ITO, Ward 4(5), Pune, Pune V. Shri Bhagwan H. Khirid, Pune

ITA 54/PUN/2010

• Counselvise Citation: 5424514 RSA 2010
• Duration Of Justice: 1 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 31-05-2012
• Assessment Year: 1998-1999
• Appeal Filed On: 08-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K AMBASTHA
• Keywords: Unexplained cash credit; Unexplained expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER I.T.A. NO. 54/PN/2010 : A.Y. 1998-99 I.T.O. WARD 4(5) PUNE APPELLANT VS. SHRI BHAGWAN H KHIRID 1025 NANA PETH PUNE-411 002 PAN AJOPK 7678 K RESPONDENT APPELLANT BY: SHRI S.N. PURANIK RESPONDENT BY: SHRI S.K. AMBASTHA ORDER PER SHAILENDRA KUMAR YADAV, JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-II PUNE DATED 21-10-2009 FOR A .Y. 1998-99 ON THE GROUND THAT THE CIT(A) ERRED IN DELE TING THE ADDITION OF RS. 8,67,700/- MADE BY THE ASSESSING O FFICER ON ACCOUNT OF UNEXPLAINED CREDITS AND THE ADDITION OF RS. 86,775/- MADE BY THE ASSESSING OFFICER U/S 69-C OF THE ACT TOWARDS UNEXPLAINED EXPENDITURE. 2. AT THE OUTSET OF HEARING, THE LEARNED COUNSEL FO R THE ASSESSEE SUBMITTED THAT THE ISSUES RAISED IN THIS A PPEAL BY THE REVENUE ARE SQUARELY COVERED IN FAVOUR OF THE A SSESSEE AND AGAINST THE REVENUE. ON THE OTHER HAND, THE LE ARNED PAGE 2 OF 3 ITA NO. 54/PN/2010 BHAGWAN H. KHIRID A.Y. 1998-99 DR APPEARING FOR THE REVENUE SUBMITTED THAT THE CIT (A) WAS NOT JUSTIFIED IN DELETING THE IMPUGNED ADDITION S. 3. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE FIND THAT SIMILAR ISSUES CAM E UP FOR CONSIDERATION BEFORE THIS BENCH OF THE TRIBUNAL IN THE CASE OF ASSTT. CIT VS. HAJRE J. BANDOPANT IN ITA NO. 1220/PBN/2009 FOR A.Y. 1998-99 WHEREIN THE TRIBUNAL VIDE ITS ORDER DATED 29-6-2010 HAS UPHELD THE DELE TION OF SIMILAR ADDITIONS BY OBSERVING AS UNDER: WE HAVE HEARD BOTH THE PARTIES AND RELIED ON THE RELEVANT JUDGMENTS ON THE RECORDS. WE FIND THAT THE ASSESSING OFFICER DISBELIEVED THE TRANSACTION HOLD ING THAT THE SALE OF DECLARED ITEMS AS A MERE PAPER TRANSACTION. HE FURTHER DISBELIEVED THE FACT THAT THE RECEIPT OF THE SAID AMOUNTS FROM M/S. GALAXY EXPORT S AND GOLD JEWELERS IS NOT A GENUINE TRANSACTION. WE HAVE DEAL WITH APPEALS WITH IDENTICAL ISSUES INVOLV ING THE GALAXY EXPORTS AND RECEIPT OF THE MONEY FROM TH E SAID CONCERN. THIS CONCERN UNDISPUTEDLY RELATES TO SHARMA AND JOHRI CONCERNS AND HELD TO BE A GENUINE CONCERN BY THE TRIBUNAL WHILE DEALING WITH THE BLOC K ASSESSMENT PROCEEDINGS OF THE SHARMA AND JOHRI GROUP OF CASES. THEREFORE, THE GENUINENESS OF TRANSACTION OF SALE OF THE DECLARED JEWELLERY IS BE YOND DOUBT. RESULTANTLY, THE CREDIT OF THE TRANSACTIONS INVOLVING THE SALE PROCEEDS RECEIVED FROM M/S. GALA XY EXPORTS IS ALSO GENUINE TRANSACTION AND NOT A PAPER TRANSACTION AS HELD BY THE ASSESSING OFFICER . CONSEQUENTLY, THE APPEAL OF THE REVENUE IS COVERED AGAINST THEM BY VARIOUS ORDERS OF THE TRIBUNAL INCLUDING THAT OF NEETA V RIRA (ITA NO. 5022/MUM/05 ) AND SURESH CHANDRA GANATYRA (VIDE ITA NO. 2815/MUM/06). FURTHER THE HONBLE BOMBAY HIGH COURTS JUDGMENTS IN THE CASES OF H.N. LAKHANI (147 ITR 552) AND INDER V NANKANI ITA NO. 128 OF 2009 DATED 24-2-2009 AFFIRMS THE ABOVE POSITION AND IN FAVOUR OF THE ASSESSEE. CONSEQUENTLY, ORDER OF THE PAGE 3 OF 3 ITA NO. 54/PN/2010 BHAGWAN H. KHIRID A.Y. 1998-99 CIT(A) DOES NOT CALL FOR ANY INTERFERENCE. ACCORDIN GLY, THE GROUNDS OF THE REVENUE ARE DISMISSED. 4. FACTS BEING SIMILAR, SO FOLLOWING THE AFORESAID ORDER OF THE TRIBUNAL IN THE CASE OF SHRI HAJARE J BANDOPANT (SUPRA), WE HOLD THAT THE ORDER OF THE CIT(A) DOES NOT CALL FOR ANY INTERFERENCE AT OUR HANDS. THE SAME IS UPH ELD. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT IMMEDIATELY O N CONCLUSION OF THE HEARING ON 31 ST MAY 2011. SD/- (G.S. PANNU) ACCOUNTANT MEMBER SD/- (SHAILENDRA KUMAR YADAV) JUDICIAL MEMBER PUNE DATED THE 31 ST MAY 2011 ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT (A) II PUNE 4. THE CIT III PUNE 4. THE D.R, A BENCH, PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE