Hari Om Verma, Bhagalpur V. ACIT, Patna

ITSSA 69/PAT/2013

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 3302 (ITAT-PATNA)
• Duration Of Justice: 3 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 10-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 12-07-2013
• Court: TRIBUNAL
• Department Lawyers: A K RASTOGI
• Assessee Lawyers: T VARKEY JUDIC IA L M EMBER
• Section: 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, PATNA BENCH:P ATNA BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER IT(SS)A NO. 69/PAT/2013 ASSESSMENT YEAR:2006-07 HARI OM VERMA, SONAPATTI, BHAGALPUR. PAN: ABGPV3714M / V/S . ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, PATNA. /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI A. K. RASTOGI ADVOCATE /BY RESPONDENT SHRI R. R. SINHA, SR. S.C /DATE OF HEARING 05-04-2017 /DATE OF PRONOUNCEMENT 10-04-2017 /O R D E R PER BENCH: THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAI NST THE ORDER OF CIT(A)-1, PATNA DATED 10.04.2013 FOR AY 2006-07. 2. THE SOLE GROUND RAISED BY THE ASSESSEE IS AGAIN ST THE ACTION OF THE LD. CIT(A) IN CONFIRMING THE ADDITION OF RS.9,50,000/- U/S. 68 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 3. AT THE OUTSET ITSELF, THE LD. COUNSEL FOR THE AS SESSEE DREW OUR ATTENTION TO THE ORDER OF THE TRIBUNAL FOR AYS 2003-04 AND 2007-08 IN ASSE SSEES OWN CASE WHEREIN SIMILAR ADDITION MADE HAS BEEN DELETED BY THE TRIBUNAL ON S IMILAR GROUNDS. THE LD. SR. STANDING COUNSEL FOR THE REVENUE RELIED ON THE ORDERS OF THE AUTHORITIES BELOW AND DOES NOT WANT US TO INTERFERE WITH THE ORDER OF THE AUTHORITIES BELO W. 2 IT(SS)A NO. 69/PAT/2013 HARI OM VERMA, AY 2006-07 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE TAKE NOTE THAT THERE WAS SIMILAR ADDI TION MADE U/S. 68 OF THE ACT IN AYS 2003- 04 AND 2007-08 WHICH HAS BEEN ORDERED TO BE DELETED BY THE TRIBUNAL. WE NOTE THAT THE ASSESSEE TOOK LOAN OF RS.50,000/- FROM SHRI RAVI KU MAR AGARWAL, RS.50,000/- FROM SMT. RACHNA DEVI, RS.2,00,000/- AND RS.1,00,000/- FROM S HRI SURENDRA KUMAR AGARWAL, RS.2,00,000/- AND RS.1,00,000/- FROM SMT. SHANTI DE VI AGRAWAL, RS.2,00,000/- FROM SHRI SANJAY KUMAR AGRAWAL AND RS.50,000/- FROM SHRI MUKE SH KUMAR SINGHANIA, HUF. WE FIND THAT ALL THE LENDERS ARE INCOME TAX ASSESSES A ND ARE FILING THEIR INCOME TAX RETURNS REGULARLY REFLECTING THE CAPITAL ACCOUNT AND PERSO NAL BALANCE SHEET OF RESPECTIVE YEARS. ALL THE LENDERS HAVE SUBMITTED THE LOAN CONFIRMATIONS, CASH FLOW STATEMENT EXPLAINING THE SOURCE OF CASH DEPOSITED IN BANK DURING THE YEAR. IN THE CASE OF SHRI RAVI KUMAR AGRAWAL, WHO HAS ADVANCED RS.50,000/-, WE NOTE THAT OPENING CASH BALANCE AS ON 01.04.2005 WAS TO THE TUNE OF RS.31,820/- PLUS THE INCOME OF THE CURR ENT YEAR IN THE FORM OF SALARY WAS TO THE TUNE OF RS.78,000/- WHICH WAS DEPOSITED IN THE BANK . IN ORDER TO PROVE THE VERACITY OF THE OPENING BALANCE, THE LENDER SHRI RAVI KUMAR AGRAWAL HAS SUBMITTED BEFORE THE AUTHORITIES BELOW THE PREVIOUS YEARS BALANCE SHEET ALSO. IN R ESPECT TO SMT. RACHNA DEVI, SHE LENT RS.50,000/-, (OTHER THAN THE DOCUMENTS STATED ABOVE TO ALL THE LENDERS) SHE WAS HAVING A CASH BALANCE AS ON 01.04.2005 TO THE TUNE OF RS.62, 672/- PLUS INCOME OF THE CURRENT YEAR. IN RESPECT TO SHRI SURENDRA KUMAR AGARWAL, WHO LENT RS.2,00,000/- AND RS.1,00,000/- (ALSO FILED COMMON DOCUMENTS REFERRED TO ABOVE) AND HAD A N OPENING CASH BALANCE AS ON 01.04.2005 RS.2,64,973/- PLUS INCOME IN THE FORM OF SALARY OF RS.47,250/- OF CURRENT YEAR. IN RESPECT TO SMT. SHANTI DEVI AGARWAL, WHO LENT RS .2,00,000/- AND RS.1,00,000/-, WE NOTE THAT (OTHER THAN THE DOCUMENTS REFERRED TO ABOVE) T HE SAID PERSON HAD AN OPENING CASH BALANCE AS ON 01.04.2005 RS.3,43,166/- PLUS THE INC OME OF THE CURRENT YEAR. IN RESPECT TO SHRI SANJAY SANJAY KUMAR AGARWAL, WHO LENT RS.2,00, 000/-, WE NOTE THAT (OTHER THAN THE DOCUMENTS REFERRED TO ABOVE), HE HAD AN OPENING BAL ANCE AS ON 01.04.2005 OF RS.3,12,754/- PLUS THE INCOME OF THE CURRENT YEAR. IN RESPECT TO MUKESH KUMAR, HUF, WHO LENT RS.50,000/- WE NOTE THAT (OTHER THAN THE DOCUMENTS REFERRED TO ABOVE), IT HAD AN OPENING BALANCE AS ON 01.04.2005 OF RS.8.960/- PLUS INTERES T INCOME OF THE CURRENT YEAR OF 3 IT(SS)A NO. 69/PAT/2013 HARI OM VERMA, AY 2006-07 RS.1,676/-. SO, THE ASSESSEE HAS FILED THE DOCUMEN TS TO PROVE THAT ALL THE LENDERS WERE INCOME TAX ASSESSES AND FILED THEIR INCOME TAX RETU RNS ALONG WITH THEIR CAPITAL ACCOUNT AND PERSONAL BALANCE SHEET OF RESPECTIVE YEARS. ALL TH E LENDERS HAVE SUBMITTED THEIR LOAN CONFIRMATION STATEMENT, CASH FLOW STATEMENT EXPLAIN ING THE SOURCE OF CASH DEPOSIT IN BANK DURING THE YEAR EXCEPT MUKESH KUMAR, HUF WHO HAS SH OWN THE OPENING CASH BALANCE OF RS.10,636/-. SINCE ALL THE LENDERS EXCEPT MUKESH KUMAR, HUF HAD ESTABLISHED THEIR IDENTITY, GENUINENESS AND CREDITWORTHINESS THE ADDI TION MADE U/S. 68 OF THE ACT WAS UNWARRANTED. HOWEVER, IN THE CASE OF MUKESH KUMAR, HUF, WE NOTE THAT THOUGH THE HUF IS AN INCOME TAX ASSESSEE AND IS FILING ITS RETURN BEFORE THE AUTHORITIES BELOW ALONG WITH CAPITAL ACCOUNT AND PERSONAL BALANCE SHEET OF THE R ESPECTIVE YEARS AND IT HAD SUBMITTED ITS LOAN CONFIRMATION STATEMENT, CASH FLOW STATEMENT EX PLAINING THE SOURCE OF CASH DEPOSIT IN BANK DURING THE YEAR, WE NOTE THAT THE SAID HUF ONL Y A CASH BALANCE OF RS.8960/- AS ON 01.04.2005 AND HAD SHOWN INTEREST INCOME OF RS.1676 /-. IN THE ABSENCE OF ANY OTHER DOCUMENTS BEFORE US, WE ARE UNABLE TO VERIFY THE CR EDITWORTHINESS OF THE SAID HUF AND IS UNABLE TO KNOW WHAT WAS THE INCOME OF THE CURRENT Y EAR OF THE HUF, THEREFORE, WE ARE SUSTAINING THE DISALLOWANCE OF RS.39,364/- (RS.50,0 00/- - RS.10,636/-) AND ALL OTHER ADDITIONS MADE U/S. 68 OF THE ACT ARE DELETED. THE APPEAL OF ASSESSEE IS ALLOWED IN PART. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED IN P ART . ORDER IS PRONOUNCED IN OPEN COURT ON 10.04.2017 SD/- SD/- (WASEEM AHMED) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 10 TH APRIL, 2017 JD. SR. PS 4 IT(SS)A NO. 69/PAT/2013 HARI OM VERMA, AY 2006-07 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. ' / CONCERNED CIT 4. ' - / CIT (A) 5. # && , / DR, ITAT, PATNA 6. ( / GUARD FILE. BY ORD ER/ , ASSISTANT REGI STRAR, ITAT, PATNA,