Dr. Subrat Kumar Jena, Cuttack V. ACIT, Central Circle, Cuttack, Cuttack

ITSSA 02/CTK/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2458 (ITAT-CUTTACK)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 04-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 17-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: J M PATNAIK
• Keywords: Set aside
• Section: 201

Judgement Text

P A G E 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI CHANDRA MOHAN GARG , JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT (SS) A NO . 02 /CTK/201 9 ASSESSMENT YEAR : 2011 - 12 DR. SUBRAT KUMAR JENA, PLOT NO,.3(P), AT:SECTOR - 1, CDA, CUTTACK. VS. ACIT, CENTRAL CIRCLE, CUTTACK PAN/GIR NO. ABXPJ 3412 D (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI J.M.PATNAIK , AR REVENUE BY : SHRI S.M.KESHKAMAT, CIT , DR DATE OF HEARING : 19 / 11 / 201 9 DATE OF PRONOUNCEMENT : 02 / 1 2 / 201 9 O R D E R PER C.M.GARG,JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 2 , BHUBANESWAR DATED 9.10.2018 FOR THE ASSESSMENT YEAR 2011 - 2012 . 2. THE SOLE GROUND RAISED IN THIS APPEAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.1,72,335/ - ON ACCOUNT OF REPAYMENT OF VEHICLE LOAN. IT(SS)A NO.02/CTK/2019 ASSESSMENT YEAR : 2011 - 12 P A G E 2 | 4 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS MADE RE PAYMENT OF VEHICLE LOAN OF RS.6,30,932/ - WHEREAS IN THE BANK ACCOUNT OF SBI, REPAYMENT OF LOAN OF RS.4,58,597/ - WAS REFLECTED. THEREFORE, THE ASSESSING OFFICER MADE ADDITION OF DIFFERENTIAL AMOUNT OF RS.1,72,335/ - TO THE INCOME OF THE ASSESSEE. 4. ON APPE AL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. AT THE TIME OF HEARING, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS PAID VEHICLE LOAN OF RS.4,58,597/ - WITH INTEREST OF RS.6,714/ - , WHICH WAS DISCLOSED IN THE CASH FLOW STATEM ENT OF THE ASSESSEE. LD COUNSEL FOR THE ASSESSEE PRODUCED BEFORE US BALANCE SHEET AS AT 31 ST MARCH, 2011 OF THE ASSESSEE WHEREIN, THE CAR LOAN OF RS.4,51,883/ - INCLUDING INTEREST OF RS.6,713.91 TOTALING TO RS.4,58,597/ - HAS BEEN SQUARED UP. HE SUBMITTED THAT NOWHERE THE ASSESSEE HAS STATED THAT REPAYMENT OF VEHICLE LOAN WAS AT RS.6,30,932/ - . HENCE, THE DIFFERENTIAL AMOUNT OF RS.1,72,335/ - AS STATED BY THE AUTHORITIES BELOW IS A WRONG CONCEPTION OF FACT. HENCE, IT WAS HIS PRAYER TO DELETE THE ADDITION O F RS.1,72,335/ - , WHICH IS NOT PART OF THE REPAYMENT OF VEHICLE LOAN. 6. ON THE OTHER HAND, LD D.R. COULD NOT CONTROVERT THE ABOVE SUBMISSION OF LD A.R. OF THE ASSESSEE. IT(SS)A NO.02/CTK/2019 ASSESSMENT YEAR : 2011 - 12 P A G E 3 | 4 7. ON CONSIDERATION OF RIVAL SUBMISSIONS AND MATERIALS PLACED ON THE RECORD OF THE TRIB UNAL, WE FIND THAT THE ASSESSEE HAD TAKEN VEHICLE LOAN OF RS.4,51,883.09 FROM THE STATE BANK OF INDIA AND REPAID THE SAME ALONGWITH INTEREST OF RS.6,713.91 TOTALING TO RS.4,58,597/ - TO THE SAID BANK, WHICH IS EVIDENT FROM THE BALANCE SHEET FURNISHED BY THE ASSESSEE. HENCE, IT COULD BE SAFELY CONCLUDED THAT THE LOAN AMOUNT IN RESPECT OF VEHICLE AND REPAYMENT ALONGWITH INTEREST REFLECTED IN THE BALANCE SHEET WOULD BE TREATED AS EXPLAINED . IF THIS IS THE TRUE STATE OF AFFAIRS WHICH IS DULY RECORDED IN THE BALANCE SHEET OF THE ASSESSEE AND ALSO LOOKING TO THE FACT THAT NOWHERE THE ASSESSEE HAS CLAIMED TAKING LOAN OF RS.6,30,932/ - , HOW CAN IT BE INFERRED THAT THAT THE AMOUNT IS NOT EXPLAINED. HENCE, WE SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DELETE THE ADDITION OF RS.1,72,335/ - MADE BY THE AO AND CONFIRMED BY THE CIT(A). 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED,. ORDER PRONOUNCED ON 0 2 / 1 2 /201 9 . S D / - SD/ - (LAXMI PRASAD SAHU) ( CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER CUTTACK; DATED 4 / 1 2 /20 1 9 B.K.PARIDA, SPS IT(SS)A NO.02/CTK/2019 ASSESSMENT YEAR : 2011 - 12 P A G E 4 | 4 COPY OF THE ORDER FORWARDED TO : BY ORDER SR . PVT. S ECRETARY ITAT, CUTTACK DATE INITIAL 1. DRAFT DICTATED ON 4.12 .19 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 4.12 . .19 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE OS 9. DATE ON WHICH FILE GOES TO THE SPS 10. DATE OF DISPATCH OF ORDER. 1. THE APPELLANT : DR. SUBRAT KUMAR JENA, PLOT NO,.3(P), AT:SECTOR - 1, CDA, CUTTACK. 2. THE RESPONDENT. ACIT, CENTRAL CIRCLE, CUTTACK 3. THE CIT(A) 2 - , BHUBANESWAR 4. PR.CIT - 2 , BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//