SHRI CHARANJEET SINGH SALUJA, Indore V. THE ITO 3(3), Indore

ITA 368/IND/2015

• Counselvise Citation: 36822714 RSA 2015
• Duration Of Justice: 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-01-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 25-05-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: K C JAIN; K JAIN
• Keywords: Principle of natural justice; Corroborative evidences; Revised return

Judgement Text

CHARANJIT SINGH SALUJA VS. ITO ITA NO. 368/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBU NAL SMC BENCH, INDORE BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER ITA NO. 368/IND/2015 A.Y.2005-06 CHARANJEET SINGH SALUJA INDORE PAN - APJPS 8690A ::: APPELLANT VS INCOME TAX OFFICER 3(3) INDORE ::: RESPONDENT APPELLANT BY SHRI K.C. JAIN AND SHRI K. JAIN RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 17 .12.2015 DATE OF PRONOUNCEMENT 2 2 .12.2015 O R D E R THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-INDORE, DATED 29.12.2014 . CHARANJIT SINGH SALUJA VS. ITO ITA NO. 368/IND/2015 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL DERIVING INCOME FROM PLYING OF TRUCKS AND DECLARED INCOME BY APPLYING THE PROVISIONS OF SECTION 44AE OF THE ACT. THE ASSESSEE HAS FILED RETURN OF INCOME SHOWING THREE TRUCKS AND OUT OF THREE TRUCKS TWO WERE PURCH ASED DURING THE ASSESSMENT YEAR UNDER CONSIDERATION. THE ASSESSEE IS OWNING THREE TRUCKS FOR HIS TRANSPORT BUS INESS BUT BY MISTAKE THE ASSESSEE HAS SHOWN INCOME OF THREE TRUCKS ONLY AND THEREAFTER REVISED RETURN OF INCOME WAS FILED ON 19.6.2007 BEFORE COMPLETION OF THE ASSESSME NT WHEREIN THE ASSESSEE HAS SHOWN THAT HE HAS OWNED FOUR TRUCKS AND NOT THREE. THE ASSESSING OFFICER HAS VERI FIED THE RETURN AND FOUND THAT THE ASSESSEE HAS MADE INVESTMENT IN PURCHASE OF FOUR TRUCKS AS MARGIN MONEY. BEFORE THE ASSESSING OFFICER THE ASSESSEE COULD NOT EXPLAIN THE PAYMENT OF MARGIN MONEY OF RS. 6,93,979/-. THERE FORE, THE ASSESSING OFFICER MADE THE ADDITION. SIMILARLY IN CHARANJIT SINGH SALUJA VS. ITO ITA NO. 368/IND/2015 3 RESPECT OF SECOND TRUCK, THE ASSESSEE HAS MADE INVEST MENT OF RS. 6,93,979/-. THEREFORE, THE ASSESSING OFFICER MADE THE ADDITION IN THE HANDS OF THE ASSESSEE WHICH WAS CONFIRMED BY THE LEARNED CIT(A). NOW THE ASSESSEE IS IN APPEAL BEFORE ME. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS PURCHASED TWO TRUCKS OUT OF WHICH THE ASSESSEE HAS PAID MARGIN MONEY OF RS.21,958/-. THE ABOVE TWO TRUCKS WERE FINANCED BY SANGHI BROTHERS (INDORE) PVT. LTD. THROUGH HDFC AND ICICI BANKS. A CERTIFICATE IN RESPECT OF ABOVE SANGHI BROTHERS (INDORE) PVT. LTD. W AS ENCLOSED AT PAGES 3 AND 4 OF THE PAPER BOOK AND THE ASSESSEE HAS ALSO PRODUCED THE CERTIFICATE AND LOAN SANCTION PAPERS. THE ASSESSEE WAS HAVING OPENING CASH BALANCE OF RS. 1,03,319/- OUT OF WHICH HE HAS PAID MARGI N MONEY OF RS. 21,958/-. CHARANJIT SINGH SALUJA VS. ITO ITA NO. 368/IND/2015 4 4. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. HAVING HEARD BOTH THE SIDES, I AM OF THE VIEW THAT T HE ASSESSEE HAS SUBMITTED THE FOLLOWING BREAK UP AND SUPPORTING EVIDENCE WHICH IS AS UNDER :- PARTICULARS TOTAL PURCHASE PRICE (BILL ATTACHED) AMOUNT PAID BY FINANCER/LOAN MARGIN MONEY PAID BY APPELLANT TRUCK 2 MP 09 KD 3078 RS.6,93,979/- RS.6,80,000/- ICICI BANK (SANCTION LETTER AND REPAYMENT SCHEDULE AT PAGE NO. 5 TO 7) RS.13,978/- (BY CHQ/DD NO.418553 CENTURION BANK, NOW MERGED WITH HDFC BANK TRUCK 3 MP09 KD 2989 RS6,93,979/- RS.6,86,000/- HDFC BANK (SANCTION LETYTER AND REPAYMENT SCHEDULE AT PAGE NO. 8 TO 10) RS.7,980/- (BY CHQ/DD NO.396200 CENTURION BANK NOW MERGED WITH HDFC BANK) TOTAL RS.21,958/- CHARANJIT SINGH SALUJA VS. ITO ITA NO. 368/IND/2015 5 I HAVE VERIFIED THE PAPER BOOK AND AT PAGES 1 AND 2 THERE ARE PURCHASE BILLS OF NEW TRUCKS FROM SANGHI BROTHERS (INDORE) PVT. LTD. AND PAGES 3 AND 4 OF THE PAPER BOOK WHEREIN IT IS SHOWN THAT THE ASSESSEE HAS PAID MARGIN MONEY OF RS. 21,958/- (RS.7980+RS.13978) FOR TWO TR UCKS. THE SANCTION LETTER AND REPAYMENT SCHEDULE OF ICICI B ANK AT PAGES 5 TO 7 OF THE PAPER BOOK, SANCTION LETTER OF I CICI BANK OF RS. 6,80,000/- AT PAGES 5 TO 7 OF THE PAPER BO OK AND SANCTION LETTER AND REPAYMENT SCHEDULE OF HDFC BANK AT PAGES 8 TO 10 OF THE PAPER BOOK. ON VERIFICATION OF THESE DOCUMENTS IT IS FOUND THAT THE ASSESSEE HAS INVESTED THE MONEY FROM THE LOAN FROM HDFC AND ICICI BANK AND THE MARGIN MONEY IS PAID FROM THE CASH BALANCE. THEREFORE, I AM OF THE VIEW THAT THE ASSESSEE HAS EXPLAINED THE SOURC E OF INVESTMENT OF MARGIN MONEY IN TWO TRUCKS AND THE ASSESSEE WAS HAVING CASH OPENING BALANCE OF CHARANJIT SINGH SALUJA VS. ITO ITA NO. 368/IND/2015 6 RS.1,03,319/-. OUT OF THIS THE ASSESSEE HAS PAID THE MARGIN MONEY. THEREFORE, NO ADDITION IS REQUIRED TO BE MADE AND I DELETE THE SAME. 6. THE NEXT GROUND RELATES TO INVESTMENT IN TRUCKS O F RS. 1,28,000/- AND RS. 40,000/- TOWARDS PAYMENT OF ROAD TA X. THE ASSESSING OFFICER AND THE LEARNED CIT(A) HAVE MADE THIS ADDITION. NOW THE ASSESSEE IS IN APPEAL BEFORE ME . 7. HAVING HEARD BOTH THE SIDES, I FIND THAT THE ASSESSE E WAS HAVING CASH BALANCE OF RS.1,03,319/- OUT OF WHICH RS.21,958/- WAS SPENT AS MARGIN MONEY, RS. 40,000/- WAS PAID FOR ROAD TAX AND REMAINING MONEY WAS SPENT ON CONSTRUCTION OF BODY. THEREFORE, OUT OF THE TOTAL CAS H BALANCE OF RS. 21,958/- + RS. 40,000/- = RS. 61,958 /-, REMAINING AMOUNT IS SPENT IN CONSTRUCTION OF BODY I.E . RS.1,28,000/- AND ONLY THIS MUCH IS EXPLAINED. THE CHARANJIT SINGH SALUJA VS. ITO ITA NO. 368/IND/2015 7 REMAINING AMOUNT RS. 66,000/- (SIXTYSIX THOUSAND) IS ADDED AS UNEXPLAINED INCOME IN THE CONSTRUCTION OF THE BODY. GROUND NO. 2 IS, THEREFORE, PARTLY ALLOWED AND G ROUND NO. 3 IS ALLOWED. 8. THE NEXT GROUND RELATES TO NON-DISCLOSURE OF INVESTMENT MADE IN THE TRUCK WHICH WAS SUPRESSED BY THE ASSESSEE TO THE EXTENT OF RS.5,81,550/-. THE SAME WAS NOT REFLECTED IN THE ORIGINAL RETURN OF INCOME. THE LEARN ED CIT(A) HAS CONFIRMED THE ADDITION OF RS.4,81,550/-. N OW THE ASSESSEE IS IN APPEAL BEFORE ME. 9. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAS MADE THE INVESTMENT IN TRUCKS FROM G E ENTERPRISES, GE TRANSPORT & FINANCE LIMITED AND THE SAM E AMOUNT IS RECEIVED FROM GE FINANCE LIMITED AND THE CHARANJIT SINGH SALUJA VS. ITO ITA NO. 368/IND/2015 8 ASSESSEE HAS PRODUCED CHEQUES OF THE SAME. KEEPING IN VIEW THE PRINCIPLE OF NATURAL JUSTICE AND FAIR PLAY, I HEREBY DIRECT THE ASSESSING OFFICER TO VERIFY THESE CHEQUES AND IF THE PAYMENT HAS COME FROM THESE PARTIES, THEN DELETE THE ADDITION. THIS GROUND IS ACCORDINGLY PARTLY ALLOWED FO R STATITISCAL PURPOSES ONLY. PRONOUNCED IN OPEN COURT ON 22 ND DECEMBER, 2015 SD/- (D.T. GARASIA) ACCOUNTANT MEMBER DECEMBER, 2015 DN/-