MAHADEV YADAV, JAIPUR V. ITO, WARD 7-2, JAIPUR`

ITA 348/JPR/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2079 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 09-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA JHA J CIT DHK
• Keywords: Unexplained cash credit; Unexplained investment; Unexplained expenditure; Income from undisclosed sources
• Section: 143(3); 147

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 347/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08. SHRI GOPAL YADAV, S/O SHRI JEEVAN RAM, VILLAGE- BEGUS, JAIPUR. CUKE VS. THE INCOME TAX OFFICER, WARD 7(2), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO . AMKPG 9420 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA-@ ITA NO. 348/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08. SHRI MAHADEV YADAV, S/O SHIR NARAIN VILLAGE- BEGUS, JAIPUR. CUKE VS. THE INCOME TAX OFFICER, WARD 7(2), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. ACFPY 8032 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA-@ ITA NO. 349/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08. SHRI HANUMAN YADAV, S/O SHRI KALYAN, VILLAGE- BEGUS, JAIPUR CUKE VS. THE INCOME TAX OFFICER, WARD 7(2), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO . BONPS 0928 D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (C.A.) JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJENDRA JHA(JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 19.05.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 29/05/2017. VKNS'K@ ORDER PER SHRI KUL BHART, JM. THESE THREE APPEALS FILED BY THE DIFFERENT ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT (APPEALS)-3, JAIPUR DATED 27.02.20 15 PERTAINING TO ASSESSMENT YEAR 2 ITA NOS. 347, 348 & 349 /JP/2015. SHRI GOPAL YADAV, SHRI MADADEV, SHRI HANUMAN YADAV, BEGUS JAIPUR. 2007-08. SINCE THE COMMON GROUNDS ARE INVOLVED IN THESE APPEALS. ALL THESE APPEALS ARE TAKEN UP TOGETHER AND DISPOSED OF BY CO NSOLIDATED ORDER. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASS ESSEE SUBMITTED THAT THE FACTS ARE IDENTICAL IN ALL THESE CASES. THEREFORE, HE SUBMIT TED THAT ITA NO. 348/JP/2015 MAY BE TAKEN UP AS A LEAD CASE. ITA NO. 348/JP/2015. THEREFORE, FIRST WE TAKE UP ITA NO. 348/JP/2015. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL :- 1. THAT THE AUTHORITIES BELOW ERRED IN MAKING THE ADDITION OF RS. 52,40,000/- AS UNEXPLAINED CASH CREDIT AND ADDED TO THE TOTAL INCOME OF THE PETITIONER AS DISCUSSED IN PARA 4(3) OF THE CIT(A) ORDER. 2. THAT THE AUTHORITIES BELOW FURTHER ERRED IN MAKI NG AN ADDITION OF RS. 8,00,000/- AS UNEXPLAINED INVESTMENT AS DISCUSSED I N PARA 5(3) OF THE CIT(A) ORDER. 3. THAT THE AUTHORITIES BELOW FURTHER ERRED IN MAKI NG AN ADDITION OF RS. 90,000/- AS INCOME FROM UNDISCLOSED SOURCES AS DISC USSED IN PARA 6(3) OF THE CIT(A) ORDER. 4. THAT THE AUTHORITIES BELOW FURTHER ERRED IN MAKI NG AN ADDITION OF RS. 3,47,400/- AS ALLEGED UNEXPLAINED EXPENDITURE IN RE GISTRATION CHARGES AS DISCUSSED IN PARA 7(3) OF THE CIT(A) ORDER. 5. THAT THE ADDITION SO MAKE BY THE AUTHORITY IS BA D IN LAW AS WELL AS ON FACTS. 6. THAT THE PETITIONER CRAVES TO ADD, ALTER OR AMEN D ALL OR ANY OF THE GROUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING. 2. GROUND NOS. 1 TO 4 ARE INTER-CONNECTED. THEREFO RE, ALL GROUNDS ARE BEING DISPOSED OF. 3. BRIEFLY, STATED THE FACTS ARE THAT THE ASSESSEME NT WAS REOPENED AND THE ASSESSMENT UNDER SECTION 143(3) READ WITH SECTION 1 47 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VID E ORDER DATED 19 TH MARCH, 2013. WHILE FRAMING THE ASSESSMENT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE 3 ITA NOS. 347, 348 & 349 /JP/2015. SHRI GOPAL YADAV, SHRI MADADEV, SHRI HANUMAN YADAV, BEGUS JAIPUR. ALONG WITH OTHER TWO BROTHERS NAMELY SH. HANUMAN AN D SH. GOPAL, PURCHASED LAND FOR RS. 1,87,20,000/- ON 24/05/2006. THE LAND WAS JOINTLY PURCHASED. THE ASSESSEE WAS ASKED TO FURNISH THE SOURCE OF INVESTM ENT VIDE ORDER DATED 25/02/2013. THE ASSESSEE STATED THAT THE INVESTMEN T WAS MADE OUT OF OWN FUNDS OF THE ASSESSEE AND HIS BROTHERS AND LOANS FROM 19 OTHER PERSONS. IT WAS STATED THAT ASSESSEE AND HIS TWO BROTHERS OUT OF OWN SOURC E INVESTED RS. 40 LAKHS AND A SUM OF RS. 1,47,20,000/- WAS INVESTED OUT OF THE LO AN FUND. IT WAS STATED THAT THE ASSESSEES SALE IN INVESTMENT CAME TO RS. 62.40 LAC S EXCLUDING THE REGISTRATION AUTHORITIES. IT IS OBSERVED BY THE ASSESSING OFFIC ER THAT THE ASSESSEE HAD TAKEN LOAN OF RS. 52.40 LACS. THE ASSESSEE WAS ASKED TO FURNI SH THE SOURCE OF SUCH INVESTMENT AND AFTER CONSIDERING THE MATERIAL AVAILABLE RECORD THE ASSESSING OFFICER ASSESSED TOTAL INCOME OF RS. 65,27,930/- AND MADE ADDITION O N ACCOUNT OF UNEXPLAINED REGISTRATION OF RS. 3,74,400/- AND UNEXPLAINED INCO ME OF RS. 8 LACS INFLATED AGRICULTURAL INCOME OF RS. 90,000/-. 4. AGGRIEVED BY THIS, THE ASSESSEE PREFERRED AN APP EAL BEFORE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMISSION DISMISSED THE APPE AL. NOW, THE ASSESSEE IS IN FURTHER APPEAL BEFORE THIS TRIBUNAL. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN COUR SE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE HAD FURNISHED CONFIRMATION OF ALL 19 P ERSONS IN RESPECT OF THE LOAN GIVEN BY THEM AND DREW OUR ATTENTION TO PAPER BOOK PAGE NO. 7-25. THE ASSESSEE PRODUCED ALL THESE PERSONS BEFORE THE AO E XCEPT SH. MANGILALA WHO HAD EXPIRED BUT THE AO RECORDED THE STATEMENTS OF ONLY 4 PERSONS AND DID NOT RECOCRD THE STATEMENTS OF OTHER PERSONS FOR THE REASONS BES T KNOWN TO THEM. HE SUBMITTED 4 ITA NOS. 347, 348 & 349 /JP/2015. SHRI GOPAL YADAV, SHRI MADADEV, SHRI HANUMAN YADAV, BEGUS JAIPUR. BEFORE LD. CIT(A), THE ASSESSEE HAD FILED AN EVIDEN CE OF THEIR AGRICULTURAL INCOME BY FILING THEIR GIRDAWARI REPORT. FROM THE SAME IT CA N BE NOTED THAT THESE PERSONS HAVE SUBSTANTIAL AGRICULTURAL LANDHOLDING AND AGRICULTUR AL INCOME WHICH PROVES THEIR CREDITWORTHINESS. THEREFORE, WITHOUT ANY MATERIAL PROVE OTHERWISE, ADDITION MADE BY THE AO AND CONFIRMED BY CIT(A) IS UNJUSTIFIED. 5. ON THE CONTRARY, THE LD. DEPARTMENTAL REPRESENTA TIVES OPPOSED THE SUBMISSIONS AND SUBMITTED THAT THESE EVIDENCES WERE NOT FURNISHED BEFORE THE AUTHORITIES BELOW. 6. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER OF THE AUTHORITIES BELOW . WE FIND THAT THE ASSESSEE HAD PLACED ON RECORD GIRDAWARI REPORT PB L-1 TO L19 OF THE PEOPLE WHO HAD CLAIMED TO HAVE GIVEN LOAN TO THE ASSESSEE. THE LD. COUNSEL F OR THE ASSESSEE, DURING THE COURSE OF HEARING STATED THAT THESE EVIDENCES WOUL D PROVE THE CREDITWORTHINESS OF THE PERSONS WHO HAVE GIVEN LOAN TO THE ASSESSEE. I T IS CONTENDED THAT MATTER MAY BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FO R DECISION AFRESH; ON THIS LD. D/R HAS NO OBJECTIONS. THEREFORE, CONSIDERING THE TOTA LITY OF THE FACT, WE SET ASIDE THE ASSESSMENT ORDER AND DIRECT THE ASSESSING OFFICER T O FRAME DENOVO ASSESSMENT, AFTER VERIFYING THE CLAIM OF THE ASSESSEE. THE APP EAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 7. NOW WE TAKE UP ASSESSEES APPEAL I.E. IN ITA NO. 347/JP/2015 AND ITA NO. 349/JP/2015 PERTAINING TO THE AY 2007-08. BOTH THE APPEALS GROUNDS ARE REPRODUCED AS UNDER:- ITA NO. 347/JP/2015 5 ITA NOS. 347, 348 & 349 /JP/2015. SHRI GOPAL YADAV, SHRI MADADEV, SHRI HANUMAN YADAV, BEGUS JAIPUR. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL:_ 1. THAT THE AUTHORITIES BELOW ERRED IN MAKING THE ADDITION OF RS. 42,40,000/- AS UNEXPLAINED CASH CREDIT AND ADDED TO THE TOTAL INCOME OF THE PETITIONER AS DISCUSSED IN PARA 4(3) OF THE CIT(A) ORDER. 2. THAT THE AUTHORITIES BELOW FURTHER ERRED IN MAKI NG AN ADDITION OF RS. 18,00,000/- AS UNEXPLAINED INVESTMENT AS DISCUSSED IN PARA 5(3) OF THE CIT(A) ORDER. 3. THAT THE AUTHORITIES BELOW FURTHER ERRED IN MAKI NG AN ADDITION OF RS. 40,000/- AS INCOME FROM UNDISCLOSED SOURCES AS DISC USSED IN PARA 6(3) OF THE CIT(A) ORDER. 4. THAT THE AUTHORITIES BELOW FURTHER ERRED IN MAKI NG AN ADDITION OF RS. 3,74,400/- AS ALLEGED UNEXPLAINED EXPENDITURE IN RE GISTRATION CHARGES AS DISCUSSED IN PARA 7(3) OF THE CIT(A) ORDER. 5. THAT THE ADDITION SO MAKE BY THE AUTHORITY IS BA D IN LAW AS WELL AS ON FACTS. 6. THAT THE PETITIONER CRAVES TO ADD, ALTER OR AMEN D ALL OR ANY OF THE GROUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING. ITA NO. 349/JP/2015 THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL:- 1. THAT THE AUTHORITIES BELOW ERRED IN MAKING THE ADDITION OF RS. 52,40,000/- AS UNEXPLAINED CASH CREDIT AND ADDED TO THE TOTAL INCOME OF THE PETITIONER AS DISCUSSED IN PARA 4(3) OF THE CIT(A) ORDER. 2. THAT THE AUTHORITIES BELOW FURTHER ERRED IN MAKI NG AN ADDITION OF RS. 8,00,000/- AS UNEXPLAINED INVESTMENT AS DISCUSSED I N PARA 5(3) OF THE CIT(A) ORDER. 3. THAT THE AUTHORITIES BELOW FURTHER ERRED IN MAKI NG AN ADDITION OF RS. 40,000/- AS INCOME FROM UNDISCLOSED SOURCES AS DISC USSED IN PARA 6(3) OF THE CIT(A) ORDER. 4. THAT THE AUTHORITIES BELOW FURTHER ERRED IN MAKI NG AN ADDITION OF RS. 3,74,400/- AS ALLEGED UNEXPLAINED EXPENDITURE IN RE GISTRATION CHARGES AS DISCUSSED IN PARA 7(3) OF THE CIT(A) ORDER. 5. THAT THE ADDITION SO MAKE BY THE AUTHORITY IS BA D IN LAW AS WELL AS ON FACTS. 6. THAT THE PETITIONER CRAVES TO ADD, ALTER OR AMEN D ALL OR ANY OF THE GROUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING. 8. THE FACTS ARE IDENTICAL IN BOTH THE APPEALS AS W ERE IN ITA NO. 348/JP/2015 . THE PARTIES HAVE ADOPTED THE SAME ARGUMENTS. IN THIS CASE ALSO 6 ITA NOS. 347, 348 & 349 /JP/2015. SHRI GOPAL YADAV, SHRI MADADEV, SHRI HANUMAN YADAV, BEGUS JAIPUR. WE SET ASIDE THE ORDER AND DIRECTED THE ASSESSING O FFICER FOR FRAMING DENOVO ASSESSMENT. BOTH THE APPEALS ARE ALLOWED FOR STATI STICAL PURPOSES. 9. IN THE RESULT, ALL THREE APPEAL I.E. IN ITA NOS. 347/JP/2015, 348/JP/2015 & 349/JP/2015 ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 29TH DAY OF MAY 2017. SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 29 /05/2017. POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SHRI GOPAL YADAV, SHRI MAHADEV Y ADAV, SHRI HANUMAN YADAV, BEGUS JAIPUR. 2. THE RESPONDENT- THE INCOME TAX OFFICER, WARD 7(2 ), JAIPUR. 3. THE CIT(A) 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NOS. 347, 348 & 349/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 7 ITA NOS. 347, 348 & 349 /JP/2015. SHRI GOPAL YADAV, SHRI MADADEV, SHRI HANUMAN YADAV, BEGUS JAIPUR.