SHRI GANESH GOYAL, Kishangarh V. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, Ajmer

ITA 683/JPR/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9797 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 18-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RUNI PAL JCIT DHK
• Assessee Lawyers: NIKHILESH KATARIA
• Keywords: Set aside
• Section: 80C

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH FOT; IKY JKO ] U;KF;D LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 682 & 683/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 & 2009-10 SH. GANESH GOYAL MAHAVEER COLONY, MADDANGANJ, KISHANGARH, AJMER. CUKE VS. THE ACIT, CENTRAL CIRCLE, AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AFZPG 9689 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI NIKHILESH KATARIA (C.A.) JKTLO DH VKSJ LS@ REVENUE BY : SMT. RUNI PAL (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18/09/2019 MN?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 20/09/2019 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGA INST THE COMPOSITE ORDERS OF THE LD. CIT(A)-2, UDAIPUR DATED 23.03.2018 FOR THE A.YS. 2008-09 & 2009-10 RESPECTIVELY. THE ASSESSEE HAS RAISED COMMON GROUNDS IN THESE APPEALS. THE GROUND RAISED FOR THE ASSESSMENT YEAR 2008-09 ARE AS UNDER:- ITA 682 &683/JP/18 SH. GANESH GOYAL VS. ACIT 2 1. RS. 33600/- THE LD. AO ERRED IN LAW AS WELL AS ON THE FACTS OF THE PRESENT CASE IN MAKING ADDITION ON ACCOUNT OF INVES TMENT IN LIP U/S 80C OF THE ACT AND THE LD. CIT(A) ERRED IN SUSTAINI NG THE SAME. 2. RS. 462400/- THE LD. AO ERRED IN LAW AS WELL AS ON THE FACTS OF THE PRESENT CASE IN MAKING ADDITION ON ACCOUNT OF CREDI TORS AND THE LD. CIT(A) ERRED IN SUSTAINING THE SAME. THE APPELLANT PRAYS YOUR HONORS INDULGENCE TO ADD, AMEND, MODIFY OR DELETE ALL OR ANY GROUND OF APPEAL. 2. AT THE TIME HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE HAS STATED AT BAR THAT THE ASSESSEE DOES NOT PRESS GROUND NO. 1 FOR BOTH THE APPEALS AND THEREFORE THE SAME MAY BE DISMISSED AS NOT PRES SED. THE LD. DR HAS RAISED NO OBJECTION IF GROUND NO. 1 OF THE ASSESSEE S APPEALS ARE DISMISSED AS NOT PRESSED. ACCORDINGLY THE GROUND NO. 1 OF THE ASSESSEES APPEALS ARE DISMISSED BEING NOT PRESSED. 3. GROUND NO. 2 IS REGARDING THE ADDITION MADE BY T HE AO ON ACCOUNT OF OUTSTANDING CREDITORS SHOWN BY THE ASSESSEE AT T HE END OF THE YEAR. THE AO HAS NOTED THAT THERE IS OUTSTANDING CREDIT BALAN CE OF RS. 4,62,400/- FOR THE ASSESSMENT YEAR 2008-09 AND RS. 50,000/- FOR TH E ASSESSMENT YEAR 2009-10. THE ASSESSEE WAS ASKED TO FURNISH THE CONF IRMATION OF THE CREDITOR OF M/S SRITA TEXTILE BUT NO SUCH CONFIRMA TION WAS SUBMITTED BY THE ASSESSEE AND CONSEQUENTLY THE AO HAS MADE THE A DDITIONS OF THE OUTSTANDING CREDIT FOR BOTH THE ASSESSMENT YEAR. ON APPEAL, THE LD. CIT(A) HAS CONFIRMED THE ADDITION ON THE GROUND THAT THE A SSESSEE HAS NOT PRODUCED ANY EVIDENCE IN SUPPORT OF THE CLAIM. ITA 682 &683/JP/18 SH. GANESH GOYAL VS. ACIT 3 4. BEFORE THE TRIBUNAL, THE LD. AR OF THE ASSESSEE SUBMITTED THAT WHILE CONFIRMING THE ADDITION THE LD. CIT(A) HAS GIVEN A LIBERTY TO THE ASSESSEE TO FILE THE RELEVANT PROOF BEFORE THE AO WHILE THE APPEAL EFFECT ORDER IS PASSED. HE HAS POINTED OUT THAT THE AO HAS ALREADY PASSED THE EFFECT ORDER WITHOUT CONSIDERING THIS ISSUE AND WITHOUT GI VING OPPORTUNITY TO THE ASSESSEE TO FILE THE RELEVANT PROOF IN RESPECT OF T HE CREDIT IN QUESTION. THE LD. AR HAS ALSO FILED THE COPIES OF THE GIVING EFFE CT ORDER DATED 18.04.2018 AND SUBMITTED THAT THE AO HAS NOT CONSIDERED THIS A SPECT OR TO VERIFY THE RELEVANT PROOF TO BE FILED BY THE ASSESSEE. HENCE, HE HAS PLEADED THAT THE MATTER MAY BE REMANDED TO THE RECORD OF THE ASSESSI NG OFFICER FOR PROPER VERIFICATION OF THE PROOF TO BE FILED BY THE ASSES SEE. 5. ON THE OTHER HAND, THE LD. DR HAS RELIED UPON TH E ORDERS OF THE AUTHORITIES BELOW. 6. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD. THE AO HAS MADE ADDITIONS OF RS . OF RS. 4,62,400/- FOR THE ASSESSMENT YEAR 2008-09 AND RS. 50,000/- FOR TH E ASSESSMENT YEAR 2009-10 ON ACCOUNT OF THE OUTSTANDING CREDIT IN THE NAME OF M/S SARITA TEXTILE. THE ASSESSEE WAS ASKED TO FILE THE CONFIRM ATION, HOWEVER THE AO HAS STATED IN THE ORDER THAT NO CONFIRMATION WAS FI LED BY THE ASSESSEE. THE LD. CIT(A) THOUGH THE RECORDED THE FACT THAT THE AS SESSEE FILED BANK ACCOUNT OF M/S SARITA TEXTILE IN SUPPORT OF THE CLA IM, HOWEVER NO OTHER ITA 682 &683/JP/18 SH. GANESH GOYAL VS. ACIT 4 EVIDENCE WAS FILED. THE LD. CIT(A) HAS DECIDED IN T HIS IN PARA 8.3 IS AS UNDER:- 8.3 NO EVIDENCE IS FILED BEFORE ME IN ANY WAY, BE IT BANK ACCOUNT AS NO 15670200001201 IN THE NAME OF SARITA TEXTILE BEING ACCOUNTS OF THE ASSESSEE OR CONFIRMATION. THE REFORE, I AM NOT ABLE TO DECIDE IF THIS WAS ACCOUNT OF THE APPEL LANT HIMSELF OR SOME THIRD PERSON. IF IT IS ACCOUNT OF THE APPELLAN T AS SAID BY THE AO, THEN ALSO IT IS NOT SURE IF THIS ACCOUNT IS ACC OUNTED OR NOT. MERELY BECAUSE, THE ASSESSMENT IS MADE BY ESTIMATIN G G.P. ON TURNOVER THAT WOULD NOT ABSOLVE THE APPELLANT TO PR ODUCE CONFIRMATION OF CREDITORS OR TO PROVE THAT THE ACCO UNT WAS ACCOUNTED IN THE BOOKS OF ACCOUNT. THE APPELLANT IS FREE TO FILE RELEVANT PROOF BEFORE THE AO WHILE APPEAL EFFECT OR DER IS PASSED. IF NOTHING IS PRODUCE FOR VERIFICATION BEFORE THE A O, THIS ADDITION IS WOULD STAND AS CONFIRMED. THUS, THE LD. CIT(A) HAS GRANTED THE LIBERTY TO THE ASSESSEE TO FILE THE RELEVANT PROOF BEFORE THE AO WHILE THE EFFECT ORDER IS PASSED BUT THE ASSESSING OFFICER HAS ALSO PASSED THE APPEAL EFFECT ORDER WITHOUT CONSIDERING THE ISSUE OF ADDITION MADE ON ACCOUNT O F CREDIT BALANCE. THE ASSESSEE HAS CLAIM THAT THE AMOUNT WAS RECEIVED FRO M M/S SARITA TEXTILE THROUGH CHEQUES AND IT IS ALSO REFLECTED IN THE BAN K ACCOUNT HOWEVER, TO PROVE THE GENUINENESS OF THE TRANSACTION THE ASSESS EE HAS TO FILE THE RELEVANT RECORD AS WELL AS CONFIRMATION FROM THE CR EDITOR. SINCE, THE AO HAS NOT CONSIDERED THIS ISSUE WHILE GIVING EFFECT T O THE ORDER OF THE LD. CIT(A) THEREFORE, IT IS APPARENT THAT THE FINDING O F THE LD. CIT(A) ON THIS ISSUE HAS NOT BEEN GIVEN EFFECT BY THE AO. HENCE, I N THE FACTS AND ITA 682 &683/JP/18 SH. GANESH GOYAL VS. ACIT 5 CIRCUMSTANCES OF THE CASE GROUND NO. 2 OF ASSESSEE S APPEAL FOR BOTH THE ASSESSMENT YEARS IS SET ASIDE TO THE RECORD OF THE ASSESSING OFFICER FOR DECIDING AFRESH AFTER VERIFICATION OF THE RELEVANT PROOF TO BE FILED BY THE ASSESSEE IN SUPPORT OF THE CLAIM. IN THE RESULT, ASSESSEES APPEALS ARE PARTLY ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20/09/2019. SD/- FOT; IKY JKO (VIJAY PAL RAO) U;KF;D LNL; @ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 20/09/2019 *SANTOSH VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SH. GANESH GOYAL, AJMER. 2. IZR;FKH @ THE RESPONDENT- THE ACIT, CENTRAL CIRCLE, AJMER. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 682 & 683/JP/2018) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR