The ITO, Ward-9(3), Surat V. M/s. M.Tex, Surat

ITA 3427/AHD/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 8999 (ITAT-AHMEDABAD)
• Duration Of Justice: 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2009
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 25-08-2009
• Assessment Year: 2005-2006
• Appeal Filed On: 16-10-2008
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C K MISHRA
• Assessee Lawyers: J P SHAH
• Keywords: Unexplained cash credit; Corroborative evidences; Set aside
• Section: 145

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI D.C.AGRAWAL, ACCOUNTANT MEMBER DATE OF HEARING : 25/08/09 DRAFTED ON: 15/09 /09 ITA NO.3427/AHD/2008 ASSESSMENT YEAR : 2005-06 THE INCOME TAX OFFICER WARD-9(3) SURAT VS. M/S.M.TEX 310-311 KRISHNA INDUSTRIAL ESTATE KAPODRA CHAR RASTA VARACHHA ROAD SURAT PAN/GIR NO. : AAEFM 7768 D (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI C.K.MISHRA, D.R. RESPONDENT BY : SHRI J.P.SHAH, A.R. O R D E R PER D.C.AGRAWAL , ACCOUNTANT MEMBER :- THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(APPEALS)-V, SURAT DATED 14/07/2008 PAS SED FOR ASSESSMENT YEAR 2005-06, BY RAISING FOLLOWING GROU NDS: 1. ON THE FACTS AND N THE CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED, IN DELETING THE ADDITION OF RS.5,96,326/- ON ACCOUNT OF UNVERIFIABLE PURCHASE O F MADE BY THE A.O., WITHOUT APPRECIATING THE FACTS OF THE CASE. 2. ON THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE AN D IN LAW, THE LD. CIT(A) HAS ERRED, IN DELETING THE ADDITION OF RS.3,49,528/- ON ACCOUNT OF DISALLOWANCE OF WAGES M ADE BY THE A.O. WITHOUT APPRECIATING THE FACTS OF THE CASE . ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 2 - 3. ON THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE AN D IN LAW, THE LD. CIT(A) HAS ERRED, IN DELETING THE ADDITION OF RS.4,80,000/- ON ACCOUNT OF UNEXPLAINED CASH CREDIT S, WITHOUT APPRECIATING THE FACTS OF THE CASE. IT IS, THEREFORE, PRAYED THAT THE ORDER F THE CIT(A ) BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUF ACTURING OF GRAY CLOTH. THE VARIOUS ISSUES RAISED BY THE REVEN UE ARE DISCUSSED BELOW:- ISSUE AS PER GROUND NO.1 :- DELETING ADDITION OF RS.5,96,326/- ON ACCOUNT OF UNVERIFIABLE PURCHASES. 3. THE ASSESSEE DECLARED INTER-ALIA PURCHASES FROM TWO PARTIES AS UNDER:- (A) M/S.LAXMI TRADING COMPANY - RS.11,70,790/- (B) M/S.NIDHI IMPEX - RS.12,14,514/-. 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO FURNISH CONFIRMATI ON OF SALES MADE TO THE ASSESSEE BY THE ABOVE PARTIES. HOWEVER, ASSESSE E FAILED TO DO SO. BUT IT WAS EXPLAINED THAT PAYMENTS WERE MADE T HROUGH CHEQUES. WHEN THE ASSESSING OFFICER VERIFIED THE BANK STATEM ENT, HE NOTICED ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 3 - THAT ONE CHEQUE NO.195356 DATED 11/01/2005 FOR RS. 1,00,000/- WAS ISSUED TO THE M/S.LAXMI TRADING CO., BUT WAS CLEARE D IN THE NAME OF ONE MILAN SIMILARLY, ANOTHER CHEQUE NO.193584 FO R RS.1,50,824/- WAS ISSUED TO M/S.NIDHI IMPEX, BUT WAS CLEARED IN T HE NAME OF ONE SHRI KERIWAL. ON BEING ASKED BY THE ASSESSING O FFICER, THE ASSESSEE REPLIED THAT PAYMENT HAS BEEN GENUINELY MADE TO THESE PARTIES AS IS APPARENT FROM BANK CHEQUE BOOK, COUNT ER-FOILS AND CLEARANCE OF THE MONEY FROM THE BANK ACCOUNT. CHE QUES WERE CROSSED AND IT WAS NOT KNOWN TO HIM WHETHER THEY HA VE BEEN FORWARDED BY THE TWO PARTIES TO OTHERS WHO MIGHT HA VE GOT THEM CLEARED FROM OUR ACCOUNT. THE ASSESSING OFFICER D ID NOT ACCEPT THE ABOVE CONTENTION ON THE GROUND THAT THERE WAS NO CO NFIRMATION OF PURCHASES MADE BY THE ASSESSEE FROM THESE TWO PARTI ES. HE ACCORDINGLY APPLIED THE RATIO LAID DOWN IN M/S.VIJA Y PROTEINS VS. CIT 58 TTJ 76 AND PROPOSED AN ADDITION OF RS.5,96,326/- BEING 25% OF ALLEGED PURCHASES FROM THESE TWO PARTIES ( I.E. 25% OF RS.12,14,514 + RS.11,70,790). 5. THE LEARNED CIT(APPEALS) DELETED THE ADDITION AF TER CONSIDERING THE FOLLOWING ARGUMENTS OF THE ASSESSEE :- ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 4 - (I) THERE IS NO BAR IN ISSUING CROSS CHEQUES DURIN G THE RELEVANT TIME AND ASSESSEE DOES NOT HAVE ANY CONTRO L OVER THE MOVEMENT OF CROSS CHEQUES BY THE RECIPIENT S. (II) DISCREPANCY WAS NOTICED IN RESPECT OF SUM OF R S.1 LAC AND RS.1,50,824/- THAN ADDITION SHOULD HAVE BEEN RESTRICTED TO ONLY RS.2,50,824/-. (III) THE PAYMENTS ARE MADE THROUGH BANKING CHANNELS AND ASSESSEE HAS PRODUCED BILLS ALONG WITH REGISTER NUM BER. (IV) THE ASSESSEE HAS PRODUCED COUNTER-FOILS OF THE CHEQ UE BOOK FOR SHOWING PAYMENT. (V) MANUFACTURING AND SALE MADE BY THE ASSESSEE AFTER T HESE PURCHASES HAVE NOT BEEN QUESTIONED. (VI) BOOKS OF ACCOUNT HAVE NOT BEEN REJECTED. 6. AGAINST THIS, LD.DR, SUBMITTED THAT MERE PAYMENT BY CHEQUE DOES NOT PROVE THAT THE ASSESSEE HAS RECEIVED GOODS . IN ABSENCE OF CONFIRMATION FROM THE SUPPLIERS, GENUINENESS OF THE PURCHASES CANNOT BE ACCEPTED. THERE IS NO OTHER DOCUMENTARY EVIDEN CE SUBMITTED BY THE ASSESSEE, SUCH AS, DELIVERY CHALLANS, STOCK RE GISTER, CONSUMPTION OF GOODS EITHER IN THE SALE OR MANUFACTURING OR IN THE AVAILABILITY OF STOCK IN THE CLOSING STOCK. THERE IS NO QUANTITAT IVE STATEMENT OF STOCK PRODUCED BY THE ASSESSEE. THEREFORE, THE AS SESSING OFFICER WAS JUSTIFIED IN APPLYING THE PRINCIPLES LAID DOWN IN THE DECISION IN ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 5 - THE CASE OF VIJAY PROTEINS (SUPRA). REGARDING NON -REJECTION OF BOOKS AS ALLEGED BY THE ASSESSEE, THE LD.DR SUBMITTED T HAT IT IS NOT NECESSARY THAT A SPECIFIC WORD, LIKE INVOKING PROVI SION OF SECTION 145 (3) OF THE I.T. ACT, 1961 SHOULD BE MENTIONED BY TH E ASSESSING OFFICER. IT IS ENOUGH THAT IF THE INTEND AND PURP OSE OF THE ASSESSING OFFICER TO REJECT THE BOOKS IS REFLECTED FORM THE ORDER, THEN SUCH INFERENCE SHOULD BE HELD TO HAVE BEEN PROPERLY DRA WN. IN THE PRESENT CASE, AS PER LD.DR, THE ASSESSING OFFICER H AS GIVEN A FINDING THAT PURCHASES ARE NOT PROVED, THERE ARE ALSO CREDI T BALANCE IN THE ACCOUNTS IN RESPECT OF WHICH ADDITION HAS BEEN PROP OSED BY THE ASSESSING OFFICER AND HAS BEEN CONFIRMED BY THE LEA RNED CIT(APPEALS). THEY GO TO SHOW THAT BOOKS OF ACCOU NT ARE NOT RELIABLE. 7. THE LEARNED AUTHORISED REPRESENTATIVE OF THE ASS ESSEE, ON THE OTHER HAND, RELIED ON THE ORDER OF THE LEARNED CIT( APPEALS) AND SUBMITTED THAT MONEY HAS BEEN ACTUALLY PAID TO THE PARTIES AND GOODS HAVE COME TO THE ASSESSEE. ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 6 - 8. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RE CORD. IN OUR CONSIDERED VIEW, THE ASSESSING OFFICER WAS JUSTIFIE D IN PROPOSING THE ADDITION. MERELY BECAUSE PAYMENTS HAVE PASSED THRO UGH BANKING CHANNELS DOES NOT PROVE THAT ASSESSEE HAS ACTUALLY MADE THE PURCHASES. THERE IS NO CONFIRMATION FORM THE RESP ECTIVE PARTIES THAT THEY HAVE SOLD THE GOODS TO THE ASSESSEE. THE IDEN TITY OF THOSE PARTIES ARE NOT ESTABLISHED, THE PAYMENT FROM THE ASSESSEE ARE NOT PROVED TO HAVE GONE TO THE ACCOUNTS OF THOSE PARTIES. IT IS NOT PROVED BY THE ASSESSEE THAT GOODS RECEIVED FROM THOSE PARTIES HAV E BEEN ENTERED INTO THE STOCK REGISTER AND THEY HAVE BEEN UTILIZED EITHER IN CONSUMPTION OR SALE OR ARE AVAILABLE IN CLOSING ST OCK. UNDER THESE CIRCUMSTANCES, THE ASSESSING OFFICER WAS JUSTIFIED IN TREATING 25% SUCH ALLEGED PURCHASES AS INCOME OF THE ASSESSEE FO LLOWING THE DECISION OF TRIBUNAL IN THE CASE OF VIJAY PROTEINS( SUPRA). THIS GROUND IS, THEREFORE, ALLOWED. 9. GROUND NO.2 OF REVENUES APPEAL RELATES TO D ISALLOWANCE ON ACCOUNT OF WAGES. ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 7 - 10. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, TH E ASSESSING OFFICER REQUIRED THE ASSESSEE TO PRODUCE THE WAGE R EGISTER. IT WAS PRODUCED BEFORE THE ASSESSING OFFICER AFTER ONE MON TH OF REQUISITION BY HIM. DURING THE COURSE OF EXAMINATION OF WAGE REGISTER, THE ASSESSING OFFICER NOTICED THAT IT IS A NEWLY PREPAR ED ONE AND HAS A FRESH APPEARANCE. THE SIGNATURES OF THE WORKERS DI FFER FORM MONTH TO MONTH. REVENUE STAMPS WERE NOT FIXED WHEREVER THE Y ARE REQUIRED. THE ASSESSING OFFICER, THEREFORE, DID NOT RELY ON T HIS WAGE REGISTER AND DISALLOWED 20% OF THE TOTAL WAGES CLAIMED. TH E ADDITION WAS WORKED OUT AT RS.3,49,528/-. 11. THE LEARNED CIT(APPEALS), ON THE OTHER HAND, DELETED THE ADDITION BY RELYING ON FOLLOWING ARGUMENTS OF THE A SSESSEE:- (I) ON COMPARISON OF WAGE RATE PER METER GIVEN BY THE ASSESSEE TO THE WORKERS, IT IS NOTICED THAT THE WA GE RATE GIVEN BY THE ASSESSEE IS LOWEST WHEN COMPARED WITH THE S URROUNDING TEXTILES WEAVING CONCNERS. (II) THE BOOKS HAVE NOT BEEN REJECTED. ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 8 - 12. AGAINST THIS, THE DR SUBMITTED THAT THE LEARNED CIT(APPEALS) HAS IGNORED THE FINDING OF THE ASSESSING OFFICER T HAT WAGE REGISTER WAS NEWLYPREPARED, THE SIGNATURE OF THE SOME WORKER S DID NOT TALLY AND THAT AT MANY REQUIRED PLACES, THERE WAS NO REVE NUE STAMPS AFFIXED. 13. THE LEARNED AUTHORISED REPRESENTATIVE OF THE AS SESSEE, ON THE OTHER HAND, RELIED ON THE ORDER OF THE LEARNED CIT (APPEALS). 14. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE CONSIDERED VIEW THAT THE LD.CIT(A) WAS NOT JUSTIFIE D IN DELETING THE ENTIRE ADDITION. HE HAS IGNORED THE FACT THAT WAG E REGISTER WAS NEWLY PREPAREDAND THE SIGNATURE OF THE SOME WORKERS DID NOT TALLY. THUS, THE CLAIM OF THE WAGES THROUGH WAGE REGISTER IS NOT ACCEPTABLE. THEREFORE, WE RESTRICT THE ADDITION TO 10% OF THE T OTAL CLAIM AS AGAINST 20% MADE BY THE ASSESSING OFFICER. THUS, THIS GRO UND IS PARTLY ALLOWED. 15. THE THIRD GROUND OF REVENUES APPEAL RELATES TO ADDITION OF RS.4,80,000/- ON ACCOUNT OF CREDITS IN THE ACCOUNTS OF PARTNERS. ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 9 - 16. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSES SING OFFICER FOUND FOLLOWING AMOUNTS IN THE ACCOUNT OF THE PARTN ERS. SL.NO. NAME OF THE PARTNER AMOUNT INTRODUCED DURING THE YEAR CASH DEPOSITS IN THE BANK ACCOUNT AND ITS SOURCE THEREOF 1. RASHMINBHAI J.PATEL 50,000/- 50,000/- CASH LOAN 2. AMBABEN B.PATEL 1,00,000/- 1,00,000/- AGRI.INCOM E 3. JASUMATIBEN J.PATEL 5,82,000/- 85,000/- - CASH LOAN 4. SMT.SMITABEN J.PATEL 5,26,000/- 75,000/- CASH LOAN 1,70,000/- TOT AL 4,80,000/- 17. THE ASSESSING OFFICER NOTED THAT THE ASSESSEE D ID NOT FURNISH ANY DETAILS REGARDING THE SOURCE OF UNSECURED LOAN S OBTAINED BY THE PARTNERS EXCEPT SOME CONFIRMATION FORM THE SO-CALLE D DEPOSITORS. IN THIS REGARD, WE REPRODUCE FOLLOWING FINDINGS OF THE ASSESSING OFFICER:- IN THE CASE OF AMBABEN B. PATEL, THE ASSESSEE STAT ED THAT CAPITAL INTRODUCED IS OUT OF AGRICULTURAL INCOME, W HEREAS ASSESSEE HAS NOT FURNISHED ANY SUPPORTING EVIDENCES IN SUPPORT OF ITS CLAIM OF AGRICULTURE INCOME EARNED BY THE PA RTNER. SINCE THE ASSESSEE COULD NOT PROVE THE UNSECURED LOANS OB TAINED BY THE PARTNERS FROM VARIOUS PARTIES IN CASH, THE INTR ODUCTION OF CAPITAL BY THE RESPECTIVE PARTNERS TO THAT EXTENT R EMAINS UNEXPLAINED. THE ONUS LIES ON THE ASSESSEE TO PROV E ANY ENTRY EITHER CREDIT OR DEBIT IN ITS BOOKS OF ACCOUNT WITH SUPPORTING EVIDENCES. I THEREFORE, TREAT THE FRESH CAPITAL IN TRODUCED BY THE PARTNERS TO THE EXTENT OF CASH DEPOSITS APPEARING I N THE BANK ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 10 - ACCOUNT OF THE RESPECTIVE PARTNERS AS UN-EXPLAINED AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE FIRM U/S.68 OF THE I.T.ACT. THE ADDITION ON THIS ACCOUNT COMES TO RS.4,80,000/- . 18. THE ASSESSING OFFICER ACCORDINGLY, PROPOSED ADD ITION OF RS.4,80,000/-. 19. THE LEARNED CIT(APPEALS) DELETED THE ADDITION B Y ACCEPTING FOLLOWING CONTENTIONS O THE ASSESSEE:- (I) CAPITAL CONTRIBUTION TO THE FIRM CANNOT BE ADD ED IN THE CASE OF THE FIRM ONCE THE PARTNERS HAVE CONFIRMED THE SA ME. HOWEVER, IN PARTNERS INDIVIDUAL CASES, THE SOURCE OF CONTRIBUTION CAN BE QUESTIONED. (II) ASSESSEE-FIRM HAS GIVEN RELEVANT DETAILS PROVI NG CAPITAL CONTRIBUTION BY THE PARTNERS. (III) THERE IS NO DIRECT ONUS ON THE FIRM, EVENTHOU GH CONFIRMATIONS FROM THE RESPECTIVE DEPOSITORS HAVE B EEN SUBMITTED BY SUBMITTING BANK PASS-BOOKS, PANS AND C OPIES OF RETURNS OF THEIR INCOME. 20. AGAINST THIS, THE DR SUBMITTED THAT SOURCE OF C REDITS IN THE ACCOUNTS OF THE PARTNERS HAVE NOT BEEN SATISFACTORI LY EXPLAINED AND, THEREFORE, ADDITION US/68 OF THE I.T. ACT, 1961 IS WARRANTED IN THE HANDS OF THE FIRM. ALSO, AS IT IS, THE FIRM WHICH I S UTILIZING THE MONEY. ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 11 - 21. ON THE OTHER HAND, LEARNED AUTHORISED REPRESENT ATIVE OF THE ASSESSEE RELIED ON THE JUDGEMENT OF HON'BLE GUJARAT HIGH COURT IN INCOME TAX REFERENCE NO.241 OF 1993 IN THE CASE OF CIT VS. PANKAJ DYESTUFF INDUSTRIES DECIDED ON 06/07/2005 WHEREIN I T HAS HELD THAT IF PARTNERS HAVE ADMITTED THAT THEY HAVE INVESTED MONE Y IN THE FIRM, THEN THERE IS NO FURTHER ONUS LAY ON THE ASSESSEE-F IRM. IN THIS REGARD, WE REFER TO PARAGRAPH NO.13 FROM THE ORDER OF THE H ON'BLE GUJARAT HIGH COURT DECISION IN THE CASE OF PANKAJ DYESTUFF INDUSTRIES. 3. APPLYING THE AFORESAID PRINCIPLES TO THE FACT S OF THE PRESENT CASE, IT IS APPARENT THAT THE ASSESSEE HAD FURNISHE D THE DETAILS WHICH WOULD DISCHARGE THE ONUS WHICH LAY ON THE ASS ESSEE. IT IS NOT THE CASE OF THE REVENUE THAT THE PARTNERS OF TH E ASSESSEE FIRM ARE FICTITIOUS. THE INCOME TAX OFFICER HAS NOT DISP UTED THAT THE CREDITS IN THE ACCOUNTS OF THE PARTNERS WERE NOT DE POSITS FROM THE PARTNERS. MOREOVER, IT IS AN ADMITTED POSITION THAT THIS WAS THE SECOND YEAR OF THE FIRM, AND THAT IT WAS RUNNING IN LOSS. IT IS TRUE THAT THE INCOME TAX OFFICER DID NOT ACCEPT THE EXPL ANATION GIVEN ON BEHALF OF THE ASSESSEE IN RESPECT OF THE NEW DEP OSITS OR CASH CREDITS IN THE ACCOUNTS OF THE PARTNERS. THE MERE N ON-ACCEPTANCE OF THAT EXPLANATION DOES NOT, HOWEVER, PROVIDE MATE RIAL FOR FINDING THAT THE SAID SUM REPRESENTED INCOME OF THE ASSESSEE FIRM. AS HELD BY THE ALLAHABAD HIGH COURT IN CASE OF COMM ISSIONER OF INCOME TAX, ALLAHABAD V. JAISWAL MOTOR FINANCE (SUP RA), IN THE ABSENCE OF ANY MATERIAL TO INDICATE THAT THERE WERE PROFITS OF THE FIRM, THE AMOUNT CREDITED TO THE PARTNERS' ACCOUNTS COULD NOT BE ASSESSED IN THE HANDS OF THE FIRM. ONCE THE PARTNER S HAVE OWNED THAT THE MONIES DEPOSITED IN THEIR ACCOUNTS ARE THE IR OWN, THE INCOME TAX OFFICER IS ENTITLED TO AND MAY PROCEED AGAINST THE PARTNERS AND ASSESS THE SAME IN THEIR HANDS, IF THE IR EXPLANATION IS NOT FOUND SATISFACTORY. ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 12 - 22. WE HAVE HEARD LD.DR AND THE LD. AUTHORISED REPR ESENTATIVE OF THE ASSESSEE. IN THE CASE OF CIT VS. KULWANT SINGH & CO. (2008) 299 ITR 53 (P&H), IT IS HELD THAT WHERE AMOUNTS FOUND C REDITED IN THEIR ACCOUNT OF THEIR PARTNERS COMING FROM SAVINGS ACCOU NT, AND COPIES OF ACCOUNTS ARE PRODUCED, THEN INITIAL ONUS ON THE FIR M WITH REGARD TO IDENTITY AND FINANCIAL CAPACITY OF THE PARTNERS IS DISCHARGED. SIMILAR VIEW HAS BEEN HELD BY ITAT AHMEDABAD BENCH D IN T HE CASE OF M/S.HERITAGE REALTY VS. ITO (ITA NOS.561 AND 562/AH D/2004 FOR ASSESSMENT YEARS 1996-97 & 97-98) PRONOUNCED ON 12/ 06/2009, WHEREIN IT HAS HELD AS UNDER:- 3. HEARD BOTH THE PARTIES AND CAREFULLY GONE THROU GH THE MATERIAL AVAILABLE ON RECORD. IN THE ASSESSMENT YEA R 1996-97, ADDITION OF RS.73,000 HAS BEEN MADE IN RESPECT OF C ASH CREDIT INTRODUCED BY THE PARTNER SMT. SHANTABEN ANTARIA. S IMILARLY IN THE ASSESSMENT YEAR 1997-98, THE ADDITION OF RS. 1, 24,000 HAS BEEN MADE IN RESPECT OF CASH CREDIT INTRODUCED BY P ARTNERS SMT.SHANTABEN ANDHARIA AND SHRI ALAP ANDHARIA. THES E CREDITS WERE EXAMINED BY THE ASSESSING OFFICER AND HE DISCA RDED THE CONTENTION OF THE ASSESSEE THAT SUCH CREDITS WERE I NTRODUCED BY ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 13 - THE ABOVE PARTNERS OUT OF SALES PROCEEDS OF AGRICUL TURAL PRODUCES ON THE GROUND THAT NO DETAIL EVIDENCE REGARDING SAL E OF AGRICULTURAL PRODUCE, SALES BILLS AND BANK ACCOUNTS WERE SUBMITTED. HOWEVER, OWNING OF AGRICULTURAL LAND BY THEM WAS NOT DISPUTED. THUS, THERE IS NO DISPUTE OF THE FACT THA T THE CREDITS IN QUESTION WERE THE AMOUNT INTRODUCED BY THE PARTNERS . THE QUESTION, THEREFORE, ARISES FOR OUR CONSIDERATION A S TO WHETHER THE SAID AMOUNT CAN BE ADDED IN THE HANDS OF THE FIRM W HEN THE SOURCE IN THE HANDS OF THE PARTNERS DISCLOSED IS NO T ACCEPTED. HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. JAISWAL MOTORS FINANCE 141 ITR 706 AND OBSERVED THAT IF AO HAD ANY DOUBT WITH REGARD TO SOURCE OF DEPOSITS IN PARTNERS ' ACCOUNT, HE MAY TAKE SUITABLE ACTION IN THE CASE OF PARTNERS, I F HE HAPPENS TO BE THEIR AO OR HE MAY REFER THE MATTER TO THE CONCE RNED AO AS PARTNERS ARE I.T. ASSESSEES. TRIBUNAL IN THE CASE O F DHORAJIA CONSTRUCTION CO. VS. ITO 42 ITD 450 (AHD) IN WHICH DECISION THIS TRIBUNAL RELYING ON AFOREMENTIONED DECISION OF ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. JAISWAL MOTORS FI NANCE (SUPRA) HAS GIVEN SIMILAR RELIEF TO THE ASSESSEE. I N VIEW OF THE ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE IMPU GNED ITA NO.3427/AHD/2008 ITO VS. M/S.M.TEX ASST.YEAR 2005-06 - 14 - ADDITIONS MADE U/S.68 OF THE ACT IN THE HANDS OF TH E ASSESSEE-FIRM IN BOTH THE AYS UNDER CONSIDERATION IS NOT PROPER. THE SAID ADDITIONS ARE, THEREFORE, DELETED. 23. RESPECTFULLY FOLLOWING THE AFORESAID DECISION O F TRIBUNAL, WE HOLD THAT WHEN PARTNERS HAVE ADMITTED, THAT THEY HA VE CONTRIBUTED MONEY TO FIRM AND THEIR IDENTITY IS NOT IN DISPUTE , THEN THERE IS NO FURTHER ONUS LAY ON THE FIRM. NO ADDITION CAN BE MADE IN THE HANDS OF THE FIRM THEREAFTER. THE ASSESSING OFFICER WOUL D BE FREE TO CONSIDER THE SOURCE OF CREDITS IN THE HANDS OF THE PARTNERS. THIS GROUND IS, THEREFORE, REJECTED. 24. IN THE RESULT, THE APPEAL OF THE REVENUE IS PAR TLY ALLOWED. ORDER SIGNED, DATED AND PRONOUNCED IN THE COURT ON 18/09/2009. SD/- SD/- ( MAHAVIR SINGH ) ( D.C.AGRAWAL ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 18/09/2009 T.C. NAIR COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT .2. THE RESPONDENT 3. THE CIT CONCERNED. 4. THE LD. CIT(APPEALS)-V, SU RAT 5. THE DR, AHMEDABAD BENCH.6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD THE ORDER IS PRONOUNCED BY US ON 18/09/2009 SD/- SD/- (T.K.SHARMA),J.M. (D.C.AGRAWAL ),A.M.