Shrikant B. Shirole, Pune V. Income tax Officer, Pune

ITA 342/PUN/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9875 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 08-05-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 10-02-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHOK BABU
• Section: 37(1)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JM . / ITA NO.342/PUN/2017 / ASSESSMENT YEAR : 2012-13 SHRI SHRIKANT B. SHIROLE, 158, SHIVAJI NAGAR, GAVTHAN, NEAR PANCHMUKHI MARUTI, SHIVAJI NAGAR, PUNE 411005. PAN : ABEPS0825Q. . / APPELLANT V/S THE INCOME TAX OFFICER, (HQ)-2(1), PUNE. . / RESPONDENT ASSESSEE BY : SHRI ABHAY AVCHAT. REVENUE BY : SHRI ASHOK BABU. / ORDER PER VIKAS AWASTHY, JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDE R OF COMMISSIONER OF INCOME TAX (APPEALS) 2, PUNE DATED 04.01.2017 FOR THE ASSESSMENT YEAR 2012-13. 2. THE ASSESSEE IN APPEAL HAS RAISED FIVE GROUNDS. THE G ROUND NO.1 OF APPEAL IS DIRECTED AGAINST DISALLOWANCE OF EXPENDITUR E RS.81,750/- U/S 37(1) OF THE INCOME TAX ACT, 1961 (HEREINA FTER REFERRED TO AS THE ACT). / DATE OF HEARING : 08.05.2019 / DATE OF PRONOUNCEMENT: 09.05.2019. 2 ITA NO.342/PUN/2017 3. SHRI ABHAY AVCHAT APPEARING ON BEHALF OF ASSESSEE SUB MITTED AT THE OUTSET THAT HE IS NOT PRESSING GROUND NO.1 OF AP PEAL. IN VIEW OF THE STATEMENT MADE BY LD.A.R. OF THE ASSESSEE AT BAR, GR OUND NO.1 OF APPEAL IS DISMISSED AS NOT PRESSED. 4. IN GROUND NOS.2 AND 3 OF THE APPEAL, ASSESSEE HAS ASSAILED ADDITION IN RESPECT OF UNSECURED LOANS RECEIVED FROM (1) MALLIK ARJUN ENTERPRISES - RS.24,80,930/-; AND (2) RENUKA TRANSPORT - RS.39,23,712/-. THE LD.A.R. SUBMITTED THAT THESE LOAN AMOUNT S ARE APPEARING IN THE BOOKS OF THE ASSESSEE FROM 01.04.2008 ON WARDS. THE ASSESSEE HAD ACCEPTED THE LOAN AMOUNTS FROM THE A FORESAID PARTIES DURING THE FINANCIAL YEAR 2007-08. THE OUTSTANDIN G LOAN AMOUNTS WERE SHOWN IN THE BALANCE SHEET UNDER THE HEA D CREDITORS. THE AUTHORITIES BELOW HAVE ERRED IN NOT CONSIDERING THE S UBMISSIONS OF THE ASSESSEE AND HAVE FAILED TO TAKE NOTE OF THE ENTR IES IN THE AUDITED BOOKS OF ASSESSEE. 5. ON THE OTHER HAND SHRI ASHOK BABU REPRESENTING THE DEPARTMENT VEHEMENTLY DEFENDED THE IMPUGNED ORDER. THE LD.D.R. SUBMITTED THAT THE ASSESSEE COULD NEITHER FURNISH CONFIRMA TION LETTERS FROM THE CREDITORS NOR THE IDENTITY OF PARTIES EXTENDING UNSECURED LOANS WERE PROVED BY THE ASSESSEE. A PERUSAL OF THE BA LANCE-SHEET FOR THE PERIOD RELEVANT TO ASSESSMENT YEAR UNDER THE APPEAL DOES NOT REFLECT THE AFORESAID LOAN AMOUNTS UNDER THE HEAD LOANS. 6. WE HAVE HEARD THE SUBMISSIONS MADE BY REPRESENTATIVE S OF RIVAL SIDES AND HAVE PERUSED THE ORDERS OF AUTHORITIES BE LOW. THE 3 ITA NO.342/PUN/2017 ASSESSEE IN GROUND NOS.2 AND 3 OF THE APPEAL HAS ASSAILE D THE FOLLOWING ADDITIONS : 1) UNSECURED LOAN FROM MALLIKARJUN ENTERPRISES - RS.24,80,930/- 2) UNSECURED LOAN FROM RENUKA TRANSPORT - RS.39,23,712/- BOTH THE AUTHORITIES BELOW HAVE HELD THAT THE ASSESSEE HAS FAILED TO SHOW GENUINENESS OF THE CREDITORS AND HENCE, MA DE ADDITION OF THE AFORESAID AMOUNTS. THE LD.A.R. OF THE ASSESSEE HAS DRAWN OUR ATTENTION TO THE BALANCE-SHEET AS ON 31.03.2010 AT PAGE 44 OF THE PAPER BOOK. A PERUSAL OF THE SAME REVEALED THAT UNDER THE HEAD UNSECURED LOAN, THE NAMES OF BOTH THE AFORESAID PARTIES ARE MENTIONED. SIMILARLY, IN THE BALANCE-SHEET AS ON 31.03.2011 AT PAGE 39 OF THE PAPER BOOK, UNDER THE HEAD UNSECURED LOAN THE NAME OF RENUKA TRANSPORT AND UNDER THE HEAD SUNDRY CREDITOR S THE NAME OF MALLIKARJUN ENTERPRISES IS DULY REFLECTED. A PERUSAL OF TH E BALANCE- SHEET AS ON 31.03.2012 I.E., FOR THE PERIOD RELEVANT TO ASS ESSMENT YEAR UNDER THE APPEAL AT PAGE 7 OF THE PAPER BOOK SHO W THE NAMES OF THE AFORESAID TWO PARTIES UNDER THE HEAD UNSECURED LOA NS. THUS, IT IS NOT A CASE WHERE THE ASSESSEE HAS TAKEN UNSECURED LOANS FOR THE FIRST TIME IN THE PERIOD RELEVANT TO ASSESSMENT YEAR UNDE R THE APPEAL. IT IS AN OUTSTANDING UNSECURED LOAN WHICH IS REFLECTED IN T HE BOOKS OF THE ASSESSEE IN EARLIER FINANCIAL YEARS AS WELL AND IS BEING CARRIED FORWARDED YEAR AFTER YEAR. IN OUR CONSIDERED OPINION NO ADDITION IN RESPECT OF SUCH UNSECURED LOANS CAN BE MADE IN THE SUB SEQUENT ASSESSMENT YEAR WHEN THE SAME HAVE BEEN ACCEPTED IN THE PAST. WE FIND MERIT IN THE SUBMISSIONS OF THE ASSESSEE. THE ADDITION MADE IN RESPECT OF UNSECURED LOANS FROM MALLIKARJUN ENTERPRISES A ND RENUKA 4 ITA NO.342/PUN/2017 TRANSPORT IS DELETED, ACCORDINGLY. THUS, GROUND NOS.2 AND 3 OF THE APPEAL ARE ALLOWED. 7. GROUND NOS.4 AND 5 OF THE APPEAL ARE GENERAL IN NATUR E AND HENCE, REQUIRE NO ADJUDICATION. 8. IN THE RESULT, APPEAL OF ASSESSEE IS PARTLY ALLOWED IN THE TERMS AFORESAID. ORDER PRONOUNCED ON THURSDAY, THE 09 TH DAY OF MAY, 2019. SD/- SD/- (R.S. SYAL) (VIKA S AWASTHY ) VICE PRESIDENT JUDICIAL MEMB ER PUNE; DATED : 09 TH MAY, 2019. YAMINI !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-2, PUNE. PR. CIT-2, PUNE. '#$ %%&',)&', / DR, ITAT, A PUNE; $,-./ GUARD FILE. / BY ORDER // TRUE COPY // // TRUE COPY // /01%2&3 / SR. PRIVATE SECRETARY )&', / ITAT, PUNE.