Smt Hemlata Sunil Pangale, Jalgaon V. Income Tax Officer, Ward-1(1), Jalgaon, Jalgaon

ITA 614/PUN/2023

AI Insights

This case involves an appeal by Smt. Hemlata Sunil Pangale against the order of the National Faceless Appeal Centre (NFAC), which confirmed the addition of Rs.9,00,000 to her income for the assessment year 2009-10, treating it as unexplained cash credit under section 68 of the Income Tax Act, 1961. The ITAT had previously remanded the matter to the Assessing Officer to examine additional evidence regarding the loan's legitimacy. Upon re-examination, the Assessing Officer reiterated the addition, leading to the current appeal. The ITAT, after reviewing the evidence, found that the withdrawals from the lender's account corresponded with the loan amount, thus allowing the appeal and directing the deletion of the addition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137647 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 20-06-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 21-05-2023
• Other Referred Cases: Collector, Land and Acquisition vs. M/s Mst. Katiji & Others, 167 ITR 471 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Additional evidence; Condonation of delay
• Section: 68; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.614/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2009-10 Smt. Hemlata Sunil Pangale, Flat No.102, Parshwapuram Apartment, Behind Omkareshwar Temple, Jalgaon- 425001. PAN : AGQPA1153N Vs. ITO, Ward-1(1), Jalgaon. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 07.02.2023 for the assessment year 2009-10. 2. At the outset, there is a delay of 41 days in filing of the present appeal. The appellant had filed the petition for condonation of the Assessee by : Shri Sanket Joshi Revenue by : Shri Rajesh Gawali Date of hearing : 21.06.2023 Date of pronouncement : 11.07.2023 ITA No.614/PUN/2023 2 delay stating that the delay had occurred on account of fact that the impugned order sent by the NFAC through e-mail was not noticed by the appellant, as the appellant was not habit of checking regularly the e-mails. It is prayed that the delay be condoned in view of the ratio laid down by the Hon’ble Supreme Court in the case of Collector, Land and Acquisition vs. M/s Mst. Katiji & Others, 167 ITR 471 (SC). On the other hand, ld. Sr. DR has no serious objection for condonation of delay. In the circumstances, I am satisfied that it is a fit case for condonation of delay of 41 days and proceeded to dispose of the case on merits. 3. Briefly, the facts of the case are that the appellant is an individual. The Return of Income for the assessment year 2009-10 was filed on 18.03.2010 declaring total income of Rs.4,50,638/-. Against the said return of income, the assessment was completed by the Assessing Officer vide order dated 26.12.2011 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) after making the addition of Rs.9,00,000/- to the returned income treating the loan of Rs.9,00,000/- as unexplained cash credit u/s 68 of the Act. ITA No.614/PUN/2023 3 Being aggrieved by the above addition, an appeal was filed before the ld. CIT(A), who vide order dated 12.10.2017 dismissed the appeal of the assessee. Against the order of the ld. CIT(A), the assessee had filed an appeal before the ITAT. The ITAT vide order dated 01.03.2019 in ITA No.3078/PUN/2017 for A.Y. 2009-10 in assessee’s own case remanded the matter to the file of the Assessing Officer with the following directions :- “7. On hearing the ld. DR for the Revenue and considering the above additional evidences, I am of the opinion the SB account of Shri Viniyak Atterde, the creditor of the assessee, assumes from significant for deciding the issue meaningfully. Therefore, the said additional evidences are admitted and referred to the file of the Assessing Officer for deciding the issue afresh. The Assessing Officer shall examine the cash flow statement of loan account to the SB account of Shri Viniyak Atterde and if the amounts and debts are matching to the cash received by the assessee as loan, claim of the assessee, may be allowed after examining the documents, additional evidences and the submissions of the assessee in the remand proceedings. Accordingly, the issue is remanded to the file of the Assessing Officer for deciding the issue afresh after giving a reasonable opportunity of being heard to the assessee. Thus, the grounds raised by the assessee are allowed for statistical purposes.” 4. Consequent to the order of remand passed by the ITAT, the Assessing Officer passed the assessment order on 08.04.2021 u/s 143(3) r.w.s. 254 of the Act reiterating the same addition. ITA No.614/PUN/2023 4 5. Being aggrieved, an appeal was filed before the NFAC, who vide impugned order confirmed the action of the Assessing Officer. 6. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 7. I had gone through the order passed by the ITAT in first round. The ITAT while admitting the additional evidence filed by the assessee referred the matter to the file of the Assessing Officer with a direction that the Assessing Officer, on examination of the credits/deposits of SB Account of Shri Viniyak Atterde from whom the appellant is stated to have borrowed the money matches with that of loan, no addition is required to be made. It is settled position of law that during the remand proceedings, the Assessing Officer cannot travel beyond the scope of the remand direction given by the appellate authority. Therefore, it is not open to the Assessing Officer as well as the ld. CIT(A) to go into the issues of creditworthiness of the lenders, as the scope of remand assessment is limited to the examination of whether credits/deposits of the SB Account matches with the amount of loan given to the assessee or not. From the material on record, it is clear that the amount of ITA No.614/PUN/2023 5 withdrawals made from the said SB Account is more than the amount of loan of Rs.9,00,000/- given to the assessee and, therefore, the Assessing Officer should have accepted the explanation of the assessee and chosen not to make the addition. In the circumstances, I direct the Assessing Officer to delete the addition of Rs.9,00,000/-. Thus, the grounds of appeal filed by the assessee stand allowed. 8. In the result, the appeal filed by the assessee stands allowed. Order pronounced on this 11 th day of July, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 11 th July, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.