SHRI LALCHAND MANWANI, Bhopal V. THE ITO 3(1), Bhopal

ITA 425/IND/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5868 (ITAT-INDORE)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 05-06-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: A K RINWA
• Section: 131; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO. 425/IND/2015 A.Y. : 2009-10. SHRI LALCHAND MANWANI, ITO BHOPAL VS. 3(1), BHOPAL APPELLANT RESPONDENT PAN NO. AFXPM0855P APPELLANTS BY : SHRI A.K.RINWA, ADV. RESPONDENT BY : SHRI R. A. VERMA, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A), BHOPAL-2 DATED 17.03.2015 FOR THE ASSESS MENT YEAR 2009-10. DATE OF HEARING : 15 . 12 .201 5 DATE OF PRONOUNCEMENT : 19 .01.2016 SHRI LALCHAND MANWANI, BHOPAL VS. ITO, 3(1), BHOPAL I.T.A.NO. 425/IND/2015 A.Y. 2009-10 2 2 2. THE ONLY GROUND TAKEN BY THE ASSESSEE READS AS UNDE R :- THAT THE ADDITION OF RS. 5 LACS MADE U/S 69 OF THE INCOME-TAX ACT (PARA NO. 6 OF THE ASSESSMENT ORDER ) AND THE CONFIRMED BY THE LD. CIT(A) FOR UNSECURED LOAN OBTAINED FROM SHRI OM PRAKASH PANDIT BE HELD TO BE BAD AND UNJUSTIFIED AND BE DELETED. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S PROPRIETOR OF M/S. LALCHAND TARA HAND AND IS ENGAGE D IN THE BUSINESS OF WHOLESALE AND RETAIL TRADING OF GRAINS, SUGAR, OILS, PULSES AND FLOUR. RETURN HAS BEEN FILED ON 29.09.20 09 DECLARING INCOME OF RS. 3,99,840/-FROM TURNOVER OF RS. 7,77,28,536/-. DURING THE YEAR, THE ASSESSEE HAS TA KEN UNSECURED LOAN OF RS. 5 LACS FROM SHRI OM PANDIT. T HE ASSESSEE WAS ASKED TO FURNISH THE CONFIRMATION, COP Y OF ITR AND BANK STATEMENT IN RESPECT OF UNSECURED LOANS OF RS 5 LACS TAKEN FROM SHRI OM PANDIT. THE ASSESSEE HAS FILED T HE CONFIRMATION OF SHRI OM PANDIT THAT HE HAS GIVEN LO AN OF RS. 5 SHRI LALCHAND MANWANI, BHOPAL VS. ITO, 3(1), BHOPAL I.T.A.NO. 425/IND/2015 A.Y. 2009-10 3 3 BY ACCOUNT PAYEE CHEQUE NO. 36948 DATED 14.10.2008 DRAWN ON HIS S. B. ACCOUNT NO. HSS04009 WITH CENTRAL BANK OF INDIA. HOWEVER, NO PAN NO. AND COPY OF I.T.R. AND B ANK STATEMENT WERE FILED. THE ASSESSEE WAS AGAIN ASKED TO FURNISH THE COPY OF ITR AND BANK STATEMENT OF UNSECURED CR EDITOR. SHRI OM PANDIT IN HIS EXPLANATION HAS SUBMITTED THA T HE IS A FARMER AND HE WAS HAVING AGRICULTURAL INCOME AND HE HAS NOT FILED RETURN OF INCOME. THEREAFTER, THE AO HAS SUMM ONED U/S 131 ON OM PANDIT ON HIS GIVEN ADDRESS, BUT ON THAT DAY SHRI OM PANDIT DID NOT APPEAR AND NOT FILED ANY REPLY. T HEREFORE, THE AO HELD THAT THE ASSESSEE FAILED TO DISCHARGE T HE ONUS OF PROVING, IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. THEREFORE, STATEMENT OF THE ASSESSEE T HAT HE HAS TAKEN LOAN BY CHEQUE CANNOT BE ACCEPTED AS A SOLE P ROOF OF LOAN TAKEN FOR WANT OF IDENTITY AND CREDITWORTHINES S OF SHRI OM PANDIT. THE LOAN RECEIVED BY CHEQUE IS NOT IN IT SELF A COMPLETE EVIDENCE OF LOAN TAKEN. IF THE CREDITOR SH RI OM PANDIT IS A FARMER AND WAS REALLY RECEIVING INCOME FROM AG RICULTURE, HE SHOULD HAVE DEPOSITED THE AGRICULTURAL INCOME YE AR BY YEAR, SHRI LALCHAND MANWANI, BHOPAL VS. ITO, 3(1), BHOPAL I.T.A.NO. 425/IND/2015 A.Y. 2009-10 4 4 BUT NO EVIDENCE WAS SUBMITTED. THEREFORE, THE AO MA DE THE ADDITION. 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS CONFIRMED THE ADDITION. 5. THE LD. AUTHORIZED REPRESENTATIVE RELIED UPON THE SUBMISSION FILED BEFORE THE CIT(A) AND SUBMITTED TH AT THE ASSESSEE HAS RECEIVED UNSECURED LOAN OF RS. 5 LACS FROM SHRI OM PANDIT THROUGH ACCOUNT PAYEE CHEQUE NO. 36948 DA TED 14.10.2008 FROM HIS S.B. ACCOUNT NO. HSS04009 WITH CENTRAL BANK OF INDIA, BAIRAGARH. THE CONFIRMATION OF LOAN WAS FILED ON RECORD BY THE ITO. COPY OF RETURN WAS NOT FILED AND BANK STATEMENT WAS ALSO NOT FILED. FROM THE BANK STATEME NT, IT WAS FOUND THAT THE ASSESSEE HAD MADE THE TRANSACTION. T HEREFORE, THE ASSESSEE HAS DISCHARGED THE INITIAL BURDEN FOR PROVING THE LOAN BY SUBMITTING THE CONFIRMATION LETTER FROM SHR I OM PANDIT, WHICH STATED HE HAS GIVEN THE LOAN THROUGH ACCOUNT PAYEE CHEQUE. IF THE CREDITOR DID NOT TURN UP, THE ASSESSEE CANNOT BE PUNISHED. SHRI LALCHAND MANWANI, BHOPAL VS. ITO, 3(1), BHOPAL I.T.A.NO. 425/IND/2015 A.Y. 2009-10 5 5 6. THE LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIE S BELOW. 7. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PART IES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT THE ASSESSEE HAS GIVEN THE EVIDENCE AND FILED ONLY CONFIRMATION LETTER OF SHRI OM PANDIT ON PLAIN PAPE R OF PIECE. DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASS ESSEE HAS FILED THE BANK STATEMENT OF ONE SHRI OM PANDIT WITH OUT ANY APPLICATION UNDER RULE 46A. THE SAID BANK STATEMENT WAS NEITHER SIGNED NOR STAMPED BY ANY BANK AUTHORITIES. THE ASSESSEE WAS ASKED TO PRODUCE ALLEGED CREDITOR SHRI OM PANDIT, HIS BANK ACCOUNT, COPY OF INCOME TAX RETURN S AND EVIDENCE FOR SOURCE OF INCOME. THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE CREDITOR COULD NO T BE CONTACTED ON HIS ADDRESS. THE BANK STATEMENT WAS AL SO NOT AVAILABLE. THEREFORE, THE LD. CIT(A) HAS CONFIRMED THE ADDITION. I FIND THAT IT IS WELL SETTLED PRINCIPLE THAT HEAVY BURDEN LAYS UPON THE ASSESSEE TO PROVE BY SUBMITTING ACCEPTABLE EVIDENCE, IDENTITY AND CREDITWORTHINESS OF LENDER ALONGWITH G ENUINENESS SHRI LALCHAND MANWANI, BHOPAL VS. ITO, 3(1), BHOPAL I.T.A.NO. 425/IND/2015 A.Y. 2009-10 6 6 OF THE TRANSACTION. I FIND THAT BY MERELY PAYING MO NEY AND RECEIVING THE SAME BY CHEQUE DOES NOT MAKE TRANSACT ION SACROSANCT. I UPHOLD THE ACTION OF LD. CIT(A) AND C ONFIRM THE ADDITION. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMIS SED. 9. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT O N 19 TH JANUARY, 2016. SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 19 TH JANUARY, 2016. CPU*