SHWETA KHANDELWAL, Jaipur V. ITO, Jaipur

ITA 60/JPR/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1824 (ITAT-JAIPUR)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 17-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREM PRAKASH MEENA JCIT DHK
• Keywords: Business income
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 60/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14. SHWETA KHANDELWAL 203, TIKKARMAL KA RASTA, KISHANPOLE BAZAR, JAIPUR, RAJ.-302001 CUKE VS. ITO, WARD 1(4) JAIPUR (RAJ.) LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. ANTPK 5196 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MUKESH KHANDELWAL (C.A) JKTLO DH VKSJ LS@ REVENUE BY : SHRI PREM PRAKASH MEENA (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18.12.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 19/12/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM . THIS APPEAL BY THE ASSESSEE IS FILED AGAINST THE O RDER OF LD. CIT (A)-I, JAIPUR DATED 11.11.2016 PERTAINING TO ASSESSMENT YEAR 2013 -14. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL:- 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. CIT(A) HAS ERRED SERIOUSLY ON THE FACTS AND IN LAW IN SUSTAINI NG ADDITION OF RS. 72,83,617/- BEING LOANS TAKEN FROM 3 CONCERNS ALLEG ED TO BE CONTROLLED BY SHRI BHANWAR LAL JAIN OF MUMBAI. 2. THAT THE ASSESSEE CRAVES LEAVE TO ADD, AMEND, AL TER, AND DELETE ANY OF THE GROUNDS OF APPEAL BEFORE THE HEARING. 2 ITA NO. 60/JP/2017 SMT. SHWETA KHANDELWAL, JAIPUR. 2. BRIEFLY STATED THE FACTS ARE THAT THE CASE OF TH E ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT UNDER SECTIO N 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 17.03.2016. WHILE FRAMING THE ASSESSMENT, THE AO O BSERVED THAT THE ASSESSEE HAS OBTAINED LOANS FROM THREE PARTIES NAMELY ANKITA EXP ORTS, PANKAJ EXPORTS AND NAVKAR DIAMOND OF RS. 15,08,384/- RS. 22,57,808/- AND RS. 35,17,425/- RESPECTIVELY, DURING THE YEAR, THE ASSESSING OFFICER WAS OF THE VIEW THA T THIS LOAN HAS BEEN OBTAINED THROUGH THE ACCOMMODATION ENTRY PROVIDER OPERATED B Y SHRI BHANWARLAL JAIN AND HENCE MADE ADDITION OF RS. 72,83,617/-. AGAINST TH IS, THE ASSESSEE PREFERRED AND APPEAL BEFORE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS SUSTAINED THE ADDITION. NOW, THE ASSESSEE IS IN APPEAL AGAINST T HE CONFIRMATION OF ADDITION. 3. ONLY EFFECTIVE GROUND IN THIS APPEAL IS AGAINST SUSTAINING THE ADDITION OF RS. 72,83,617/- BEING THE LOANS TAKEN FROM 3 CONCERNS. 3.1 LD. COUNSEL FOR THE ASSESSEE VEHEMENTLY ARGUED AND REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN BRIEF. HE CONT ENDED THAT THE ASSESSEE HAD DISCHARGED HIS ONUS WITH REGARD TO THE LOAN BY FURN ISHING THE REQUISITE DETAILS. HE SUBMITTED THAT LOAN IS TAKEN THROUGH BANKING CHANNE L. THE LENDER PARTIES HAVE SUFFICIENT FUNDS IN THEIR RESPECTED ACCOUNT AND HUG E TURNOVER OF BUSINESS AND HAVE CONFIRMED THE SAME. THE LD. COUNSEL FOR THE ASSESS EE RELIED UPON THE VARIOUS CASE LAWS IN PARA 6 OF THE WRITTEN SUBMISSIONS, WHICH AR E REPRODUCED AS UNDER:- 1. CIT VS. JAI KUMAR BAKLIWAL (2014) 366 ITR 217/101 D TR 37 2. KANHAIALAL JANGID VS. ACIT 217 CTR 354 3. CIT VS. AJAY KUMAR SHARMA 259 ITR 240 3 ITA NO. 60/JP/2017 SMT. SHWETA KHANDELWAL, JAIPUR. 4. CIT VS. HEERA LAL CHAGAN LAL 257 ITR 281 5. CIT VS. H.S. BUILDERS (P.) LTD. 78 DTR 169 6. ARAVALI TRADING CO. VS. ITO 187 TAXMAN 338 7. CIT V/S ARL INFRATECH LTD. 394 ITR 383 LD. COUNSEL SUBMITTED THAT IN VIEW OF THESE DECISIO NS, THERE WAS NO JUSTIFICATION TO MAKE ADDITION OF THE IMPUGNED ORDER. 3.2 PER CONTRA LD. D/R STRONGLY SUPPORTED THE ORDER OF THE AUTHORITIES BELOW. HE DREW OUR ATTENTION TO THE STATEMENT OF SHRI BHANWAR LAL M. JAIN ENCLOSED AT PAGES 36 TO 59 OF THE PAPER BOOK. LD. D/R DREW OUR ATTEN TION TO THE QUESTION NO. 24 AND ANSWERS THERETO WHICH INCLUDES THE PARTIES FROM WHO M ASSESSEE HAS TAKEN LOAN. 3.3 WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED TH E MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER OF THE AUTHORITIES BELOW . WE FIND THAT THE ASSESSING OFFICER MADE ADDITION ON THE BASIS THAT THE ASSESSE E OBTAINED LOAN THROUGH ACCOMMODATION ENTRY PROVIDER. LD. CIT(A) AFFIRMED THE VIEW OF THE ASSESSING OFFICER. WE HAVE CONSIDERED THE MATERIAL AVAILABLE ON RECORD. THE LD. COUNSEL FOR THE ASSESSEE HAS TAKEN US THROUGH BANKS STATEMENT OF THE PARTIES WHICH IS ENCLOSED AT PAPER BOOK PAGES 3,4,8,9,10,14,15,16,21,22,23,24 ,25 ETC. THE ASSESSEE HAS ALSO FILED ITR AND THEIR PROFIT AND LOSS ACCOUNTS FROM T HESE EVIDENCES IT IS EVIDENT THAT THOSE PARTIES WERE HAVING SUFFICIENT BALANCE IN THE IR BANK ACCOUNT FOR GIVING LOAN TO THE ASSESSEE. THE ASSESSING OFFICER HAS NOT MADE A NY ENQUIRY INDEPENDENT OF THESE EVIDENCES FURNISHED BY THE ASSESSEE EXCEPT THAT THE INFORMATION FURNISHED BY THE INVESTIGATION WING OF THE REVENUE IN THE FORM OF TH E STATEMENT OF SHRI BHANWAR LAL JAIN. UNDER THESE FACTS, WE ARE OF THE VIEW THAT T HE ASSESSING OFFICER OUGHT TO HAVE 4 ITA NO. 60/JP/2017 SMT. SHWETA KHANDELWAL, JAIPUR. MADE ENQUIRIES FROM THESE CONCERNS. THEREFORE, WE HERBY SET ASIDE THE IMPUGNED ASSESSMENT ORDER AND DIRECT THE ASSESSING OFFICER T O FRAME DENOVO ASSESSMENT BY MAKING ENQUIRES THROUGH COMMISSION OR BY ISSUING SU MMONS TO THE CONCERNED PARTIES FOR COLLECTING THE EVIDENCE. THUS, THE GRO UND RAISED IN THIS APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY THE 19 TH DAY OF DECEMBER 2017. SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 19/12/2017. POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT-SMT. SHWETA KHANDELWAL, JAIPUR. 2. THE RESPONDENT- THE ITO, WARD -1-4, JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 60/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NO. 60/JP/2017 SMT. SHWETA KHANDELWAL, JAIPUR.