Shri Purkha Ram, JODHPUR V. ITO, BARMER

ITA 85/JODH/2013

• Counselvise Citation: 8523314 RSA 2013
• Duration Of Justice: 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-10-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 22-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N A JOSHI

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL: JODHPUR BENCH : JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER. ITA NO. 85/JODH/2013 (A.Y. 2009-10) SHRI PURKHA RAM VS ITO, C/O. SHRI U.C. JAIN, BARMER. ADVOCATE, SHATRUNJAY HARI SINGH NAGAR, PALI ROAD, JODHPUR. PAN NO. AKFPR7069H (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. RAJENDRA JAIN. DEPARTMENT BY : SH. N.A. JOSHI- DR. DATE OF HEARING : 04/10/2013. DATE OF PRONOUNCEMENT : 07/10/2013. O R D E R PER HARI OM MARATHA, J.M. : THIS APPEAL OF THE ASSESSEE, FOR A.Y. 2009-10, IS DIRECTED AGAINST THE ORDER OF LD. CIT(A), JODHPUR DATED 30/01/2013. 2 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE DERIVED HIS INCOME FROM HIRE CHARGES FROM JCB EXCAVATOR AND SALARY FROM THE FIRM M/S. BHAGWATI CONSTRUCTION COMPANY, BARMER. FO R A.Y. 2009-10, HE FILED HIS RETURN OF INCOME [ROI] ON30/03/2010, D ECLARING TOTAL INCOME OF RS. 1,47,840/-. DURING THE YEAR HE HAS SH OWN HIRE RECEIPTS AT RS. 29,65,136/- AND HAS DISCLOSED NET PROFIT OF RS. 75,840/- GIVING N.P. RATE OF 2.55%. DURING THE YEAR CASH DEPOSITS ON VAR IOUS DATES, IN HIS SAVING BANK ACCOUNT WITH THE BARMER COOPERATIVE BAN K LTD., TOTALING TO RS. 30,78,000/- HAVE BEEN NOTICED. THE ASSESSEE HAS MAINTAINED AND HAS PRODUCED THE BOOKS OF ACCOUNTS BEFORE THE A.O. HE HAS RECORDED INCOME AND EXPENDITURE INCURRED FOR RUNNING THE JCB . AS PER THE ASSESSEE HE ' DEPOSITED HIRE RECEIPTS AMOUNTING TO RS. 21,78,000/- IN THE BANK ACCOUNT IN CASH ON DIFFERENT DATES. WHEN A SKED TO DO, HE HAS EXPLAINED THE SOURCE OF THE CASH DEPOSITS IN THIS A CCOUNT AS UNDER :- A) THAT THE DEPOSIT OF RS. 13,78,000/- IN THE BANK ACCOUNT WAS OUT OF THE RECEIPTS FROM THE HIRE CHARGES RECEI VED FROM RUNNING OF JCB EXCAVATOR WHICH IS DULY RECORDE D IN THE BOOKS OF ACCOUNTS. THE RECEIPT SHOWN FROM THE J CB EXCAVATOR IS MUCH MORE THAN DEPOSITED IN THE BANK ACCOUNT. FURTHER A SUM OF RS. 12,75,000/- WAS PAID TO M/S. PURSHOTAM DASS JAGDISH CHAND IN RESPECT OF PURCHASE OF DIESEL WHICH WAS USED IN RUNNING THE JCB EXCAVATOR 3 THROUGH A/C PAYEE CHEQUE (ON ACCOUNT OF APPLICATION OF PROVISIONS OF SECTION 40A(3). B) THAT THE DEPOSIT OF RS. 9,03,000/- ON 24.02.2009 OUT OF WHICH THE ASSESSEE RECEIVED A SUM OF RS. 8,00,000/- FROM FOLLOWING PERSONS (PARTNERS OF PURKHARAM WINE PARTY ) FOR GIVING A BID FOR WINE CONTRACT TO THE STATE GOVT. INDRA KUMAR S/O MATHURAM 1,60,000/- PURKHARAM S/O GORKHRAM 1,60,000/- GANESH S/O SAHIBARA 1,60,000/- MANARAM S/O FOJARAM 1,60,000/- JOGA RAM S/O BHUPARAM 1,60,000/- PURKHARAM (APPELLANT) 1,03,000 9,03,000/- C) THAT THE DEPOSIT OF RS. 9,00,000/- MADE ON 04/03 /2009 WAS ON ACCOUNT OF RETURN OF AMOUNT DEPOSITED WITH THE EXCISE DEPARTMENT FOR WHICH A DRAFT OF RS. 9,00,000 /- WAS OBTAINED FROM THE SAME BANK ACCOUNT ON 24/02/2009 F OR WHICH BANK DEBITED MY A/C FOR RS. 903000/- WHICH IN CLUDES D.D. COMMISSION OF RS. 3000/-. D) THAT ALL THE DEPOSIT IN THE BANK AND WITHDRAWAL S ARE RECORDED IN THE BOOKS OF ACCOUNTS AND AS SUCH THE S AME CANNOT BE ADDED U/S 69A. 4 2.1 BUT THE A.O. WAS NOT AGREEABLE AND HAS ADDED RS . 30,78,000/- U/S 69 A OF THE ACT IN ASSESSEES HANDS. AGAINST TH IS ADDITION, THE ASSESSEE FIELD FIRST APPEAL BUT WAS NOT SUCCESSFUL IN GETTING THIS ADDITION DELETED IN FULL. THE LD. CIT(A) SUSTAINED THE ADDITION OF RS. 22,78,000/- AND DELETED THE ADDITION OF RS. 8,00,00 0/-. 2.2 BEFORE US BOTH THE PARTIES HAVE REITERATED THEI R EARLIER ARGUMENTS. AFTER CONSIDERING THE RIVAL SUBMISSIONS IN THE LIGHT OF THE EVIDENCE AVAILABLE ON RECORD WE HAVE FOUND THAT THE CASH DEPOSITS ARE DULY RECORDED IN THE BOOKS OF ACCOUNTS WHICH WERE P RODUCED BEFORE THE A.O. THE SOURCE OF EACH DEPOSIT HAS BEEN EXPLAI NED BY THE ASSESSEE AS DISCUSSED ABOVE. ANY MONEY ETC., WHICH IS NOT RECORDED IN THE BOOKS OF ACCOUNTS ONLY, CAN BE ADDED U/S 69A OF THE ACT. ACCORDINGLY, WE CANNOT SUSTAIN THE IMPUGNED CONFIRM ATION OF THIS ADDITION AND, THEREFORE, ORDER ITS DELETION FROM TH E HANDS OF THE ASSESSEE. 2.3. FURTHER THE ASSESSEE IS FOUND TO HAVE PAID A S UM OF RS. 12,75,000/- TO M/S. PURSHOTTAM DAS JAGDISH CHANDRA THROUGH ACCOUNT PAYEE CHEQUE IN RESPECT OF CREDIT PURCHASES OF DIES EL FOR JCB EXCAVATOR. THE EXPENDITURE WAS GENUINE. IT IS FOUND THAT HE ASSESSEE 5 HAS DEPOSITED A SUM OF RS. 12,75,000/- IN HIS BANK ACCOUNT, IN CASH OUT OF HIS HIRING CHARGES. THE ASSESSEE HAS ALSO DEPOSI TED A SUM OF RS. 9,03,000/-. HE HAS ALLEGEDLY, RECORDED RS. 8,00,000 /- IN CASH FROM FIVE PERSONS FOR AND ON ACCOUNT OF NEW BUSINESS OF LIQUO R IN PARTNERSHIP. A DOCUMENT EXHIBITING PAY ORDER OBTAINED FOR GETTING WINE SHOP. THE A.O. HAS RECORDED THE STATEMENTS OF THESE FIVE PERS ONS WHO HAD GIVEN THIS CASH. THEY HAVE ACCEPTED THE FACTUM OF PAYMENT TO THE ASSESSEE. THEREFORE, THE TRANSACTIONS MADE CANNOT BE DOUBTED IN THIS WAY AND THE LD. CIT(A) DELETED THE ADDITION OF RS. 8,00,000 /-. 2.4 A SUM OF RS. 9 LAKHS HAS BEEN ADDED ALTHOUGH IT REPRESENTED INTER TRANSFER ENTITY IN THE BANK ACCOUNT RELATING TO REF UND OF TENDER MONEY BY THE GOVERNMENT WHICH WAS DEPOSITED BY THE ASSESS EE IN HIS BANK ACCOUNT. THUS, NO SUCH ADDITION CAN BE MADE. AS A R ESULT WE CANNOT SUSTAIN ANY SUCH ADDITION AND, THEREFORE, ALLOW THE GROUND OF APPEAL. 3. IN THE RESULT, APPEAL OF THE ASSESSEE STAND ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH OCTOBER, 2013. SD/- SD/- [N.K. SAINI] [HARI OM MARATHA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 7 TH OCTOBER, 2013. 6 VL/ COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR