RAJENDRA KHIVRAJ MUTHA, PUNE V. DCIT CIRCLE 9, PUNE

ITA 42/PUN/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 0412 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-10-2022
• Assessment Year: 2011-2012
• Appeal Filed On: 09-01-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘B’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.42/PUN/2020 नधा रण वष / Assessment Year : 2011-12 Rajendra Khivraj Mutha, A-2, 19/20, Shantiban Society, Chinchwad, Pune 411 033 Maharashtra PAN : ABAPM0270H Vs. DCIT, Circle-9, Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order dated 26-06-2019 passed by the CIT(A)-9, Pune in relation to the assessment year 2011-12. 2. The only issue raised in this appeal is against the confirmation of addition of Rs.10.00 lakh made by the Assessing Officer (AO) u/s.68 of the Act. 3. Briefly stated, the facts of the case are that the assessee has been running Medical stores. During the course of assessment proceedings, the AO observed that the assessee declared to have Assessee by Shri Mahavir Jain Revenue by Shri M.G. Jasnani Date of hearing 17-10-2022 Date of pronouncement 18-10-2022 ITA No.42/PUN/2020 Rajendra Khivraj Mutha 2 received loan from certain parties, including, Rs.10.00 lakh from Sh. Sanjay Pandhare. He observed that the assessee paid commission of Rs.11.03 lakh to this person who was working on commission basis. As per the statement, gross receipts of Sh Sanjay Pandhare were Rs.14.92 lakh. After making investment and expenditure at Rs.6.06 lakh, he was left with net income of Rs.8.86 lakh. The AO refused to accept the genuineness of the loan of Rs.10.00 lakh. The ld. CIT(A) upheld the assessment order on this point, against which the assessee has approached the Tribunal. 4. After considering the rival submissions and gone through the relevant material on record, it is seen that Sh Sanjay Pandhare was working with the assessee on regular basis. Commission amounting to Rs.11.03 lakh was paid by the assessee to this person for the year under consideration. Sh Sanjay Pandhare had total income of Rs.14.94 lakh. The assessee is claiming to have received a loan of Rs.10.00 from his own employee to whom annual income of Rs.11.03 lakh was given. We are completely at a loss to appreciate the view point of the assessee in recording loan from his own employee and that too which covers about 90% of his annual salary paid by him. Not only the capacity of the ITA No.42/PUN/2020 Rajendra Khivraj Mutha 3 creditor but the genuineness of the transaction is also clouded. Under these circumstances, we hold that the assessee failed to discharge the onus cast upon him to prove the genuineness of the transaction. The authorities below were justified in making and sustaining the addition. 5. In the result, the appeal is dismissed. Order pronounced in the Open Court on 18 th day of October, 2022. Sd/- Sd/- ( S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 18 th October, 2022 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. The CIT(A)-9, Pune 4. 5. The Pr. CIT-5, Pune DR, ITAT, ‘B’ Bench, Pune 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.42/PUN/2020 Rajendra Khivraj Mutha 4 Date 1. Draft dictated on 17-10-2022 Sr.PS 2. Draft placed before author 18-10-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *