Shri Bhagwandas Kalra, Indore V. The ITO 1(1), Indore

ITA 508/IND/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2974 (ITAT-INDORE)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-05-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 13-09-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Keywords: Income from undisclosed sources
• Section: 131

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 508/IND/2012 A.Y. 2002-03 BHAGWANDAS KALRA, INDORE PAN AIEPK 7724 P :: APPELLANT VS ITO-1(1), INDORE :: RESPONDENT APPELLANT BY SHRI MANJEET SACHDEVA AND SHRI AVINASH GAUR RESPONDENT BY SHRI R .A. VERMA DATE OF HEARING 1 4 .5.2013 DATE OF PRONOUNCEMENT 1 4 .5.2013 O R D E R PER JOGINDER SINGH, JUDICIAL MEMBER THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER D ATED 22.3.2012, PASSED BY THE LD. COMMISSIONER OF INCOME TAX(APPEALS)- II, INDORE. 2 2. DURING HEARING OF THIS APPEAL, WE HAVE HEARD SH RI MANJEET SACHDEVA ALONG WITH SHRI AVINASH GAUR, LEARNED COUN SEL FOR THE ASSESSEE AND SHRI R.A. VERMA, LD. SR. DR. THE GROUN D NO.6, IN THE GROUNDS OF APPEAL, REGARDING CONFIRMING THE ADDITIO N OF RS.1,88,000/- MADE ON ACCOUNT OF DEPOSITS FROM TENA NTS AND TREATING THE SAME AS INCOME FROM UNDISCLOSED SOURCE S OF THE ASSESSEE WAS NOT PRESSED BY THE LEARNED COUNSEL FOR THE ASSESSEE, THEREFORE, THIS GROUND IS DISMISSED AS NOT PRESSED. 3. GROUND NOS.1 TO 3 PERTAIN TO CONFIRMING ADDITION OF RS.1,25,000/- FROM SHRI DEVIDAS KRIPLANI AND RS.25, 000/- FROM SMT. HARDEVI BAI AS INCOME FROM UNDISCLOSED SOURCES . IT WAS CONTENDED BY THE LEARNED COUNSEL FOR THE ASSESSEE T HAT THE CREDITOR SHRI DEVIDAS KRIPLANI APPEARED BEFORE THE ASSESSING OFFICER AND DEPOSED THAT HE WAS RUNNING A KIRANA SHOP FOR THE L AST 40-50 YEARS AND THUS, THE AMOUNT WAS OUT OF PAST SAVINGS. SHRI DEVIDAS KRIPLANI WAS EXPLAINED TO BE GURUBHAI OF THE ASSESS EE. IT WAS ALSO PLEADED THAT OUT OF VARIOUS CASH CREDITS, CONFIRMAT ION LETTERS FROM SO MANY PERSONS WERE ACCEPTED BY THE LD. ASSESSING OFFICER AND 3 SUCH CREDITORS APPEARED BEFORE HIM PURSUANT TO SUMM ONS ISSUED U/S 131 OF THE ACT BY THE ASSESSING OFFICER. 3.1 SO FAR AS THE ADDITION OF RS.25,000/- IS CONCER NED, THIS MONEY WAS EXPLAINED TO BE ADVANCED BY ONE SMT. HARDEVI BA I. SUMMONS WERE ISSUED TO HER BY THE ASSESSING OFFICER BUT DUE TO ILL HEALTH, SHE COULD NOT APPEAR. HOWEVER, HER HUSBAND ATTENDED ON HER BEHALF, WHO EXPLAINED THE SOURCE OF THE IMPUGNED ADDITION O F RS.25,000/-. HOWEVER, THE LD. SR. DR DEFENDED THE ADDITION BY SU BMITTING THAT THE CAPACITY OF THESE CREDITORS WAS UNDER DOUBT. 3.2 THE FACTS, IN BRIEF, ARE THAT THE LD. ASSESSING OFFICER MADE THE ADDITION OF THE AFORESAID AMOUNTS AS INCOME OF THE ASSESSEE. HOWEVER, RIGHT FROM THE ASSESSMENT STAGE, WE FIND T HAT THE ASSESSEE HAD BEEN TAKING THIS PLEA THAT SHRI KEVIDAS KRIPLAN I WAS RUNNING A KIRANA SHOP FOR THE LAST 40-50 YEARS AND PURSUANT T O SUMMONS, HE DULY APPEARED BEFORE THE LD. ASSESSING OFFICER AND CONFIRMED THAT THE IMPUGNED AMOUNT WAS GIVEN TO THE ASSESSEE. LIKE WISE, THE HUSBAND OF SMT. HARDEVI BAI ATTENDED THE PROCEEDING S BEFORE THE LD. ASSESSING OFFICER, CONFIRMING OF GIVING THE AMO UNT TO THE ASSESSEE. WE FURTHER FIND THAT THE IMPUGNED ADDITIO NS HAVE BEEN 4 MADE BY THE LD. ASSESSING OFFICER WITHOUT ASSIGNING ANY VALID REASON, IGNORING THE FACTUM OF CONFIRMATIONS AND OT HER ATTENDED CIRCUMSTANCES, THEREFORE, WE FIND FORCE IN THE CLAI M OF THE ASSESSEE, CONSEQUENTLY, THE IMPUGNED ADDITIONS ARE DELETED. T HIS GROUND OF THE ASSESSEE IS, THUS ALLOWED. 4. THE NEXT GROUND PERTAINS TO ADDITION OF RS.1,80, 000/-, BEING THE CASH CREDIT IN THE NAME OF SHRI SUNIL JAIN. THE LEARNED COUNSEL FOR THE ASSESSEE EXPLAINED THAT THE AMOUNTS OF RS.5 0,000/- (ON 1.12.2002), RS.50,000/- (3.12.2002) AND RS.82,000/- (ON 24.12.2002) WERE WITHDRAWN FROM THE BANK, FOR WHICH , OUR ATTENTION WAS INVITED TO PAGE NO.8 OF THE PAPER BOO K, WHICH IS THE STATEMENT OF BANK ACCOUNT FOR THE PERIOD FROM 1.4.2 001 TO 31.3.2002. WE FIND THAT THE CLAIMED AMOUNTS WERE DE BITED FROM THE ACCOUNTS OF THE FIRM SUNIL KUMAR MAGNILAL JAIN AND WERE ADVANCED BY SHRI SUNIL KUMAR JAIN. SHRI SUNIL KUMAR JAIN FIL ED AN AFFIDAVIT DEPOSING THAT HE RECEIVED THE MONEY FROM HIS PREVIO US INVESTMENTS, SUCH AS, ULIP (UTI) RS.52,442/- (ON 22.7.1997), LIC RS.60,785/- (ON 7.8.1997) AND FROM LIC RS.67,016/- (ON 4.7.1997 ). THE COPIES OF THE CHEQUES RECEIVED FROM LIC (RS.67,016/- + RS.60, 785/-) ARE 5 ENCLOSED AT PAGE NOS. 10 & 11 OF THE PAPER BOOK. TH E COPY OF THE DIVIDEND WARRANT (ULIP) IS AVAILABLE AT PAGE 9 OF T HE PAPER BOOK. THE LD. ASSESSING OFFICER MADE THE ADDITION MERELY ON THE GROUND THAT NO DETAILS OF BANK WERE FURNISHED. THE ASSESSE E HAS DULY CERTIFIED THAT THE DOCUMENTS FROM THE PAGES 1 AND 1 05 ARE ON RECORD OF THE LD. CIT(A) AND THE DOCUMENTS FROM PAG ES 8 TO 105 ARE ON RECORD OF THE ITO. IN VIEW OF THIS CERTIFICATE, IT IS CLEAR THAT THE NECESSARY DETAILS WERE AVAILABLE WITH THE ASSESSING OFFICER. SINCE THE SOURCE HAS ALSO BEEN PROVED, THEREFORE, THE ONU S CAST UPON THE ASSESSEE IS DISCHARGED, THUS WE FIND MERIT IN THIS GROUND ALSO. FINALLY, THE APPEAL OF THE ASSESSEE IS PARTLY ALLO WED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCL USION OF THE HEARING ON 14.5.2013. SD SD (R.C.SHARMA) (JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 14.5.2013 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, GU ARD FILE !VYS!