Appeal details
Counselvise Citation
[2020] 111 COUNSELVISE.COM (IT) 4636 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 2 month(s) 17 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
14-02-2020
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
SMC
Assessment Year
2007-2008
Appeal Filed On
27-11-2018
Judgement Text
T HE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA ( A M) I.T.A. NO. 6694 /MUM/ 201 8 (ASSESSMENT YEAR 20 0 7 - 08 ) SHRI BHAGWANJI NARSI PATEL FLAT NO. 1203/1204, PUMPAS VASANT LAWN, NR. JUPITER HOSPITAL, MAJIWADA THANE(W) - 4210 3 01. PAN : AAWPP3727H V S . ITO WARD 1(1) KALYAN ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY NONE DEPARTMENT BY SHR I R. BHOOPATI DATE OF HEARING 10.12 . 20 19 DATE OF PRONOUNCEMENT 14 . 0 2 . 20 20 O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER OF LEARNED CIT (A) DATED 5.9.2018 A ND PERTAINS TO ASSESSMENT YEAR 2007 - 08. 2. T HE GROUNDS OF APPEAL READ AS UNDER : - 1. THE LD. CIT (A) IS NOT JUSTIFIED IN CONFORMING THE ADDITION OF RS. 7,88,600/ - AS ALLEGED UNPROVED CASH CREDIT U/S. 68 WITHOUT APPRECIATING THAT ASSESSEE CONCLUSIVELY PROVED THE IDENTITY CAPACITY AND GENUINENESS OF CASH CREDIT THE SAME. 2. WITHOUT PREJUDICE TO THE ABOVE THE APPELLANT SUBMITS THAT THE LD CIT(A) HAS SERIOUSLY ERRED IN CONFIRMING THE ADDITION OF RS 7,88,60 0/ - (OUT OF TOTAL RS 13,46,6007 - ), REPRESENTING THE LOAN FROM FOUR PARTIES WITHOUT APPRECIATING THAT ASSESSEE HAD PRODUCED ALL THE EVIDENCES BUT ONLY BECAUSE OFFICIALS OF THE IT DEPARTMENT OVER WHOM APPELLANT HAS NO CONTROL DID NOT RESPOND TO THE REQUEST O F VERIFICATION OF THE LOAN TRANSACTION ON THEIR PART THEREBY MEANING THAT THERE WAS NOTHING AGAINST THE ASSESSEE AND AS SUCH THE ADDITION U/S . 68 DESERVE TO BE DELETED. 3. THE LD. CLT (A) HAS SERIOUSLY EARNED IN CONFIRMING THE ADDITION OF RS 1,00,4897 - ON ACCOUNT OF EXCHANGE FLUCTUATION LOSS WITHOUT CONSIDERING THE DETAILED SUBMISSION FILED BEFORE HIM. A PROPOS ADDITION UNDER SECTION 68 : - SHRI BHAGWANJI NARSI PATE L 2 3. B RIEF FACTS OF THE CASE ARE THAT T HE ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDING OBSERVED THAT FRESH CA PITAL WERE INTRODUCED IN THE PROPRIETARY CONCERN. IT WAS FURTHER OBSERVED BY HIM THAT THE ASSESSEE HAD TAKEN UNSECURED LOAN IN HIS PERSONAL CAPACITY AND OUT OF THE SAID LOAN ONLY THE CAPITAL WAS INTRODUCED WHICH WAS TOTALING TO RS. 21,90,000/ - . THE ASSESSI NG OFFICER ACCORDINGLY REQUIRED THE ASSESSEE TO PROVE THE THREE CONDITIONS OF THE CASH CREDIT. ON PERUSAL OF DETAILS FILED IT IS OBSERVED BY THE ASSESSING OFFICER THERE WERE IMMEDIATE CASH DEPOSITS IN THE BANK ACCOUNTS OF THE CREDITORS BEFORE ISSUANCE OF C HEQUE. HE ACCORDINGLY AFTER EXAMINING THE DETAILS CAME TO THE CONCLUSION THAT OUT OF NEW INTRODUCTION OF CAPITAL OF RS. 21,90,000/ - AN AMOUNT OF RS. 13,46,000/ - FALLS UNDER THE PREVIEW OF SECTION 68 OF THE I.T. ACT AND ACCORDINGLY ADDITION WAS MADE BY THE ASSESSING OFFICER. 4. U PON ASSESSEE'S APPEAL LEARNED CIT (A) NOTED THE SUBMISSIONS. HE ALSO OBTAINED REMAND REPORT FROM THE ASSESSING OFFICER. HE GRANTED PART RELIEF TO THE ASSESSEE. THE LEARNED CIT (A) HELD AS UNDER : - 3.6. I HAVE EXAMINED THE FACTS OF TH E CASE, CONTENTS OF THE REMAND REPORT AND SUBMISSION MADE ON BEHALF OF THE APPELLANT. IT IS SEEN THAT ADDITION U/S 68 WAS MADE ON ACCOUNT OF LOAN SHOWN FROM FOLLOWING 8 CREDITORS AGGREGATING TO RS 13,46,600/ - : SR. NO NAME OF THE CREDITOR PAN 1 SHRI VI MALKUMAR N. SHARMA ACMPS3646Q 2 VRINDAVAN V. PATEL AIJJP3055P 3 VIRAL O . PATEL ALSPR3746B 4 SHRI NARSHI NANJI PATEL AMZPP6182B 5 SMT. M.M. MANTRI ALLPM6283F 6 MEET TEXTILES AFSPG6356E 7 MANJULABEN B. PATEL AMBPP2673D 8 BHAGWANJI N. PATEL NA 3.7. THE ASSESSING OFFICER IN THE REMAND REPORT HAS REPORTED THAT IN THE CASES OF FOUR CREDITORS AT SR.NO 4,5,6,7 RESPECTIVE ASSESSING OFFICERS HAVE SHRI BHAGWANJI NARSI PATE L 3 REPORTED THAT ASSESSMENT IN THEIR CASES WERE COMPLETED AND LOAN WERE FOUND ACCEPTABLE. THE AMOUNT OF LOAN FROM T HESE FOUR CREDITORS ARE TO THE TUNE OF RS. 5,58,000/ - . SINCE THE ASSESSING OFFICER HAS HIMSELF REPORTED THAT IN THESE FOUR CASES OF CREDITORS LOANS ADVANCED WERE FOUND ACCEPTABLE THEREFORE TO THE EXTENT OF RS. 5,58,000/ - NO ADDITION CAN BE MADE. 3.8. AS R EGARDS REMAINING AMOUNT OF LOANS TO THE TUNE OF RS. 7,88,600/ - (13,46,600 - 5,58,000), THE ASSESSING OFFICER IN THE REMAND REPORT HAS RECONFIRMED THE STAND TAKEN BY HIM IN THE ASSESSMENT AND HAS REPORTED THAT NONE OF THESE FOUR CREDITORS WERE PRODUCED FOR VER IFICATION AND THERE WERE IMMEDIATE CASH DEPOSITS IN THE BANK ACCOUNT OF THESE CREDITORS. IT HAS ALSO BEEN REPORTED THAT THESE LOAN CREDITORS DID NOT HAVE EXPLAINABLE SOURCE OF SUCH HUGE CASH D EPOSITED IN THEIR BANK ACCOUNT. THUS THE APPELLANT HAS NOT BEEN ABLE TO SATISFY THREE CONDITION OF CASH CREDIT IN THE UNDER MENTIONED CASES. SR. N O. NAME OF THE ASSESSEE PAN 1 SHRI VIMALKUMARN. SHARMA ACMPS3646Q 2 VRINDAVAN V. PATEL AIJJP3055P 3 VIRAL 0. PATEL ALSPR3746B 4 BHAGWANJI N. PATEL NA 5. A GAINST THE A BOVE ORDER ASSESSEE IS IN APPEAL BEFORE THE ITAT. I HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE . N ONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE NOTICE . 6. U PON CAREFUL CONSIDERATION I FIND THAT ADDITION HAS BEEN SUSTAINED ON THE FINDING THAT THERE WERE CASH DEPOSITS IMMEDIATELY BEFORE THE ISSUE OF THE CHEQUE TO THE ASSESSEE IN THE BANK ACCOUNT OF THESE PARTIES. IT WAS ALSO FOUND THAT THESE PARTIES DO NOT HAVE THE LEVEL OF INCOME TO GRANT THE LOANS. 7. NOTHING HAS BEEN SUBMITTED TO REBUT THESE CLEA R FINDINGS. IN THE SE CIRCUMSTANCES IN MY CONSIDERED OPINIO N THERE IS NO INFIRMITY IN THE WELL REASONED ORDER OF THE LEARNED CIT (A) . ACCORDINGLY I UPH OLD TH E SAME . A PROPOS THE ISSUE OF FOREIGN EXCHANGE FLUCTUATION LOSS . 8. O N THIS ISSUE THE ASSESSING OFFI CER NOTED THAT ASSESSEE HAS DEBITED A SUM OF RS. 1,11,738/ - TO THE FOREIGN ACTION FLUCTUATION LOSS. UPON ENQUIRY FROM THE AUTHORISED REPRESENTATIVE OF THE ASSESSEE IT WAS FOUND THAT THE LOSS WAS SHRI BHAGWANJI NARSI PATE L 4 ONLY RS. 11,249/ - . T HEREFORE AFTER DUE AGREEMENT WITH THE ASS ESSEE'S REPRESENTATIVE THE BALANCE SUM WAS DISALLOWED THIS WAS CONF IRMED BY THE LEARNED CIT(A) . 9. AGAINST THIS ORDER ASSESSEE HAS FILED APPEAL . 10. U PON CAREFUL CONSIDERATION I FIND THAT THE LOSS WAS QUANTIFIED AT RS. 11,249/ - IN CONSULTATION WITH THE ASSESSEE'S REPRESENTATIVE . T HEREAFTER NOTHING IS ON RECORD TO REBUT THE SAME. HENCE, IN MY CONSI DERED OPINION THERE IS NO INFIRMITY IN THE ORDER OF LEARNED CIT (A). HENCE, I AFFIRM THE SAME. 11. IN THE RESULT, THIS APPEAL FILED BY THE ASSESSEE STANDS DISM ISSED . ORDER HAS BE EN PRONOUNCED IN THE COURT ON 14 . 2 . 20 20 . SD/ - (SH A MIM YAHYA ) ACCOUNTANT MEMBER MUMBAI ; DATED : 14 / 2 / 20 20 COPY OF THE ORDER FORW ARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR ) PS ITAT, MUMBAI
