Manjeet Singh Saluja , Indore V. The ACIT 5(1), Indore

ITA 549/Ind/2019

AI Insights

The case involves Manjeet Singh Saluja, a proprietor engaged in the transport business, who appealed against the order of the CIT(A) confirming the addition of Rs. 50,00,000 to his income for the assessment year 2014-15. The addition was initially made by the Assessing Officer, who treated the unsecured loan as unexplained credit under Section 68 of the Income Tax Act, 1961. The CIT(A) upheld this decision, leading to the appeal before the Income Tax Appellate Tribunal. The Tribunal dismissed the appeal, noting the assessee's failure to provide adequate details to verify the loan's genuineness and the creditor's creditworthiness.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122472 (ITAT-INDORE)
• Duration Of Justice: 3 year(s) 9 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Next Hearing Date: 29-01-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 06-05-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Set aside
• Section: 131; 194C; 143(2); 194J

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE (CONDUCTED THROUGH VIRTUAL COURT) BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER & SHRI BHAGIRATH MAL BIYANI, ACCOUNTANT MEMBER I .T .A . N o .5 4 9 /I nd /2 0 1 9 ( A s se ss m e nt Y e a r : 20 14- 15 ) Ma nj e et S in gh S al u j a 1 0 3, G a ga n Vi e w A p pt . R 2 0 0 K h a ti wa la T a n k , I n do r e ( M. P . )- 4 5 20 01 V s.A C I T -5 ( 1) , I nd or e PA N N o .A EA P S 5 1 0 1 A (Appellant) .. (Respondent) Appellant by : None Respondent by : Shri Ashish Porwal, Sr. D.R. D a t e of H ea r i ng 30.01.2023 D a t e of P r o no u n ce me nt 21.02.2023 O R D E R PER SUCHITRA KAMBLE - JM: This appeal is filed by the assessee against the order dated 18.01.2019 passed by the Ld. CIT-(Appeals)-II, Indore for A.Y. 2014-15. 2. The grounds of appeal raised by the assessee read as under: “1. On the facts and circumstances of the case and in law the learned Commissioner of Income Tax (Appeals)-2, Indore (“CIT(A)”) erred in confirming the action of Assessing Officer in making addition of Rs.50,00,000 by allegedly treating unsecured loan as unexplained credit. The Appellant prays that the said addition be deleted. 2. On the facts and circumstances of the case and in law the CIT(A) erred in confirming the action of AO in making impugned addition in contravention to principles of natural justice thereby making the impugned order as illegal and accordingly it is prayed that the said addition be directed to be deleted. 3. On the facts and circumstances of the case and in law the learned CIT(A) erred in not holding the impugned order of AO as illegal and bad in law and it is prayed that the impugned order be set aside. ITA No.549/Ind/2019 Manjeet Singh Saluja vs. ACIT Asst.Year –2014-15 - 2 – 4. The Appellant craves leave to add to, alter and/or amend al or any of the foregoing grounds of appeal.” 3. The assessee filed return of income on 23.03.2015 showing income at Rs. 24,44,810/-. Subsequently, the case was selected for scrutiny under CASS and reasons for selected of scrutiny are as under: (i) Large increase in unsecured loans. (ii) Receipts u/s 194C and 194J (as per 26AS) are more than the receipts shown in ITR. Accordingly, notice under Section 143(2) of the Income Tax Act, 1961 was issued on 31.08.2015 and duly served upon the assessee. In response to the above notices the assessee himself attended from time to time and filed the details. The Assessing Officer made observations and called for the details in respect of parties from whom he has taken loans. The assessee is a proprietor of M/s. S.S. Roadways and M/s. Aroma Associates and engaged in transport business. After taking cognizance of the details the Assessing Officer made addition of Rs. 50 lacs in respect of loan creditor namely Mr. Althash Aliyar Hussain, Indore as per provisions of Section 68. 4. Being aggrieved by the assessment order the assessee filed appeal before the CIT(A). The CIT(A) dismiss the appeal of the assessee. 5. At the time of hearing none appeared on behalf of the assessee despite giving notice and there is no new address filed by the assessee. Therefore, we are proceeding on the basis of the assessment order and the submission made by the assessee before the CIT(A) which are reproduced in the respective orders. ITA No.549/Ind/2019 Manjeet Singh Saluja vs. ACIT Asst.Year –2014-15 - 3 – 6. The Ld. D.R. relied upon the assessment order and the order of the CTI(A). 7. We have heard the Ld. D.R. and perused all the relevant material available on record. It is pertinent to note that the Assessing Officer has sent notice under Section 131 to the said loan creditor which was returned back as unserved. Thus, the Assessing Officer also called information under Section 133(6) of the Act from Branch Manager SVC Co-operative Bank, Indore in respect of the bank account of the said loan creditor. During the assessment proceedings as well as during the appellate proceedings before the CIT(A) the assessee in respect of genuineness of transaction and creditworthiness of the loan creditor has not given proper details and never satisfied the query of the Assessing Officer. The CIT(A) also observed that the said loan creditor deposited cash on the same date on which he had issued cheque to the assessee. In absence of verification of the said loan creditor, the Assessing Officer has rightly made addition, the CIT(A) has also taken into account all these details and confirm the addition. 8. In result, the appeal of the assessee is dismissed. This Order pronounced in Open Court on 21/02/2023 Sd/- Sd/- (BHAGIRATH MAL BIYANI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 21/02/2023 TANMAY, Sr. PS TRUE COPY O r d e r p ro n o u n c e d o n 2 1/02/ 2 0 23 b y p l ac i n g t h e r e s u l t o n t h e N o t i c e B o a r d a s p e r R u l e 3 4 ( 4 ) o f t h e In c o m e T ax ( A p p e l l at e T r i b u n al ) R u l e, 1 9 6 3 . ITA No.549/Ind/2019 Manjeet Singh Saluja vs. ACIT Asst.Year –2014-15 - 4 – आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण,इंदौर/ DR, ITAT, Indore 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, (Sr. Private Secretary) ITAT, Indore 1. Date of dictation 07.02.2023 2. Date on which the typed draft is placed before the Dictating Member 08.02.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .02.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .02.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S .02.2023 7. Date on which the file goes to the Bench Clerk .02.2023 8. Date on which the file goes to the Head Clerk.......................................... 9. The date on which the file goes to the Assistant Registrar for signature on the order.......................... 10. Date of Despatch of the Order..........................................