Shri Khodabhai Dahyabhai Polara, Surat V. The Income tax Officer,Ward-6(2), Surat

ITA 430/AHD/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2184 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 23-07-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 13-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL
• Assessee Lawyers: D K PARIKH
• Keywords: Income from undisclosed sources
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEM BER SRI KHODABHAI DAHYABHAI POLARA, 246, RAJESHWARY SOCIETY NO. 2, NR. LAXMAN NAGAR, PUNA, SURAT PAN: ASAPP4668D (APPELLANT) VS ITO WARD-6(2), SURAT (RESPONDENT) REVENUE BY: SRI P.L. KUREEL, SR.D.R. ASSESSEE BY: SRI D.K. PARIKH, A.R. DATE OF HEARING : 23-07-2013 DATE OF PRONOUNCEMENT : 23-07-20 13 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-1 SURAT DATED 08-01-2013. ITA NO. 430/AHD/2013 ASSESSMENT YEAR 2008-09 I.T.A NO.430/AHD/2013 A.Y. 2008-09 PAGE N O KHODABHAI DAHYABHAI POLARA VS. ITO 2 2. THE ASSESSEE IN THIS APPEAL IS AGGRIEVED BY THE ACTION OF LD. CIT(A) IN CONFIRMING THE ADDITION OF RS. 2,88,500/- U/S 68 O F THE ACT. THE ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS OBSERVED THAT ASSESSEE HAS TAKEN CASH LOANS FROM FOLLOWING 16 PERSONS. SR. NO. NAME OF PERSON AMOUNT OF LOAN TAKEN BY ASSESSEE 1 DAHYABHAI JIVABHAI POLARA 19,000 2 KADVABHAI MEGHAJIBHAI POLARA 18,500 3 SHIVABHAI MADHAVBHAI VEKARIYA 19,000 4 ASHOKBHAI BAVCHNABHAI BHALALA 10,000 5 ALPESHBHAI DHANJIBHIA POLARA 19,500 6 DHANJIBAI BHAGWANBHAI 19,000 7 ANILBHAI K DHAKECHA 18,000 8 MAHESHBHAI DHANJIBHAI POLARA 19,500 9 MANOJBHAI DHANJIBHAI 19,500 10 ASHWINBHAI BAVCHANDBHAI BHALARA 18,000 11 BHANUBEN KHODABHAI POLARA 19,000 12 DEEPAK A PANSURIYA 19,000 13 KALAVATIBEN D PATEL 15,000 14 KALPESHBHAI SHIVABHAI 18,000 15 PRAVINBHAI BACHANDBHAI 18,500 16 NATHUBHAI LALJIBHAI POLARA 19,000 TOTAL 2,88,500 I.T.A NO.430/AHD/2013 A.Y. 2008-09 PAGE N O KHODABHAI DAHYABHAI POLARA VS. ITO 3 CONFIRMATION IN RESPECT OF THESE CASH LOANS WERE FI LED BY THE ASSESSEE ON 21- 12-2010. THE ASSESSING OFFICER HOWEVER COMPLETED T HE ASSESSMENT ON 31- 12-2010 BY HOLDING THAT AMOUNT OF RS. 2,88,500/- WA S UNACCOUNTED INCOME OF THE ASSESSEE AS THE CREDITWORTHINESS OF THE CRED ITORS HAVE NOT BEEN ESTABLISHED BY THE ASSESSEE. BEFORE LD. CIT(A), TH E CONTENTION OF THE ASSESSEE WAS THAT ASSESSING OFFICER HAS PASSED HIS ORDER IN HURRY WITHOUT MAKING ANY INQUIRES FROM THE CREDITORS DESPITE THE FACT THAT NAME, ADDRESSES, PAN NO. ETC WERE AVAILABLE IN THE CONFIRMATIONS FIL ED BY THE ASSESSEE IN RESPECT OF THESE CASH LOANS. LD. CIT(A) HOWEVER CO NFIRMED THE ACTION OF THE ASSESSING OFFICER. 3. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD, WE ARE OF THE CONSIDERED OPINION THAT BOTH THE LOWER AUTHORITIES HAVE PASSED THE ORDER WITHOUT MAKING ANY INQUIRIES IN RESPECT OF CONFIRMA TIONS FILED BY THE ASSESSEE IN SUPPORT OF CASH LOANS RECEIVED BY HIM F ROM 16 PERSONS. WITHOUT DOING THIS, THEY WERE NOT JUSTIFIED IN HOLDING THAT CREDITORS WERE NOT ABLE TO ESTABLISH THEIR CREDITWORTHINESS. THEREFORE, WE DE EM IT PROPER THAT THE MATTER REQUIRES FRESH ADJUDICATION, AND FOR THIS PU RPOSE THE MATTER IS RESTORED BACK TO THE FILE OF AO TO PASS AN ORDER AFTER VERIF YING THE CONTENTS AVAILABLE TO HIM IN THE CONFIRMATIONS OF THE CASH CREDITORS. IF THE SAME ARE FOUND SATISFACTORY, NO ADDITION IS CALLED FOR U/S. 68 OF THE ACT, AND IF THE SITUATION IS OTHERWISE, THE ASSESSING OFFICER IS FREE TO ACT AS PER LAW. WE HOLD ACCORDINGLY. I.T.A NO.430/AHD/2013 A.Y. 2008-09 PAGE N O KHODABHAI DAHYABHAI POLARA VS. ITO 4 4. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (T.R. MEENA) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 23/07/2013 AK / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. / CONCERNED CIT 4. - / CIT (A) 5. , ! , '# / DR, ITAT, AHMEDABAD 6. $% &' / GUARD FILE. BY ORDER/ , ( / ' ) ! , '#