ESTABLISHED AND THEIR CONFIRMATION LETTERS ARE F ILED. THEREFORE, I ALLOW THE APPEAL FOR REST OF THE PERSO NS. CONSEQUENTLY, THE ADDITION OF RS. 72,000/- IS CONFI RMED AND THE REST OF THE ADDITION I.E. RS. 1,80,000/- IS DEL ETED. M/S.YARNIKA CHEMICALS PVT.LTD., BHOPAL VS. ACIT, 3 (1), BHOPAL I.T.A.NO. 329/IND.2014 A.Y. 2007-08 7 7 9. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 8 TH FEBRUARY, 2016, SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 8 TH FEBRUARY, 2016. CPU*