SHRI RAMJI RAM CHOUDHARY, JAIPUR V. INCOME TAX OFFICER, WARD-4-5, JAIPUR

ITA 822/JPR/2019

• Counselvise Citation: [2019] 113 COUNSELVISE.COM (IT) 6370 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 03-06-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANMOHAN ACIT DHK
• Keywords: Source of fund; Reassessment proceedings
• Section: 69C; 143(3); 147; 148

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA , ACCOUNTANT MEMBER VK;DJ VIHY LA -@ ITA NO. 822/JP/2019 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2009-10 RAMJI RAM CHOUDHARY, 150, OFFICER CAMPUS EXTN. VAISHALI NAGAR, JAIPUR, RAJASTHAN. C UKE VS. I.T.O., WARD 4(5), JAIPUR. LFKK;H YS[KK LA -@THVKBZVKJ LA -@ PAN/GIR NO.: AGHPC 5805 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKS J LS @ ASSESSEE BY : SHRI VINOD GUPTA (FCA) JKTLO DH VKSJ LS @ REVENUE BY : SHRI MANMOHAN (ACIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18/11/2019 MN?KKS 'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 19/11/2019 VKNS'K@ ORDER PER: R.C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD.CIT(A)-2, JAIPUR DATED 26/03/2019 FOR THE A.Y. 2009-10 IN THE MATTER OF ORDER PASSED U/S 147 R.W.S. 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED FOR REOPENING OF THE ASSESSMENT AS WELL AS MERIT OF THE ADDITION UPHELD BY THE LD. CIT(A) AMOUNTING TO RS. 1,61,820/- U/S 69C OF THE ACT. ITA 822/JP/2019 RAMJI RAM CHOUDHARY VS ITO 2 3. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. FROM THE RECORD, I FOUND THAT AS PER THE AST SYSTEM (AIR) INFORMATION, THE A.O. FOUND THAT THE ASSESSEE HAS MADE PAYMENT OF CREDIT CARD, HOWEVER, THESE PAYMENTS WERE NOT FOUND IN THE RETURN. ACCORDINGLY, THE ASSESSMENT WAS REOPENED BY ISSUING NOTICE U/S 148 OF THE ACT. 4. I HAVE GONE THROUGH THE RECORDS, AS PER THE REASONS RECORDED, I AM SATISFIED THAT THERE WAS A SUFFICIENT REASON BEFORE THE A.O. TO COME TO THE CONCLUSION THAT THERE WAS ESCAPEMENT OF INCOME TO THE EXTENT OF PAYMENT OF CREDIT CARD NOT SHOWN IN THE RETURN OF INCOME. ACCORDINGLY, I CONFIRM THE ACTION OF THE LD. CIT(A) FOR UPHOLDING THE INITIATION OF REASSESSMENT PROCEEDINGS. 5. WITH REGARD TO MERIT OF THE ADDITION CONFIRMED BY THE LD. CIT(A), I FOUND THAT THE ASSESSEE HAS MADE TOTAL PAYMENT OF RS. 2,72,726/- IN RESPECT OF CREDIT CARD DURING THE YEAR UNDER CONSIDERATION. ON ASKING BY THE A.O. REGARDING SOURCE OF FUND, THE ASSESSEE VIDE LETTER DATED 22 ND DECEMBER, 2016 HAS STATED THAT OUT OF TOTAL PAYMENT OF RS. 2,72,726/-, A SUM OF RS. 1,84,625/- WERE PAID THROUGH BANKING CHANNEL AND REMAINING SUM OF RS. 88,100/- WERE PAID IN CASH. IT WAS ALSO SUBMITTED THAT THE ASSESSEES CREDIT CARD WAS USED BY A THIRD PARTY WHO WAS RELATIVE OF THE ASSESSEE NAMELY M/S MANAVTA ENGINEERING WORKS HAVING PAN NO. ITA 822/JP/2019 RAMJI RAM CHOUDHARY VS ITO 3 AAOFM7683F OF RS. 1,61,820/- WHICH WAS SPENT BY THE SAID ENTITY AND THE ASSESSEE WAS GIVEN CASH TO PAY THESE CREDIT CARD BILLS. A CONFIRMATION FROM M/S MANAVTA ENGINEERING WORKS WAS ALSO FILED BEFORE THE A.O.. HOWEVER, WITHOUT MAKING ANY FURTHER ENQUIRY WITH M/S MANAVTA ENGINEERING WORKS, THE A.O. DECLINED THE ASSESSEES CLAIM OF MAKING PAYMENT BY M/S MANAVTA ENGINEERING WORKS. BEFORE THE LD. CIT(A), THE ASSESSEE HAS ALSO FILED DETAILED SUBMISSIONS ALONGWITH CREDIT CARD STATEMENTS AND CONFIRMATION FROM M/S MANAVTA ENGINEERING WORKS, HOWEVER, HE UPHELD ADDITION OF RS. 1,61,820/- BY STATING THAT THE ASSESSEE HAS NOT FILED CASH BOOK OF M/S MANAVTA ENGINEERING WORKS IN SUPPORT OF ITS CLAIM. 6. I HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND FROM RECORD THAT NEITHER THE A.O. HAS ASKED THE ASSESSEE TO EITHER PRODUCE M/S MANAVTA ENGINEERING WORKS OR ITS CASH BOOK NOR THE LD. CIT(A) HAS ASKED THE ASSESSEE AS PER APPEAL ORDER PASSED BY HIM. ACCORDINGLY, I DO NOT FIND ANY MERIT IN THE ACTION OF THE LOWER AUTHORITIES FOR DECLINING THE ASSESSEES CLAIM WITHOUT BRINGING ANY POSITIVE MATERIAL ON RECORD TO DISREGARD THE CONFIRMATION FILED BY THE ASSESSEE ALONGWITH PAN NO. OF M/S MANAVTA ENGINEERING WORKS WHICH HAS ALLEGED TO MAKE THE PAYMENT. FIRSTLY, IT WAS THE DUTY OF THE A.O. TO ASK THE ASSESSEE REGARDING SOURCE OF FUNDS WITH M/S MANAVTA ENGINEERING WORKS IF HE HAD ANY DOUBT ITA 822/JP/2019 RAMJI RAM CHOUDHARY VS ITO 4 REGARDING CONFIRMATION SO FILED BY M/S MANAVTA ENGINEERING WORKS. SECONDLY THE POWER OF THE LD. CIT(A) IS COTERMINOUS WITH THAT OF THE A.O., IF THERE IS ANY FAILURE ON THE PART OF THE A.O., THE LD. CIT(A) IS COMPETENT TO DO WHAT THE A.O. HAS FAILED TO DO. AS PER ORDER OF THE LD. CIT(A), NO EXPLANATION FROM THE ASSESSEE WAS CALLED FOR NOR THE ASSESSEE WAS ASKED TO SUBMIT CASH BOOK OF M/S MANAVTA ENGINEERING WORKS NOR M/S MANAVTA ENGINEERING WORKS WERE GIVEN ANY NOTICE TO EXPLAIN ITS SOURCE OF MAKING PAYMENT OF CREDIT CARD. ACCORDINGLY, I DO NOT FIND ANY JUSTIFICATION FOR THE ADDITION SO UPHELD BY THE LD. CIT(A) WHICH WAS DULY EXPLAINED ALONGWITH CONFIRMATION AND CREDIT CARD STATEMENT FROM THE PARTY REGARDING THE EXPENDITURE ALONGWITH ITS PAN NUMBER. ACCORDINGLY, I DIRECT THE A.O. TO DELETE THE ADDITION OF RS. 1,61,820/- MADE U/S 69C OF THE ACT. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART IN TERMS INDICATED HEREINABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH NOVEMBER, 2019 SD/- JES'K LH 'KEKZ ( RAMESH C SHARMA ) YS[KK LNL; @ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 19 TH NOVEMBER, 2019 ITA 822/JP/2019 RAMJI RAM CHOUDHARY VS ITO 5 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI RAMJI RAM CHOUDHARY, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE I.T.O., WARD 4(5), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 822/JP/2019) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR