Smt. Sanju Sarda C/o- Laxmi Minerals, RICCO Industrial Area, Dausa, Dausa V. ITO Ward, Dausa, Ward, Dausa

ITA 787/JPR/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3668 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 27-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ABHISHEK SHARMA CIT DHK
• Section: 131; 68

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH SMC, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; DS LE{K BEFORE: SHRI SHRI VIJAY PAL RAO, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 787/JP/2019 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2014-15. SMT. SANJU SARDA C/O LAXMI MINERALS, RICCO INDUSTRIAL AREA, DAUSA. CUKE VS. THE INCOME TAX OFFICER, WARD DAUSA, DAUSA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AGBPS 2978 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE JKTLO DH VKSJ LS@ REVENUE BY : SHRI ABHISHEK SHARMA (ADDL. CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 01.10.2019. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 29/10/2019. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 25.03.2019 OF LD. CIT (APPEALS), ALWAR FOR THE ASSESSMENT YEAR 20 14-15. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. CIT (APPEAL) HAS ERRED BY CONFIRMING THE ADDIT ION OF RS. 20,40,000/- IN THE CAPITAL OF THE ASSESSEE U/S 68 O F THE IT ACT. 2. CIT (APPEAL) HAS NOT PROVIDED THE PROPER OPPORTU NITY OF HEARING. 3. ASSESSEE RESERVE THE RIGHT TO ADD, DELETE, AMEND ANY OR ALL THE GROUNDS OF THE APPEAL. 2 ITA NO. 787/JP/2019 SMT. SANJU SARDA, DAUSA. 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE WHEN THIS APPEAL WAS CALLED FOR HEARING DESPITE THE NOTICE WAS ISSUED THROUGH RPAD. ACCORDINGLY, THE APPEAL OF THE ASSESSEE WAS TAKEN UP FOR HEARING AND ADJUDICATION EX PARTE. 3. THE ONLY ISSUE ARISES IN THIS APPEAL IS REGARDIN G ADDITION ON ACCOUNT OF INTRODUCTION OF CAPITAL OF RS. 20,40,000/- UNDER SE CTION 68 OF THE IT ACT. 4. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUF ACTURING OF MINERALS IN THE NAME AND STYLE OF M/S. LAXMI MINERALS, DAUSA. THE ASSESSEE FILED HER RETURN OF INCOME ON 30.11.2014 DECLARING TOTAL INCOME OF RS. 2,44,890/-. DURING THE SCRUTINY ASSESSMENT PROCEEDINGS, THE AO ASKED THE ASSESSEE T O EXPLAIN THE SOURCE OF ADDITION OF RS. 20,40,000/- IN THE CAPITAL OF THE A SSESSEE. IN RESPONSE, THE ASSESSEE EXPLAINED THAT THE LOANS GIVEN IN THE EARLIER YEARS TO VARIOUS PARTIES WERE RECEIVED BACK DURING THE YEAR UNDER CONSIDERATION. THE ASSE SSEE FILED THE NAMES OF 12 PERSONS AND THE AMOUNT RECEIVED FROM THEM AS REPAYM ENT OF LOAN. HOWEVER, ALL THE 12 PERSONS WERE NOT HAVING PAN. THE AO AFTER EXAMIN ATION OF THESE PERSONS HELD THAT THE ASSESSEE HAS FAILED TO ESTABLISH THE CREDI TWORTHINESS OF THESE PERSONS AND GENUINENESS OF THE TRANSACTIONS. THE ASSESSEE CHAL LENGED THE ACTION OF THE AO BEFORE THE LD. CIT (A) BUT COULD NOT SUCCEED. 5. I HAVE HEARD THE LD. D/R AND CAREFULLY PERUSED T HE ORDERS OF THE AUTHORITIES BELOW. THE AO HAS EXAMINED THESE 12 PERSONS AND FOU ND THAT THE CLAIM OF THE ASSESSEE IS NOT SUBSTANTIATED BY THESE PERSONS DUE TO THE REASON THAT THE REPAYMENT WAS STATED TO BE DURING THE PAST 2/3 YEAR S AND IN SOME CASES EVEN 4/5 YEARS AND NOT DURING THE YEAR UNDER CONSIDERATION. THEREFORE, THE AO FOUND THAT 3 ITA NO. 787/JP/2019 SMT. SANJU SARDA, DAUSA. THERE IS INCONSISTENCY IN THE CLAIM THOUGH THESE PE RSONS HAVE ACCEPTED THAT THEY RECEIVED THE LOANS AND REPAID THE SAME TO THE ASSES SEE. HOWEVER, THE STATEMENT WAS NOT FOUND TRUTH-WORTHY AS THERE WERE CONTRADICT IONS IN THE STAND TAKEN BY THE ASSESSEE AND THESE PERSONS. FURTHER, THESE PERSONS HAVE NOT BEEN ABLE TO PRODUCE ANY EVIDENCE OR EXPLANATION FOR THE SOURCE OF REPAY MENT. THOUGH SUBSEQUENTLY THE ASSESSEE FILED THE AFFIDAVITS FROM THESE PERSONS, H OWEVER, THE CONTENTS OF THE AFFIDAVITS ARE NOTHING BUT TO FILL UP THE LACUNAS I N THEIR STATEMENTS RECORDED UNDER SECTION 131 OF THE IT ACT. THEREFORE, THE AO HAS M ADE A THOROUGH INVESTIGATION BY RECORDING THE STATEMENTS OF THESE PERSONS AND FOUND THAT ALL THESE PERSONS HAVE CATEGORICALLY STATED THAT THE LOANS TAKEN FROM THE ASSESSEE WERE REPAID IN THE LAST 2/3 YEARS AND IN SOME CASES EVEN 4/5 YEARS AND NONE OF THE PERSONS HAVE ACCEPTED THAT THE REPAYMENT WAS MADE DURING THE YEAR UNDER C ONSIDERATION. IT IS PERTINENT TO NOTE THAT THE EXPLANATION OF THE ASSESSEE FOR THE S OURCE OF CAPITAL INTRODUCED HAS NOT BEEN SUBSTANTIATED BY THESE PERSONS AS CLAIMED BY THE ASSESSEE AS THE LOANS WERE NOT REPAID DURING THE YEAR UNDER CONSIDERATION . THEREFORE, THE CLAIM OF THE ASSESSEE WAS NEGATED BY THESE PERSONS IN THEIR STAT EMENTS RECORDED UNDER SECTION 131 OF THE ACT THOUGH THEY ACCEPTED THE FACT THAT T HEY HAD TAKEN THE LOANS FROM THE ASSESSEE IN THE PAST AND IT WAS ALSO REPAID IN THE PAST. THE FILING OF THE AFFIDAVITS TO TAKE A CONTRARY STAND AND FILL UP THE LACUNAS IN TH EIR STATEMENTS UNDER SECTION 131 CANNOT BE ACCEPTED BEING SELF-SERVING AFTER THOUGHT DOCUMENTS. ACCORDINGLY, I DO NOT FIND ANY MERIT OR SUBSTANCE IN THE PRESENT APPE AL OF THE ASSESSEE. THE ADDITION MADE BY THE AUTHORITIES BELOW IS SUSTAINED. 4 ITA NO. 787/JP/2019 SMT. SANJU SARDA, DAUSA. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 29/10/20 19. SD/- ( FOT; IKY JKWO (VIJAY PAL RAO) U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 29/10/2019. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SMT. SANJU SARDA, DAUSA. 2. THE RESPONDENT THE ITO WARD DAUSA, DAUSA. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 787/JP/2019) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR