Shri Navnitbhai Harmanbhai Patel, Anand V. The ACIT.,Anand Circle, Anand

ITA 627/AHD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60322 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 13-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B T THAKKAR
• Keywords: Unexplained investment; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD C BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT ME MBER I.T.A. NO.627/AHD/2012 A. Y. 2008-09 SHRI NAVNITBHAI HARMANBHAI PATEL, JANKI MANGALPURA ROAD NEAR GANESH DUGDHALAYA ANAND-388001 PAN-AESPP6864K APPELLANT VS. ACIT, ANAND CIRCLE, 2 ND FLOOR, S.P. COMPLEX MAYFAIR ROAD, ANAND-388001 RESPONDENT DEPARTMENT BY : SHRI VINOD TANWANI, SR. D.R. ASSESSEE BY : SHRI B.T. THAKKAR, A.R. DATE OF HEARING : 08.05.2012 DATE OF PRONOUNCEMENT : 11.05.2012 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-IV, BARODA DATED 19.12.2011, PASSED IN APPEAL NO.CAB/IV-A-181/ 2010-11. 2. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF LD. C IT(A) UPHOLDING THE ADDITION OF RS.3,00,000/- AS UNEXPLAINED DEPOSIT MA DE BY THE A.O. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S AN INDIVIDUAL HAVING INCOME FROM OTHER SOURCES. DURING THE ASSESSMENT P ROCEEDING THE A.O. ITA NO.627/AHD/2012 , A.Y. 2008-09 2 OBSERVED THAT THERE WAS A CREDIT ENTRY OF RS.3,00,0 00/- IN THE SAVING BANK ACCOUNT OF THE ASSESSEE. THE ASSESSEE WAS ASKED TO EXPLAIN THE SAME. THE ASSESSEES CONTENTION WAS THAT HE HAD GIVEN A LOAN OF RS.3,00,000/- TO M/S KAIVAL LAND DEVELOPERS, ANAND IN THE FINANCIAL YEAR 2004-05 AND THE SAME AMOUNT HAS BEEN RETURNED BY THE PARTY THROUGH BANKI NG CHANNELS DURING THE YEAR UNDER APPEAL. THE CHEQUE WAS DEPOSITED IN HIS BANK ACCOUNT BY THE BORROWERS. IN SUPPORT OF THIS SUBMISSION THE ASSES SEE PRODUCED THE BANK STATEMENT OF KAIVAL LAND DEVELOPERS WITH FULL ADDRE SS ALONG WITH THE EXPLANATION THAT THE CREDIT IN THE BANK ACCOUNT SHO WING A CASH CREDIT TO RETURN OF ADVANCE LOAN TO M/S KAIVAL LAND DEVELOPERS MADE BY THE ASSESSEE IN THE PAST YEAR. THIS EXPLANATION, HOWEVER, WAS NOT ACCE PTABLE TO THE A.O. AS NO DETAILS, AS TO WHEN AND FROM WHAT SOURCES THIS ADVA NCE WAS GIVEN BY THE ASSESSEE TO KAIVAL LAND DEVELOPERS, ANAND, WERE FUR NISHED. THE A.O., THEREFORE, ADDED THE SAME TO THE INCOME OF THE ASSE SSEE AS UNEXPLAINED INVESTMENT. IN APPEAL THIS ACTION OF THE A.O. WAS CONFIRMED BY LD. CIT(A) ON THE GROUND THAT THE ASSESSEE WAS REQUIRED TO PROVE THE IDENTITY AND CREDITWORTHINESS OF THE PARTY BY FURNISHING CERTIFI ED COPY OF THE CONFIRMATION OF ACCOUNT AS BANK STATEMENT WAS NOT SUFFICIENT PROOF FOR ACCEPTING THE CONTENTION OF THE ASSESSEE. FURTHER AGGRIEVED, NOW THE ASSESS EE IS IN APPEAL BEFORE US. 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD IT APPEARS THAT THIS IS NOT THE CASE OF CASH CREDIT BUT OF REP AYMENT/RETURNING OF LOAN AMOUNT MADE BY THE ASSESSEE IN EARLIER YEARS. THE ASSESSEE HAS FURNISHED STATEMENT OF BANK ACCOUNT OF M/S KAIVAL LAND DEVELO PERS AND ASSESSEES BANK ACCOUNT FOR THE PERIOD OF FINANCIAL YEAR 2004-05 AN D FINANCIAL YEAR 2007-08 FOR ITA NO.627/AHD/2012 , A.Y. 2008-09 3 VERIFICATION OF ENTRY IN RESPECT OF LOAN ADVANCE OF RS.3,00,000/- MADE BY ASSESSEE TO M/S KAIVAL LAND DEVELOPERS ON 26.06.200 4 AND RECEIPT OF CHEQUE FOR RETURN OF THE LOAN AMOUNT OF RS.3,00,000/- ON 2 5.03.2008. THE LETTER OF CONFIRMATION BY M/S KAIVAL LAND DEVELOPERS WITH COP Y OF ACCOUNT IS ALSO FURNISHED. ALL THESE DOCUMENTS ARE AVAILABLE IN TH E PAPER BOOK FILED BY THE ASSESSEE AND REQUIRE VERIFICATION AT THE END OF THE A.O. THEREFORE, THE MATTER IS RESTORED BACK TO THE FILE OF LD. A.O. FOR FRESH ADJ UDICATION AFTER VERIFYING THE SAME AND GIVING OPPORTUNITY OF BEING HEARD TO THE A SSESSEE. IF THE CONTENTION OF THE ASSESSEE IS FOUND CORRECT, NO ADDITION IS TO BE MADE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIS TICAL PURPOSE. . SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER JU DICIAL MEMBER TRUE COPY N.K. CHAUDHARY, SR. P.S. - 11 /05/2012 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. !' / CONCERNED CIT 4. !' - / CIT (A) 5. #$% , & , / DR, ITAT, AHMEDABAD 6. %'( )* / GUARD FILE. BY ORDER/ , + / , & ,