SHRI KRISHNA KUMAR SONI, Ujjain V. THE ITO Ward 1(2), Ujjain

ITA 38/IND/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5902 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 12-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S S DESHPANDE

Judgement Text

KRISHNA KUMAR SONI ITA NO.38/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, INDORE BEFORE SHRI D.T. GARASIA, HON'BLE JUDICIAL MEMBER ITA NO. 38/IND/2015 A.Y.2010-11 SHRI KRISHNA KUMAR SONI TARANA PAN AHCPS 5349F ::: APPELLANT VS INCOME TAX OFFICER 1(2) UJJAIN ::: RESPONDENT APPELLANT BY SHRI S.S. DESHPANDE RESPONDENT BY SHRI MOHD. JAVED DATE OF HEARING 18.7.2016 DATE OF PRONOUNCEMENT 2 . 8 .2016 O R D E R THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A), UJJAIN, DATED 27.11.2014 . 2. SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE RECEIVE D UNSECURED LOAN OF RS.5 LACS FROM SMT. SAPNA SONI, KRISHNA KUMAR SONI ITA NO.38/IND/2015 2 RS.4,75,000/- FROM SMT. PALLAVI SONI AND RS.3,15,000/ - FROM TULSIRAM SONI, THUS TOTALING TO RS.11 LACS. THE ASSESSING OFFICER RECORDED THE STATEMENT OF SMT. PALL AVI SONI, SMT. SAPNA SONI AND SHRI TULSIRAM SONI AND FOUND THAT DURING THE COURSE OF RECORDING OF STATEMENTS ON 15.3.2013 THESE DEPOSITORS STATED THAT THEY DID NOT K EEP ANY BOOKS OF ACCOUNTS RELATING TO THEIR BUSINESS. THE ASSESSEE DID NOT MAINTAIN BOOKS OF ACCOUNTS. THE ASSESSE E SUBMITTED LIST OF DEPOSITORS WITHOUT ANY BASIS WHICH IS UNVERIFIABLE. THEREFORE, THE ASSESSING OFFICER HAS TR EATED THESE LOANS FROM THE ABOVE THREE PARTIES. THE ASSESSEE HAS FAILED TO PROVE THE CREDITWORTHINESS OF THESE CREDIT ORS, THEREFORE, THE ASSESSING OFFICER MADE THE ADDITION. T HE MATTER WAS CARRIED IN APPEAL BEFORE THE LEARNED CIT(A) AND THE LEARNED CIT(A) CONFIRMED THE ADDITIONS MADE BY THE KRISHNA KUMAR SONI ITA NO.38/IND/2015 3 ASSESSING OFFICER. NOW THE ASSESSEE IS IN APPEAL BEFOR E THE TRIBUNAL. 3. BEFORE ME, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT ALL THE PAYMENTS ARE MADE FROM ACCOUNT PAYEE CHEQUES AND THE CREDITOR HAS RECEIVED THE AMOUNTS FROM THE DEBTORS AND THE CASH WAS AVAILABLE WITH ALL THE CREDITORS. THEREFORE, THE ADDITION IS NOT CALLED FOR. 4. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. I HAVE HEARD THE RIVAL CONTENTIONS OF THE PARTIES AN D HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSE E WAS ASKED TO GIVE THE NAMES AND COMPLETE ADDRESSES OF THE DEPOSITORS WHO HAVE DEPOSITED THE MONEY IN THE ACCOUN TS KRISHNA KUMAR SONI ITA NO.38/IND/2015 4 OF CREDITORS, SMT. SAPNA SONI, SMT. PALLAVI SONI AND SHR I TULSIRAM SONI. THE ASSESSEE SUBMITTED THAT ALL THE TRANSACTIONS ARE FROM ACCOUNT PAYEE CHEQUES AND, THEREFORE, IT MAY BE TREATED AS GENUINE BUT I AM OF THE VIEW THAT WHEN ALL THE AMOUNTS, WHICH WERE GIVEN BY THE CREDITORS, WERE DEPOSITED IN THE BANK PRIOR TO GIVIN G OF CHEQUES, THEREFORE, IT IS THE DUTY OF THE ASSESSEE TO GIVE COMPLETE DETAILS REGARDING SOURCE OF THE CASH. ALL THE CREDITORS WERE UNABLE TO GIVE NAMES OF THE DEBTORS F ROM WHOM THE AMOUNT WAS RECEIVED IN CASH. THEREFORE, ONE MORE CHANCE IS GIVEN TO THE ASSESSEE TO GIVE EVIDENCE FAILING WHICH THE ASSESSING OFFICER IS AT LIBERTY TO REPEAT T HE ADDITIONS. I OBSERVE THAT OUT OF THREE CREDITORS ONE CREDITOR IS EMPLOYEE OF THE ASSESSEE AND SECOND IS WIFE OF THE ASSESSEE, THEREFORE, THE ASSESSING OFFICER IS DIRECT ED TO VERIFY THE SOURCE OF THE CREDITORS AND DECIDE THE IS SUE KRISHNA KUMAR SONI ITA NO.38/IND/2015 5 AFRESH AFTER PROVIDING THE ASSESSEE AN OPPORTUNITY OF B EING HEARD. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON 2 ND AUG, 2016 SD/- (D.T. GARASIA) JUDICIAL MEMBER 2 ND AUG., 2016 DN/- KRISHNA KUMAR SONI ITA NO.38/IND/2015 6