The ITO, Ward-7(4), Surat V. Shri Saurabh Ushakant Jhaveri, Surat

ITA 82/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 72926 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 28-01-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 12-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BATHEJA

Judgement Text

, , , , , , , , IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BENCH, AHMEDABAD .., ! ! ! ! ' #$, BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER !./ I.T.A. NO.82/AHD/2011 ( & '& & '& & '& & '& / / / / ASSESSMENT YEAR : 2007-08) THE INCOME TAX OFFICER WARD-7(4) SURAT / VS. SHRI SAURABH USHAKANT JHAVERI 1/3386, 28, ANANT DARSHAN NR.JUNI ADALAT GOPIPURA,SURAT ( !./)* !./ PAN/GIR NO. : ABGPJ 0725 N ( (+ / // / APPELLANT ) .. ( ,-(+ / RESPONDENT ) (+ . / APPELLANT BY : SHRI O.P. BATHEJA, SR.DR ,-(+ / . / RESPONDENT BY : SHRI S.N.SOPARKAR WITH MS.URVASHI SHODHAN, AR ' 0 / $1 / / / / DATE OF HEARING : 28/1/2014 23' / $1 / DATE OF PRONOUNCEMENT : 30/01/2014 4 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-V, SURAT (CIT(A) FOR SHORT) DATED 26/10/2010 PERTAINING TO ASSESSMENT YEAR (AY) 2007-08. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 16,65,389/- MADE BY THE A.O. U/S.68 OF THE ACT DESPITE THE FACT THAT THE AS SESSEE FAILED TO SUBMIT THE COPIES OF PAN & INCOME TAX RETURN OF N.S. JHAVERI & OTHERS AND THUS FAILED TO PROVE THE IDENTITY AND CREDITWORTHINESS O F N.S. JHAVERI & OTHERS AND GENUINENESS OF THE UNSECURED LOAN OF RS .16,65,389/-. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 16,65,389/- MADE BY THE A.O. U/S.68 OF THE ACT DESPITE THE FACT THAT NO IND EPENDENT BANK ACCOUNT WAS FOUND IN THE NAME OF N.S. JHAVERI & OTHERS TO SHOW THE TRANSACTION OF UNSECURED LOAN RECEIVED OF RS.16,65,389/-. ITA NO.82/AHD/2 011 ITO VS. SHRI SAURABH USHAKANT JHAVERI ASST.YEAR 2007-08 - 2 - 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 16,65,389/- MADE BY THE A.O. U/S.68 OF THE ACT AFTER ADMITTING THE SUBMISSI ON OF A.R. THAT N.S. JHAVERI & OTHERS A/C IS A NOMENCLATURE USED BY THE APPELLANT AND OTHER FAMILY MEMBERS FOR IDENTIFICATION OF COMMON FAMILY FUND AND HAS TO INDEPENDENT EXISTENCE OF AOP OR HUF. 4. IT IS THEREFORE, PRAYED THAT THE ORDER OF THE LD.CI T(A) BE SET ASIDE AND THE ASSESSING OFFICERS ORDER DATED 31/12/2009 BE RESTO RED. 2. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE AS SESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143(3) O F THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED V IDE ORDER DATED 31/12/2009, THEREBY THE ASSESSING OFFICER(AO) MADE ADDITION OF RS.16,65,389/- ON ACCOUNT OF LOAN ACCOUNT IN THE NAME OF N,.S. JHAVERI & OTHE RS AMOUNTING TO RS.16,65,389.65. AGAINST THIS, ASSESSEE FILED AN A PPEAL BEFORE THE LD.CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS ALLOWED THE A PPEAL AND DELETED THE ADDITION MADE BY THE AO. 3. THE LD.SR.DR SHRI O.P.BHATEJA SUPPORTED THE ORDE R OF THE AO, WHEREAS THE LD.COUNSEL FOR THE ASSESSEE SHRI S.N.SOPARKAR S UPPORTED THE ORDER OF THE LD.CIT(A) AND SUBMITTED THAT THE AO WAS NOT JUSTIFI ED IN MAKING THE ADDITION. HE SUBMITTED THAT ALL THE DETAILS WERE FURNISHED BE FORE THE AO. HE DREW OUR ATTENTION TOWARDS PAGE NOS.184 TO 227 OF THE PAPER- BOOK, WHEREIN THE FLOW OF FUND ALONG WITH BANK STATEMENT OF ALL JOINT ACCOUN T HOLDERS IS GIVEN. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. WE FIND THAT THE AO MADE ADDITION ON THE BASIS THAT N.S.JHAVERI & OT HERS DO NOT EXIST AS PER THE LEGAL NORMS. THE AO DID NOT ACCEPT THE FACT TH AT AN UNSECURED LOAN FROM N.S.JHAVERI & OTHERS WAS OBTAINED. WE FIND THAT TH E LD.CIT(A) HAS GIVEN A FINDING ON FACT THAT THE ASSESSEE HAD CLEARLY ESTAB LISHED THE IDENTITY OF EACH CO- OWNERS AND ALSO PROVIDED THEIR PANS AND ALSO SUBMIT TED VARIOUS BANK ITA NO.82/AHD/2 011 ITO VS. SHRI SAURABH USHAKANT JHAVERI ASST.YEAR 2007-08 - 3 - STATEMENTS TO ESTABLISH THE IDENTITY, SOURCE, CREDI TWORTHINESS AND GENUINENESS OF TRANSACTION. THIS FINDING OF THE LD.CIT(A) COUL D NOT BE CONTROVERTED BY THE REVENUE BY PLACING ANY CONTRARY MATERIAL ON RECORD, THEREFORE IN VIEW OF THE UNREBUTTED FINDING OF THE LD.CIT(A) COUPLED WITH FA CT THAT THE ASSESSEE HAS DEMONSTRATED BY WAY OF CASH FLOW STATEMENT ABOUT TH E SOURCE FROM WHERE THE MONEY WAS TRANSFERRED AND ALSO THE GENUINENESS OF T HE TRANSACTION. THEREFORE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD .CIT(A), THE SAME IS HEREBY UPHELD. THUS, FIRST GROUND OF THE REVENUES APPEAL IS REJECTED. SINCE THE REMAINING GROUND NOS.2 & 3 ARE INTER-CONNECTED WITH THE FIRST GROUND OF APPEAL, THEREFORE THE SAME NEED NO SEPARATE ADJUDIC ATION. 4. GROUND NO.4 IS GENERAL IN NATURE WHICH REQUIRES NO INDEPENDENT ADJUDICATION. 5. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED . ORDER PRONOUNCED IN COURT ON THE DATE MENTIONED HER EINABOVE AT CAPTION PAGE SD/- SD/- ( .. ) (' #$) ( N.S. SAINI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 30 / 01 /2014 71.., .../ T.C. NAIR, SR. PS ITA NO.82/AHD/2 011 ITO VS. SHRI SAURABH USHAKANT JHAVERI ASST.YEAR 2007-08 - 4 - 4 / ,$8 98'$ 4 / ,$8 98'$ 4 / ,$8 98'$ 4 / ,$8 98'$/ COPY OF THE ORDER FORWARDED TO : 1. (+ / THE APPELLANT 2. ,-(+ / THE RESPONDENT. 3. !! $ ': / CONCERNED CIT 4. ':() / THE CIT(A)-V, SURAT 5. 8 #; ,$ , , / DR, ITAT, AHMEDABAD 6. ;<& =0 / GUARD FILE. 4' 4' 4' 4' / BY ORDER, -8$ ,$ //TRUE COPY// > >> >/ // / !) !) !) !) ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 28.1.14(DICTATION-PAD 5-PAG ES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 29.1.14 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.30.1.14 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 30.1.14 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