The ITO, Ward-1(1), JUNAGADH V. Shri Krushnakant J. Dadaniya, Keshod

ITA 91/RJT/2012

• Counselvise Citation: 9124914 RSA 2012
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-07-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 24-02-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR D R
• Keywords: Unexplained cash credit; Corroborative evidences
• Section: 68

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. . .. . . .. . , , , , ! !! !. .. . . .. . ' ' ' ' , , , , # $ % # $ % # $ % # $ % BEFORE SHRI T. K. SHARMA, JM AND SHRI D. K. SRIVAST AVA, AM ITA NO. 91/RJT/2012 & ' / ASSESSMENT YEAR 2006-07. THE INCOME TAX OFFICER, WARD-1(1), JUNAGADH. ( )*/ APPELLANT) VS. SHRI KRUSHNAKANT G DADANIYA, PROP. OF AGRO SERVICE CENTER, MANGROL ROAD, KESHOD, ( DISTRICT JUNAGADH) PAN : ABUPD5445 P. +,)*/ RESPONDENT - . / REVENUE BY SHRI AVINASH KUMAR, D. R. & /'- . / ASSESSEE BY NONE. A.D. ON RECORD. 0& 1 - '# / DATE OF HEARING 10-07-2012 2' - '# / DATE OF PRONOUNCEMENT 13 - 07-2012 / / / / ORDER . .. . . . . . , , , , / T. K. SHARMA, J. M. THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DATED 28-12-2011 OF CI T (A)-IV, RAJKOT DELETING THE ADDITION OF RS.11,79,000/- MADE BY AO U/S.68 OF THE INCOME- TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2006-07. 2. DESPITE OF SERVICE OF NOTICE THROUGH REGISTERED POST, AT THE TIME OF HEARING, NONE WAS PRESENT FROM THE SIDE OF THE ASSE SSEE. WE THEREFORE, PROCEED TO DECIDE THIS APPEAL ON THE BASIS OF SUBMI SSION MADE BY LD. D.R. AND MATERIAL AVAILABLE ON RECORD. 3. BRIEFLY STATED, THE FACTS ARE THAT ON VERIFICATI ON OF ACCOUNTS AND THE DETAILS FILED ALONG WITH THE RETURN OF INCOME, AO N OTICE THAT ASSESSEE HAS ACCEPTED THE FOLLOWING DEPOSITS:- . SR.NO. NAME OF THE PERSON AMOUNT RS. 1. DHARNIBEN KISHORKUMAR 6,68,000/- 2. AMIBEN KISHORBHAI 1,55,000/- ITA 91/RJT/2012 2 3. M/S. JAY ELECTRIC 3,00,000/- 4. KALPKUMAR KISHORBHAI 18,000/- 5. SHRI JIVRAJ GOPALBHAI 19,000/- 6. MUKESH UKANI 19,000/- 11,79,000/- 4. IN RESPECT OF AFORESAID DEPOSITS, BEFORE THE AO, NO SUPPORTING EVIDENCE SUCH AS PAN NO., FILING OF RETURN, SOURCE OF DEPOSIT, CREDIT WORTHINESS OF THE DEPOSITORS ETC. WERE FURNISHED BE FORE THE AO. HE ACCORDINGLY TREATED THE AFORESAID DEPOSIT FROM 6 PE RSONS AMOUNTING TO RS.11,79,000/- AS UNEXPLAINED CASH CREDIT U/S.68 OF THE I. T. ACT AND ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE. 5. ON APPEAL BEFORE THE LD. CIT(A), ASSESSEE FURNIS HED THE VARIOUS DETAILS, WHICH LD. CIT(A) FORWARDED TO AO FOR COMME NTS/REMAND REPORT. SINCE THE AO WAS BUSY IN TIME BARRING ASSESSMENT, T HE ASSESSING OFFICER COULD NOT SEND THE REMAND REPORT. IN THESE CIRCUMS TANCES, THE LD. CIT(A) DELETED THE ADDITION OF RS.17,19,000/- WHICH WAS MA DE BY AO U/S.68 OF THE I.T. ACT, 1961. 6. AT THE TIME OF HEARING, ON BEHALF OF REVENUE, SH RI AVINASH KUMAR, D.R. APPEARED AND POINTED OUT THAT SINCE THE AO WAS BUSY IN TIME BARRING ASSESSMENT, HE COULD NOT SUBMIT THE REMAND REPORT T HEREFORE, THE LD. CIT(A) OUGHT TO HAVE ALLOWED SOME MORE TIME TO AO T O FILE THE REMAND REPORT. SINCE THIS WAS NOT DONE, HE POINTED OUT TH AT IN THE INTEREST OF JUSTICE, THE IMPUGNED ORDER OF LD. CIT(A) DELETING THE ADDITION OF RS.11,79,000/- BE SET ASIDE AND MATTER BE RESTORED TO THE FILE OF AO SO THAT AO MAY EXAMINE THE VARIOUS DETAILS AND DOCUMEN TS WHICH WERE SUBMITTED FOR THE FIRST TIME BEFORE THE LD. CIT(A). 7. WE FOUND CONSIDERABLE FORCE IN SUBMISSION MADE B Y LD. D.R. ADMITTEDLY, NO SUPPORTING EVIDENCES IN RESPECT OF C ASH CREDIT WERE FURNISHED BEFORE THE AO. THESE WERE FURNISHED BEFO RE THE LD. CIT(A). UNDER SECTION 68 OF THE I.T. ACT, INQUIRY IS REQUIR ED TO BE CONDUCTED BY THE AO. SINCE THE REQUIRED DOCUMENTS WERE NOT FURNISHE D BEFORE THE AO, DURING THE COURSE OF ASSESSMENT PROCEEDINGS, AO COU LD NOT CONDUCT THE INQUIRY AND SINCE HE WAS BUSY IN TIME BARRING ASSES SMENT, HE COULD NOT ITA 91/RJT/2012 3 SUBMIT THE REMAND REPORT BEFORE THE LD. CIT(A). IN THESE CIRCUMSTANCES, WE SET ASIDE THE ORDER OF LD. CIT(A) DELETING THE A DDITION OF RS.11,79,000/- AND RESTORE THIS ISSUE ON THE FILE OF AO WITH THE D IRECTION THAT ASSESSEE SHOULD FURNISH ALL THE DETAILS AND DOCUMENTS IN RES PECT OF CASH CREDIT TO THE AO, AO WILL VERIFY THE SAME AND CONDUCT THE NEC ESSARY INQUIRY AS REQUIRED U/S.68 OF THE I.T. ACT AND RE-ADJUST THE A DDITION OF RS.11,79,000/- AFRESH IN ACCORDANCE WITH LAW. 8. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APP EAL OF THE REVENUE IS TREATED AS ALLOWED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE D ATE MENTIONED HEREINABOVE. SD/- SD/- ( !.. ' / D. K. SRIVASTAVA) ( .. / T. K. SHARMA) # / ACCOUNTANT MEMBER /JUDICIAL MEMBER 3&/ ORDER DATE 13-07-2012. /RAJKOT - -- - +'4 +'4 +'4 +'4 54'' 54'' 54'' 54'' / COPY OF ORDER FORWARDED TO:- 1.)* / APPELLANT-THE INCOME TAX OFFICER, WARD-1(1),JUNA GADH. 2.+,)* /RESPONDENT-SHRI KRUSHNAKANT G. DEDANIYA, PRO. OF A GRO SERVICE CENTER, MANGROL ROAD, KESHOD, DISTRICT JUNAGADH. 3.9 ' 0: / CONCERNED CIT-III, RAJKOT. 4. 0:- / CIT (A)-IV, RAJKOT. 5.4 >? +'& , , / DR, ITAT, RAJKOT 6.?! AB / GUARD FILE. / BY ORDER , ASSTT. REGISTRAR C , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.