Shri Sureshbhai Trikamlal Deliwala, Ahmedabad V. The ACIT (OSD), Circle-10, Ahmedabad

ITA 487/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8249 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 01-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRASSON KABRA
• Assessee Lawyers: T P HEMANI
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH SMC BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA NO. 487/AHD/2016 / ASSESSMENT YEAR: 2008-09 SHRI SURESHBHAI TRIKAMAL DELIWALA 45, SHREE NATH PARK SOCIETY NR. MANEKBAUG OCTROI NAKA SATELLITE ROAD AHMEDABAD 380 015. PAN : AEPD 5233 Q VS ACIT (OSD) CIR.10 NARAYAN CHAMBER AHMEDBAD. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI T.P. HEMANI, AR REVENUE BY : SHRI PRASSON KABRA, SR.DR / DATE OF HEARING : 13/04/2018 /DATE OF PRONOUNCEMENT : 10/05/2018 O R D E R PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF ASSES SEE AGAINST ORDER OF LD.CIT(A), AHMEDABAD-5 DATED 29.1.2016 FOR ASSTT .YEAR 2008-09. 2. THOUGH THE ASSESSEE HAS TAKEN SIX GROUNDS OF APP EAL, BUT HIS GRIEVANCE RELATES TO CONFIRMATION OF ADDITION OF RS .10 LAKHS WHICH WAS ADDED WITH HELP OF SECTION 68 OF THE INCOME TAX ACT , 1961. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED HIS RETURN OF INCOME ON 24.10.2008 DECLARING TOTAL INCOME AT RS.1 0,79,580/-. ON SCRUTINY OF THE ACCOUNTS IT REVEALED TO THE AO THAT A SUM OF RS.10 LAKHS ITA NO.487/AHD/2016 - 2 - WAS DEPOSITED IN THE ACCOUNTS OF THE ASSESSEE. HE DIRECTED THE ASSESSEE TO EXPLAIN SOURCE OF SUCH DEPOSITS. THE ASSESSEE C ONTENDED THAT HE HAS SOLD A FLAT AT OMSURYA APARTMENTS, AHMEDABAD FOR A CONSIDERATION OF RS.17.01 LAKHS. HE RECEIVED A SUM OF RS.10 LAKHS V IDE CHEQUE NO.344698 DRAWN IN UNION BANK OF INDIA IN THE MONTH OF APRIL, 2007. THE ASSESSEE FURTHER CONTENDED THAT SALE DEED WAS EXECUTED ON 4. 4.2007. THIS AMOUNT OF CHEQUE HAS BEEN SPECIFICALLY MENTIONED IN SALE D EED. IN OTHER WORDS, A SUM OF RS.10 LAKHS WAS GIVEN TO THE ASSESSEE THRO UGH ACCOUNT PAYEE CHEQUE BEARING NO.344698 DATED 5.4.2007. THIS ENTR Y IS BEING APPEARED IN THE BANK STATEMENT AS WELL AS LEDGER ACCOUNT OF THE ASSESSEE. THE LD.AO HAS OBSERVED THAT IN RE-ASSESSMENT PROCEEDING S THE ASSESSEE TOOK A PLEA THAT HIS BALANCE SHEET ALONG WITH ORIGINAL R ETURN WAS NOT CORRECT. THIS FACT COULD NOT BE ACCEPTED. IF THE ASSESSEE H AS RECEIVED ADVANCE FOR SALE OF PROPERTY THEN THERE SHOULD BE A PROPERTY IN THE BALANCE SHEET, WHICH THE ASSESSEE HAS NOT SHOWN. ACCORDINGLY, HE CONSTRUED IT AS UNEXPLAINED CASH CREDIT. 4. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, I HAVE GONE THROUGH THE RECORD CAREFULLY. ACCORDING TO THE ASSESSEE, HE HAS SOLD THE FLAT ON 15..2008 I.E. ASSTT.YEAR 2009-10. HE HAS DECLARED A CAPITAL GAIN OF RS.5,00,196/-. A SUM OF RS.10 LAKHS HAS BEEN RECEI VED FROM SMT.DAXABEN SHAH. IT HAS BEEN SHOWN IN THE LEDGER ACCOUNT. THIS FACT CAN BE VERIFIED FROM THE EXTRACT OF THE BANK STATEM ENT. THE AO IS DISPUTING THIS FACT ON THE BASIS OF BALANCE SHEET S UBMITTED BY THE ASSESSEE RELEVANT TO THE ASSTT.YEAR 2008-09. HOWEV ER, HE COULD NOT DISPUTE THE SALE DEED WHEREIN ASSESSEE HAS SHOWN AS A VENDOR AND HE RECEIVED RS.10 LAKHS AS ADVANCE THROUGH ACCOUNT PAY EE CHEQUE. THE DEPARTMENT HAS ACCEPTED CAPITAL GAIN ASSESSABLE IN THE HANDS OF THE ITA NO.487/AHD/2016 - 3 - ASSESSEE ON SALE OF THIS FLAT. IF THAT BE SO, THEN AMOUNT WHICH HAS BEEN RECEIVED BY THE ASSESSEE THROUGH ACCOUNT PAYEE CHEQ UE, AND REFLECTED IN THE SALE DEED CANNOT BE DOUBTED. THE ASSESSEE HAS EXPLAINED SOURCE OF RS.10 LAKHS, ACCORDINGLY, THIS ADDITION IS NOT ASSE SSABLE IN THE HANDS OF THE ASSESSEE. I ALLOW THIS GROUND OF APPEAL, AND D ELETE THE ADDITION. 5. NO OTHER GROUNDS ARE PRESSED. ACCORDINGLY, ALL OTHER GROUNDS ARE REJECTED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON 10 TH MAY, 2018. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED, 10/05/2018