Smt. Jiya Devi Sharma, JODHPUR V. ACIT, JODHPUR

ITA 97/JODH/2015

• Counselvise Citation: 9723314 RSA 2015
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 25-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 153A; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI G.C. GUPTA, H O NBLE VICE PRESIDENT SHRI R.C. SHARMA , HONBLE ACCOUNTANT MEMBER ITA NO. 97 / JODH / 20 1 5 [A.Y. 200 7 - 0 8 ] SMT. JIYA DEVI SHARMA VS. THE ACIT HOUSE N O. 221 - 222, CENTRAL CIRCLE - 2 SHYAM NAGAR SCHEME JODHPUR DEV NAGAR, PAL LINK ROAD JODHPUR PAN NO : AWDPS 1278 H (APPELLANT) (RESPONDENT) A SSESSEE B Y : SHRI AMIT KOTHARI DEPARTMENT B Y : SHRI S.L. MOURYA DATE OF H EARING : 31 . 0 8 .201 5 DATE OF PRONOUNCEMENT : 04 . 0 9 . 201 5 ORDER PER R.C. SHARMA , AM: - TH IS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A ) - I , J AI PUR DATED 17 .0 2 .201 5 FOR A.Y. 200 7 - 0 8 IN THE MATTER OF ORDER PASSED U/S 143 ( 3 ) R.W.S. 153A OF THE INCOME - TA X ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT, FOR SHORT]. 2 2 . IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED AGAINST THE ADDITION OF RS. 5,20,000/ - ON ACCOUNT OF CAPITAL CONTRIBUTION MADE WITH THE FIRM M/S AYUSHI BUILDERS AND DEVELOPERS. 3. RIVAL CONTENTI ONS HAVE BEEN HEARD AND RECORDS PERUSED. 4. FACTS OF THE CASE, IN BRIEF, ARE THAT D URING THE COURSE OF A SSESSMENT THE A.O. OBSERVED THAT THE ASSESSEE HAS SHOWN THE CAPITAL CONTRIBUTION IN THE FIRM M/S AYUSHI BUILDERS AND DEVELOPERS AMOUNTING TO RS. 16,30 ,000/ - . AS PER THE AO, THE ASSESSEE CO UL D NOT EXPLAIN THE SOURCE OF THE SAID DEPOSITS AND HENCE, THE A.O. ADDED THE AMOUNT OF RS. 16,30,000/ - INTO THE TOTAL INCOME OF THE ASSESSEE U/S 69 OF THE AC T. OUT OF IT, THE LD. CIT(A) RETAINED ADDITION OF RS. 5,20, 000/ - AGAINST WHICH THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. FROM THE RECORD, WE FOUND THAT B EFORE THE LOWER AUTHORITIES, T H E ASSESSEE HAD SUBMITTED THE DETAILS OF THE DEPOSITS AMOUNTING TO RS. 13,43,000/ - BETWEEN 01.02.2007 TO 08.02.2007 IN THE HDFC BANK AS UNDER : 3 DATE AMOUNT PARTICULAR REMARKS 01.02.2007 RS. 600000/ - CHQ. NO. 043705 RECEIVED AGAINST OF SALE OF PLOT NO. 46 - 47 AT VAIBHAV ENCLAVE FROM SMT. SH ANTI DEVI AND DURING THE YEAR UNDER CONSIDERATION THESE RECEIPTS REFLECTED IN SALES - ACCO UNT ON DT. 19.02.2007. COPY OF SALES ACCOUNT ENCLOSED HEREWITH FOR YOUR KIND CONSIDERATION 01.02.2007 RS. 125000/ - CHQ.NO. 051636 RECEIVED FOR PLOT BOOKING AND THE RECEIPT WAS REFLECTED SALES ACCOUNT IN CONSEQUENT YEAR. 01.02.2007 RS. 18000/ - CHQ. NO. 08 65183 RECEIPT REGARDING RENT AND SAME WAS REFLECTED IN RENTAL INCOME DURING THE YEAR UNDER CONSIDERATION. 05.02.2007 RS. 300000/ - CHQ./DD NO. 633634 RECEIPT FOR SALE OF PLOT NO. 50 AT VAIBHAV ENCLAVE FROM SHRI B. DINESH KUMAR AND SAME XVAS REFLECTED IN SA LES ACCOUNT DURING THE YEAR UNDER CONSIDERATION. COPY OF SALE ACCOUNT ATTACHED. 05.02.2007 RS. 3000000/ - CHQ./DD NO. 0633635 RECEIPT FOR SALE OF PLOT NO. 49 AT VAIBHAV ENCLAVE FROM SHRI B. MAHENDRA KUMAR AND SAME WAS REFLECTED IN SALES ACCOUNT DURING THE YEAR UNDER CONSIDERATION. COPY OF SALE ACCOUNT ATTACHED. COPY OF SALE DEED ENCLOSED. TOTAL RS. 13,43,000/ - 6. I N RESPECT OF THE DEPOSITS FROM 19.07.2006 TO 01.09.2006, THE ASSESSEE CONTENDED THAT 'DEPOSITS AMOUNTING TO RS. 1,23,000/ - BETW EEN 19.07.20 06 TO 01.09.2006 IN IDBI BANK ACCOUNT AND RS. 180000/ - GIVEN TO FIRM FROM IDBI BANK ACCOUNT ON 05.09.2006 VIDE CHQ. NO. 231473. DETAIL OF AMOUNT CH E Q UE /CASH DEPOSIT OF RS. 123000/ - IS AS UNDER: - 4 IN SUPPORT OF THE CLAIM, THE ASSESSEE FURNISHED THE CASH BOOK FOR THE YEAR UNDER CONSIDERATION FOR VERIFICATION, WHICH CLEARLY REVEAL THESE ENTRIES. HOWEVER, AGAINST THE CAPITAL CONTRIBUTION OF RS. 16,30,000/ - THE LD. CIT(A) HAS N OT ACCEPTED RS. 5,20,000/ - AS EXPLAINED. FROM THE RECORD, WE FIND THAT AS PER THE ACCOUNT OF M/S AYUSHI BUILDERS AND DEVELOPERS, THERE WERE THREE DEPOSITS OF RS. 1, 80,000/ - , RS. 10 LAKHS AND RS. 4,50,000/ - . TO SUBSTANTIATE THE DEPOSIT, THE ASSESSEE HAS FILED COPY OF BANK STATEMENT WITH IDBI AND HDFC FROM WHICH DEPOSITS GIVEN ARE DULY VERIFIABLE. FIRST DEPOSIT OF RS. 1,80,000/ - WAS ACCEPTED BY THE AO. HOWEVER, ADVA NCE RECEIVED TOWARDS SALE OF PLOT CREDITED TO THE ACCOUNT OF SHRI MADAN JOSHI WAS NOT DATE AMOUNT PARTICULAR S REMARKS 19.07.2006 RS. 9000 CHQ. DEPOSITED RECEIPT REGARDING RENT AND SAME W AS REFLECTED IN RENTAL INCOME DURING THE YEAR UNDER CONSIDERATION. 03.08.2006 RS. 35,0000 CASH DEPOSITED OUT OF THE CASH W ITHDRA W ALS RS. 50000/ - ON DT. 18.07.2006 VIDE CHQ. NO. 231472 22.08.2006 RS. 35,000 CASH DEPOSITED OUT OF THE CASH W ITHDRA W ALS RS. 950000/ - ON DT. 10.07.2006 VIDE CHQ. NO. 231471 23.08.2006 RS. 35,000 CASH DEPOSITED OUT OF THE CASH WITHDRAW ALS RS. 950000/ - ON DT. 10.07.2006 VIDE CHQ. NO. 231471 01.09.2006 RS. 9000 CHQ. DEPOSITED R ECEIPT REGA RDING RENT AND SAME W AS REFLECTED IN RENTAL INCOME DURING THE YEAR UNDER CONSIDERATION. TOTAL RS. 1,23,000/ - 5 ACCEPTED AND IN THE SUBSEQUENT YEAR THE SAME HAS BEEN TAKEN TO SALE ACCOUNT WHEN FULL PAYMENT WAS BEING RECEIVED. IT WAS THE CONTENTION OF THE LD. A.R. THAT THE ADVANCE RECEIVED BY THE ASSESSEE WAS ON TRADE ACCOUNT AND HAD BEEN DULY TAKEN INTO ACCOUNT AS INCOME IN THE SUBSEQUENT YEAR, THEREFORE, THERE REMAINS NO GROUND FOR TAKING ADVERSE INFERENCE. 5 . AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSING T HE MATERIAL ON RECORD , WE FOUND THAT AS PER COPY OF ACCOUNT OF THE FIRM AYUSHI BUILDERS AND DEVELOPERS IN THE BOOKS OF THE ASSESSEE, THERE WAS CAPITAL CONTRIBUTION OF RS. 16,30,000/ - WHICH WERE MADE BY CHEQUES. EVEN THE BOOKS OF ACCOUNT OF THE FIRM AYUSHI BUILDERS AND DEVELOPERS INDICATE THE CREDIT ON ACCOUNT OF CAPITAL BY ASSESSEE SMT JIYA DEVI SHARMA. WE HAVE VERIFIED THE BANK ACCOUNT OF THE ASSESSEE WITH HDFC BANK FROM WHERE TWO CHEQUES OF RS. 10 LAKHS AND RS. 4,50,000/ - WERE GIVEN. THUS THE SOURCE OF THE AFORESAID CHEQUES WHICH WERE ON ACCOUNT OF BOOKING OF PLOTS THROUGH ONE SHRI MADAN JOSHI WAS CLEARLY PROVED. WE HAVE ALSO VERIFIED COPY OF ACCOUNT OF SHRI MADAN JOSHI TOWARDS ADVANCE FOR PLOTS 6 FOR THE RELEVANT A.Y. 2007 - 08 UNDER CONSIDERATION. AS PE R THIS ACCOUNT, ALL SUCH ADVANCES WERE PROCEEDS OF SALE AT VAIBHAV ENCLAVE. THUS THESE ADVANCES WERE TRANSFERRED TO INCOME ACCOUNT IN THE NEXT YEAR WHEN PLOTS WERE FINALLY SOLD. WE HAVE ALSO VERIFIED THE COPY OF THE ACCOUNT OF SHRI MADAN JOSHI FOR THE SU BSEQUENT A.Y. 2009 - 10 IN WHICH ALL SUCH ADVANCES WERE TRANSFERRED TO SALES I.E. TREATING THE SAME AS INCOME IN THE NEXT YEAR WHEN PLOTS WERE SOLD. WE HAVE ALSO VERIFIED THE COPY OF HDFC BANK ACCOUNT ON THE BOOKS OF THE ASSESSEE AND ALSO THE STATEMENT OF S HRI MADAN JOSHI RECORDED BY THE AO DURING THE REMAND PROCEEDINGS ON 05.01.2015. EVEN THE ITAT ORDER DATED 14.08.2014 IN THE CASE OF AYUSHI BUILDERS AND DEVELOPERS CLEARLY SUPPORTS THE CASE OF THE ASSESSEE WHERE ADVANCES RECEIVED FOR SALE OF PLOTS HAVE BEE N ACCEPTED. IN VIEW OF THE ABOVE DOCUMENTARY EVIDENCES WHICH WERE ALSO PLACED BEFORE THE LOWER AUTHORITIES , WE DO NOT FIND ANY MERIT IN THE ORDER OF THE LD. CIT(A) SUSTAINING ADDITION OF RS. 5,20,000/ - ON ACCOUNT OF CAPITAL CONTRIBUTION TO AYUSHI BUILDERS AND DEVELOPERS IN THE HANDS OF THE ASSESSEE. 7 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IN ITA NO. 97/JODH/2015 IS ALLOWED. ORDER PRON OUNCED IN THE COURT ON 04 - 0 9 - 201 5 . SD/ - SD/ - (G.C. GUP TA) ( R.C. SHARMA ) VICE PRESIDENT ACCOUNTANT MEMBER DATED : 04 TH SEPTEMBER , 2015 . VL/ - COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) BY ORDER 5. THE DR ASSIS TANT REGISTRAR ITAT, JODHPUR