DCIT 9(1), MUMBAI V. ADITYESH EDUCAITONAL INSTITUTE P.LTD, MUMBAI

ITA 7150/MUM/2010

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5825 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 20-03-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 18-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L PERUMAL
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH A, MUMBAI BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 7150/MUM/2010 ASSESSMENT YEAR: 2006-07 DCIT RG.9(1) R.NO. 223, AAYAKAR BHAVAN, M.K. ROAD MUMBAI-400 020 VS. M/S. ADITYESH EDUCATIONAL INSTITUTE P. LTD. MOTILAL NAGAR NO.1, SRIRANG SABDE MARG, OFF. LINK RD. GOREGAON (W) MUMBAI-400 104 (APPELLANT) (RESPONDENT) PERMANENT ACCOUNT NO. :- AAFCA 1854 L ASSESSEE BY : SHRI SATISH MODY REVENUE BY : SHRI M. L. PERUMAL DATE OF HEARING : 20.03.2014 DATE OF PRONOUNCEMENT : 28.03.2014 O R D E R PER DR. S.T.M. PAVALAN, JM: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF THE LD.CIT(A)-19, MUMBAI DATED 06.08.2010 FOR THE ASSES SMENT YEAR 2006-07. IN THIS APPEAL, THE REVENUE HAS AGITATED THE DECISION OF TH E LD.CIT(A) IN DELETING THE ADDITION OF RS. 12 LAKHS MADE BY THE AO U/S 68 OF T HE INCOME TAX ACT IN RELATION TO CASH CREDITS. 2. BRIEFLY STATED, DURING THE COURSE OF THE ASSESSM ENT PROCEEDINGS, THE AO NOTICED THAT THE ASSESSEE HAS TAKEN UNSECURED LOANS FROM 8 PERSONS AGGREGATING TO RS.4,77,74,974/-. THE ASSESSEE WAS ASKED BY THE AO TO FURNISH THE RELEVANT DETAILS BEING LOAN CONFIRMATION, COPY OF RETURN OF INCOME, BALANCE SHEET AND RELEVANT BANK STATEMENT BY LOAN CREDITORS. HOWEVER, THE ASSESSEE COULD NOT FILE THE LOAN CONFIRMATION FROM THE FOLLOWING 5 PERSONS: ITA NO. 7150/MUM/2010 M/S. ADITYESH EDUCATIONAL INSTITUTE P. LTD. ASSESSMENT YEAR: 2006-07 2 (I) MR. ALPESH MUCHHALA RS.5,50,000 (II) MRS. KOKILA MUCHHALA RS.3,50,000 (III) RAJESH MUCHHALA, HUF RS.1,00,000 (IV)ALPESH MUCHHALA, HUF RS.1,00,000 (V) HETAL MUCHHALA RS.1,00,000 TOTAL: RS.12,00,000 ACCORDINGLY, THE AO TREATED THE AMOUNT OF RS.12,00, 000/- AS CASH CREDITS U/S 68 ON ACCOUNT OF UNPROVED LOANS AND THEREBY ADDED THE SAM E TO THE TOTAL INCOME OF THE ASSESSEE. ON APPEAL, THE LD.CIT(A) DELETED THE IMPU GNED ADDITION ON THE REASON THAT THOUGH CONFIRMATION LETTERS COULD NOT BE FILED , THE ASSESSEE COMPANY PLACED BEFORE THE AO ALL THE DETAILS/DOCUMENTS IN ITS POSS ESSION SO AS TO EXPLAIN THE CREDIT OF 12 LAKHS RECEIVED FROM 5 PARTIES BELONGING TO TH E SAME FAMILY. AGGRIEVED BY THE IMPUGNED ORDER, THE REVENUE IS IN APPEAL BEFORE US. 3. HAVING HEARD BOTH THE SIDES AND PERUSED THE MATE RIAL ON RECORD, IT IS NOTED THAT THE ASSESSEE HAS FURNISHED BEFORE THE AO ALL T HE DETAILS OF THE UNSECURED LOAN VIDE ITS LETTER DATED 17.11.2008 AND 26.11.2008. AS SESEE, VIDE LETTER DATED 17.11.2008, HAS NARRATED THE DETAILS OF THE LOANS B EFORE THE AO IN RESPECT OF THE 5 CREDITORS AND THE SAME HAS BEEN EXTRACTED BY THE LD .CIT(A) IN HIS ORDER AT PAGE 5. THE DETAILS ARE PERTAINING NAMES, ADDRESSES, PAN NU MBERS OF THE CONCERNED 5 CREDITORS, ADDRESSES OF THE JURISDICTION ITO, CLOSI NG BALANCE AS ON MARCH 31 OF THE RELEVANT YEAR, CHEQUE NUMBER OF THE LOAN RECEIVED A ND DATE OF CREDIT WITH THE ASSESSEES COMPANY. ON A CONSIDERATION OF THE DETAI LS AS FILED BY THE ASSESSEE BEFORE THE AO, THE INITIAL BURDEN HAS BEEN DISCHARG ED BY THE ASSESSEE. IT IS OBSERVED THAT NO FURTHER ENQUIRY HAS BEEN MADE BY THE AO AND SIMPLY ON THE REASON THAT CONFIRMATION LETTERS HAVE NOT BEEN FILED, THE AO HA S PROCEEDED TO MAKE THE IMPUGNED ADDITION U/S 68 OF THE ACT. SINCE THE LD.C IT(A) HAS RIGHTLY APPRECIATED THE FACTS AND POSITION OF LAW FOR DECIDING THAT THE ASS ESSEE HAS PROVIDED SUFFICIENT PROOF FOR THE TRANSACTION, WE DO NOT FIND ANY INFIRMITY I N THE SAID DECISION IN DELETING THE IMPUGNED ADDITION AND THUS THE SAME IS UPHELD. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ITA NO. 7150/MUM/2010 M/S. ADITYESH EDUCATIONAL INSTITUTE P. LTD. ASSESSMENT YEAR: 2006-07 3 ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 8 TH DAY OF MARCH, 2014. SD/- SD/- (P.M. JAGTAP) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 28.03.2014. *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR A BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.