Shri Vishwajit Nanawaty, Surat V. The Income tax Officer,Ward-2(3), Surat

ITA 3871/AHD/2007

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 9610 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-09-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 16-10-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RASESH SHAH
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD B BENCH (BEFORE S/SHRI G.D. AGARWAL, VICE-PRESIDENT AND T.K. SHARMA, JUDICIAL MEMBER) ITA.NO.3871/AHD/2007 [ASSTT. YEAR : 2004-2005] SHRI VISHWAJIT NANAWATY PROP. OF ANAND TEXTILE 322, GOODLUCK TEXTILE MARKET RING ROAD, SURAT. VS. ITO, WARD-2(3) SURAT. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RASESH SHAH REVENUE BY : SHRI K. MADHUSUDAN O R D E R G.D. AGARWAL, VICE-PRESIDENT : THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I I, SURAT DATED 31.7.2007 ARISING OUT OF THE ORDER OF THE ASSESSING OFFICER P ASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST THE ADDITION OF RS.3,55,699/- FOR CASH CREDIT UNDER SECTION 68 OF T HE ACT. 3. AT THE TIME OF HEARING BEFORE US, IT IS SUBMITTE D BY THE LEARNED COUNSEL THAT THE AO HAS MADE THE ADDITION OF RS.3,55,699/- BEING THE RENT TAKEN FROM THE FOLLOWING THREE PERSONS: I) SHRI KEVALCHAND MULTANMALJI RS.1,91,541/- II) SHRI PUNAMCHAND MULTANMAI HUF RS. 76,596/- III) SMT. SOHINIDEVI RS. 87,562/- HE HAS STATED THAT CONFIRMATION OF ALL THE THREE PE RSONS ALONG WITH THEIR PERMANENT ACCOUNT NUMBER, COPY OF THE CAPITAL ACCOU NT, BALANCE SHEET ETC. WERE ITA.NO.3871/AHD/2007 -2- SUBMITTED. THAT THE AO WRONGLY MENTIONED THAT THE PERMANENT ACCOUNT NUMBER AND CONFIRMATION OF CREDITORS WERE NOT FILED . HE HAS STATED THAT WHEN ALL THREE PERSONS ARE ASSESSED TO TAX AND HAVE CONF IRMED HAVING ADVANCED THE MONEY TO THE ASSESSEE AND DISCLOSED THE SAME IN THE IR BALANCE SHEET, THERE IS NO JUSTIFICATION FOR TREATING THE CREDIT AS UNEXPLAINE D. 3. THE LEARNED DR, ON THE OTHER HAND, POINTED OUT T HAT THE CASE WAS FIXED FOR HEARING BY THE AO NUMBER OF TIMES. THE ASSESSE E WAS REPEATEDLY ASKED TO PRODUCE THE EVIDENCE OF THE CREDITS, BUT THE ASSESS EE FURNISHED THE INFORMATION ON 27-12-2006 I.E. THE DATE ON WHICH THE AO HAD PAS SED THE ORDER AND IN FACT THE INFORMATION WERE FURNISHED AFTER PASSING OF THE ORDER BY THE AO. THE CIT(A) HAS ALREADY TAKEN INTO CONSIDERATION ALL THE SE FACTS AND THEREAFTER SUSTAINED THE ADDITION MADE BY THE AO. HE THEREFORE SUBMITTED THAT THE ORDER OF THE CIT(A) SHOULD BE SUSTAINED. 4. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. THE FACTS R EMAINS THAT THE ASSESSEE HAS FURNISHED THE CONFIRMATION OF ALL THE ABOVE THREE C REDITORS ALONG WITH THEIR PERMANENT ACCOUNT NUMBERS AND OTHER EVIDENCES IN TH E FORM OF THEIR BALANCE SHEETS. HOWEVER, THE AO DID NOT CONSIDER THE CONFI RMATION AS WELL AS PERMANENT ACCOUNT NUMBERS. IT MAY BE POSSIBLE THAT THESE DETAILS WERE FURNISHED BY THE ASSESSEE AFTER THE DICTATION OF TH E ORDER BY THE AO, BECAUSE, THE DATE OF ASSESSMENT ORDER IS 27-12-2006 AND IT W AS STATED BY THE LEARNED DR THAT THESE DETAILS WERE FURNISHED ON 27-12-2006. I N THE ABOVE CIRCUMSTANCES, IN OUR OPINION, IT WOULD MEET ENDS OF JUSTICE, IF THE MATER IS SET ASIDE TO THE FILE OF THE AO. WE THEREFORE SET ASIDE THE ORDER OF THE AU THORITIES BELOW ON THIS POINT AND RESTORE THE MATTER BACK TO THE FILE OF THE AO. WE DIRECT HIM TO RE- ADJUDICATE THE MATTER AFTER TAKING INTO ACCOUNT ALL THE DETAILS FURNISHED BEFORE HIM WHICH INCLUDES THE CONFIRMATION OF THE CREDITOR S IN WHICH THEIR PERMANENT ACCOUNT IS MENTIONED AND THEIR CAPITAL ACCOUNTS AND BALANCE SHEETS ETC. IF HE REQUIRES ANY FURTHER INFORMATION, HE WILL AGAIN ALL OW OPPORTUNITY TO THE ITA.NO.3871/AHD/2007 -3- ASSESSEE. THEREAFTER, THE AO WILL RE-ADJUDICATE TH E ISSUE IN ACCORDANCE WITH LAW. 5. IN RESULT, THE ASSSESSEES APPEAL IS DEEMED TO B E ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 15 TH OCTOBER, 2010. SD/- SD/- (T.K. SHARMA) JUDICIAL MEMBER (G.D. AGARWAL) VICE-PRESIDENT PLACE : AHMEDABAD DATE : 15-10-2010 COPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD