Nathmal Manoharmal Bafna, Jalgaon V. Assistant Commissioner of Income-tax, Central Circel-2, Nashik

ITSSA 68/PUN/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3728 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 2 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-06-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 28-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAVEEN GUPTA
• Keywords: Unexplained cash credit; Salary income
• Section: 68; 44AD; 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / IT(SS)A Nos.67 to 69/PUN/2019 िनधाᭅरण वषᭅ / Assessment Years: 2010-11 to 2012-13 Nathmal Manoharmal Bafna, Bafna House, Swatantra Chowk, Behind Gandhi Udyan, Jilha Peth, Jalgaon-425001. PAN : ANPPB5784Q Vs. ACIT, Central Circle-2, Nashik. Appellant Respondent आदेश / ORDER PER S. S. GODARA, JM: These assessee’s three appeals for assessment years 2010-11 to 2012-13 arise against the CIT(A)-12, Pune’s common order dated 25.01.2019 passed in case no.PN/CIT(A)-12/10738, 10799, 10832, 10836/2016-17; respectively, involving proceedings u/s 143(3) r.w.s. 153A of the Income Tax Act, 1961; in short “the Act”. Heard both the parties. Case files perused. We proceed appeal wise for the sake of convenience and brevity. Assessee by : Shri Abhay Avchat Revenue by : Shri Naveen Gupta Date of hearing : 14.06.2022 Date of pronouncement : 29.06.2022 IT(SS)A Nos.67 to 69/PUN/2019 2 2. The assessee’s first and foremost appeal IT(SS)A No.67/PUN/2019 for A.Y. 2010-11 raises the sole substantive grievance of correctness of section 68 unexplained cash credits addition of Rs.2,30,000/- made in the course of assessment dated 23.12.2016 and upheld in the CIT(A)’s order. 3. We note from a perusal of para 4 onwards in the CIT(A)’s detailed discussion that the assessee had attributed the impugned sum as comprising of Rs.2,00,000/- in the nature of accumulated balance with Rs.30,000/- as interest received by cheque from M/s Tara Finance. It appears to have failed in filing and proving all the necessary details of the foregoing alleged accumulated balances with the other party. Faced with this situation, we deem it appropriate to grant one more innings to the assessee to file and prove all the relevant aspects of identity, genuineness and creditworthiness of the other entity qua the sum in issue; at his own risk and responsibility only, before the Assessing Officer within three effective opportunities of hearing. This first and foremost appeal IT(SS)A No.67/PUN/2019 is allowed for statistical purposes in very terms. IT(SS)A Nos.67 to 69/PUN/2019 3 4. Next comes the assessee’s second appeal IT(SS)A No.68/PUN/2019 for A.Y. 2011-12. His first foremost substantive grievance seeks to reverse both the lower authorities’ action making section 68 unexplained cash credits addition of Rs.7,50,000/-. It emerges from a perusal of the case file that the very sum appears to have been added as “receivables” on account of “mandhan” than actually receipt in the relevant previous year. This is coupled with the fact that the assessee had failed to provide all the relevant details of the impugned sum in both the lower proceedings. We thus adopt the very course of action herein-as-well and direct the learned Assessing Officer to re-decide the instant issue in preceding terms as in A.Y. 2010-11. Ordered accordingly. 5. The assessee’s latter substantive ground challenges correctness of salary income addition of Rs.1,56,000/- made in both the lower proceedings. Suffice to say, the learned CIT(A)’s detailed discussion in paras 11 to 11.1 in pages 10 and 11 has clearly established employer-employee relationship with M/s Ratanlal C. Bafna Jewellers than the same being in the nature of the eligible business u/s 44AD of the Act. We thus find no merit in the assessee’s instant substantive ground. Rejected accordingly. This IT(SS)A Nos.67 to 69/PUN/2019 4 second appeal IT(SS)A No.68/PUN/2019 is partly allowed for statistical purposes. 6. Lastly comes the assessee’s third appeal IT(SS)A No.69/PUN/2019. His first and foremost substantive grievance raised the issue salary income addition of Rs.1,69,000/- as it was made in A.Y. 2011-12 which already stands upheld in preceding paragraphs. Rejected accordingly. 7. Next comes the assessee’s latter substantive ground seeking to reverse section 68 unexplained cash credits addition of Rs.6,54,450/- made in both the lower proceedings on account of his failure to prove identity, genuineness and creditworthiness of various parties. Suffice to say, the assessee appears to have filed confirmation letters as well as other supportive evidence wherein he failed to prove genuineness/creditworthiness of the parties concerned regarding the respective varying sum(s). Faced with this situation, we restore the instant latter issue as well back to the Assessing Officer as per the very terms and conditions in preceding assessment years. Ordered accordingly. This last appeal IT(SS)A No.69/PUN/2019 is also partly accepted for statistical purposes. No other argument/ground has been raised before us. IT(SS)A Nos.67 to 69/PUN/2019 5 8. To sum up, the assessee’s first and foremost appeal IT(SS)A No.67/PUN/2019 is accepted for statistical purposes and latter twin cases IT(SS)A Nos.68 and 69/PUN/2019 are partly accepted for statistical purposes in above terms. A copy of this common order be placed in the respective case files. Order pronounced on this 29 th day of June, 2022. Sd/- Sd/- (DR. DIPAK P. RIPOTE) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 29 th June, 2022. Sujeet (DOC) आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-12, Pune. 4. The Pr. CIT Central, Nagpur. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.