ITO, Jaipur V. NEHA LUHARUWALA, Jaipur

ITA 847/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4833 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 27-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAI MALIK
• Assessee Lawyers: P C PARWAL CA DHK
• Section: 143(3); 68

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH HKKXPAN] YS[KK LNL; ,OA JH DQY HKKJR ] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM & SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 847/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14 INCOME TAX OFFICER, WARD 7(2), JAIPUR. CUKE VS. NEHA LUHARUWALA, PROP.-M/S NEHA TECH INDUSTRIES, G-29, RIICO INDUSTRIAL AREA (EXTENSION) BAGRU, DISTRICT- JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ALMPK 0532 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI AJAI MALIK FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 22/12/2016 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 26/12/2016 VKNS'K@ ORDER PER: KUL BHARAT, J.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 18/07/2016 PASSED BY THE LD CIT(A)-III, JAIPUR FOR THE A.Y. 2013-14, WHEREIN THE REVENUE HAS RAISED ONLY ONE GROUND, WHICH IS AGAINST ITA 847/JP/2016_ ITO VS NEHA LUHARUWALA 2 DELETING THE ADDITION U/S 68 OF RS. 1 CRORE WITHOUT THE ASSESSEE PROVING THE GENUINENESS OF THE TRANSACTIONS. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED AS THE ACT) AND THE ASSE SSMENT WAS FRAMED VIDE ORDER DATED 14/03/2016. WHILE FRAMING THE ASSE SSMENT, THE ASSESSING OFFICER MADE ADDITION OF RS. 1.00 CRORE B Y INVOKING THE PROVISIONS OF SECTION 68 OF THE ACT ON THE BASIS TH AT THE ASSESSEE FAILED TO FURNISH THE CAPITAL ACCOUNT. 3. IN FIRST APPEAL, THE LD. CIT(A) FOUND THAT THE IM MEDIATE SOURCE OF INVESTMENT IN FIRM IS OUT OF MATURITY PROCEEDS OF F DRS MADE IN EARLIER YEAR, THEREFORE, THE SOURCE CANNOT BE QUESTIONED IN THE YEAR UNDER APPEAL AND DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITION. 4. NOW THE REVENUE IS IN APPEAL BEFORE US. THE LD. DR HAS SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND FU RTHER ARGUED THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDI TION AND SUBMITTED THAT THE ASSESSEE HAD NOT PLACED ANY MATERIAL BEFOR E THE ASSESSING OFFICER TO COME TO THE CONCLUSION THAT THE INVESTME NT IS MADE OUT OF MATURITY OF EARLIER INVESTMENT. ITA 847/JP/2016_ ITO VS NEHA LUHARUWALA 3 5. AT THE OUTSET, THE LD AR OF THE ASSESSEE HAS REI TERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS AND O PPOSED THE SUBMISSIONS OF THE LD DR. HE SUBMITTED THAT THE SUB MISSIONS MADE BY THE LD. DR IS CONTRARY TO THE RECORDS. HE HAS DRAWN OUR ATTENTION TO THE BANK STATEMENT OF ICICI BANK ACCOUNT BELONGING TO T HE ASSESSEE REGARDING ENTRIES MADE WITH REGARD TO DEPOSITS AND WI THDRAWALS. LD. AR SUBMITTED THAT THE ASSESSEE IN EARLIER YEAR HAS A F LEXI ACCOUNT WITH THE ICICI BANK AND WHEN THE INITIAL TERM OF DEPOSIT MATU RED THEN THE INVESTMENT WAS ADVANCED TO M/S SAYA BUILDCOM CONSORT IUM PVT. LTD. ON 22/08/2011. 6. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES, PERUSED THE MATERIAL AVAILABLE ON THE RECORD AND ALSO GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE ISSUE REQUIRES OUR CON SIDERATION IS WHETHER THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE A DDITION AS MADE BY THE ASSESSING OFFICER, WE FIND THAT THE LD. CIT(A) HA S GIVEN A FINDING OF FACT WHICH IS AT PARAGRAPH NO. 4.3, WHICH IS AS UNDER :- I HAVE DULY CONSIDERED THE SUBMISSION OF THE LD. A/R OF THE APPELLANT, ASSESSMENT ORDER AND RECORDS AVAILAB LE AND FOUND THAT THE ASSESSEE HAS MADE INVESTMENT OF RS. 1,00,00,000/- (RS. 75,00,000/- AND RS. 25,00,000/-) IN HER PROPRIETORY CONCERN M/S NEHA TECH INDUSTRIES, BA GRU ITA 847/JP/2016_ ITO VS NEHA LUHARUWALA 4 OUT OF THE FUNDS RECEIVED IN THE SHAPE OF CLOSURE PROCEEDS OF FDR OF RS. 1,04,07,847/- ON 12/08/2011 WITH ICICI BANK, ANDHERI MUMBAI. AFTER CLOSURE PROCE EDS OF FDR. THE AMOUNT OF RS. 75,00,000/- WAS DEPOSITED WITH M/S SAYA BUILDCON CONSORTIUM PVT. LTD., GAZIABA D ON 12/08/2011 AND AN AMOUNT OF RS. 25,00,000/- WAS DEPOSITED WITH M/S TARUN KANODIA, MUMBAI ON 18/01/2013 AS UNSECURED LOANS. THE ABOVE AMOUNTS WERE INTRODUCED IN THE FIRM M/S TEHA TECH INDUSTRIES, BAGRU AS HER CAPITAL AFTER RECEIPT OF THE AMOUNTS THROUGH BANKING CHANNELS. SINCE THE IMMEDIATE SOURC E OF INVESTMENT IN FIRM IS OUT OF MATURITY PROCEEDS O F FDRS MADE IN EARLIER YEAR, THE SOURCE OF THIS CANN OT BE QUESTIONED IN THE YEAR UNDER APPEAL. IN VIEW OF THES E FACTS AND SUBMISSION OF THE LD. A/R, THE AMOUNT OF RS. 1,00,00,000/- (RS. 75,00,000/- AND RS. 25,00,000/-) ADDED IN THE TOTAL INCOME OF THE APPELLANT FOR THIS YEAR BY THE LD. A.O. AS UNDISCLOSED INCOME UNDER SECTION 68 OF I.T. ACT, 1961 IS HEREBY DELETED. HOWEVER, THE A.O . IS AT LIBERTY TO EXAMINE THE SOURCE OF FDR IN THE RESP ECTIVE ASSESSMENT YEAR SUBJECT TO THE LIMITATIONS AS PROVI DED UNDER THE ACT. THE ABOVE FINDING IS SUPPORTED BY THE MATERIAL AVAIL ABLE ON THE RECORD I.E. IN THE FORM OF BANK STATEMENT. THE REVENUE HAS NOT PLACED ANY ITA 847/JP/2016_ ITO VS NEHA LUHARUWALA 5 MATERIAL REBUTTING THE SAME, THEREFORE, WE DO NOT SE E ANY REASON TO INTERFERE INTO THE ORDER OF THE LD. CIT(A), THE SAME IS HEREBY AFFIRMED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26/12/2016. SD/- SD/- HKKXPAN DQY HKKJR (BHAGCHAND) (KUL BHARAT) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 26 TH DECEMBER, 2016 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- THE ITO, WARD 7(2), JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- SMT. NEHA LUHARUWALA, 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. 847/JP/2016) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR