NIZAR N. RANGARA, MUMBAI V. A.O 6(3)(3), MUMBAI

ITA 7088/MUM/2014

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2883 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 25-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA S ANJARIA LD
• Assessee Lawyers: SANJAY R PARIKHLD
• Section: 143(3); 68; 263; 2

Judgement Text

ITA.NO.7088/MUM/2014 NIZAR N. RANGARA ASSESSMENT YEAR 2006-07 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.7088/MUM/2014 ( / ASSESSMENT YEAR: 2006-07) NIZAR N. RANGARA C/O. MALIK TYRES 93, DR. MAISHERI ROAD DONGRI, MUMBAI-400 009 / VS. INCOME TAX OFFICER, WARD - 6(3)(3) AAYKAR BHAVAN, M.K. ROAD MUMBAI-400 007 ./ ./PAN/GIR NO. AADPR-9354-B ( ! /APPELLANT ) : ( '#! / RESPONDENT ) ASSESSEE BY : SANJAY R. PARIKH, LD. AR REVENUE BY : CHAITANYA S. ANJARIA, LD. DR / DATE OF HEARING : 16/10/2018 / DATE OF PRONOUNCEMENT : 02/11/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2006-07 CONTEST THE ORDER OF THE LD. COMMISSIONER OF INCOME -TAX (APPEALS)-39 [CIT(A)], MUMBAI, APPEAL NO.CIT(A)-39/IT-121/2010-11 DATED 28/08/2014 QUA CONFIRMATION OF CERTAIN ADDITIONS U/S 68 ON ACCOUNT OF ADVANCES AND UNSECURED LOANS TRANSACTIONS . THE ASSESSMENT FOR IMPUGNED AY WAS FRAMED BY LD. INCOME TAX OFFICER-6(3)(3), MUMBAI ITA.NO.7088/MUM/2014 NIZAR N. RANGARA ASSESSMENT YEAR 2006-07 2 [AO] U/S 143(3) READ WITH SECTION 263 ON 24/11/2008 WHEREIN THE INCOME OF THE ASSESSEE WAS ASSESSED AT RS.211.13 LACS AFTE R CERTAIN ADDITIONS AS AGAINST RETURNED INCOME OF RS.5.12 LACS FILED BY THE ASSESSEE ON 30/03/2007. 2. IN TERMS OF DIRECTIONS U/S 263, THE ASSESSEE WAS REQUIRED TO PROVE THE CREDITWORTHINESS OF UNSECURED LOANS OF RS.197.2 6 LACS AND ADVANCES AGAINST PLOT AT TALOJA FOR RS.24.54 LACS STATED TO BE RECEIVED BY THE ASSESSEE FROM VARIOUS PARTIES. DURING ASSESS MENT PROCEEDINGS PURSUANT TO SECTION 263, THE ASSESSEE, IN SUPPORT O F THE SAME, FILED CERTAIN DOCUMENTARY EVIDENCES. HOWEVER, NOT CONVINC ED, LD. AO TREATED LOAN AMOUNT OF RS.175.65 LACS & ADVANCES FOR PLOT A T TALOJA FOR RS.24.54 LACS AS CASH CREDIT U/S 68 AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE. THE REASON FOR NOT ACCEPTING THE A SSESSEES CLAIM HAVE ALREADY BEEN RECORDED IN PARA 3 OF THE QUANTUM ASSESSMENT ORDER. 3. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME WITH PARTIAL SUCCESS BEFORE LD. FIRST APPELLATE AUTHORITY VIDE IMPUGNED ORDER DATED 28/08/2014 WHEREIN THE ASSESSEE MADE VARIOUS SUBMISSIONS AGAIN ST WHICH REMAND REPORT WAS CALLED FROM LD. AO. AFTER DUE CONSIDERATION OF MATERIAL ON RECORD, REMAND REPORT AND ASSESSEE SUBMISSIONS, ADDITION ON ACCOUNT OF LOANS WAS CONFIRMED TO THE EXTENT OF RS.22.21 LACS WHEREAS ADDITION AGAINST ADVANCES WAS CONFIRMED TO THE EXTENT OF RS. 4.22 LACS. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. IT HAS BEEN SUBMITTED THAT THE REVENUE IS NOT IN FURTHER APPEAL AGAINST THE RELIEF PROVIDED BY FIRST APPELLATE AUTHORITY. 4. THE LD. AUTHORIZED REPRESENTATIVE FOR ASSESSEE [ AR], SHRI SANJAY R. PARIKH, IN SUPPORT OF ASSESSEES CLAIM, PLACED ON RECORD A CHART ITA.NO.7088/MUM/2014 NIZAR N. RANGARA ASSESSMENT YEAR 2006-07 3 CONTAINING DETAILS OF TRANSACTIONS AGAINST WHICH AD DITIONS HAVE BEEN CONFIRMED BY FIRST APPELLATE AUTHORITY. OUR ATTENTI ON HAS BEEN DRAWN TO THE FACT THAT THE ADDITIONS HAVE BEEN CONFIRMED DES PITE THEIR BEING SUPPORTING DOCUMENTARY EVIDENCES ON RECORD TO SUBST ANTIATE THESE TRANSACTIONS. PER CONTRA, LD. DEPARTMENTAL REPRESENTATIVE [DR], SUBMITTED THAT THE ASSESSEE FAILED TO PROVE THE SAM E TO THE SATISFACTION OF LOWER AUTHORITIES AND THEREFORE, THE ADDITIONS W ERE JUSTIFIED. 5. WE HAVE CAREFULLY HEARD THE RIVAL SUBMISSIONS AN D PERUSED RELEVANT MATERIAL ON RECORD INCLUDING CHART AS PLAC ED BEFORE US. UPON DUE CONSIDERATION OF THE SAME, PRIMA-FACIE , IT APPEARS THAT THE ASSESSEE IS IN A POSITION TO SUBSTANTIATE SOME OF THE IMPUGN ED TRANSACTIONS. KEEPING IN VIEW THE AFORESAID FACT, WE DEEM IT FIT TO RESTORE THE MATTER BACK TO THE FILE OF LD. AO TO RE-APPRECIATE THESE E VIDENCES AND CONSIDER THE ASSESSEES CLAIM AS PER LAW WITH A DIRECTION TO THE ASSESSEE TO SUBSTANTIATE THE TRANSACTIONS WITH SUFFICIENT DOCUM ENTARY EVIDENCES FAILING WHICH LD. AO SHALL BE AT LIBERTY TO ADJUDIC ATE THE SAME ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 6. RESULTANTLY, THE APPEAL STANDS ALLOWED FOR STATI STICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND NOVEMBER, 2018. SD/- SD/- (MAHAVIR SINGH) ( MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 02/11/2018 SR.PS:-THIRUMALESH/JV,SR.PS ! / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '#! / THE RESPONDENT ITA.NO.7088/MUM/2014 NIZAR N. RANGARA ASSESSMENT YEAR 2006-07 4 3. * ( ) / THE CIT(A) 4. * / CIT CONCERNED 5. +, '%- , - , / DR, ITAT, MUMBAI 6. ,./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.