Shri Rakesh O.Agarwal, Surat V. The Dy.CIT.,Circle-2, Surat

ITA 573/AHD/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6043 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2014
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 08-05-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 24-02-2011
• Court: TRIBUNAL
• Department Lawyers: J P JHANGID
• Keywords: Unexplained cash credit
• Section: 133(6); 147; 68; 148; 6

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD , , , , 0 00 0 0 00 0 , , , , !' !' !' !' ! # ! # ! # ! # BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER ITA NO. 571/AHD/2011 ASSESSMENT YEAR 2003-04 ITA NO. 572/AHD/2011 ASSESSMENT YEAR 2004-05 ITA NO. 573/AHD/2011 ASSESSMENT YEAR 2005-06 SHRI RAKESH O. AGARWAL PROP. OF ADITI PRINTS, 2001, SILK PLAZA MARKET, RING ROAD, SURAT. PAN: AAQPA4811P VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2, SURAT. $%/ APPELLANT '($% / RESPONDENT REVENUE BY : SH. J.P. JHANGID, SR. DR ASSESSEE(S) BY : SH. MEHUL SHAH, AR ) * +'/ // / DATE OF HEARING : 08/05/2014 ,-. * +' / DATE OF PRONOUNCEMENT : 27/06/2014 !/ !/ !/ !// // / O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAIN ST THE SEPARATE ORDERS OF CIT(A)-II, SURAT FOR ASSESSMENT YEARS 200 3-04, 2004-05 & 2005- 06, ALL DATED 05.01.2011. 2. GROUND NO. 1 IN ALL THE APPEALS OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) CONFIRMING THE ACTI ON OF THE ASSESSING OFFICER ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 2 - IN ASSUMING JURISDICTION U/S 148 OF THE INCOME TAX ACT AND THEREBY CONFIRMING THE ASSESSMENT U/S 147 OF THE I.T. ACT. 3. AT THE TIME OF HEARING, THE AR OF ASSESSEE SUBM ITTED THAT HE IS NOT PRESSING THIS GROUND OF APPEAL, HENCE THIS GROU ND OF APPEAL OF THE ASSESSEE IS DISMISSED FOR WANT OF PROSECUTION IN AL L THE YEARS UNDER CONSIDERATION. 4. GROUND NO. 2 OF THE APPEAL IN ALL THE YEARS UND ER CONSIDERATION IS DIRECTED AGAINST THE ORDER OF THE CIT(A) CONFIRMING THE ACTION OF ASSESSING OFFICER MAKING ADDITION OF RS 4,59,928/- IN ASSESSM ENT YEAR 2003-04, RS 32,74,345/- IN ASSESSMENT YEAR 2004-05 AND RS 13,70 ,000/- IN ASSESSMENT YEAR 2005-06 AS UNEXPLAINED CASH CREDIT U/S 68 OF T HE ACT. 5. GROUND NO. 3 OF THE APPEAL IN ALL THE YEARS UND ER CONSIDERATION IS DIRECTED AGAINST THE ORDER OF CIT(A) CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING INTEREST PAID ON UNSECURED L OANS OF RS 5,09,138/- IN ASSESSMENT YEAR 2003-04, RS 8,88,123/- IN ASSESSMEN T YEAR 2004-05 AND RS 9,08,043/- IN ASSESSMENT YEAR 2005-06. 6. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS ING OFFICER OBSERVED THAT THE ASSESSEE HAS SHOWN UNSECURED LOAN OF RS 1.07 CRORE AS ON 31.03.2003 AND ON VERIFICATION OF DETAILS FURNISHED BY THE ASSESSEE, HE FOUND THAT AND ON VERIFICATION OF DETAILS FURNISHED BY THE ASSESSEE, HE FOUND THAT MOST OF THE DEPOSITORS WERE FROM DISTRICT KUSH INAGAR, UTTAR PRADESH. THE ASSESSING OFFICER NOTED THAT IN THE ASSESSMENT YEAR 2006-07 IN THE ASSESSMENT ORDER PASSED IN THE CASE OF THE ASSESSEE , A FINDING WAS GIVEN THAT UNSECURED LOANS REFLECTED IN THE NAMES OF VARI OUS PERSONS HAVING ADDRESSES OF DISTRICT KUSHINAGAR, UTTAR PRADESH WER E ADDED AS UNEXPLAINED CASH CREDIT U/S. 68 OF THE ACT AND INTEREST EXPENSE S ON THE SAID LOANS HAVE ALSO BEEN DISALLOWED AND ADDED BACK TO THE INCOME O F THE ASSESSEE. ON ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 3 - PERUSAL OF THE DETAILS FURNISHED BY THE ASSESSEE DU RING THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER OBSERVED THAT UN SECURED LOANS IN THE NAME OF 13 PERSONS WHICH WERE ADDED AS UNEXPLAINED CASH CREDIT IN ASSESSMENT YEAR 2006-07 ARE REFLECTED IN THE ASSESS MENT YEAR UNDER CONSIDERATION AND INTEREST HAS ALSO BEEN PAID ON TH E SAID UNSECURED LOANS. HE OBSERVED THAT THE TOTAL AMOUNT ON UNSECURED LOAN S IN THE NAMES OF THESE 12 PERSONS DURING THE YEAR WAS RS 2,94,928/-. SIMI LARLY, RS 1,65,000/- WAS FOUND TO HAVE BEEN TAKEN FROM M/S CHAUDHARY INVESTO RS, STATION ROAD, SATNA. THE ASSESSING OFFICER, THEREFORE, IN ORDER TO VERIFY THE GENUINENESS OF THE LOANS, ISSUED NOTICE U/S. 133(6) OF THE ACT TO ALL THE 13 UNSECURED LOAN PARTIES. HOWEVER, ONLY SOME OF THE DEPOSITOR S FURNISHED REPLIES FROM WHICH IT WAS OBSERVED BY THE ASSESSING OFFICER THAT THEIR ONLY SOURCE OF INCOME WAS INTEREST INCOME ON DEPOSITS MADE BY THEM WITH THE ASSESSEE. THE ASSESSING OFFICER FURTHER NOTICED THAT IN ALL T HE CASES, THE ABOVE PARTIES HAVE NOT PAID ANY INTEREST BUT ONLY THEIR ACCOUNTS HAVE BEEN CREDITED WITH THE INTERESTED EARNED BY THEM. THE DEPOSITORS HAVE CONTINUED TO GIVE LOAN TO THE ASSESSEE FROM YEAR TO YEAR THE SOURCE OF WHI CH WAS NOT VERIFIABLE. THE ASSESSING OFFICER VIDE LETTER DATED 11.12.2009 ASKED THE ASSESSEE WHY THE ABOVE DEPOSITORS MAY NOT BE TREATED AS UNEXPLAI NED CASH CREDIT U/S. 68 OF THE ACT. THE ASSESSEE SUBMITTED THAT THE LENDER S WERE BELONGING TO HIS NATIVE PLACE KUSHINAGAR, U.P. AND WERE FILING RETUR NS OF INCOME FOR LAST 15 YEARS. SINCE HE STARTED BUSINESS AT SURAT, LOANS W ERE ACCEPTED FROM THEM FOR BUSINESS NEEDS. THE ASSESSING OFFICER OBSERVIN G THAT ALL THE DEPOSITORS FROM KUSHINAGAR, U.P. WERE HAVING NORMAL BALANCE IN THE BANK ACCOUNT AND ONLY SOURCE OF THEIR INCOME WAS INTEREST FROM M/S A DITI PRINTS, PROPRIETARY CONCERN OF THE ASSESSEE, INTEREST HAS NEVER BEEN PA ID TO THEM BUT ONLY CREDITED IN THEIR ACCOUNTS, ALMOST ALL THE DEPOSITS WERE RECEIVED THROUGH DEMAND DRAFT BY DEPOSITING CASH, THERE WAS NO OTHER WITHDRAWAL DURING THE YEAR FROM ACCOUNTS OF THE DEPOSITORS AND SOME OF TH E DEPOSITORS DID NOT EVEN MAINTAIN BANK ACCOUNTS, HELD THAT THE NAMES OF THE 13 DEPOSITORS WERE UTILIZED BY THE ASSESSEE FOR CREATING ACCOMMODATION AL CIRCUMSTANCES AND IT ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 4 - WAS ESTABLISHED BEYOND DOUBT THAT SUCH CASH CREDITS WERE ARRANGED BY THE ASSESSEE HIMSELF. THEREFORE, IT WAS HELD THAT THE ASSESSEE HAS NOT PROVED THE GENUINENENESS OF THE CASH CREDITS AND THE CREDI TWORTHINESS OF THE DEPOSITORS AND UNSECURED LOANS OF RS 4,95,928/- WAS TREATED AS UNEXPLAINED CASH CREDIT U/S. 68 OF THE ACT AND INTEREST OF RS 5 ,09,138/- CREDITED TO THE ABOVE 13 ACCOUNTS AND DEBITED IN THE PROFIT AND LOS S ACCOUNT WAS ALSO DISALLOWED BY THE ASSESSING OFFICER IN ASSESSMENT Y EAR 2003-04. SIMILARLY, IN ASSESSMENT YEAR 2004-05, THE ASSESSING OFFICER T REATED UNSECURED LOANS OF RS 32,74,348/- AS UNEXPLAINED CASH CREDIT U/S. 6 8 OF THE ACT AND ALSO DISALLOWED INTEREST EXPENDITURE OF RS 8,88,123/-. SIMILARLY, IN ASSESSMENT YEAR 2005-06, THE ASSESSING OFFICER DISALLOWED UNSE CURED LOANS OF RS 13,70,000/- AND ADDED THE SAME AS UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT AND DISALLOWED INTEREST EXPENDITURE OF RS 9,08, 000/-. 7. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF T HE ASSESSING OFFICER. 8. THE AR OF THE ASSESSEE SUBMITTED THAT IN ALL TH E YEARS UNDER CONSIDERATION, THE ASSESSING OFFICER HAS FOLLOWED H IS ORDERS FOR ASSESSMENT YEAR 2006-07 IN MAKING THE DISALLOWANCE U/S. 68 OF THE ACT AND THE CIT(A) HAS ALSO FOLLOWED HIS ORDER FOR ASSESSMENT YEAR 200 6-07 AND CONFIRMED THE ACTION OF THE ASSESSING OFFICER. HE SUBMITTED THAT IN THE ASSESSMENT YEAR 2006-07, THE ASSESSEE FILED APPEAL BEFORE THE TRIBU NAL AND THE TRIBUNAL VIDE ORDER DATED 15.03.2013 PASSED IN ITA NO. 4/A/2010, DELETED THE DISALLOWANCE. THE REVENUE FILED APPEAL AGAINST TH E ORDER OF THE TRIBUNAL BEFORE THE HONBLE GUJARAT HIGH COURT AND THE HONB LE HIGH COURT VIDE ORDER DATED 26.11.2013 PASSED IN TAX APPEAL NO. 967 OF 20 13 CONFIRMED THE ORDER OF THE TRIBUNAL. HE, THEREFORE, SUBMITTED THAT AS THE FACTS AND ISSUES ARE SIMILAR AND THE ADDITIONS MADE ON ACCOUNT OF UNEXPL AINED CASH CREDIT ARE FROM THE VERY SAME PARTIES FOR WHICH ADDITION WAS M ADE IN ASSESSMENT YEAR 2006-07 WHICH HAS BEEN DELETED BY THE HONBLE GUJAR AT HIGH COURT, ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 5 - THEREFORE, FOLLOWING THE SAME IN THE PRESENT YEAR O F APPEAL ALSO, THE ADDITION IS REQUIRED TO BE DELETED. HOWEVER, HE SUBMITTED T HAT ADDITIONS IN RESPECT OF THE FOLLOWING PARTIES ARE TO BE SUSTAINED ON ACC OUNT OF UNEXPLAINED CASH CREDIT AND INTEREST PAID THEREON: AY NAME OF THE PARTY AMOUNT OF CASH CREDIT AMOUNT OF INTEREST TOTAL 2003-04 CHAUDHARY INVESTOR RS 1,65,000/- RS 41,749/- RS 2,06,749/- 2004-05 SHANTI DEVI AGARWAL RS 40,000/- RS 6,986/- RS 46,986/- 2005-06 TRIBHUVAN NATH AGARWAL RS 30,000/- RS 13,719/- RS 43,719/- 9. THE LD. DR ALSO AGREED WITH THE ABOVE CONTENTIO N OF THE LD. AR OF THE ASSESSEE. 10. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED T HE ORDERS OF LOWER AUTHORITIES AND MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSEE RECEIVED DEPOSITS FROM THE FOLLOWING PERSO NS IN THE ASSESSMENT YEAR 2003-04 AND INTEREST WAS PAID TO THEM ON DEPOS ITS THE DETAILS OF WHICH ARE AS UNDER: SR. N. NAME OF PARTY ADDRESS ADDITION DURING THE YEAR INTEREST PAID DURING THE YEAR 1. VIMLADEVI AGARWAL C/O HARIPRASAD DINESHKUMAR, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 20,000 4,943 2. GINNI DEVI DALMIA C/O GOVIND VASTRALAYA, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 30,000 39,287 3. RAMNARESH AGARWAL C/O GOPAL VASTRA BHANDAR, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR,U.P. 22,643 3,135 4. VIJAYKUMAR AGARWAL C/O HARIPRASAD DINESH KUMAR, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR,U.P. 17,485 58,872 5. RAJENDRAKUMAR DALMIA C/O GOVIND VASTRALAYA, POST HARIHARPUR ROAD, KUSHINAGAR, U.P. 20,000 51,226 6. BABULAL PRASAD C/O DALMAPATI, SEORAHI, TAMKUHI ROAD, KUSHINAGAR,U.P. 16,570 60,299 ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 6 - 7. SARITA GUPTA C/O NARAYANT ELECTRICAL STORES, POST SEORAHI, TAMKUHI ROAD, DIST. KUSHINAGAR, U.P. 25,000 49,772 8. SUKHDEV PRASAD C/O VARMA VASTRALAYA, POST TAMKUHI ROAD, KUSHINAGAR, U.P. 20,000 47,340 9. BUNILAL PRASAD C/O UMESH VASTRALAYA, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 17,037 64,370 10. ANITA AGARWAL C/O HARIPRASAD DINESHKUMAR, DIST. KUSHINAGAR, U.P. 35,000 45,309 11. JAGANNATH PRASAD POST. TAMKHUI ROAD, DIST. KUSHINAGAR, U.P. 51,373 10,141 12. RADHEYSHYAM GUPTA C/O NARAYANT ELECTRICAL STORES, POST SEORAHI, TAMKUHI ROAD, DIST. KUSHINAGAR, U.P. 20,000 32,695 13. M/S CHAUDHARY INVESTORS STATION ROAD, SATNA 1,65,000 41,749 TOTAL 4,59,928 5,09,138 SIMILARLY, IN ASSESSMENT YEAR 2004-05, THE ASSESSEE RECEIVED DEPOSITS FROM THE FOLLOWING PERSONS AND INTEREST WAS PAID TO THEM ON DEPOSITS THE DETAILS OF WHICH ARE AS UNDER: SR. N. NAME OF PARTY ADDRESS ADDITION DURING THE YEAR INTEREST PAID DURING THE YEAR 1. SHRI RAMA PRASAD POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 4,55,682 39,517 2. SHAMBHU PRASAD C/O NARAYAN ELECTRIC STORE, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 40,000 52,708 3. VIMLADEVI AGARWAL C/O HARIPRASAD DINESHKUMAR, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 4,24,275 42,359 4. MANOJKUMAR GUPTA POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 4,21,345 36,709 5. GINNI DEVI DALMIA C/O GOVIND VASTRALAYA, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 91,255 52,719 6. RAMNARESH AGARWAL C/O GOPAL VASTRA BHANDAR, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 5,24,599 47,405 7. BASHIR AHMED AHMED BUILDING, POST SEORAHI, TAMKUHI ROAD, DIST. KUSHINAGAR, U.P. 40,000 44,223 8. PRABHUSHANKER VERMA C/O VARMA VASTRALAYA, POST TAMKUHI, KUSHINAGAR, U.P. 4,40,647 37,956 9. RAJENDRAKUMAR DALMIA C/O GOVIND VASTRALAYA, POST HARIHARPUR ROAD, KUSHINAGAR, U.P. 30,000 60,274 10. BABULAL PRASAD POST DALMAPATI, SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 33,000 70,541 ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 7 - 11. LALBIHARI GUPTA POST PIPRA, TAMKUHI ROAD, KUSHINAGAR, U.P. 4,68,542 40,821 12. SARITA GUPTA C/O NARAYANT ELECTRICAL STORES, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 45,000 60,206 13. SUKHDEV PRASAD C/O VARMA VASTRALAYA, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 38,000 56,707 14. BUNILAL PRASAD C/O UMESH VASTALAYA, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 20,000 73,836 15. ANITA AGARWAL C/O HARIPRASAD DINESHKUMAR,KUSHINAGAR, U.P. 48,000 55,788 16. RAMSHARAI PRASAD POST PIPODARA, TAMKUHI ROAD, KUSHINAGAR, U.P. 43,000 53,145 17. JAGANNATH PRASAD POST TAMKUHI ROAD, KUSHINAGAR, U.P. 43,000 16,735 18. RADHEYSHYAM GUPTA C/O NARAYANT ELECTRICAL STORES, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 28,000 39,488 19. SHANTI DEVI AGARWAL POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 40,000 6,986 TOTAL 32,74,345 8,88,123 SIMILARLY, IN ASSESSMENT YEAR 2005-06, THE ASSESSEE RECEIVED DEPOSITS FROM THE FOLLOWING PERSONS AND INTEREST WAS PAID TO THEM ON DEPOSITS THE DETAILS OF WHICH ARE AS UNDER: SR. N. NAME OF PARTY ADDRESS ADDITION DURING THE YEAR INTEREST PAID DURING THE YEAR 1. SHRI RAMA PRASAD POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 12,000 59,967 2. SHAMBHU PRASAD C/O NARAYAN ELECTRIC STORE, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 20,000 60989 3. VIMLADEVI AGARWAL C/O HARIPRASAD DINESHKUMAR, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 48,000 65,650 4. MANOJKUMAR GUPTA POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 40,000 57,932 5. GINNI DEVI DALMIA C/O GOVIND VASTRALAYA, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 47,000 64,961 6. RAMNARESH AGARWAL C/O GOPAL VASTRA BHANDAR, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 27,000 73,443 7. BASHIR AHMED AHMED BUILDING, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 20,000 51,598 8. PRABHUSHANKER VERMA C/O VARMA VASTRALAYA, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 45,000 60,809 9. LALBIHARI GUPTA POST PIPRA, TAMKUHI ROAD, KUSHINAGAR, U.P. 40,000 64,053 10. OMPRAKASH AGARWAL HUF POST TAMKUHI ROAD, KUSHINAGAR, U.P. 50,000 4,274 ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 8 - 11. SARITA GUPTA C/O NARAYANT ELECTRICAL STORES, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 48,000 71,797 0. SUKHDEV PRASAD C/O VARMA VASTALAYA, POST TAMKUHI ROAD, KUSHINAGAR, U.P. 13,000 64,751 0. ANITA AGARWAL C/O HARIPRASAD DINESHKUMAR, KUSHINAGAR, U.P. 47,000 66,922 0. RAMSHARAI PRASAD POST PIPODARA, TAMKUHI ROAD, KUSHINAGAR, U.P. 20,000 61,548 0. JAGANNATH PRASAD POST TAMKUHI ROAD, KUSHINAGAR, U.P. 8,55,000 24,523 0. RADHEYSHYAM GUPTA C/O NARAYANT ELECTRICAL STORES, POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 28,000 41,034 0. TRIBHUVANNATH AGARWAL POST SEORAHI, TAMKUHI ROAD, KUSHINAGAR, U.P. 30,000 13,792 TOTAL 13,70,000 9,08,043 11. THE ASSESSING OFFICER BY FOLLOWING HIS ORDER P ASSED IN THE ASSESSMENT OF ASSESSMENT YEAR 2006-07 ADDED THE DEP OSITS AS UNEXPLAINED CASH CREDIT AND ALSO DISALLOWED INTEREST PAID THERE ON. 12. ON APPEAL, THE CIT(A) CONFIRMED THE ORDER OF T HE ASSESSING OFFICER. 13. BOTH THE PARTIES BEFORE US AGREED THAT IN THE ASSESSMENT YEAR 2006-07, ADDITION MADE ON ACCOUNT OF DEPOSITS BY TR EATING THEM AS UNEXPLAINED CASH CREDIT U/S. 68 OF THE ACT WAS DELE TED BY THE TRIBUNAL WHICH ORDER WAS CONFIRMED BY THE HONBLE GUJARAT HIGH COU RT VIDE ORDER DATED 26.11.2013 PASSED IN TAX APPEAL NO. 967 OF 2013. I N THE PRESENT YEARS OF APPEAL ALSO, THE PARTIES FROM WHOM DEPOSITS WERE RE CEIVED BY THE ASSESSEE ARE THE SAME, AND THEREFORE, FOLLOWING THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN THE PRESENT YEAR OF APPEAL ALSO, THE ADDITION IS REQUIRED TO BE DELETED. 14. IN VIEW OF THE ABOVE SUBMISSIONS OF BOTH THE P ARTIES, WE DELETE THE ADDITION MADE U/S 68 OF THE ACT ON ACCOUNT OF U NEXPLAINED CASH CREDITS OF RS 2,94,928/- IN ASSESSMENT YEAR 2003-04, RS 32, 30,345/- IN ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 9 - ASSESSMENT YEAR 2004-05 AND RS 13,40,000/- IN ASSES SMENT YEAR 2005-06 AND DISALLOWANCE OF INTEREST PAID ON SUCH CASH CRED ITS OF RS 4,67,389/- IN ASSESSMENT YEAR 2003-04, RS 8,81,137/- IN ASSESSMEN T YEAR 2004-05 AND RS 8,94,251/- IN ASSESSMENT YEAR 2005-06. THUS, WE CONFIRM THE ADDITION U/S. 68 OF RS 1,65,000/- IN ASSESSMENT YEAR 2003-04 , RS 40,000/- IN ASSESSMENT YEAR 2004-05, RS 30,000/- IN ASSESSMENT YEAR 2005-06 AND DISALLOWANCE OF INTEREST EXPENDITURE OF RS 41,749/- IN ASSESSMENT YEAR 2003-04, RS 6,986/- IN ASSESSMENT YEAR 2004-05 AND RS 13,719/- IN ASSESSMENT YEAR 2005-06. THUS, THE GROUNDS OF APPE AL OF THE ASSESSEE ARE PARTLY ALLOWED. 15. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 27 TH OF JUNE, 2014 AT AHMEDABAD. SD/- SD/- (MUKUL KR. SHRAWAT) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 27/06/2014 GHANSHYAM MAURYA, SR. P.S. TRUE COPY !/ * '0 1!0. !/ * '0 1!0. !/ * '0 1!0. !/ * '0 1!0./ COPY OF THE ORDER FORWARDED TO : 1. $% / THE APPELLANT 2. '($% / THE RESPONDENT. 3. 2 / CONCERNED CIT 4. 2() / THE CIT(A)-III, AHMEDABAD 5. 056 ' , , / DR, ITAT, AHMEDABAD 6. 678 9) / GUARD FILE. !/ !/ !/ !/ / BY ORDER, : :: :/ // / ; ; ; ; ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 10 - 1. DATE OF DICTATION- 08.05.2014 0. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 15.05.14 0. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.-.26.6.14 (SEPARATE ORDER) 0. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 27.6.14 0. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 0. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 0. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 8. DATE OF DESPATCH OF THE ORDER ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 11 - RAKESH O. AGARWAL VS. DCIT, C-2, SURAT ITA NO.571, 572, 573/AHD/2011 A.YS. 2003-04, 2004-05, 2005-06 THE DRAFT ORDER OF LEARNED BROTHER IS PERUSED. THER E IS NO DISAGREEMENT ABOUT THE FINAL RESULT; HOWEVER, PASSING A CONSENTING ORD ER ASSIGNING DIFFERENT REASON FOR ACCEPTING THE PLEA OF THE ASSESSEE IN RESPECT OF GR OUND NOS. 2 AND 3 RAISED BEFORE US. 2. WHEN THIS APPEAL IS REFIXED FOR HEARING FOR CLAR IFICATION IT WAS VEHEMENTLY CONTESTED THAT EVEN ON MERITS A VIEW HAS BEEN TAKEN BY ITAT C BENCH AHMEDABAD IN APPELLANTS OWN CASE FOR A.Y.2006-07 T ITLED AS RAKESH O. AGARWAL (ITA NO.4 AND 453/AHD/2010) CROSS APPEAL BY THE REV ENUE DEPARTMENT, ORDER DATED 15.03.2013 WHEREIN THE PARTY-WISE EVIDENCES W ERE APPRECIATED AND THEREAFTER IT WAS OBSERVED AS UNDER: 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFUL LY PERUSED THE MATERIALS ON RECORD. THE LEARNED AO HIMSELF HAD COMMENTED THAT T HE ASSESSEE HAD BORROWED TOTAL FUNDS OF RS.1,39,88,427/- FROM THESE TWENTY PERSONS . DURING THE RELEVANT ASSESSMENT YEAR THE AMOUNT BORROWED FROM THESE TWENTY PERSONS AMOUN TS TO RS.8,11,696/-. THEREFORE, IT IS OBVIOUS THAT THE ASSESSEE HAD BEEN CONSISTENTLY BORROWING MONEY FROM THESE TWENTY PERSONS DURING THE PAST YEARS AND THE SAME IS ACCEP TED BY THE REVENUE. IT IS ALSO NOT DISPUTED THAT ALL THE LOAN TRANSACTIONS WITH THESE PARTIES ARE THROUGH BANKING CHANNELS. THE ASSESSEE HAS ALSO SUBMITTED PAPER BOOK CONTAINI NG TWO VOLUMES RUNNING FROM PAGES 1 TO 229 THE CONTENTS OF WHICH INCLUDE CONFIRMATION OF ACCOUNTS, AFFIDAVITS AND BANK STATEMENTS ETC. OF ALL THESE PARTIES FROM WHICH THE FOLLOWING FACTS EMERGE:- SR. NO. NAME COMMENTS ON BANK STATEMENTS COMMENTS ON CONFIRMATIONS COMMENTS ON AFFIDAVITS 1 ANITA AGARWAL NOT FURNISHED PAPER BOOK PAGE 27- CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE 28 AFFIDAVIT SIGNED AND FURNISHED DATED 24-04- 2007 DULY NOTARIZED AND APPEARS TO BE IN ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 12 - ORDER 2 SABITA GUPTA PAPER BOOK PAGE 207 BANK STATEMENT FURNISHED. THERE IS NO SUBSTANTIAL AMOUNT OF CASH DEPOSIT AS CLAIMED BY THE REVENUE PAPER BOOK PAGE 32 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE -33 AFFIDAVIT FURNISHED DATED 06-04-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 3 VASIRAMAN PAPER BOOK PAGE 211 BANK STATEMENT FURNISHED. THERE IS NO SUBSTANTIAL AMOUNT OF CASH DEPOSIT AS CLAIMED BY THE REVENUE - - 4 OM PRAKSAH AGARWAL PAPER BOOK PAGE 215 AND 216 BANK STATEMENT FURNISHED. THERE IS CASH DEPOSIT OF ONLY RS.1 LAC. PAPER BOOK PAGE 41 CONFIRMATION STATEMENT 06- 04-2009 FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE -42 AFFIDAVIT FURNISHED DATED 06-04-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 5 RADHESHYAM SITARAM GUPTA PAPER BOOK PAGE 219 TO 221 BANK STATEMENT FURNISHED. VARIOUS TRANSACTIONS ARE RECORDED PAPER BOOK PAGE 46 CONFIRMATION STATEMENT 06- 04-2009 FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE -47 AFFIDAVIT FURNISHED DATED 06-04-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 6 BABULAL PRASAD PAPER BOOK PAGE 223 TO 225 BANK STATEMENTS FURNISHED. VARIOUS TRANSACTIONS ARE RECORDED PAPER BOOK PAGE 52 CONFIRMATION STATEMENT DATED 06-04-2009 FURNISHED AND APPEARS TO BE IN ORDER NOT FURNISHED 7 VIJAY KR. AGARWAL NOT FURNISHED. HOWEVER, WIFE OF DECEASED MR. VIJAY AGARWAL HAS FURNISHED CONFIRMATION PAPER BOOK PAGE 56 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN PAPER BOOK PAGE - 57 AFFIDAVIT FURNISHED BY MRS. VIMLA DEVI, WIFE OF ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 13 - STATEMENT. ORDER SHRI LATE VIJAY KR. AGARWAL DATED 15-04- 2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 8 JAGANNATH PRASAD PAPER BOOK PAGE 232 TO 234. BANK STATEMENT FURNISHED. NO SUBSTANTIAL CASH TRANSACTIONS ARE RECORDED IN THE BANK ACCOUNT AND THE TRANSACTIONS APPEAR TO BE GENUINE. PAPER BOOK PAGE 62 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 63 AFFIDAVIT FURNISHED DATED 01-04-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 9 VIMLA DEVI PAPER BOOK PAGE 236 TO 238. BANK STATEMENT FURNISHED. FEW TRANSACTIONS ARE RECORDED IN THE BANK STATEMENT AND THERE IS NO SUBSTANTIAL CASH DEPOSIT IN THE BANK. BANK ACCOUNT APPEARS TO BE IN ORDER. PAPER BOOK PAGE 67 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 68 AFFIDAVIT FURNISHED DATED 15-04-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 10. LALBIHARI GUPTA PAPER BOOK PAGE 240 TO 242. BANK STATEMENT FURNISHED. FEW TRANSACTIONS ARE RECORDED IN THE BANK STATEMENT AND THERE IS NO SUBSTANTIAL CASH DEPOSIT IN THE BANK. BANK ACCOUNT APPEARS TO BE IN ORDER. PAPER BOOK PAGE 73 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 74 AFFIDAVIT FURNISHED DATED 30-03-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 11 RAMA PRASAD PAPER BOOK PAGE 244 TO 246. BANK STATEMENT PAPER BOOK PAGE 78 CONFIRMATION PAPER BOOK PAGE - 79 AFFIDAVIT ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 14 - FURNISHED. FEW TRANSACTIONS ARE RECORDED IN THE BANK STATEMENT AND THERE IS NO SUBSTANTIAL CASH DEPOSIT IN THE BANK. BANK ACCOUNT APPEARS TO BE IN ORDER STATEMENT FURNISHED AND APPEARS TO BE IN ORDER FURNISHED DATED 30-03-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 12 RAMNARESH AGARWAL PAPER BOOK PAGE 248 TO 250. BANK STATEMENT FURNISHED. NO SUBSTANTIAL CASH IS DEPOSITED IN THE BANK. TRANSACTIONS APPEAR TO BE GENUINE. PAPER BOOK PAGE 83 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 84 AFFIDAVIT FURNISHED DATED 30-03-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 13 PRABHUSHANKAR VERAMA PAPER BOOK PAGE 252 TO 254. BANK STATEMENT FURNISHED. NO SUBSTANTIAL CASH IS DEPOSITED IN THE BANK. TRANSACTIONS APPEAR TO BE GENUINE. PAPER BOOK PAGE 88 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 84 AFFIDAVIT FURNISHED DATED 31-03-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 14 SHAMBHU PRASAD PAPER BOOK PAGE 256 TO 258.BANK STATEMENT FURNISHED.NO SUBSTANTIAL CASH IS DEPOSITED IN THEBANK. TRANSACTIONS APPEAR TO BE GENUINE. PAPER BOOK PAGE 93 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 94 AFFIDAVIT FURNISHED DATED 01-04-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 15 RAJENDRA KUMAR DALMIYA PAPER BOOK PAGE 260 TO 262. BANK STATEMENT FURNISHED WITH FEW BANK TRANSACTIONS. PAPER BOOK PAGE 98 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 99 AFFIDAVIT FURNISHED DATED 31-03-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 16 BUNNILAL PRASAD PAPER BOOK PAGE 264. BANK STATEMENT PAPER BOOK PAGE 103 CONFIRMATION PAPER BOOK PAGE - 104 AFFIDAVIT ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 15 - FURNISHED WITH FEW BANK TRANSACTIONS. STATEMENT FURNISHED AND APPEARS TO BE IN ORDER FURNISHED DATED 30-03-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 17 MANOJKUMAR GUPTA PAPER BOOK PAGE 266 TO 268. BANK STATEMENT FURNISHED WITH FEW BANK TRANSACTIONS. PAPER BOOK PAGE 108 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 109 AFFIDAVIT FURNISHED DATED 30-03-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 18 GINNIDEVI DALMIYA PAPER BOOK PAGE 270 TO 272. BANK STATEMENT FURNISHED WITH FEW BANK TRANSACTIONS PAPER BOOK PAGE 114 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 115 AFFIDAVIT FURNISHED DATED 31-03-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 19 SUKHDEV PRASAD PAPER BOOK PAGE 274 TO 276. BANK STATEMENT FURNISHED WITH FEW BANK TRANSACTIONS. PAPER BOOK PAGE 119 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 120 AFFIDAVIT FURNISHED DATED 31-03-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER 20 RAM ASHAARAY PRASAD PAPER BOOK PAGE 278 TO 280. BANK STATEMENT FURNISHED WITH FEW BANK TRANSACTIONS PAPER BOOK PAGE 124 CONFIRMATION STATEMENT FURNISHED AND APPEARS TO BE IN ORDER PAPER BOOK PAGE - 125 AFFIDAVIT FURNISHED DATED 01-04-2009 DULY SIGNED AND NOTARIZED AND APPEARS TO BE IN ORDER HOWEVER, DURING THE RELEVANT ASSESSMENT YEAR THE LE ARNED AOS OBSERVATION WAS THAT IN RESPECT OF FIVE LENDERS BANK ACCOUNTS WERE OPENED I N THE SAME BANK WITHIN A WEEK AND THE OTHER LENDERS HAD NOT FURNISHED THEIR BANK STAT EMENTS. FURTHER, THERE ARE TRANSACTIONS ONLY WITH RESPECT TO THE ASSESSEE IN THESE BANK ACC OUNTS AND THE AFFIDAVITS FURNISHED BY THE LENDERS DO NOT APPEAR TO BE GENUINE. ON OUR PER USAL OF THE RECORDS AND PAPER BOOK ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 16 - FURNISHED BY THE ASSESSEE, THE FACTS SEEM TO BE CON TRADICTORY TO THE FINDINGS OF THE LEARNED AO. AS STATED ABOVE, PREDOMINANTLY ALL THE LENDERS HAD FURNISHED BANK STATEMENTS AND THERE ARE NO SUBSTANTIAL CASH DEPOSITS THOUGH ALL T HE LOAN TRANSACTIONS WERE WITH THE ASSESSEE. THOUGH, THIS FACT MAY RAISE AN AIR OF SUS PICION, SOMETHING MORE SHOULD BE BROUGHT ON RECORD TO CONFIRM THE APPREHENSIONS OF T HE LEARNED AO. THE AFFIDAVITS APPARENTLY ARE ALL IN ORDER AND DULY SIGNED BY THE EXECUTANTS AND NOTARIZED. THOUGH, THE AFFIDAVITS BY ITSELF WILL NOT SUBSTANTIALLY PROVE T HE GENUINENESS OF THE TRANSACTIONS THE REVENUE HAS TO BRING OUT SOME ADDITIONAL MATERIALS ON RECORD TO DISPROVE THE STAND OF THE ASSESSEE. NO ACTION HAS BEEN TAKEN BY THE REVENUE T O EXAMINE THE LENDERS U/S 133(6) OF THE ACT IN ORDER TO PROVE THAT THE LENDERS ARE BOGU S. WE ALSO AGREE THAT PROVING THE EXISTENCE OF THE LENDERS AND DOCUMENTATION OF THE L OAN TRANSACTIONS ALONE WILL NOT CONFIRM THE TRANSACTIONS THAT THE LOAN TRANSACTIONS ARE GENUINE. AT THE SAME TIME THE REVENUE HAS ALSO TO ESTABLISH WITH SOME COGENT EVID ENCE TO DISPROVE THE CONTENTIONS OF THE ASSESSEE. MERE APPREHENSIONS OF THE REVENUE BAS ED ON SOME INFORMATION ALONE CANNOT DISPROVE THE STAND OF THE ASSESSEE. MOREOVER , FROM THE FACTS OF THE CASE, IT IS APPARENT THAT THE DECISIONS OF THE CASES RELIED BY THE LEARNED AO, SUPRA DO NOT APPLY TO THE PRESENT CASE. 3. THEREFORE, IT CAN BE HELD THAT THE PROVISIONS OF SECTION 68 HAVE ALSO BEEN EXAMINED IN THE PAST BY THE RESPECTED CO-ORDINATE B ENCH, VIZ-A-VIZ, EACH PARTY FROM WHOM THE IMPUGNED LOANS HAVE BEEN TAKEN. TO KE EP BREVITY IN MIND, IT CAN BE OBSERVED IN THE LIGHT OF THE ABOVE DISCUSSION TH AT THE ASSESSEE HAS FURNISHED THE PROOF OF THE IDENTITY OF THE DEPOSITORS; HENCE, THE DEPOSITORS WERE DULY IDENTIFIABLE. THE LOAN TRANSACTION WAS THROUGH BANKING CHANNEL AN D IN SUPPORT BANK STATEMENTS WERE FURNISHED. THEIR IDENTITY AND CAPACITY WAS ALS O VERIFIABLE FROM THE INCOME TAX RECORD BECAUSE THE DEPOSITORS WERE FILING THE I NCOME TAX RETURN STATED TO BE FROM LAST 15 YEARS. THE DEPOSITORS HAVE NOT ONLY FI LED THEIR RESPECTIVE CONFIRMATION LETTERS BUT ALSO FURNISHED DULY NOTARIZED AFFIDAVIT S. IN SUPPORT OF THEIR CREDITWORTHINESS, THE PROOFS OF AGRICULTURE HOLDING HAVE ALSO BEEN FURNISHED. ONE MORE FACT HAS ALSO BEEN BROUGHT ON RECORD THAT INTE REST WAS PAID AND TDS WAS DEDUCTED / DEPOSITED BY THE APPELLANT. THESE FACTS HAVE DULY BEEN NOTED BY LEARNED CIT(A)-II, SURAT DATED 5.1.2011 FOR A.Y. 2003-04 FR OM PAGES 6 TO 10. FURTHER IT WAS FOUND THAT THE SAID LOANS WERE REPAID LATER ON THAT TOO THROUGH BANKING ITA NOS. 571,572 & 573 OF 2011 RAKESH O. AGARWAL VS. DCIT, C-2, SURAT FOR A.Y. 2003-04, 2004-05 & 2005-06 - 17 - CHANNEL, I.E., BY ACCOUNT PAYEE CHEQUES. THE APPELL ANT HAD INFORMED THAT THE CHEQUES HAVE DULY BEEN CREDITED IN THE DEPOSITORS RESPECTIVE BANKS; AS ALSO DULY DEBITED IN THE BANK ACCOUNT OF THE ASSESSEE. IT IS, THEREFORE, HELD THAT IN A SITUATION WHEN THE MERITS OF THE DEPOSITORS HAVE DULY BEEN CO NSIDERED BY THE RESPECTED CO- ORDINATE BENCH IN THE PAST AS REFERRED ABOVE, THERE FORE, THERE IS NO REASON TO TAKE ANY OTHER VIEW BUT TO RESPECTFULLY FOLLOW THE VIEW ALREADY TAKEN. HOWEVER, THE FINDINGS AS PER PARAGRAPH 14 SUPRA FOR PARTLY ALLOW ING THESE GROUNDS ARE HEREBY CONCURRED. 4. AS HELD ABOVE, APPEALS OF THE ASSESSEE ARE PARTL Y ALLOWED. SD/- (MUKUL KR. SHRAWAT) JUDICIAL M EMBER AHMEDABAD; DATED 27/06/2014 PRABHAT KR. KESARWANI, SR. P.S. !/ * '0 1!0. !/ * '0 1!0. !/ * '0 1!0. !/ * '0 1!0./ COPY OF THE ORDER FORWARDED TO : 1. $% / THE APPELLANT 2. '($% / THE RESPONDENT. 3. 2 / CONCERNED CIT 4. 2() / THE CIT(A)-III, AHMEDABAD 5. 056 ' , , / DR, ITAT, AHMEDABAD 6. 678 9) / GUARD FILE. !/ !/ !/ !/ / BY ORDER, : :: :/ // / ; ; ; ; ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD