SMT. ARTI SHADIJA, Indore V. THE ACIT-4(1), Indore

ITA 96/IND/2016

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5722 (ITAT-INDORE)
• Duration Of Justice: 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 02-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K BHATIA
• Assessee Lawyers: S S DESHPANDE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO. 96/IND/2016 A.Y. : 2007-08 SMT. ARTI SHADIJA, ACIT, 156, PALSIKAR COLONY, INDORE. VS. 4(1), INDORE. APPELLANT RESPONDENT PAN NO. AZNPS5697M A PPELLANT S BY : SHRI S.S.DESHPANDE, CA RESPONDENT BY : SHRI R.K. BHATIA, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-22, NEW DELHI, CAMP OFFICE AT INDORE, DAT ED 11.12.2015 FOR THE ASSESSMENT YEAR 2007-08. 2. THE SHORT FACTS OF THE CASE ARE AS UNDER. 3. THE ASSESSEE HAS RECEIVED UNSECURED LOANS AMOUNTING TO RS. 7,00,000/- IN F.Y. 2006-07. THE CREDITOR OF DATE OF HEARING : 25 .02. 20 16 DATE OF PRONOUNCEMENT : 25 .0 2 . 201 6 SMT. ARTI SHADIJA, INDORE VS. ACIT, 4(1), INDORE, I .T.A.NO. 96/IND/2016 - A.Y. 2007-08 2 2 AFOREMENTIONED UNSECURED LOAN HAS DISPUTED THE CONFIRMATIONS PRODUCED BY THE ASSESSEE DURING ASSES SMENT PROCEEDINGS FOR ASSESSMENT YEAR 2009-10. AS THE CRE DITOR HIMSELF DENIED THE LOAN & NEITHER SUCH WAS PRESENT IN HIS BOOKS, THEREFORE, ASSESSMENT WAS REOPENED. THE AO H AS HELD THE AO HAS HELD THAT IT WAS CLAIMED BY THE ASSESSEE THAT SHE HAS TAKEN UNSECURED LOAN OF RS. 7 LAKHS FROM ONE SH RI R.BARKALLE. THE AO RECORDED THE STATEMENT OF SHRI R . BARKALLE. SHRI R. BARKALLEY DID NOT REMEMBER WHETHER HE HAS G IVEN THE LOAN OF RS. 7 LAKHS TO THE ASSESSEE OR NOT. THEREAF TER ON THE NEXT DATE, SHRI R.BARKALLEY ADMITTED THAT HE HAS GI VEN LOAN OF RS. 7 LAKHS TO THE ASSESSEE, BUT THE AO WAS OF THE VIEW THAT SHRI BARKALLEY HAS NOT GIVEN THE CONSISTENT STATEME NT. MOREOVER, COPY OF THE ACCOUNTS SUBMITTED BY SHRI R. BARKALLEY DID NOT REFLECT RS. 7 LAKHS FOR ASSESSMENT YEAR 200 7-08 AND 2008-09. THEREFORE, THE AO HAS DISALLOWED THE SAME. 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS DISMISSED THE APPEAL. 5. THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED BEFORE ME THAT THE ASSESSEE IS AN INDIVIDUAL DERIVES INCOME F ROM SMT. ARTI SHADIJA, INDORE VS. ACIT, 4(1), INDORE, I .T.A.NO. 96/IND/2016 - A.Y. 2007-08 3 3 DIRECTORS REMUNERATION AND INTEREST. SHE IS A DIRE CTOR OF COMPANY M/S. SHIV OFFSET INDIA LIMITED. THE ASSESSE E HAS TAKEN THE LOAN OF RS. 7 LAKHS FROM MR.BARKALLEY. TH E ASSESSEE HAS ALSO GIVEN THE CONFIRMATION LETTER TO THE SAID PARTY WITH PAN NO. AND LEDGER ACCOUNT OF THE ASSESSEE WHICH WA S DULY CERTIFIED WERE FILED BEFORE THE AO. THE AMOUNTS HAV E BEEN RECEIVED THROUGH ACCOUNT PAYEE CHEQUE, WHICH ARE RE FLECTED IN THE REGULAR BANK ACCOUNT OF THE ASSESSEE. THE ASSES SEE HAS ALSO FILED THE AUDITED BALANCE SHEET, PROFIT AND LO SS ACCOUNT AND RELEVANT SCHEDULE OF DEPOSIT ANNEXED TO BALANCE SHEET DEPICTING THE LOAN GIVEN TO THE ASSESSEE ALONGWITH THE INCOME TAX RETURN. THE ASSESSEE HAS ALSO SUBMITTED THE BAN K STATEMENT OF SHRI BARKALLEY, WHEREIN THE CHEQUE OF RS. 7 LAKHS HAD BEEN DEBITED. THEREFORE, THERE IS A DOCUMENTARY EVIDENCE AND ALL THE TRANSACTIONS ARE BY CHEQUE. THEREFORE, DURING THE COURSE OF ASSESSMENT PROCEEDINGS, SHRI BARKALLEYS STATEMENT WAS RECORDED. BUT IN THE FIRST STATEMENT, SHRI BARK ALLEY DID NOT REMEMBER WHETHER THEY HAVE GIVEN THE LOAN OR NO T. BUT, AFTER CONFIRMATION OF THE ACCOUNTANT, SHRI BARKALLE Y HAS CONFIRMED BEFORE THE AO THAT THEY HAVE GIVEN THE LO AN OF RS. 7 SMT. ARTI SHADIJA, INDORE VS. ACIT, 4(1), INDORE, I .T.A.NO. 96/IND/2016 - A.Y. 2007-08 4 4 LAKHS. THE LOAN HAS BEEN GIVEN WITHOUT CHARGING THE INTEREST. THE LD. AUTHORIZED REPRESENTATIVE HAS DRAWN OUR ATT ENTION TO THE PAGE NO. 5 OF THE PAPER BOOK, WHEREIN THE CHEQU E OF RS. 7 LAKHS HAVE BEEN SHOWN AND THE STATEMENT OF ACCOUNTS OF BANK OF BARODA SHOWS THAT RS 7 LAKHS HAVE BEEN GIVEN BY SHRI BARKALLEY. MOREOVER, THE ASSESSEE HAS ALSO SUBMITTE D THE BALANCE SHEET OF SHRI RAJENDRA BARKALLEY IN ASSESSM ENT YEAR 2007-08 AND IT IS THE LOAN. THEREFORE, I AM OF THE VIEW THAT THE ASSESSING OFFICER AND LD. CIT(A) IS NOT JUSTIFIED I N MAKING THE ADDITION. THEREFORE, I DELETE THE SAME. 6. IN THE RESULT, THE APPEAL IS ALLOWED. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 25 TH FEBRUARY, 2016. SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 25 TH FEBRUARY, 2016. CPU*