Baroda Fincap Ltd., Baroda V. The Income tax Officer,Ward-1(1), Baroda

ITA 815/AHD/2011

• Counselvise Citation: 81520514 RSA 2011
• Duration Of Justice: 2 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-09-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 15-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Assessee Lawyers: N M DARJI

Judgement Text

, , , , , , , , , , , , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD .., BEFORE SHRI B.P.JAIN, ACCOUNTANT MEMBER !./ I.T.A.NO.815/AHD/2011 ( # $%# # $%# # $%# # $%# / / / / ASSESSMENT YEAR : 2006-07) BARODA FINCAP LIMITED 223, SIDDHARTH COMPLEX RC DUTT ROAD BARODA 390 007` / VS. THE ITO WARD-1(1) BARODA & !./' !./ PAN/GIR NO. : AAACB 9526 H ( &( / // / APPELLANT ) .. ( )*&( / RESPONDENT ) &( + / APPELLANT BY : SHRI N.M. DARJI, A.R. )*&( , + / RESPONDENT BY : SHRI B.L. YADAV, SR.DR -$. , /0 / / / / DATE OF HEARING : 18.09.2013 12% , /0 / DATE OF PRONOUNCEMENT : 18.09.2013 3 / O R D E R THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF THE LD.CIT(APPEALS)-I, BARODA DATED 10/01/2011 FOR THE ASSTT.YEAR 2006-07. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN LAW A ND FACTS CONFIRMING THE ADDITION OF CASH CREDITS RS.1,52,115 /- U/S.68 OF THE ACT AND DISALLOWANCE OF INTEREST THERE ON RS.8,395/ - MADE BY THE ASSESSING OFFICER AS PER DETAILS AS UNDER: SR.NO. NAME OF THE DEPOSITORS AMOUNT OF DEPOSITS RS. AMOUNT OF INTEREST RS. TOTAL ADDITION RS. 1. ASKATBEN S ZAVERI 15,500 1,972 17,472 2. CHANDNI B SHAH 15,800 2,204 18,004 3. JUGNUBHAI P. SHAH 15,000 2,263 17,263 ITA NO.815/AHD/ 2011 BARODA FINCAP LIMITED VS. ITO ASST.YEAR 2006-07 - 2 - 4. JATINBHAI S ZAVERI 15,000 - 15,000 5. RAMESHBHAI S ZAVERI 16,615 1,956 18,571 6. AKASH K ZAVERI 15,500 - 15,500 7. JAKSHABEN A.SHAH 17,000 - 17,000 8. KIRITKUMAR S JHAVERI 15,800 - 15,800 9. NIRMALABEN R.SHAH 9,900 - 9,900 10. RACHNABEN K.ZAVERI 16,000 - 16,000 TOTAL 1,52,115 8,395 1,60,510 THE LD.(CIT)-A OUGHT TO HAVE CONSIDERED THE CONFIRM ATION AND AFFIDAVIT FILED BY THE DEPOSITORS. THE LD AO MAY K INDLY BE DIRECTED TO DELETE THE ADDITION OF CASH CREDIT AND DISALLOWA NCE OF INTEREST AS ABOVE. 2. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OR ALL THE ABOVE GROUNDS OF APPEAL. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSI NG OFFICER MADE AN ADDITION OF RS.4,79,415/- ON ACCOUNT OF CASH CREDIT WHICH REMAINED UNEXPLAINED ALONG WITH INTEREST WHICH WAS DISALLOWE D AT RS.15,897/-. 3. BEFORE LD.CIT(A), THE ASSESSEE FILED THE CONFIRM ATION OF ACCOUNTS, FORM OF DEPOSITS INVESTED, CONFIRMATION LETTERS OF DEPOSITS AND AFFIDAVITS OF ALL THE 29 DEPOSITORS. THE REMAND REPORT OF THE AO WAS CALLED FOR. THE AO IN THE REMAND REPORT, ACCEPTED THE 19 DEPOSI TORS AS GENUINE BUT DID NOT ACCEPT THE DEPOSITS WITH REGARD TO 10 DEPOS ITORS. THE LD.CIT(A) ACCORDINGLY ALLOWED THE RELIEF OF RS.2,96,300/- VID E PARAGRAPH NO.4.6 OF HIS ORDER AND, ACCORDINGLY, REDUCED THE PROPORTIONA TE DISALLOWANCE OF INTEREST. THE ASSESSEE MOVED AN APPLICATION U/S.15 4 OF THE IT ACT, 1961 BEFORE THE LD.CIT(A) AND THE LD.CIT(A) ACCORDINGLY PASSED THE ORDER U/S.154 OF THE ACT, DATED 22/02/2011, WHEREIN HE AL LOWED RELIEF OF ITA NO.815/AHD/ 2011 BARODA FINCAP LIMITED VS. ITO ASST.YEAR 2006-07 - 3 - RS.3,19,300/- INSTEAD OF RS.2,96,300/- AS PER THE R EMAND REPORT OF THE AO. THE DISPUTE REMAINED FOR THE CASH CREDIT OF RS .1,52,115/- AND PROPORTIONATE DISALLOWANCE OF INTEREST OF RS.8,395/ -. 4. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE ASSESSEE HAD SUBMITTED ALL THE CONFIRMATIONS AND SOURCES OF THE DEPOSITORS AND THERE IS NO ADVERSE COMMENT IN THE REMAND REPORT. THE EVIDE NCE PLACED BY THE ASSESSEE IN THE FORM OF AFFIDAVITS AND THE CONFIRMA TIONS EXPLAINING THE SOURCES HAVE NOT BEEN DISAPPROVED AND, THEREFORE, T HE LD.CIT(A) IS NOT JUSTIFIED IN CONFIRMING THE ADDITION. 4.1. ON THE OTHER HAND, LD.DR OF THE REVENUE RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE RECORDS AVAILABLE. THERE IS NO DISPUTE TO THE FACT THAT TH E ASSESSEE HAD SUBMITTED THE CONFIRMATIONS AND AFFIDAVITS WITH REGARD TO THE TEN DEPOSITORS AND NO ADVERSE COMMENT HAS BEEN PLACED BY THE AO IN THE RE MAND REPORT. THE LD.DR OF THE REVENUE HAS ALSO NOT BROUGHT ON RECOR D ANY ADVERSE MATERIAL WITH REGARD TO THE SAID TEN DEPOSITORS. T HE SAID TEN DEPOSITORS ARE NOT ASSESSED TO TAX AND AS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, THE DEPOSITORS HAVE DEPOSITED THE CASH OU T OF THE CHEQUES RECEIVED FROM THE ASSESSEE-COMPANY ON ACCOUNT OF EA RLIER FDS MADE IN THE PRECEDING YEARS. THIS EXPLANATION HAS BEEN CO NSIDERED NEITHER BY THE LD.CIT(A) NOR BY THE AO IN THE REMAND PROCEEDINGS. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE ABSENCE OF ANY ADVERSE MATERIAL ON RECORD, THE EXPLANATION SUBMITTED BY THE ASSESSEE I S CONSIDERED ITA NO.815/AHD/ 2011 BARODA FINCAP LIMITED VS. ITO ASST.YEAR 2006-07 - 4 - SATISFACTORY AND NO DISALLOWANCE IS CALLED FOR. AC CORDINGLY, THE ORDER OF THE LD.CIT(A) CONFIRMING THE ADDITION ON ACCOUNT OF CASH CREDITS AMOUNTING TO RS.1,52,115/- AND PROPORTIONATE DISALL OWANCE OF RS.8,395/- IS REVERSED AND AO IS DIRECTED TO DELETE THE ADDITI ON. THUS, THIS GROUND OF THE ASSESSEE IS ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE SD/- ( .. ) ( B.P. JAIN ) ACCOUNTANT MEMBER AHMEDABAD; DATED 19 / 09 /2013 60.., $.../ T.C. NAIR, SR. PS 3 , )/7 87%/ 3 , )/7 87%/ 3 , )/7 87%/ 3 , )/7 87%// COPY OF THE ORDER FORWARDED TO : 1. &( / THE APPELLANT 2. )*&( / THE RESPONDENT. 3. !! / -9 / CONCERNED CIT 4. -9() / THE CIT(A)-I, BARODA 5. 7$:; )/ , , / DR, ITAT, AHMEDABAD 6. ;<# =. / GUARD FILE. 3- 3- 3- 3- / BY ORDER, *7/ )/ //TRUE COPY// > >> >/ // / ! ! ! ! ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION 18.9.13 (DICTATION-PAD 7 PAGES ATTACHED WITH THE FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18.9.13 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH FAIR ORDER PLACED BEFORE OTHER MEMBER 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER