Smt Devki Nandan Bansal, JAMNAGAR V. The Income Tax Officer, Ward-2(2), GANDHIDHAM

ITA 877/RJT/2010

• Counselvise Citation: 87724914 RSA 2010
• Duration Of Justice: 3 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 11-09-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 23-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR JAYANT B JHAVERI DR I
• Assessee Lawyers: CHETAN AGARWAL CA T I
• Keywords: Unexplained cash credit

Judgement Text

O , IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. . . R M . . M M BEFORE SHRI T. K. SHARMA JM AND SHRI D. K. SRIVASTAVA AM ITA NO. 877/RJT/2010 C C / ASSESSMENT YEAR 200 6 - 0 7 SMT. DEVKI NANDAN BANSAL, C/O. CHETAN AGARWAL & CO., CHARTERED ACCOUNTANTS, 601/602, SWAGAT COMPLEX, OPP. HOTEL REGENCY, PN MARG, JAMNAGAR. PAN : A AR P N9182B ( A / APPELLANT) THE INCOME - TAX OFFICER, WARD - 2 (2 ), GANDHIDHAM. A / RESPONDENT CEI / ASSESSEE BY SHRI CHETAN AGARWAL , CA T I / REVENUE BY DR. JAYANT B. JHAVERI , DR I / DATE OF HEARING 11 - 0 9 - 2013 I / D ATE OF PRONOUNCEMENT 13 - 0 9 - 2013 / ORDER . . , R M / T. K. SHARMA, J. M. : TH I S APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 02 - 02 - 2010 OF LD. CIT (A ), ROHTAK FOR THE ASSESSMENT YEAR S 200 6 - 0 7 . 2 . T HE FACTS , IN BRIEF, ARE THA T THE ASSESSEE IS A N INDIVIDUAL . FOR THE ASSESSMENT YEAR S UNDER APPEAL, S HE FILE D THE RETURN OF INCOME ON 31 - 10 - 2006 DECLARING TOTAL INCOME OF RS.2,44,466/ - . THE AO FRAMED THE ASSESSMENT U/S.143(3) OF THE I.T. ACT, 1961 ON 30 - 12 - 2008 WHEREIN THE FOLLOWING THREE LOANS REMAINED AS UNEXPLAINED CASH CREDIT U/S.68 OF THE I.T. ACT, 1961: - (I) SHRI KAILASH CHAND RS.4,00,000/ - (II) MS. MONIKA RS. 84,500/ - (III) SHRI AMIT S/O.SHRI SATPAL RS.1,05,375/ - 3. ON APPEAL, IN THE IMPUGNED ORDER, THE LD. CIT (A ) CONFIRMED THE ACTION OF AO IN TREATING LOAN AMOUNTING TO RS.5,80,000/ - AND INTEREST THEREON AMOUNTING TO RS.9,875/ - AS UNEXPLAINED RELYING ON THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF CIT V. DURGA PRASAD MORE 82 ITR 540(SC) AND JUDGMENT OF HON BLE SUPREME COURT IN THE CASE OF SUMATI DAYAL V. CIT 214 ITR 801(SC). THE LD. CIT ITA 877 - 2010 2 (A) CONFIRMED THE ADDITION BECAUSE THE FACTS AND CIRCUMSTANCES OF THE CASE DO NOT SATISFY THE TEST OF HUMAN PROBABILITY . AGGRIEVED WITH THE ORDER OF LD. CIT (A), THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL ON THE FOLLOWING GROUND: - HON. CIT (A) HAS ERRED IN LAW AS WELL AS ON FACT IN CONFIRMING ADDITIONS ON ACCOUNT OF UNSECURED LOANS OF RS.580000 AND INTEREST THEREON OF RS.9875. 4. AT THE TIME OF HEARING BEFORE US, ON B EHALF OF ASSESSEE SHRI CHETAN AGARWAL, CA APPEARED AND FILED A PAPER BOOK CONTAINING 25 PAGES AS UNDER: - SR.NO. EVIDENCES PAGE NO. SHRI KAILASH C H AND RS.4,00,000 1. STATEMENT R ECORDED BY ASSESSING OFFICER 1 - 2 2. CONFIRMATION FILED BEFORE ASSESSING OF FICER 3 3. BANK STATEMENT 4 - 5 4. COPY OF AGRICULTURAL LAND HOLDING AND PRODUCTION 6 - 7 MONICA AGARWAL RS. 80,000 5. STATEMENT RECORDED BY ASSESSING OFFICER 8 - 9 6. CONFIRMATION FILED BEFORE ASSESSING OFFICER 10 7. INCOME RETURN AND COMPUTAT ION 11 - 12 8. BANK STATEMENT 13 - 15 AMITKUMAR GARG RS.1,00,000 9. STATEMENT RECORDED BY ASSESSING OFFICER 16 - 19 10. CONFIRMATION FILED BEFORE ASSESSING OFFICER 20 11. INCOME RETURN 21 12. BANK STATEMENT 22 - 25 5. THE COUNSEL OF THE ASSESSEE SUBMIT TED THAT AO RECORDED THE STATEMENT U/S.133(1) OF THE I.T. ACT, 1961 OF ALL THE THREE CREDITORS WHO HAVE CATEGORICALLY ACCEPTED THE FACT THAT THEY HAVE GIVEN THE LOAN. THE C REDITOR NAMELY MONICA AGARWAL WHO HAS GIVEN LOAN OF RS.80,000/ - TO THE ASSESSEE AND AMITKUMAR GARG WHO HAS GIVEN A LOAN OF RS.1,00,000/ - TO THE ASSESSEE WERE PAID INTEREST @ 12%. IN RESPECT OF BOTH THESE CREDITORS, ASSESSEE HAS DEDUCTED TAX AT SOURCE (TDS) ON INTEREST PAID TO THEM. THE ASSESSEE HAS REPAID THE LOAN OF MONICA AGARWAL AND AM ITKUMAR GARG IN THE NEXT YEAR. SHRI KAILASH CHAND, FROM WHOM THE ASSESSEE RECEIVED LOAN OF RS.4,00,000/ - WHO IS FATHER - IN - LAW OF ASSESSEE. H E IS AN AGRICULTURIST. TH E COUNSEL OF THE ASSESSEE SUBMITTED THAT BOTH THE DEPARTMENTAL AUTHORITIES BELOW REJECTED T HE OVERWHELMING EVIDENCE I.E. ALL THE CREDITORS AND DEPOSITORS , ASSESSED TO TAX , LOAN AMOUNT WAS RECEIVED AND REPAID BY THE A/C. PAYEE CHEQUES. THE AO MADE THE ADDITION U/S.68 ON DOUBT AND SUSPICION THEREFORE ADDITION MA DE BE DELETED. ON THE OTHER HAND, S HRI JAYAT ITA 877 - 2010 3 B. JHAVERI, DR APPEARED ON BEHALF OF THE REVENUE VEHEMENTLY SUPPORTED THE ORDER OF LD. CIT (A). HE POINTED OUT THAT ALL THE THREE CREDITORS HAVE DEPOSITED SAME CASH IN THE BANK ACCOUNT. TO A QUERY FROM THE BENCH WHETHER CASH DEPOSIT IS IDENTICAL, THE LD. DR ADMITTED THAT THE AMOUNT DEPOSITED IS NOT IDENTICAL BUT CONTENDED THAT IT IS UNBELIEVABLE THAT WHY A PERSON WHO IS MAINTAINING REGULAR BANK A/C. WILL KEEP CASH AT HOME. IN COUNTER REPLY, COUNSEL OF THE ASSESSEE SUBMITTED THAT AVAILABILITY OF C ASH IS ALSO EXPLAINED THEREFORE ADDITION MADE BY AO ON DOUBT AND SUSPICION BE DELETED. 6. HAVING HEARD BOTH SIDES, WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IT IS PERTINENT TO NOTE THAT ALL THE THREE CREDITORS ARE ASSESSED TO TAX. SH RI KAILASH CHAND IS FATHER - IN - LAW OF THE ASSESSEE. HE HAS GIVEN RS.4,00,000/ - THROUGH BANKING CHANNELS. THIS LOAN IS ALSO RETURNED BY THE ASSESSEE TO HER FATHER - IN - LAW IN THE NEXT FINANCIAL YEAR. IN RESPECT OF REMAINING TWO CREDITORS NAMELY; MONICA AGARWAL AND AMITKUMAR GARG, THE ASSESSEE RECEIVED SMALL AMOUNT OF RS.80,000/ - AND RS.1,00,000/ - ON INTEREST @ 12%. THE ASSESSEE HAS DEDUCTED TDS FROM INTEREST PAID TO THEM. THE LOAN OF THESE TWO CREDITORS IS ALSO RETURNED BY ACCOUNT PAYEE CHEQUE IN THE NEXT FINA NCIAL YEAR. KEEPING IN THESE CONSPICUOUS FACTS, WE ARE CONVINCED THAT AO MADE ADDITION U/S.68 OF I. T. ACT ON DOUBT AND SUSPICION AND LD. CIT (A) IS NOT JUSTIFIED IN APPLYING THE RATIO OF THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF CIT V. DURGA PR ASAD MORE 82 ITR 540(SC) AND SUMATI DAYAL V. CIT 214 ITR 801(SC) TO THE FACTS OF THIS CASE. WE THEREFORE DELETE THE ADDITION OF RS.5,80,000/ - IN RESPECT OF CASH CREDIT AND INTEREST THEREON AMOUNTING TO RS.9,875/ - . 7. IN THE RESULT, THE APPEAL OF THE ASSES SEE IS ALLOWED. 8. THIS O RDER IS PRONOUNCED IN OP EN COURT ON THE DATE MENTIONED HEREINABOVE. SD/ - SD/ - ( . . T . D. K. SRIVASTAVA ) ( . . C / T. K. SHARMA) / ACCOUNTANT MEMBER T / JUDICIAL MEMBER U / ORDER DATE 13 - 0 9 - 2013. /RAJKOT NVA/ - ITA 877 - 2010 4 RJO O / COPY OF ORDER FORWARDED TO: - 1 . A /APPELLANT - SMT. DEVKI NANDAN BANSAL, C/O. CHETAN AGARWAL & CO., CHARTERED ACCOUNTANTS, 601/602, SWAGAT COMPLEX, OPP. HOTEL REGENCY, PN MARG, JAMNAGAR. 2 . A / RESPONDENT - THE INCOME - TAX OFFICER, WARD - 2 (2 ), GANDHIDHAM. 3 . O / CONCERNED CIT 4 . FORW RDED - / CIT (A ), ROHTAK. 5 . O , O , / DR, ITAT, RAJKOT 6 . C / GUARD FILE. / BY ORDER TRUE COPY. PRIVATE SECRETARY, ITAT, RAJKOT