ITO-WARD-7(1), Nagpur V. SHRI MAHESH MUNNALAL KANOJIYA, Nagpur

ITA 8/NAG/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1676 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 06-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE

Judgement Text

1 ITA NO.08/NAG/2014 . IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NO. 08/NAG/2014 ASSESSMENT YEAR : 2009 - 10. THE INCOME - TAX OFFICER, MAHESH MUNNALAL KANOJIYA, WARD - 7(1), NAGPUR, V/S. BORKAR CHOWK, MAIN ROAD, KAMPTEE NAGPUR - 441002. PAN APAPK0136J APPELLANT. RESPONDENT. APPELLANT BY : SHRI NARENDRA KANE. RESPONDENT BY : SHRI MUKESH AGRAWAL.. DATE OF HEARING : 13 - 07 - 2015 DATE OF PRONOUNCEMENT : 28 TH AUGUST, 2015 O R D E R PER SHAMIM YAHYA, A.M. . THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - II, NAGPUR DATED 04 - 10 - 2013 AND PERTAINS TO ASSESSMENT YEAR 2009 - 10. THE GROUND OF APPEAL READS AS UNDER : WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(APPEALS) IS CORRECT IN HOLDING THAT THE ASSESSEE HAS DISCHARGED HIS ONUS OF PROVIDING IDENTITY & CREDITWORTHINESS OF CREDITORS AND GENUINENESS OF TRANSACTION WITHOUT APPRECIATING THE FACT THAT THE CREDITORS HAVE MEAGER SOURCE OF 2 ITA NO.08/NAG/2014 . INCOME AND AMOUNT PAID IS WITHOUT ANY AGREEMENT TOWARDS PURCHASE OF SHOP? 2. IN THIS CASE THE ASSESSING OFFICER NOTED THAT THE ASSESSEE WAS IN THE BUSINESS OF CLEANING AND WASHING OF LAUNDRY. CERTAIN CREDITS FOU ND IN THE BANK STATEMENT WERE EXPLAINED BY THE ASSESSEE TO BE FROM DEPOSITS FROM TENANTS FOR SHOPS INHERITED FROM HIS FATHER. THE ASSESSEE PRODUCED DOCUMENTS OF IMMOVABLE PROPERT Y IN THIS CONNECTION AND CONFIRMATION FROM THE TENANTS/PURCHASERS OF THE SAID SHOPS. THE TOTAL AMOUNT SO COLLECTED FROM THE FOUR PERSONS TOTALED TO ` .13,50,000/ - . THE ENTIRE AMOUNT WAS RECEIVED IN CASH. THE ASSESSING OFFICER PROCEEDED TO EXAMINE THOSE PERSONS AND RECORDED THEIR STATEMENTS UNDER SECTION 131. FINDING THAT THOSE PERS ONS WERE NOT HAVING COMMENSURATE MEANS, THE ASSESSING OFFICER PROCEEDED TO ADD THE SAME AS UNDISCLOSED INCOME OF THE ASSESSEE. 3. UPON ASSESSEES APPEAL, LEARNED CIT(APPEALS) EXAMINED THE FACTS OF THE CASE. HE ALSO CALLED FOR THE CASE RECORDS. LEARNED CIT (APPEALS) CONCLUDED AS UNDER : THE ABOVE DETAILED ENQUIRIES CARRIED OUT BY THE LD.AO VERY CLEARLY ESTABLISHED THAT ALL THE FOUR INDIVIDUALS HAVE CONFIRMED THE FACT THAT THEY HAVE GIVEN VARIOUS AMOUNTS IN CASH TO THE APPELLANT TOWARDS PROPOSED PURCHAS E OF SHOP FROM THE APPELLANT. ALL OF THEM ARE ASSESSED TO TAX HAVING REGULARLY FILED THEIR INCOME TAX RETURNS AND ALSO PRODUCED THEIR BANK STATEMENTS BEFORE THE LD.AO. THE IDENTITY, CREDITWORTHINESS AND THE GENUINENESS OF THE TRANSACTION HAS BEEN CLEARL Y ESTABLISHED BY THE APPELLANT. IN SUCH CIRCUMSTANCES THERE IS NO BASIS FOR MAKING THE SAID ADDITION OF ` .1350000/ - AND THE SAME IS THEREFORE DIRECTED TO BE DELETED. AGAINST THE ABOVE ORDER, ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. WE FIND THAT THE ASSESSEE HAS RECEIVED THE SAID AMOUNTS FROM FOUR INDIVIDUAL PERSONS WHO HAVE CONFIRMED THAT THEY HAVE GIVEN THE CASH TO THE ASSESSEE TOWARDS PROPOSED PURCHASE OF SHOP FROM THE ASSESSE E. ALL OF THEM ARE ASSESSED TO TAX AND ARE REGULAR IN FILING 3 ITA NO.08/NAG/2014 . THE INCOME - TAX RETURNS AND HAVE PRODUCED THEIR BANK STATEMENTS BEFORE THE ASSESSING OFFICER. TOTAL AMOUNT RECEIVED FROM THESE FOUR PERSONS IS ` .13,50,000/ - . THERE IS NO PRESUMPTION THAT THE PER SONS HAVING A SMALL INCOME CAN NOT MAKE ANY SAVING. IN THESE CIRCUMSTANCES IN OUR CONSIDERED OPINION, THERE IS NO INFIRM ITY IN THE ORDER OF LEARNED CIT(APPEALS). ACCORDINGLY WE AFFIRM THE SAME. 5. IN THE RESULT THIS APPEAL FILED BY THE REVENUE STANDS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF AUGUST, 2015. SD/ - SD/ - (MUKUL K. SHRAWAT) ( SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER. NAGPUR, DATED: 28 TH AUGUST, 2015. COPY OF ORDER FORWARDED TO : 1. THE ASSE SSEE. 2. REVENUE. 3. THE CIT(A) 4. THE CIT, NAGPUR. 5. THE D.R., ITAT, NAGPUR. 6. GUARD FILE. TRUE COPY. BY ORDER WAKODE ASSISTANT REGISTRAR, ITAT, NAGPUR