ITO 10(2(4), MUMBAI V. VIJAYHIND RAMDHARI SINGH, MUMBAI

ITA 678/MUM/2014

• Counselvise Citation: 67819914 RSA 2014
• Duration Of Justice: 1 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 29-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADAGIRI DR
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ITA NO.678/MUM/2014 ASSESSMENT YEAR: 2010-11 ITO-10(2)(4), 431, 4 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD MUMBAI-400020 / VS. MR. VIJAYHIND RAMDHARI SINGH, 10, MALWA, PATANWALA COMPOUND, LBS MARG, GHATKOPAR (WEST), MUMBAI-400086 ( / REVENUE) ( !' # /ASSESSEE) PAN. NO. ASDPS0590A / REVENUE BY SHRI B. YADAGIRI -DR !' # / ASSESSEE BY SHRI SUBHASH S. SHETTY $ % & # ' / DATE OF HEARING : 21/09/2015 & # ' / DATE OF ORDER: 06/10/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 05/11/2013 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. THE FIRST GROUND RAISED BY THE REVENUE PERTAINS TO DELETING THE DISALLOWANCE OF RS.68,66,374/- AS UNEXPLAINED C ASH CREDIT U/S 68 OF INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). VIJAYHIND RAMDHARI SINGH ITA NO.678/MUM/2014 2 2. THE CRUX OF ARGUMENT ADVANCED BY SHRI B. YADAGI RI, LD. DR, IS THAT THE ASSESSING OFFICER RIGHTLY MADE THE DISALLOWANCE U/S 68 OF THE ACT BY SUPPORTING THE CO NCLUSION ARRIVED AT IN THE ASSESSMENT ORDER. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE, SHRI SUBHASH S. SHETT Y, DEFENDED THE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER BY CONTENDING THAT LOAN DETAILS WERE DULY FURNISHED BY THE ASSESSEE. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS , IN BRIEF, ARE THAT THE ASSESSEE IS ENGAGED AS A FACILITY SERV ICE PROVIDER TO HIS CLIENTS, DECLARED INCOME OF RS.17,65,340/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY UNDER CASS, THEREFORE, REQUIRED NOTICES WERE ISSUED TO THE ASSESSEE. THE A SSESSEE DULY FURNISHED THE NECESSARY INFORMATION/DETAILS/ DOCUMENTS. IT WAS NOTICED, FROM THE BALANCE SHEET, THAT ASSESSEE HAS SHOWN UNSECURED LOANS AMOUNTING TO RS.68,66,374/- FROM VARIOUS PARTIES, THE DETAILS OF WHICH HAVE BEEN SUMMARIZED (IN THE CHART) AT PAGE 2 OF TH E ASSESSMENT ORDER. THE ASSESSEE WAS ASKED TO FILE CONFIRMATION FROM THE PARTIES. IN RESPONSE TO THE QUERIES RAISED BY THE ASSESSING OFFICER, THE ASSESSEE VIDE LETTER DATED 17/01/2013 CLAIMED THAT THE LOANS ARE FROM PAST YEA RS (TAKEN IN EARLIER YEARS) AND DURING THE YEAR NO LOA N WAS TAKEN FROM THESE PARTIES. HOWEVER, THE ASSESSING OFFICER ADDED THE IMPUGNED AMOUNT AS UNEXPLAINED CASH CREDIT U/S 68 O F THE ACT. WE NOTE THAT THE LD. COMMISSIONER OF INCOME TA X VIJAYHIND RAMDHARI SINGH ITA NO.678/MUM/2014 3 (APPEALS) EXAMINED THE FACTS AND UNDISPUTEDLY FOUND THAT THESE LOANS WERE TAKEN LONG BACK AND NO LOAN PERTAI NED TO PREVIOUS YEAR. SECTION 68 OF THE ACT IS A CHARGING SECTION, THEREFORE, INCLUDES ANY SUM FOUND TO BE CREDITED AS INCOME OF THE PREVIOUS YEAR AND THE ENTRY IS MADE IN THE BOOK S OF ACCOUNTS OF THE ASSESSEE IN THAT YEAR. UNDISPUTEDL Y, NO LOAN PERTAINS TO THE PREVIOUS YEAR, THEREFORE, THE ADDIT ION SO MADE WAS MERELY ON SUSPICION, MORE SPECIFICALLY WHEN THE NECESSARY DETAILS WERE DULY FILED BY THE ASSESSEE. THE ASSESSEE DULY FURNISHED THE CONFIRMATION FROM ELEVE N PARTIES BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) . THE RATIO LAID DOWN IN BHOGILAL VIRCHAND VS CIT 127 ITR 591 (BOM.), CIT VS P MOHAN KALA 291 ITR 278 (SC), S.K. BOTHRA & SONS HUF VS ITO (2011) 203 TAXMAN 436 (KOL.) SUPPOR TS THE CASE OF THE ASSESSEE. EVEN OTHERWISE, THERE IS UNCO NTROVERTED FINDING IN THE IMPUGNED ORDER THAT THE DETAILS WERE DULY FURNISHED IN THE AUDITED BALANCE SHEET AND THE UNSE CURED LOANS WERE DULY DEPICTED AS ON 31/03/2009 AND THE A UDITORS SPECIFICALLY MENTIONED THAT NO NEW LOANS WERE OBTAI NED DURING THE ACCOUNTING YEAR RELEVANT TO ASSESSMENT Y EAR 2010-11. THE STAND OF THE LD. COMMISSIONER OF INCOM E TAX (APPEALS) IS AFFIRMED. 3. THE NEXT GROUND PERTAINS TO DELETING THE ADDITI ON OF RS.7,15,225/- ON ACCOUNT OF AGRICULTURAL INCOME TO THE TOTAL INCOME OF THE ASSESSEE. THE CRUX OF ARGUMENT ON BE HALF OF THE REVENUE IS IN SUPPORT TO THE ADDITION MADE BY T HE ASSESSING OFFICER. ON THE OTHER HAND, THE LD. COUN SEL FOR THE VIJAYHIND RAMDHARI SINGH ITA NO.678/MUM/2014 4 ASSESSEE, THE ASSESSEE IS HAVING 27 ACRES OF LAND F OR WHICH OUR ATTENTION WAS INVITED TO PAGE 7 OF THE PAPER BO OK BY FURTHER CONTENDING THAT IN EARLIER YEARS, IDENTICAL LY, AGRICULTURAL INCOME WAS ALLOWED. 3.1. IF THE OBSERVATION MADE IN THE ASSESSMENT ORD ER, LEADING TO ADDITION MADE TO THE TOTAL INCOME, CONCL USION DRAWN IN THE IMPUGNED ORDER, MATERIAL AVAILABLE ON RECORD, ASSERTIONS MADE BY THE LD. RESPECTIVE COUNSEL, IF K EPT IN JUXTAPOSITION AND ANALYZED, WE NOTE THAT THE ASSESS EE IS HAVING 27 ACRES OF AGRICULTURAL LAND (ANCESTRAL LAN D ) AS IS EVIDENT FROM PAGES 7 TO 9 OF THE PAPER BOOK (CONTAI NING KHATAUNI). IN EARLIER YEAR, THE DEPARTMENT ALLOWED AGRICULTURAL INCOME TO THE EXTENT OF RS.5,45,260/- (A.Y. 2009- 10). EVEN OTHERWISE, THE IMPUGNED AMOUNT CAN EASIL Y BE EARNED FROM 27 ACRES OF LAND, THEREFORE, THE CONCLU SION DRAWN IN THE IMPUGNED ORDER IS UPHELD. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 21/09/2015. SD/ - (RAMIT KOCHAR) SD/ - (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER $ % MUMBAI; ) DATED : 06/10/2015 F{X~{T? P.S/. .. %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. +,-. / THE APPELLANT VIJAYHIND RAMDHARI SINGH ITA NO.678/MUM/2014 5 2. /0-. / THE RESPONDENT. 3. 1 1 $ 2# ( +, ) / THE CIT, MUMBAI. 4. 1 1 $ 2# / CIT(A)- , MUMBAI 5. 45 /# , 1 +,' + 6 , $ % / DR, ITAT, MUMBAI 6. 7! % / GUARD FILE. / BY ORDER, 04,# /# //TRUE COPY// / (DY./ASSTT. REGISTRAR) , $ % / ITAT, MUMBAI