SHRI VIKRAM GOLCHA HUF, JAIPUR V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-5, JAIPUR

ITA 616/JPR/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7211 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 07-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA
• Keywords: Bonafide belief; Additional evidence; Set aside

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENC HES A JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRA M SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 616/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2014-15 VIKRAM GOLCHA HUF, JAIPUR CUKE VS. ACIT, CIRCLE-05, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AABHV5474Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SH. RAJEEV SOGANI (CA) JKTLO DH VKSJ LS @ REVENUE BY : SHRI RAJ MEHRA (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 14/10/2019 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 22/10/2019 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-2, JAIPUR DATED 12.03.2018 WHEREIN THE ASSESSEE HAS CH ALLENGED THE SUSTENANCE OF DISALLOWANCE OF INTEREST EXPENSE AMOUNTING TO RS . 15,45,960/-. 2. AT THE OUTSET, THE LD. AR SUBMITTED THAT THE ASS ESSEE HAS MOVED A PRAYER UNDER RULE 29 OF ITAT RULES, 1963 FOR ADMISSION OF FOLLOWING ADDITIONAL EVIDENCES: S. NO. PARTICULARS PAGE NO. 1 COPY OF HDFC BANK LEDGER A/C FOR A.Y 2013-14 1-10 2 COPY OF HDFC BANK STATEMENT FOR A.Y 2013-14 11-34 3 COPY OF ICICI LEDGER A/C FOR A.Y. 2013-14 35-57 4 COPY OF ICICI LEDGER A/C FOR A.Y 2014-15 58-88 5 COPY OF HDFC BANK STATEMENT FOR A.Y 2014-15 89-99 ITA NO. 616/JP/2018 VIKRAM GOLCHA HUF, JAIPUR VS. ACIT, CIRCLE-05, JAIPUR 2 6 COPY OF HDFC BANK STATEMENT FOR A.Y 2014-15 100-1 19 7 COPY OF LEDGER A/C OF VIKRAM GOLECHA FOR A.Y 2014 -15 120 3. IT WAS SUBMITTED BY THE LD AR THAT THE DURING TH E COURSE OF ASSESSMENT PROCEEDINGS AND THE APPELLATE PROCEEDINGS BEFORE TH E LD. CIT(A), THE ASSESSEE SUBMITTED THAT THE ADVANCE GIVEN TO KARTA OF THE HU F WAS OUT OF INTEREST FREE FUNDS AND WAS OUT OF EXPORT SALES REALIZATION. IT W AS SUBMITTED THAT THE ASSESSEE WAS UNDER THE BONAFIDE BELIEF THAT THE SUB MISSIONS ALONE WILL SUFFICE AND, THEREFORE, DID NOT PRESENT THE AFORESAID EVIDE NCES BEFORE THE LD. AO AND LD. CIT(A). HOWEVER, GIVEN THAT THE CONTENTION SO A DVANCED WAS NOT ACCEPTED, IT IS IMPERATIVE THAT THESE EVIDENCES ARE TAKEN ON RECORD AS THESE EVIDENCES ARE VITAL AND GOES TO THE ROOT OF THE MATTER AND ARE IN SUPPORT OF THE CONTENTIONS ALREADY ADVANCED BEFORE THE LOWER AUTHORITIES. IN S UPPORT, THE RELIANCE WAS PLACED ON THE DECISION IN CASE OF CIT VS. TEXT HUND RED INDIA (P) LTD. (2011) 239 CTR (DEL) 263. 4. THE LD. DR IS HEARD WHO HAS OPPOSED THE ADMISSIO N OF THE ADDITIONAL EVIDENCES SO FILED BY THE ASSESSEE. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS NOTED THAT THE ASSESSING OFFICER H AS DISALLOWED THE INTEREST EXPENSE OF RS. 15,45,960/- ON THE BELIEF THAT INTER EST BEARING LOAN TAKEN FROM HDFC BANK WAS NOT BEING USED FOR ASSESSEES OWN BUS INESS AND DIVERTED TO KARTA OF THE HUF. IT IS ALSO NOTED THAT THE ASSESSE E HAS CONTENDED BEFORE THE ASSESSING OFFICER THAT THE ADVANCES WERE GIVEN TO K ARTA OF HUF OUT OF INTEREST FREE FUNDS AND REALIZATION FROM EXPORT SALES WHICH WERE INITIALLY RECEIVED IN ICICI BANK AND THEREFORE, TRANSFERRED TO HDFC BANK AND FROM THE HDFC BANK, THE AMOUNT WAS GIVEN TO KARTA OF HUF. HOWEVER, THE LATTER PART OF THE SAID CONTENTION SO FAR AS IT RELATES TO THE ADVANCES WER E GIVEN TO KARTA OF HUF OUT ITA NO. 616/JP/2018 VIKRAM GOLCHA HUF, JAIPUR VS. ACIT, CIRCLE-05, JAIPUR 3 OF REALIZATION FROM EXPORT SALES WAS NOT EXAMINED B Y THE ASSESSING OFFICER AND APPARENTLY, THERE WAS NO OCCASION TO CALL FOR AND C ONSIDER THE EVIDENCES IN SUPPORT OF THE AFORESAID CONTENTION BY THE ASSESSI NG OFFICER. SIMILAR IS THE POSITION BEFORE LD. CIT(A) WHO HAS SUSTAINED THE FI NDINGS OF THE ASSESSING OFFICER ON THE OTHER GROUNDS AND THE MATTER RELATIN G TO ADVANCE GIVEN TO KARTA OF HUF OUT OF THE EXPORT SALES REALIZATION WAS NOT EXAMINED. GIVEN THAT THE CONTENTION SO ADVANCED BY THE ASSESSEE WAS TAKEN BE FORE THE LOWER AUTHORITIES AND THE ADDITIONAL EVIDENCES SO SOUGHT TO BE SUBMIT TED NOW BY THE ASSESSEE IN SUPPORT OF THE SAID CONTENTION GOES TO THE ROOT OF THE MATTER, WE DEEM IT APPROPRIATE TO ADMIT THE ADDITIONAL EVIDENCES SO SO UGHT TO BE FILED BY THE ASSESSEE AS NOTED IN PARA 2 ABOVE AND THE MATTER IS SET ASIDE TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE ADDITIONAL EVIDENC E SO FILED BY THE ASSESSEE AND DECIDE THE MATTER AFRESH AFTER PROVIDING REASON ABLE OPPORTUNITY TO THE ASSESSEE. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22/10/2019. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 22/10/2019 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- VIKRAM GOLCHA HUF, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- ACIT, CIRCLE-05, JAIPUR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. ITA NO. 616/JP/2018 VIKRAM GOLCHA HUF, JAIPUR VS. ACIT, CIRCLE-05, JAIPUR 4 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 616/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR