ARJUN SHIVRAM CHAVAN, MUMBAI V. ITO WD 3(1), MUMBAI

ITA 8759/MUM/2011

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9784 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 25-01-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 27-12-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V JENARDHANAN
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI R. C. SHARMA , ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER I.T.A. NO. 8759/MUM/2011 (ASSESSMENT YEAR: 2005 - 06) ARJUN SHIVR AM CHAVAN N. A. KULKARNI, 1 ST FLOOR, WADAL BUILDING, NEAR DNSB, DOMBIVALI (E), PIN 421 201 VS. ITO, WARD 3(1), RANI MENTION MURBAD ROAD, KALYAN (W) PAN/GIR NO. AABPC446M ( APPELLANT ) : ( RESPONDENT ) APPELLANT BY : SHRI N. A. KULKARNI RESPONDENT BY : SHR I V. JENARDHANAN DATE OF HEARING : 11.07.2017 DATE OF PRONOUNCEMENT : 23 .0 8 .2017 / O R D E R PER R. C. SHARMA, A. M.: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER BY THE LD. CIT(A) - I, THANE DATED 15.11.2011 , IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR (A.Y.) 2005 - 06, W HEREIN FOLLOWING TWO GROUNDS HAVE BEEN TAKEN BY THE ASSESSEE: 1. THE LEARNED ASSESSING OFFICER HAS MADE THE TOTAL ADDITION TO THE TUNE OF RS.2,58,226/ - WHICH INCLUDES RS.2,00,000/ - U/S. 68 AND RS.58,226/ - U/S. 41(1). 2. THE APPELLANT PRAYS THAT THE ABOVE ADDITION DONE BY A.O. CANNOT BE PROPER BEFORE THE EYES OF LAW, HENCE BE DELETED BEFORE YOUR HONOUR. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING IN ALLOY STEEL. D URING THE 2 ITA NO. 8759/MUM/2011 (A.Y. 2005 - 06) ARJUN SHIVRAM CHAVAN VS. ITO COURSE OF SCRUTINY ASSESSMENT, THE A.O. MADE AN ADDITION OF RS.2 LACS U/S. 68 ON THE PLEA THAT GENUINENESS OF THE TRANSACTION AND THE CREDIT WORTHINESS OF THE LENDER WAS NOT ESTABLISHED. THE ORDER OF THE A.O . WAS CONFIRMED BY THE LD. CIT( A ). F ROM THE R ECORD WE FOUND THAT THE WIFE OF THE ASSESSEE NAMED SMT. KALAVAT CHAVAN , HAVE A RIGHT UPON THE ANCESTRAL AGRICULTURAL LAND PROPERTY BEARING NO. 23 OF VILLAGE ANDHARI, DIST. SATARA (THE NAME BEFORE MARRIAGE WAS KALAVATI KRISHNA SHELAR) HAVE RELINQUISHED THE RIGHT IN FAVOUR OF HER BROTHER SHRI UTTAM KRISHNA SHELAR (A 7/12 EXTRACT ATTACHED FOR REFERENCE. ALL IN MARATHI TRANSLATED INTO ENGLISH). SHRI UTTAM KRISHNA SHELAR IS FARMER, RESIDING IN RURAL PART OF MAHARASHTRA; HE HAD ONLY HAVE A SOURCE OF INCOME FROM A GRICULTURAL PRODUCE. HE GAVE SUCH PAYMENT IN CASH TO HIS SISTER AND SHE BROUGHT THE SAME IN THE BUSINESS OF HER HUSBAND FOR HIS BUSINESS ACTIVITY ALONG WITH HER OWN NAME. SHE INTRODUCED THE AMOUNT HERSELF ALTOGETHER TO WITH HER SON AND DAUGHTER FOR THEIR F UTURE LIFE. THE AFFIDAVIT WAS ALSO FILED BEFORE THE A.O. AND EXTRACT OF 7/12 WAS ALSO PRODUCED BEFORE HIM. 3. IT APPEARS THAT DOCUMENTARY EVIDENCE PLACED BEFORE THE LOWER AUTHORITIES TO PRO VE THE CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION WAS NO T PROPERLY APPRECIATED BY THEM. THEREFORE, IN THE INTEREST OF JUSTICE, WE RESTORE THIS GROUND BACK TO THE FILE OF THE A.O. FOR DECIDING AFRESH AFTER CONSIDERING THE ADDITIONAL DOCUMENT FAVOUR ED BEFORE US. 3 ITA NO. 8759/MUM/2011 (A.Y. 2005 - 06) ARJUN SHIVRAM CHAVAN VS. ITO 4. THE A.O. HAS ALSO MADE AN ADDITION U/S. 41(1) A MOUNTING TO RS.58,226/ - DUE TO NON SUBMISSION OF BIFURCATION OF DISCOUNT RECEIVED FROM M/S. BHUSHAN STEEL & STRIPS LTD. A S PER LD. AR SUCH DISCOUNTED FIGURE WAS CONSOLIDATED AND OFFERED FOR TAXATION IN THE SUBSEQUENT ASSESSMENT YEAR 2006 - 07. THE DETAILED LEDGER ACCOUNT OF DISCOUNT (TRADE DIFFERENCE AND ROUNDING OFF WAS PLACED BEFORE US , WHEREIN AMOUNT OF RS.38 , 226/ - APPEARED IN THE NAME OF M/S. BHUSHAN STEEL & STRIPS LTD. IT APPEARS THAT THIS LEDGER ACCOUNT IS FIRST TIME FILED BEFORE US, WHICH GOES TO THE RO O T OF THE ISSUE, THEREFORE, IN THE INTEREST OF JUSTICE THIS GROUND IS ALSO RESTORED BACK TO THE FILE OF THE A.O. FOR DECIDING AFRESH AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED IN PART FOR STAT ISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 23 / 08 /2017 S D/ - SD/ - ( AMARJIT SINGH ) ( R. C. SHARMA ) JUDICIAL MEMBER ACCOUNTANT ME MBER MUMBAI ; DATED : 23 / 08 /2017 ROSHANI , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT - CONCERNED 5. DR, ITAT, MUMBAI 6. GUARD F ILE BY ORDER, (DY./ASSTT. REGISTRAR) ITAT, MUMBAI