Smt. Amita Mukesh Desai, Surat V. The Income tax Officer,Ward-2(4), Surat

ITA 3291/AHD/2010

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1422 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 07-06-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 13-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MEHUL R SHAH
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER) ITA. NO: 3291/AHD/2010 (ASSESSMENT YEAR: 2005-06) SMT. AMITA MUKESH DESAI 2/4381, CHHAPGAR SHERI, SAGRAMPURA, SURAT V/S INCOME TAX OFFICER, WARD- 2 (4), SURAT (APPELLANT) (RESPONDENT) PAN: AATPD0727A APPELLANT BY : SHRI MEHUL R. SHAH, AR RESPONDENT BY : SHRI KAMLESH MAKWANA, SR. D. R. ( )/ ORDER DATE OF HEARING : 07 -06-20 16 DATE OF PRONOUNCEMENT : 08 -06-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. WITH THIS APPEAL, THE ASSESSEE HAS CHALLENGED THE C ORRECTNESS OF THE ORDER OF THE LD. CIT(A)-II, SURAT DATED 19.10.2010 PERTAINING TO A.Y. 2005-06. ITA NO. 3291 -AHD-2010 . A.Y. 2005-0 6 2 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE ASSES SEE IS THAT THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 80 L AKHS MADE BY THE A.O. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT WHILE SCRUTINIZING THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION, THE A.O SOUGHT EXPLANATION FROM THE ASSESSEE IN RESPECT OF DISPUTE D ENTRY IN SURYAPUR CO-OP BANK, ATHWALINES BRANCH, SURAT. THE A.O. FOUN D THAT THE ASSESSEE WAS AVAILING THE CASH CREDIT FACILITY FROM THE SAID BANK AND THE DEBIT ENTRY OF RS. 79,11,119/- WAS SQUARED OFF BY A TRANSFER ENTRY OF RS. 80 LAKHS LEAVING A CREDIT BALANCE OF RS. 48, 880/-. 4. THE A.O. WAS OF THE FIRM BELIEF THAT THE LIABILITY OF THE ASSESSEE HAS CEASED TO EXIST, THEREFORE, AMOUNT OF RS. 80 LAKHS WAS TREATED AS INCOME OF THE ASSESSEE. 5. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) A ND EXPLAINED THAT THE SURYAPUR CO-OP BANK WENT INTO LIQUIDATION AND W AS TAKEN OVER BY CITY CO-OP. BANK LTD. THE LD. CIT(A) DID NOT ACCEPT THIS CONTENTION OF THE ASSESSEE. THE LD. CIT(A) WAS OF THE OPINION THA T IF THE ASSESSEE CLAIMS THAT THE LIABILITY OF RS. 80 LAKHS NOW STAND S TOWARDS SOME OTHER CREDITOR THEN THE ASSESSEE SHOULD HAVE FURNISHED TH E NECESSARY DETAILS. THE LD. CIT(A) CONFIRMED THE ASSESSMENT OR DER. 6. AGGRIEVED BY THIS, THE ASSESSEE IS BEFORE US. LD. C OUNSEL FOR THE ASSESSEE REQUESTED THE BENCH TO ADMIT THE ADDITIONA L EVIDENCES WHICH ARE BANK STATEMENTS OF STATE BANK OF INDIA. IT IS T HE SAY OF THE LD. COUNSEL THAT THE LIABILITY OF RS. 80 LAKHS HAVE BEE N DISCHARGED IN THE SUBSEQUENT YEARS AND THE SAID ENTRIES ARE REFLECTED IN THE BANK ITA NO. 3291 -AHD-2010 . A.Y. 2005-0 6 3 STATEMENTS. THE LD. COUNSEL ALSO RELIED UPON THE DE CISION OF THE TRIBUNAL IN THE CASE OF PARINAY ORGANISERS PVT. LTD . IN IT(SS)A NO. 49/AHD/2010 DATED 02.02.2015 AND POINTED OUT THAT O N IDENTICAL SET OF FACTS, THE MATTER HAS BEEN RESTORED TO THE FILES OF THE LD. CIT(A) TO ADMIT THE ADDITIONAL EVIDENCE AND DECIDE THE ISSUE DE NOVO. 7. THE LD. D.R. OBJECTED TO THE ADMISSION TO THE ADDIT IONAL EVIDENCE AND RELIED UPON THE ORDERS OF THE LOWER AUTHORITIES. 8. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORD ERS OF THE AUTHORITIES BELOW. IT APPEARS THAT THE LOAN LIABILI TY FROM ONE BANK HAS BECOME A LOAN LIABILITY OF ANOTHER BANK. THE BANK S TATEMENT FROM THE STATE BANK OF INDIA FORTIFIES OUR VIEW HOWEVER IN T HE INTEREST OF JUSTICE AND FAIR PLAY, WE RESTORE THIS ISSUE TO THE FILES O F THE A.O. WITH A DIRECTION TO EXAMINE THE BANK STATEMENT OF STATE BA NK OF INDIA AND DECIDE THE ISSUE AFRESH AS PER THE PROVISIONS OF TH E LAW. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 08- 06 - 201 6. SD/- SD/- (RAJPAL YADAV) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS)