Shri Ayubbhai Umarji Patel, V. The Income tax Officer,Ward-2, Bharuch

ITA 3749/AHD/2008

• Counselvise Citation: 374920514 RSA 2008
• Duration Of Justice: 3 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 30-01-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 18-11-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: M K PATEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD C BENCH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO.3749/AHD/2008 ASSESSMENT YEAR: 2003-04 SHRI AIYUB UMARJI PATEL C/O RANGOON TRADERS, AT & PO RAHADPUR, TAL. & DIST. BHARUCH PAN NO.AGOPP2133R / V/S . INCOME TAX OFFICER, WARD-2, BHARUCH / APPELLANT .. / RESPONDENT / BY APPELLANT SHRI M.K. PATEL, AR / BY RESPONDENT SHRI VINOD TANWANI, SR-DR / DATE OF HEARING 30-01-2012 / DATE OF PRONOUNCEMENT 31-01-2012 !' !' !' !' / // / ORDER PER B.P. JAIN, ACCOUNTANT MEMBER:- THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER O F LD. COMMISSIONER OF INC-TAX (APPEALS)-VI, BARODA DATED 25-08-2008 FO R THE ASSESSMENT YEAR 2003-04. THE ASSESSEE HAS RAISED THE FOLLOWING GROU ND OF APPEAL:- ASSESSEE PRAYS AND APPEALS THAT COMMISSIONER OF IN COME TAX (APPEALS-VI), BARODA HAS ERRED IN LAW AND ON FACTS IN SUSTAINING THE ADDITION OF RS.2,597,902/- BEING REMITTANCE RECEIVE D FROM ABROAD IN NRE A/C NO.509 WITH BANK OF BARODA, MOHAMADPURA BRA NCH, BHARUCH. THE APPELLANT THEREFORE PRAYS THAT THE ADDITION OF RS.2,579,902/- SUSTAINED BY CIT APPEALS-VI, BARODA BE DELETED. 2. THE BRIEF FACTS ARE THAT THE ASSESSEE IS HAVING NRE BANK ACCOUNT NO.509 WITH BANK OF BARODA, BHAUCH AND AFTER OBTAIN ING THE DETAILS OF SUCH BANK ACCOUNT, IT WAS OBSERVED THAT RS.25,97,902/- W AS DEPOSITED IN THE BANK ITA NO.3749/AHD/2008 A.Y. 2003-04 SH AIYUB U PATEL V. ITO WD-2-BHARUCH PAGE 2 ACCOUNT OF THE ASSESSEE. ON BEING ASKED TO EXPLAIN THE SOURCE OF THE SAID DEPOSIT, IT WAS SUBMITTED BY THE ASSESSEE VIDE LETT ER DATED 13-12-2007 THAT THE ASSESSEE HAD TAKEN LOAN FROM HIS BROTHER, SHRI YAKUBHAI PATEL AS UNDER:- DATE AMOUNT REMARKS 09.05.2002 7,11,900/- TRANSFER FROM UK FROM YAKUB U .PATEL (BROTHER) 06.07.2002 11,101/- INTEREST CREDITED BY BANK 10.10.2002 11,16,998/- TRANSFER FROM UK FROM YAKU U PATEL (BROTHER) 12.12.2002 7,54,600/- TRANSFER FROM UK FROM YAKUB U PATEL (BROTHER) 02.01.2003 3,303/- INTEREST CREDITED BY BANK) THE ASSESSEE HAD NOT PRODUCED ANY EVIDENCE FROM WHI CH IT COULD BE ESTABLISHED THAT AMOUNT IS TRANSFERRED FROM THE ACC OUNT OF HIS BROTHER. THE ASSESSING OFFICER WAS OF THE VIEW THAT THE CREDITWO RTHINESS OF THE DEPOSITOR HAS NOT BEEN ESTABLISHED AS ALSO THE GENUINENESS OF THE TRANSACTION AS COPY OF THE BANK FROM WHICH THESE FUNDS WERE TRANSFERRED WAS NOT FURNISHED AND ACCORDINGLY, RS.25,97,902/- WAS ADDED U/S.68 OF THE ACT. 3. THE LD. CIT(A) CONFIRMED THE ACTION OF THE ASSES SING OFFICER. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. IT WAS ARGUED BY THE LEARNED COUNSEL FOR THE ASSESS EE THAT THE AMOUNT HAS BEEN RECEIVED THROUGH HABIB BANK THROUGH ADVICE FRO M THE SAID BANK IN DUBAI, ON THE ORDER OF SHRI YAKUBBHAI PATEL. 5. ON THE OTHER HAND, LD. DR RELIED UPON THE ORDERS OF BOTH THE AUTHORITIES BELOW. 6. ON CONSIDERATION OF THE FACTS ON RECORD AND THE ARGUMENTS MADE BY THE RIVAL PARTIES, WE ARE OF THE VIEW THAT THE DETAILS OF BANK ACCOUNT OF SHRI YAKUB PATEL FROM WHOM THE AMOUNTS WERE CLAIMED TO HAVE BE EN TRANSFERRED TO ITA NO.3749/AHD/2008 A.Y. 2003-04 SH AIYUB U PATEL V. ITO WD-2-BHARUCH PAGE 3 ASSESSEES ACCOUNT WERE NOT FURNISHED. AS PER FINDI NGS OF THE LD. CIT(A), IN PARA-4.4 THAT IN THE NRE ACCOUNT NO.508 OF SHRI YAK UB PATEL, BANK OF BARODA, BHARUCH, THE BALANCE AVAILABLE WAS MEAGER AND IN TH E RETURN OF INCOME FOR THE A.Y. 2003-04, SHRI YAKUB PATEL HAD DECLARED INCOME OF RS.53,405/- FROM THE PROPRIETOR BUSINESS IN THE NAME OF WORLD TALK TELEC OM CENTRE, BHARUCH. THE CREDITWORTHINESS OF SHRI YAKUB PATEL HAD NOT BEEN T HUS ESTABLISHED. MOREOVER, NOTHING HAS BEEN BROUGHT ON RECORD TO PRO VE THE GENUINENESS AND CREDITWORTHINESS OF THE TRANSACTION. IN THE CIRCUMS TANCES AND FACTS OF THE CASE AND IN VIEW OF THE JUDGMENT OF HONBLE APEX COURT I N THE CASE OF CIT. V. P MOHANKALA & OTHERS 210 CTR 20 (SC), WHERE THE EXPLANATION OFFERED BY THE ASSESSEE ABOUT THE NATURE AND SOURCE OF SUCH SUMS F OUND CREDITED IN THE BOOKS OF ACCOUNT OF THE ASSESSEE IS NOT FOUND SATIS FACTORY, THE SAME HAS TO BE CHARGED TO THE INCOME-TAX. THEREFORE IN THE PRESENT CIRCUMSTANCES AND FACTS OF THE CASE, WE FIND NO ERROR IN THE ORDER OF LD. C IT(A). THUS, THE SOLITARY GROUND OF ASSESSEE IS DISMISSED. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. # !' $!%& 31 / 01 /201 2 * + , - THIS ORDER PRONOUNCED IN OPEN COURT ON 31/01/ 201 2. SD/- SD/- ( BHAVNESH SAINI ) ( B.P. JAIN ) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) $!%&- 31/01/2012 /!! - DKP* !' !' !' !' 001 001 001 001 21 21 21 21 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. %%05 6 / CONCERNED CIT 4. 6- / CIT (A) 5. 19, 0005, 05, /!! / DR, ITAT, AHMEDABAD 6. ,<= ># / GUARD FILE. BY ORDER/ !' , /TRUE COPY/ ?// %@ 05, /!! -