SHRI MAHESH NANDLAL MALOO (HUF), Nagpur V. ACIT-CENTRAL-CIRCLE-1(2), Nagpur

ITA 58/NAG/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1613 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 07-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Keywords: Unexplained cash credit; Opportunity of being heard
• Section: 144; 2

Judgement Text

1 ITA NO. 58/NAG/2014 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. (S.M.C.) I.T.A. NO.58/NAG/2014 ASSESSMENT YEAR : 2008 - 09. MAHESH NANDLAL MALOO, (HUF), ASSTT .COMMISSIONER OF NAGPUR. VS. INCOME - TAX, CENTRAL CIR. - 1(2), PAN AAFHM2590E NAGPUR. APPELLANT. RESPONDENT. APPELLANT BY : NONE. RESPONDENT BY : SHRI NARENDRA KANE. DATE OF HEARING : 10 - 11 - 2015. DATE OF PRONOUNCEMENT : 16 TH NOV., 2015. O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - I II, NAGPUR DATED 27 - 11 - 2013 AND PERTAINS TO ASSESSMENT YEAR 200 8 - 09 . THE ISSUE RAISED IS THAT THE LEARNED CIT(APPEALS) ERRED IN CONFIRMING THE ADDITION OF RS .1,60,000/ - AS UNEXPLAINED CASH CREDIT. 2. IN THIS CASE ASSESSMENT ORDER WAS PASSED U/S 144 OF I.T. ACT. ON GOING THROUGH THE BANK STATEMENT OF THE ASSESSEE THE AO OBSERVED THAT THE ASSESSEE HAD DEPOSITED RS.1,60,000/ - ON 19 - 12 - 2007 IN CASH. HOWEVER, THE CASH FLOW STATEMENT SUBMITTED BY THE ASSESSEE DID NOT DISCLOSE ANY WITHDRAWAL. NO EX PLANATION IN THIS REGARD WAS GIVEN BY THE ASSESSEE WHEN NOTICE U/S 14 2 ( 1 ) WAS ISSUED. HENCE THE AO ADDED THE SAID AMOUNT AS UNEXPLAINED CASH CREDIT. 3. BEFORE THE LEARNED CIT(APPEALS) IT WAS SUBMITTED THAT THE ASSESSEE HAD GIVEN SOME SMALLER LOANS TO CERTA IN PERSONS IN LAST YEAR AND RELEVANT ENTRIES ARE 2 ITA NO. 58/NAG/2014 APPEARING IN THE BALANCE SHEET FOR 2007 AS ADVANCE. THIS MONEY WAS COLLECTED AND DEPOSITED IN BANK. IT WAS FURTHER SUBMITTED T HAT THE CASH FLOW STATEMENT GIVEN TO THE AO WAS WITH REGARD TO THE CASH BALANCE WITH THE ASSESSEE AND IT WAS NOT RELATED TO BUSINESS TRANSACTION, HENCE THE SAME WAS NOT APPEARING IN THE CASH FLOW STATEMENT. LEARNED CIT(APPEALS) DID NOT ACCEPT THE ABOVE SUBMISSIONS. HE UPHELD THE AOS ORDER. 4. AGAINST THE ABOVE ORDER, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. I HAVE HEARD THE LEARNED D.R. ASSESSEE HAS REQUESTED FOR ADJOURNMENT. HOWEVER, I NOTE THAT THE ASSESSEE HAD BEEN GIVEN ADJOURNMENT ON TWO OCCASIONS EARLIER. HENCE I HAVE REJECTED THE ADJOURNMENT REQUEST. 6. UPON CAREFUL CONSIDERATION I AM OF THE OPINION THAT THE MATTER CAN BE DISPOSED OF BY HEARING THE LEARNED D.R. AND PERUSING THE RECORDS. 7. UPON CAREFUL CONSIDERATION I FIND THAT THE AO HAS NOT MENTIONED ANY THING ABOUT THE BOOKS OF ACCOUNTS OF THE ASSESSEE. HE HAS OBS ERVED THAT RS.1,60,000/ - CASH DEPOSIT IN BANK IS NOT REFLECTED IN THE CASH FLOW STATEMENT. ASSESSEE HAS STATED BEFORE THE LEARNED CIT(APPEALS) THAT THE CASH FLOW STATEMENT WAS FOR CASH WITH THE ASSESSEE AND NOT REGARDING BUSINESS TRANSACTION. ASSESSEE HAS ALSO STATED THAT HE HAD GIVEN SOME ADVANCES TO CERTAIN PERSONS IN THE EARLIER YEAR AND THE SAME WERE APPEARING IN THE BALANCE SHEET OF LAST YEAR. ASSESSEES CLAIM IS THAT HE HAS RECEIVED THE AMOUNTS AGAINST THOSE OUTSTANDING AND DEPOSITED THE SAME WIT H THE BANK. THIS SUBMISSION OF THE ASSESSEE HAS NOT BEEN EXAMINED WITH REGARD TO ITS VERACITY. LEARNED CIT(APPEALS) HAS OBSERVED THAT THE NAMES OF THE PERSONS TO WHOM LOANS WERE GIVEN HAS NOT BEEN PRODUCED BEFORE HIM. HOWEVER, I NOTE THAT IN THE COPY OF ST ATEMENT OF FACTS FILED BEFORE THE LEARNED CIT(APPEALS), NAMES OF THE PERSONS AND AMOUNTS WERE DULY MENTIONED . IN THESE CIRCUMSTANCES, IN MY CONSIDERED OPINION, THE INTEREST OF JUSTICE WILL BE SERVED IF THE ISSUE IS REMITTED TO THE FILE OF THE AO TO EXAMINE THE 3 ITA NO. 58/NAG/2014 VERACITY OF ASSESSEES SUBMISSIONS. ACCORDINGLY I REMIT THE ISSUE TO THE FILE OF THE AO. NEEDLESS TO ADD THE ASSESSEE SHOULD BE GRANTED ADEQUATE OPPORTUNITY OF BEING HEARD. 8. IN THE RESULT, ASSESSEES APPEAL STANDS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 16 TH DAY OF NOV., 2015. SD/ - ( SHAMIM YAHYA) ACCOUNTANT MEMBER. NAGPUR, DATED: 16 TH NOV., 2015. COPY FORWARDED TO : 1. SHRI MAHESH NANDLAL MALOO , HUF, 101, JAI BHAWANI SOCIETY, WARDHAMAN NAGAR, C.A. ROAD, NAGPUR. 2. A .C.I.T., CENTRAL CIRCLE - 1(2), NAGPUR. 3. C.I.T. - I II, NAGPUR. 4. C.I.T. NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY. BY ORDER WAKODE ASSISTANT REGISTRAR, ITAT, NAGPUR