Sh. Arvind Sood, Ludhiana V. ITO, Ludhiana

ITA 391/CHANDI/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9998 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 19-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K MITTALDR
• Assessee Lawyers: SUBHASH AGGARWAL
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NO. 391/CHD/2016 ASSESSMENT YEAR : 2008-09 SHRI ARVIND SOOD, VS THE ITO, B-1-1276, ST.NO.2, WARD 7(1`), RAJINDER NAGAR, LUDHIANA. LUDHIANA. PAN: AFRPS3931C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUBHASH AGGARW AL RESPONDENT BY : SHRI S.K.MITTAL,DR DATE OF HEARING : 19.05.2016 DATE OF PRONOUNCEMENT : 20.05.2016 O R D E R THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS)-3, LUDHIANA DATED 29.02.2016 FOR ASSESSMENT YEAR 2008-09. 2. THE ASSESSEE IN THIS APPEAL HAS CHALLENGED THE ADDITIONS MADE ON ACCOUNT OF CASH CREDITS IN THE NA MES OF KIRAN SOOD RS.3,44,000/-, RAKSHA SOOD RS. 48,193 /- AND RUPALI SOOD RS. 20,000/-. 3. I HAVE HEARD LD. REPRESENTATIVES OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECOR D. THE LD. COUNSEL FOR THE ASSESSEE DID NOT PRESS THE PART OF GROUND REGARDING CASH CREDIT RECEIVED FROM RAKSH A SOOD AND RUPALI SOOD. THESE GROUNDS OF APPEAL OF T HE 2 ASSESSEE ARE ACCORDINGLY DISMISSED AND ADDITIONS MA DE BY AUTHORITIES BELOW ON ACCOUNT OF CASH CREDIT RECE IVED FROM RAKSHA SOOD AND RUPALI SOOD ARE CONFIRMED. 4. AS REGARDS CASH CREDITS RECEIVED FROM SMT. KIRAN SOOD, THE ASSESSEE HAS RECEIVED RS. 3,44,000/- FROM HER. SINCE ASSESSEE HAS NOT FILED CONFIRMATION BEF ORE ASSESSING OFFICER AND EVEN CREDIT WORTHINESS OF THE CREDITOR WAS NOT PROVED, THEREFORE, ADDITION WAS MA DE ON ACCOUNT OF UNEXPLAINED CREDIT. THE LD. CIT(APPE ALS) NOTED IN HIS FINDINGS THAT SMT. KIRAN SOOD IS WIFE OF THE ASSESSEE. THE AMOUNT OF RS. 3,44,000/- WAS TRANSFER RED FROM HER BANK ACCOUNT WITH PUNJAB NATIONAL BANK, CI VIL LINES, LUDHIANA THROUGH INTER-BANK TRANSFER. SMT. KIRAN SOOD IS INCOME TAX ASSESSEE AND FILED COPY OF ACKNOWLEDGEMENT OF ITR FOR ASSESSMENT YEAR 2008-09 IN WHICH SHE HAS DECLARED TOTAL INCOME OF RS. 1,71,150 /-. THE LOAN HAS BEEN ADVANCED BY HER OUT OF BANK TRANS FER RECEIVED BY HER. IT WAS EXPLAINED BEFORE LD. CIT(AP PEALS) THAT SMT. KIRAN SOOD HAD PURCHASED SHARES ON VARIOU S DATES FOR RS. 3 LACS FROM M/S APOLO SINDHURI CAPITA L INVESTMENT LTD., LUDHIANA AND FOLLOWING AMOUNTS WER E RECEIVED BACK FROM THE PARTY AFTER SALE OF SHARES I .E.; I) 15.11.2007 RS. 2,40,000/- II) 30.11.2007 RS. 1,05,000/- TOTAL RS. 3,45,000/- 3 5. THE LD. CIT(APPEALS), ON THE BASIS OF THESE DOCUMENTS, FOUND THAT THOUGH THE COPY OF THE BANK ACCOUNT IS FILED IN RESPECT OF THESE AMOUNTS RECEIV ED BY HER BUT NO DOCUMENTARY EVIDENCE HAS BEEN FILED FOR SALE AND PURCHASE OF THE SHARES. IN HER AFFIDAVIT ALSO, SHE HAS CLAIMED 'INCOME FROM OTHER SOURCES' BUT DID NO T CLAIM INCOME FROM TRADING OF SHARES THEREFORE, ADDI TION WAS CONFIRMED AND THIS GROUND OF APPEAL WAS DISMISS ED. 6. AFTER CONSIDERING RIVAL SUBMISSIONS, I DO NOT FI ND ANY JUSTIFICATION TO SUSTAIN THE ADDITION. IT IS A DMITTED FACT THAT SMT. KIRAN SOOD IS WIFE OF THE ASSESSEE. SHE IS ASSESSED TO TAX AND FILED COPY OF ACKNOWLEDGEMENT O F HER RETURN OF INCOME BEFORE ASSESSING OFFICER AND H ER PAN NUMBER. SHE HAS FILED HER AFFIDAVIT CON FIRMING THEREIN THAT SHE HAS ADVANCED RS. 3,44,000/- TO HER HUSBAND THROUGH BANKING CHANNEL OUT OF HER SAVINGS. SHE HAS EXPLAINED HER SOURCE OF INCOME AS WELL. CO PY OF THE BANK STATEMENT IS ALSO FILED WHICH SUPPORT THE AFFIDAVIT OF THE CREDITOR IN WHICH SHE HAS SUFFICIE NT BANK BALANCE IN HER BANK ACCOUNT TO ADVANCE RS. 3,44,000 /- TO THE ASSESSEE I.E. HER HUSBAND. MERELY BECAUSE T HE EVIDENCE OF SALE AND PURCHASE OF SHARES WERE NOT FI LED, BY ITSELF IS NO GROUND TO TREAT THE GENUINE CREDIT TO BE NON-GENUINE. THE ASSESSEE HAS FILED SUFFICIENT EVI DENCE BEFORE THE LD. CIT(APPEALS) TO PROVE THE IDENTITY O F HIS WIFE, HER CREDIT WORTHINESS AND GENUINENESS OF THE TRANSACTION IN THE MATTER. THEREFORE, THERE WAS NO 4 JUSTIFICATION TO MAKE ADDITION OF RS. 3,44,000/- CONSIDERING IT TO BE UNEXPLAINED CREDIT. 7. IN VIEW OF THE ABOVE DISCUSSION, I SET ASIDE THE ORDERS OF AUTHORITIES BELOW AND DELETE THE ADDITION OF RS. 3,44,000/- ON ACCOUNT OF CASH CREDIT RECEIVED F ROM SMT. KIRAN SOOD IN A SUM OF RS. 3,44,000/-. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DATED: 20 TH MAY, 2016. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD