SHRI MURLI MANOHAR GUPTA, Kota V. ITO, Kota

ITA 481/JPR/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5178 (ITAT-JAIPUR)
• Duration Of Justice: 4 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-11-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 16-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAGHUVEER SINGH DAGUR CIT DHK
• Assessee Lawyers: S S GOGRA; SUNIL KUMAR GOGRA
• Keywords: Unexplained cash credit; Unexplained investment
• Section: 147; 68; 144

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 481/JP/2012 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2006-07. SHRI MURLI MANOHAR GUPTA, S/O SHRI BAL CHAND GUPTA, 1523-A, R.K. PURAM, KOTA. CUKE VS. THE INCOME TAX OFFICER, WARD 2(2), KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AFBPG 5438 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI S.S. GOGRA, ADVOCATE & SHRI SUNIL KUMAR GOGRA, CA. JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAGHUVEER SINGH DAGUR (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 16.06.2016. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 21/06/2016. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THE APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORD ER OF LD. CIT (APPEALS), KOTA DATED 27.03.2012 PERTAINING TO ASSESSMENT YEAR 2006-07. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. THAT THE LEARNED AO GROSSLY ERRED ON LAW AND FACTS IN TAKING ACTION U/S 147/148 AND THE LEARNED CIT (APPEALS) HAS ALSO GROSSLY ERRED IN UPHOLDING THE SAME. 2. THAT THE LEARNED AO GROSSLY ERRED ON LAW AND FACTS IN COMPLETING THE ASSESSMENT U/S 144 (THOUGH THE ASSESSEE FILED T HE RETURN, PAPERS, PRODUCED BOOKS OF ACCOUNTS ETC.) AND THE LE ARNED CIT (APPEALS) HAS ALSO GROSSLY ERRED IN UPHOLDING THE S AME, HENCE THE ASSESSMENT SHOULD BE HELD NULL AND AVOID. 2 ITA NO. 481/JP/2012 SHRIMURLI MANOHAR GUPTA 3. THAT THE LEARNED CIT (A) GROSSLY ERRED ON LAW AND F ACTS BY SUSTAINING THE ADDITION ON ACCOUNT OF INCOME FROM U NDISCLOSED SOURCES OF RS. 18,00,000/-. THE ASSESSEE BORROWED T HIS AMOUNT FROM BATHLA & CO. (AOP) IN WHICH HE WAS ALSO ONE OF THE MEMBERS. THE LD. AO MADE ADDITION OF RS. 25.00 LACS WHICH WA S PARTLY REDUCED BY LD. CIT (A). 4. THAT THE LEARNED AO GROSSLY ERRED IN LAW AND FACTS IN DISALLOWING THE INTEREST PAID ON LOAN TAKEN FOR HOUSE CONSTRUCT IONS WHICH IS PERMISSIBLE DEDUCTION U/S 24(1)(VI) OF THE I.T. ACT AND THE LEARNED CIT (APPEALS) HAS ALSO GROSSLY ERRED IN SUSTAINING SAID ADDITION OF RS. 56,672/-. 2. BRIEFLY STATED THE FACTS ARE THAT CASE OF THE AS SESSEE WAS RE-OPENED AND THE ASSESSMENT UNDER SECTION 147 READ WITH SECTION 144 OF THE IT ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 16 TH DECEMBER, 2008. WHILE FRAMING THE ASSESSMENT, THE AO MADE ADDITION OF RS. 25.00 LACS ON ACCOUNT OF UNEXPLAINED CASH CREDITS U/S 68 OF THE ACT, DISALLO WANCE OF CONSULTANCY FEES RS.23,870/-, DISALLOWANCE OF DEDUCTION IN RESPECT O F HOUSE PROPERTY INCOME RS. 57,672/-, UNEXPLAINED INVESTMENT IN CONSTRUCTION OF HOUSE RS. 62,678/-, APART FROM ADHOC ADDITION ON ACCOUNT OF LOW HOUSEHOLD WITHDRAW AL RS.49,113/-. ASSESSEE AGGRIEVED BY THIS ORDER, FILED APPEAL BEFORE LD. CI T (A), WHO AFTER CONSIDERING THE SUBMISSIONS PARTLY ALLOWED THE APPEAL. 3. DURING THE COURSE OF HEARING, LEARNED COUNSEL FO R THE ASSESSEE SUBMITTED THAT HE WISH TO MAKE SUBMISSION ON THE GROUND RELATED TO ADDITION OF RS. 25.00 LACS WHICH WAS REDUCED TO RS. 18.00 LACS BY THE LEARNED CIT (A). THE LD. COUNSEL SUBMITTED THAT LD. CIT (A) ACCEPTED THE LOAN CLAIME D FROM THREE PARTIES AND HENCE REDUCED THE ADDITION FROM RS. 25.00 LACS TO RS. 18. 00 LACS GIVING RELIEF OF RS. 7.00 LACS. THE LD. COUNSEL FURTHER SUBMITTED THAT THE AS SESSEE HAD FURNISHED AFFIDAVIT 3 ITA NO. 481/JP/2012 SHRIMURLI MANOHAR GUPTA BEFORE LD. CIT (A) AND OTHER AFFIDAVITS FROM ALL TH E AOP MEMBERS WHICH ARE ENCLOSED WITH THE PAPER BOOK. THE LD. COUNSEL SUBMITTED THAT LET THIS ISSUE BE RESTORED BACK TO THE FILE OF THE AO FOR VERIFICATION AND DECISION AFRESH. ON THE STATEMENT OF LD. COUNSEL FOR THE ASSESSEE, THE OTHER GROUNDS I.E. GR OUND NO. 1, 2, 4 & 5 ARE NOT BEING ADJUDICATED. THE SAME ARE TREATED AS NOT PRESSED. 4. APROPOS GROUND NO. 3, THE CONTENTION OF LD. COUN SEL FOR THE ASSESSEE IS THAT THE ASSESSEE HAS FURNISHED CERTAIN AFFIDAVITS. HE D REW OUR ATTENTION TO PAGES 10 TO 27 OF THE PAPER BOOK WHEREIN COPIES OF THE AFFIDAVI TS ARE ENCLOSED. 4.1. THE LD. D/R HAS SUPPORTED THE ORDERS OF THE AU THORITIES BELOW. HOWEVER, HE HAS NO OBJECTION IF THE ISSUE OF ADDITION OF RS. 18 .00 LACS IS RESTORED BACK TO THE FILE OF THE AO FOR DECISION AFRESH. 4.2. THEREFORE, AFTER CONSIDERING THE TOTALITY OF F ACTS, WE ARE OF THE CONSIDERED VIEW THAT THE VERACITY OF THE STATEMENT MADE IN THE AFFIDAVITS REQUIRES VERIFICATION AND IN THE INTEREST OF JUSTICE, THIS GROUND IS REST ORED TO THE FILE OF THE AO AND THE ORDER OF LD. CIT (A) IS SET ASIDE ON THIS ISSUE TO THE EXTENT OF CONFIRMATION OF ADDITION OF RS. 18.00 LACS AS THE REVENUE HAS NOT FILED ANY CROSS APPEAL AGAINST THE RELIEF GRANTED BY LD. CIT (A). THE AO IS DIRECTED TO DECI DE THE ISSUE AFTER VERIFYING THE CONTENTS OF THE AFFIDAVIT, GENUINENESS OF THE TRANS ACTION, CREDITWORTHINESS OF THE CREDITORS AND AFTER CONSIDERING THE REQUISITE DETAI LS AS MAY BE SOUGHT BY HIM. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21/06/2016 . SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) 4 ITA NO. 481/JP/2012 SHRIMURLI MANOHAR GUPTA YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LN L;@ JUDICIAL MEMBER JAIPUR DATED:- 21/06/2016. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SHRI MURLI MANOHAR GUPTA, KOTA. 2. THE RESPONDENT- THE ITO WARD 2(2), KOTA. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 481/JP/2012) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR