Shri Taniv Malhotra, Ludhiana V. ITO, W-6(3), Ludhiana

ITA 703/CHANDI/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1502 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 08-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Section: 147; 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, SMC, CHANDIGARH , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 703/CHD/2019 / ASSESSMENT YEAR : 2007-08 SHRI TANIV MALHOTRA, H.NO. 3895/4, NEAR BABA NANAKI ROAD, MODEL HOUSE, LUDHIANA VS. THE ITO, WARD-6(3), LUDHIANA ./PAN NO. AINPM1584E / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI PARIKSHIT AGGARWAL, CA ' ! / REVENUE BY : SH. MANJIT SINGH, CIT DR # $ % /DATE OF HEARING : 07.11.2019 &'() % / DATE OF PRONOUNCEMENT : 07.11.2019 / ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 25.3.2019 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-3, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE SOLE ISSUE RAISED IN THIS APPEAL IS REGARDIN G THE ADDITION OF RS. 2,38,700/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF FAILURE OF THE ASSESSEE TO DISCLOSE THE SOURCE OF THE SAID AMOUNT ADVANCED TO SHRI ASHWANI KUMAR, PROP M/S EMMSON TRADERS IN THE FINA NCIAL YEAR 2006- 07. ITA NO. 703-CHD-2019- SHRI TANIV MALHOTRA, LUDHIANA 2 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE IMPUGNED ASSESSMENT ORDER WHICH HA S BEEN PASSED U/S 147 READ WITH SECTION 148 OF THE INCOME TAX ACT, 19 61 (IN SHORT 'THE ACT'). THE PLEA OF THE LD. COUNSEL FOR THE ASSESSEE HAS BEEN THAT THE ASSESSEE HAS NOT BEEN GIVEN PROPER OPPORTUNITY BY T HE ASSESSING OFFICER TO EXPLAIN THE SOURCE OF THE AMOUNT ADVANCED BY THE ASSESSEE AS LOAN TO SHRI ASHWANI KUMAR PROP M/S EMMSON TRADERS. THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE IMPUG NED ORDER OF THE CIT(A), WHEREIN, SUBMISSIONS MADE BY THE ASSESSEE H AVE BEEN REPRODUCED BY THE LD. CIT(A) AT PAGES 3 & 4 OF THE IMPUGNED ORDER. A PERUSAL OF THE SAID SUBMISSIONS REVEAL THAT THE A SSESSEE EXPLAINED THE SOURCE OF INCOME AND HAS REFERRED TO THE INCOME-TAX RETURNS FILED BY THE ASSESSEE RELEVANT TO THE ASSESSMENT YEARS 2003-04 T O 2006-07. IT IS ALSO PLEADED THAT APART FROM ABOVE, THE ASSESSEES WIFE IS ALSO A TEACHER AND HAS BEEN GETTING THE SALARY OF RS. 8,000/- PER MONT H. IT WAS PLEADED THAT THE ASSESSEE HAS MADE THE AFORESAID ADVANCE OF RS. 2,38,700/- OUT OF HIS OWN INCOME AS WELL AS FUNDS OF HIS WIFE. HOWEVER, A PERUSAL OF THE IMPUGNED ORDER OF THE CIT(A) REVEALS THAT THE LD. C IT(A) HAS NOT DISCUSSED THE SUBMISSIONS MADE BY THE ASSESSEE. THE LD. CIT(A) HARPED ONLY ON THE POINT THAT THE AS SESSEE HAD NOT EXPLAINED WITH RELIABLE EVIDENCE THE SOURCE OF THE ABOVE LOAN AMOUNT OF RS. 2,38,700/- GIVEN BY THE ASSESSEE TO SHRI ASHWAN I KUMAR. HOWEVER, A PERUSAL OF THE SUBMISSIONS MADE BEFORE THE LD. CI T(A) REVEAL THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF RETAIL SALE OF AUTO PARTS FOR THE ITA NO. 703-CHD-2019- SHRI TANIV MALHOTRA, LUDHIANA 3 LAST SO MANY YEARS. THE ASSESSEE HAS ALSO BEEN REGU LARLY FILING HIS INCOME TAX RETURNS FOR THE ASSESSMENT YEAR 2003-04 TO ASSESSMENT YEAR 2006-07. THE ASSESSEE HAS ALSO MENTIONED AND DRAWN CHART OF THE INCOME-TAX RETURNS FILED FROM ASSESSMENT YEAR 2003- 04 TO ASSESSMENT YEAR 2006-07. THOUGH, A PERUSAL OF THE ABOVE CHART REVEALS THAT THE INCOME DECLARED BY THE ASSESSEE WAS BELOW THE TAXA BLE LIMIT, HOWEVER, FACT ON THE FILE IS THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS AND HAS BEEN FILING THE INCOME TAX RETURNS FOR SO MANY YEAR S AND CONSIDERING THE MEAGER AMOUNT OF RS. 2,38,700/-, IT SEEMS PLAUSIBL E THAT THE ASSESSEE MIGHT BE POSSESSED OF MEAGER AMOUNT OF RS. 2,38,70 0/- ADVANCED TO SHRI ASHWANI KUMAR PROP M/S EMMSON TRADERS WITH WHO M THE ASSESSEE HAD BUSINESS DEALINGS. 4. IN VIEW OF THIS, I DO NOT FIND ANY JUSTIFICATION ON THE PART OF THE LOWER AUTHORITIES IN MAKING THE IMPUGNED ADDITION, THE SAME IS ACCORDINGLY ORDERED TO BE DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS HEREBY ALLOWED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING. SD/- ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 07.11.2019 .. ITA NO. 703-CHD-2019- SHRI TANIV MALHOTRA, LUDHIANA 4 '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR