M/s. Manishkumar & Co., Anand V. The Income tax Officer, Ward-3, Anand

ITA 58/AHD/2009

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6927 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 08-12-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 05-01-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R K VOHRA
• Assessee Lawyers: A L THAKKAR
• Keywords: Depreciation; Opportunity of being heard

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AHMEDABAD BEFORE S/SHRI D.K.TYAGI, JM AND B.P. JAIN, AM. M/S MANISHKUMAR & CO., GOKUL CHAMBERS, SARDARGUNJ, ANAND. VS. INCOME-TAX OFFICER, WARD-3, ANAND. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI A. L. THAKKAR, AR RESPONDENT BY:- SHRI R. K. VOHRA, DR DATE OF HEARING :8/12/2011 DATE OF PRONOUNCEMENT : 08/12/11. O R D E R PER D. K. TYAGI, JUDICIAL MEMBER . THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(A) DATED 7.10.2008. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL:- (1) THE LD. CIT(A)-IV, BARODA ERRED IN LAW AND ON FACTS IN CONFIRMING ADDITION OF RS.13,77,000/- U/S 68 OF THE IT ACT. (2) THE LD. CIT(A)-IV, BARODA ERRED IN LAW AND ON FACTS IN CONFIRMING THE DISALLOWANCE OF RS.6,893/- BEING 10% OF VEHICLE EXPENSES REPAIRS AND DEPRECIATION. ITA NO.58/AHD/2009 ASST. YEAR :2005-06 ITA NO.58/AHD/2009 ASST. YEAR 2005-06 2 2. THE FIRST GROUND RELATES TO ADDITION OF RS.13,77 ,000/- MADE U/S 68 BY THE AO. DURING THE ASSESSMENT PROCEEDINGS THE AS SESSEE WAS ASKED BY THE AO TO PROVE THE IDENTITY OF THE LENDER, GENUINE NESS OF THE TRANSACTION AND CREDITWORTHINESS OF THE LENDER IN RESPECT OF TH E LOAN OF RS.13,77,000/- SHOWN IN THE NAME OF SHRI MADANLAL J. PANJABI. THE ASSESSEE WAS ONLY ABLE TO FURNISH THE DEATH CERTIFICATE OF MADANLAL J . PANJABI. NO OTHER EVIDENCE INCLUDING THAT FROM THE LEGAL HEIR OF MR. PANJABI WAS SUBMITTED THE AO THEREFORE, MADE THE ADDITION OF RS.13,77,000 /- U/S 68 OF THE ACT. BEFORE LD. CIT(A) ALSO NO DETAILS COULD BE SUBMITTE D BY THE ASSESSEE. THE LD. CIT(A), THEREFORE, CONFIRMED THE ACTION OF THE AO. FURTHER AGGRIEVED, NOW THE ASSESSEE IS IN APPEAL BEFORE US. 3. HEARD BOTH THE PARTIES AND PERUSED THE RECORD. W E DEEM IT PROPER TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUB STANTIATE HIS CLAIM OF CREDIT OF RS.13,77,000/- FROM SHRI MADANLAL J. PANJ ABI AND FOR THIS PURPOSE THE MATTER IS RESTORED BACK TO THE AO FOR F RESH ADJUDICATION AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THIS GROUND IS ALLOWED FOR STATISTICAL PURPOSES. 4. THE SECOND GROUND RELATES TO ADDITION OF RS.13,7 86/- BEING 20% OF VEHICLE EXPENSES AND DEPRECIATION OF RS.68,931/-. T HIS ADDITION WAS MADE BY THE AO BY OBSERVING THAT PERSONAL USE OF THE VEH ICLES COULD NOT BE RULED OUT. THE LD. CIT(A) HAS REDUCED THE DISALLOWA NCE TO 10% OF THE ITA NO.58/AHD/2009 ASST. YEAR 2005-06 3 TOTAL EXPENSES. WE, HOWEVER, FEEL THAT THIS ADDITIO N TO BE RESTRICTED TO 5% OF THE TOTAL EXPENSES. THIS GROUND IS PARTLY ALLOWE D. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN OPEN COURT ON 08/12/11. SD/- SD/- (B.P. JAIN) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICI AL MEMBER AHMEDABAD, MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD 1.DATE OF DICTATION 8/12/2011. 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER.OTHER MEMBER 13/12/2011 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.. 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..