SACHIN SAWANT, MUMBAI V. INCOME TAX OFFICER WARD 3(3), THANE

ITA 4754/MUM/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8708 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 06-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: IN CIRCUMSTANCES OF CA SE; JUSTICE TO BE GIVEN TO YOUR
• Keywords: Unexplained cash credit
• Section: 69C; 142(1); 143(1); 201; 143(2); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA , AM AND SHRI AMARJIT SINGH, JM / I.T.A. NO. 475 4 /MUM/201 8 ( / ASSESSMENT YEAR: 20 13 - 1 4 ) SACHIN SAWANT 903, RATNA UMED RESIDENCY CHS, PIPELINE ROAD, LOUIS WADI, THANE, MAHARASHTRA - 400604 . / VS. ITO, WARD 3(3) ASHAR IT PARK, 6 TH FLOOR, BZ, WAGLE ESTATE THANE, MAHARASHTRA - 400604. ./ ./ PAN/GIR NO. : AXDPS3077R ( / APPELLANT ) .. ( / RESPONDENT ) / DATE OF HEARING: 03 / 0 9 / 201 9 /DATE OF PRONOUNCEMENT: 12 / 09 / 201 9 / O R D E R PER AMARJIT SINGH, JM: THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE ORDER DATED 26 . 0 4 .201 8 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 2 , PUNE [HEREINAFTE R REFERRED TO AS THE CIT(A)] RELEVANT TO THE A.Y. 20 13 - 14 . 2 . THE ASSESSEE H AS RAISED THE FOLLOWING GROUNDS: - 1. 1. 1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN THE LAW THE ASSESSING OFFICER ERRE D IN MAKING ADDITION OF RS.8,07, 000/ AS UNEXPLAINED CASH CREDIT U/S 68 OF IT ACT. 2 THE LEARNED ASSESSING OFFICER FAILED TO TAKE COGNISANCE OF THE DOCUMENTARY EVIDENCES PLACED BEFORE HIM AND MADE ADDITION WITH A PREJUDICED MIND. 3. IT IS THEREFORE PRAYED THAT THE ADDITION BE DELETED AND JUSTICE TO BE GIVEN TO YOUR APPELLANT. ASSESSEE BY : NONE REVENUE BY: SHRI CHAITANYA ANJARIA (DR) ITA NO. 475 4 / M/201 8 A.Y.20 13 - 14 2 2. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN THE LAW THE ASSESSING OFFICER ERRED IN MAKING DISALLOWAN CE OF THE INTEREST OF RS.96,840/ - . 2.THE LEARNED ASSESSING OFFICER DISALLOWED THE INTEREST WITH A PREJUDICED MIND WITHOUT CONSIDERING THE FACT THAT THE SAID LOANS WERE OBTAINED IN MARCH O NLY. 3. IT IS THEREFORE PRAYED THAT THE ADDITION BE DELETED AND JUSTICE TO BE GIVEN TO YOUR APPELLANT. 4. THE APPELLANT CRAVES LEAVE TO ADDALTER OR AMEND ANY OF TE ABOVE FACTS/GROUNDS OF APPEAL. 3 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED H IS RETURN OF INCOME ON 18 .0 9 .20 1 3 DECLARING TO TAL INCOME TO THE TUNE OF RS .11,44,190 / - FOR THE A.Y. 2013 - 1 4 . T HE RETURN WAS PROCESSED U/S 143(1) OF THE I.T. ACT, 1961. THE CASE WAS SELECTED FOR SCRUTINY, THEREFORE, NOTICES U/S 143(2) & 142(1) OF THE ACT WER E ISSUED AND SERVED UPON THE ASSESSEE . ON VERIFICATION, IT WAS OBSERVED THAT THE ASSESSEE HAS TAKEN THE LOAN FROM THE FOLLOWING PARTIES: - (I) BHAGWANT (HUF): - CASH DEPOSITED FOR RS.1,15,000/ - 23.03.2013 AND CHEQUE OF RS.2,00,000/ - ISSUED TO ASSESSEE ON 2 3.03.2013 AS LOAN. (II) SHRIMANT JADHAV (HUF): - CASH DEPOSITED FOR RS.21,300+53,700/ - ON 22.03.2013 AND RS.1,35,000/ - ON 28.03.2013 AND CHEQUE ISSUED TO ASSESSEE FOR 2,15,000/ - ON 28.03.2013 AS LOAN. (III) ANKUSH JADHAV (HUF): - CASH DEPOSITED FOR RS.82,000 / - ON 22.03.2013 AND INTEREST RECEIPT OF RS.1,40,000/ - FROM THE ASSESSEE RECEIVED ON 22.03.2013 AND CHEQUE GIVEN FOR 2,25,000/ - TO ASSESSEE AN 28.03.2013 AS LOAN. ITA NO. 475 4 / M/201 8 A.Y.20 13 - 14 3 (IV) UTTAMRAO MAHADEV NADE (HUF): - CASH DEPOSITED FOR RS.1,80,000/ - ON 22.03.2013 AND RS.1,20 ,000/ - ON 28.03.2013 AND CHEQUE ISSUED TO ASSESSEE FOR RS.3,10,000/ - ON 28.03.2013 AS LOAN. 4. THE ASSESSEE ASKED TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION BUT THE ASSESS EE FAILED TO PROVE THE IDENTITY CREDIT WORTHINESS AND GENUINENESS OF THE CREDITORS OF LOAN IN SUM OF RS.2,00,000/ - IN THE CASE OF BHAGWANT, RS.2,15,000/ - IN THE CASE OF SHRIMANT JADHAV, RS.82,000/ - IN THE CASE OF ANKUSH JADHAV AND RS.3,10,000/ - IN THE CASE OF UTTAMRAO MAHADEV NADE . THE TOTAL AMOUNT TO THE TU NE OF RS.8,07,000/ - . THE SAID LOAN WAS TREATED AS UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT AND ACCORDINGLY THE INTEREST @ 12% WAS DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. THE TOTAL INCOME OF THE ASSESSEE WAS ASSESSED TO THE TUNE OF RS.20,48,030 / - . FEELING AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) WHO DISMISSED THE APPEAL OF THE ASSESSEE, THEREFORE , THE ASSESSEE HAS FILED THE PRESENT APPEAL BEFORE US . 5 . WE HAVE HEARD THE ARGUMENT ADVANCED BY THE LD. REPRESENTATIVE OF THE PARTIES AND PERUSED THE RECORD. WE NOTICED THAT THE ASSESSEE HAS DULY DISCLOSED THE IDENTITY OF THE BHAGWANT (HUF), SHRIMANT JADHAV (HUF), ANKUSH JADHAV(HUF) & UTTAMRAO MAHADEV NADE(HUF) . THE LOAN WAS TAKEN THROUGH CHEQUES. THE AO NOWHERE CONDUCTED ANY ENQUIRY FRO M THE CREDITORS . NO NOTICE TO THE CREDITORS OF ANY KIND WAS ISSUED. THE AMOUNT WAS DEPOSITED WITH THE HUF AND WITHDRAWN FROM THE ACCOUNT OF HUF. NOTHING CAME INTO NOTICE THAT WHO DEPOSITED THE AMOUNT BUT UNDOUBTEDLY, THE LOAN WAS GIVEN THROUGH CHEQUES. SO FAR AS THE DEPOSITS ARE CONCERNED THE SAME NOWHERE MATCH THE FIGURE OF THE LOAN AMOUNT TAKEN BY ASSESSEE.IN ALL THE CASES, THERE WAS LESS DEPOSIT AND THE LOAN WAS GIVEN MORE. IT CANNOT BE SAID THAT THE ASSESSEE DEPOSITED HIS OWN FUND WHO T OOK THE LOAN FROM THE ITA NO. 475 4 / M/201 8 A.Y.20 13 - 14 4 CREDITORS . N O WITHDRAWAL OF THE ASSESSEE IS O N THE RECORD. WE NOWHERE FOUND ANY COGENT AND CONVINCING REASON TO DISALLOW THE CREDIT AND TO TREAT THE INCOME OF THE ASSESSEE U/S 69C OF THE ACT SPECIFICALLY IN THE CIRCUMSTANCES, WHEN THE IDENTITY HAS DUL Y BEEN DISCLOSED AND TRANSACTION WAS EFFECTED THROUGH BANKING CHANNEL SO GENUINENESS IS NOT IN DISPUTE. DOUBT OF THE CREDITWORTHINESS IS NOWHERE ON RECORD. TAKING INTO ACCOUNT ALL THE FACTS AND CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE ADDITION RAISED B Y THE AO IS NOT SUSTAINABLE IN THE ACCORDANCE WITH LAW, THEREFORE, WE DELETE THE ADDITION AND ACCORDINGLY NO INTEREST CAN BE CHARGED. ACCORDINGLY, THESE ISSUE S ARE DECIDED IN FAVOUR OF THE ASSESSEE AGAINST THE REVENUE. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS HEREBY ORDERED TO BE ALLOWED ACCORDINGLY . ORDER PRONOUNCED IN THE OPEN COURT ON 12 /09 /2019 . SD/ - SD/ - ( SHAMIM YAHYA ) (AMARJIT SINGH) / ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI; DATED : 12 /09 /2019 V IJAY SR. P.S. ITA NO. 475 4 / M/201 8 A.Y.20 13 - 14 5 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY// (SR. PRIVATE SECRETARY) , / ITAT, MUMBAI