Assistant Commissioner of Income-tax, V. Shri Dadasaheb vitthalrao Urhe, Pune

ITA 705/PUN/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9142 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 15-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V L JAIN

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE . . . . , , BEFORE SHRI D.KARUNAKARA RAO, AM AND SHRI VIKAS AWA STHY, JM . / ITA NO. 705/PUN/2015 / ASSESSMENT YEAR : 2011-12 ACIT, CIRCLE - 9 , PUNE . / APPELLANT V/S SHRI DADASAHEB VITTHALRAO URHE, (PROP. M/S. ABHIJEET ENGINEERS), GAT NO.57, BEBEDOHOL, OPP. TATA MOTORS LTD. (MAVAL FOUNDRY), TAL. MAVAL, PUNE 410 506 PAN : AAAPU9881D . / RESPONDENT ASSESSEE BY : SHRI V.L. JAIN REVENUE BY : SHRI ACHAL SHARMA, ADDL.CIT / ORDER PER D. KARUNAKARA RAO, AM : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF CIT(A)-6, PUNE DATED 10-02-2015 FOR THE ASSESSMENT YEAR 2011-12. 2. THE ONLY ISSUE RAISED BY THE REVENUE IN THIS APP EAL RELATES TO THE ADDITION ON ACCOUNT OF UNSECURED LOANS GIVEN BY THE ASSESSEE TO M/S. ABHIJEET INDUSTRIES. ALL THE GROUNDS RAISED BY THE REVENUE RELATES TO TH E SAME ISSUE. 3. BRIEFLY STATED RELEVANT FACTS ARE THAT THE ASSES SEE IS ENGAGED IN THE MANUFACTURING OF INDUSTRIAL GOODS, AUTOPARTS AND JO B WORK. ASSESSEE FILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS.2.88 CRORES (ROUNDED OFF). THERE WAS SURVEY ACTION U/S.133A OF THE ACT IN THIS CASE. DURING THE SAID PROCEEDINGS, IT WAS NOTICED THAT THE CONCERN NAMED M/S. ABHIJEET IN DUSTRIES IS A BOGUS ONE TO / DATE OF HEARING :27.07.2017 / DATE OF PRONOUNCEMENT: 28.07.2017 2 ITA NO.705/PUN/2015 WHICH THE AMOUNT OF RS.54,34,777/- WAS GIVEN AS LOA N BY THE ASSESSEE. IN THE ASSESSMENT, AS PER THE DISCUSSION GIVEN IN PARA 13 OF THE ASSESSMENT ORDER, THE AO MADE ADDITION STATING THE FOLLOWING : 13. . . . . . . . . . . IN VIEW OF ABOVE, IT IS HELD THAT THE ASSESSEE HAD ADMITTED THE ISSUES RAISED DURING THE COURSE OF HEARING DATED 14-02-201 3. ACCORDINGLY, THE CLAIM OF UNSECURED LOAN CLAIMED TO HAVE BEEN ACCEPT ED DURING THE YEAR UNDER CONSIDERATION IN THE NAME OF M/S. ABHIJEET IN DUSTRIES AMOUNTING TO RS.54,34,777/- IS TREATED INCOME OF THE ASSESSEE AN D ADDED TO THE TOTAL INCOME OF THE ASSESSEE. . . . . . . . . 4. DURING THE FIRST APPELLATE PROCEEDINGS BEFORE TH E CIT(A) ASSESSEE MADE SUBMISSIONS AGAINST THE SAID ADDITION ON ACCOUNT O F UNSECURED LOANS. EVENTUALLY, THE CIT(A) GRANTED RELIEF STATING THAT IT WAS A CAS E GIVING THE LOAN BY THE ASSESSEE TO M/S.ABHIJEET INDUSTRIES BUT NOT THE CAS E OF TAKING LOAN BY THE ASSESSEE TO M/S. ABHIJEET INDUSTRIES. CONSIDERING THE NEED FOR CORRECTING THE MISTAKE IN THE MIND OF THE AO, THE CIT(A) DELETED T HE ADDITION AS PER THE DISCUSSION GIVEN IN PARA 6 OF THE ORDER OF CIT(A). THE SAID PARA READS AS UNDER : 6. I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CA SE AS WELL AS REPLY OF THE APPELLANT. THE CONTENTION OF THE APPELLANT THAT LO AN OF RS.54,39,977/- WAS NOT TAKEN FROM M/S. ABHIJEET INDUSTRIES BUT ACTUALLY GI VEN TO IT IS FOUND TO BE CORRECT. THE SAME IS APPEARING IN ANNEXURE-J OF THE BALANCE SHEET UNDER THE HEAD LOANS AND ADVANCES. FOR THE SAKE OF CLARITY ANNEXURE-J AND COPY OF BALANCE SHEET IS ENCLOSED WITH THIS ORDER AND MARKED AS ANNEXURE-I. THEREFORE, IT IS CLEAR THAT THE ASSESSING OFFICER HAD MIS-DIRECTED HIMSELF IN TREAT ING THE SAME AS UNDISCLOSED INCOME AS LOAN ACCEPTED. ACCORDINGLY, HE IS DIRECT ED TO DELETE THE ADDITION OF RS.54,39,977/-. THUS, THE GROUND IS ALLOWED. 5. FROM THE ABOVE, IT IS EVIDENT THE ASSESSEE IS ON LY A LOAN GIVER AND NOT THE RECIPIENT. THERE IS NO DISPUTE ON THIS ASPECT. WH ILE MAKING ADDITION BY THE AO, AO IS UNDER WRONG PRESUMPTION THAT IT WAS A LOAN TA KEN BY THE ASSESSEE, THEREFORE, HE PROCEEDED TO MAKE ADDITION CONSIDERIN G THE BOGUS NATURE OF M/S. ABHIJEET INDUSTRIES. THUS, THE CIT(A) CORRECTED TH E MISTAKE AND GRANTED RIGHTLY RELIEF TO THE ASSESSEE. NAS SUCH, NO ADVERSE FACTS OR THE CONTRARY JUDGMENT IS 3 ITA NO.705/PUN/2015 BROUGHT TO OUR NOTICE FOR REVERSING THE SAID DECISI ON OF CIT(A). THEREFORE, WE ARE OF THE VIEW THAT THE FINDING OF THE CIT(A) GIVEN IN PARA 6 ABOVE IS FAIR AND REASONABLE AND DOES NOT CALL FOR ANY INTERFERENCE. ACCORDINGLY, THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF JULY, 2017. SD/- SD/- (VIKAS AWASTHY) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE; DATED : 28 TH JULY, 2017. COPY OF THE ORDER FORWARDED TO : / BY ORDER , // TRUE COPY // //TRUE COPY// SENIOR PRIVATE SECRETARY , / ITAT, PUNE 1. / THE APPELLANT 2. / THE RESPONDENT 3. THE CIT(A) - 6 , PUNE 4. THE CIT - 6 , PUNE 5 . DR, ITAT, A BENCH PUNE; 6 . / GUARD FILE.