The ITO, Ward-3,, Gandhinagar v. Shri Rajendra P.Palan, Gandhinagar

ITA 1057/AHD/2010 | 2006-2007
Pronouncement Date: 29-02-2012 | Result: Dismissed

Appeal Details

RSA Number 105720514 RSA 2010
Assessee PAN AFVPP5034K
Bench Ahmedabad
Appeal Number ITA 1057/AHD/2010
Duration Of Justice 1 year(s) 10 month(s) 22 day(s)
Appellant The ITO, Ward-3,, Gandhinagar
Respondent Shri Rajendra P.Palan, Gandhinagar
Appeal Type Income Tax Appeal
Pronouncement Date 29-02-2012
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 29-02-2012
Assessment Year 2006-2007
Appeal Filed On 07-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH AHMEDABAD BEFORE SHRI MUKUL KR.SHRAWAT JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI ACCOUNTANT MEMBER ./ I.T.A. NO.1057/AHD/2010 ( / / / / ASSESSMENT YEAR : 2006-07) INCOME TAX OFFICER WARD-3 GANDHINAGAR / VS. SHRI RAJENDRA P.PALAN 5 GEETA SOCIETY NEHRU CHOKDI DEHGAM DIST.GANDHINAGAR ! ./'# ./ PAN/GIR NO. : AFVPP 5034K ( $ / // / APPELLANT ) .. ( %&$ / RESPONDENT ) $ ' / APPELLANT BY : SHRI SAMIR TEKRIWAL SR.D.R. %&$ ( ' / RESPONDENT BY : SHRI TUSHAR P.HEMANI )* ( + ! / / / / DATE OF HEARING : 28/02/2012 -. ( + ! / DATE OF PRONOUNCEMENT : 29/02/2012 / / O R D E R PER SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE WHI CH HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-GANDHINAGAR DATED 25/01/2010 PASSED FOR ASSESSMENT YEAR 2006-07. THE ONLY GROU ND RAISED AND ARGUED BEFORE US IS AS FOLLOWS: (1) THE LEARNED CIT(APPEALS) HAS ERRED IN LAW AND ON FACTS IN ALLOWING THE ADDITION MADE U/S.68 OF THE IT ACT AS UNEXPLAINED DEPOSITS IN RESPECT OF UNSECURED LOANS AMOUNTING TO RS.95 20 000/-. ITA NO.1057/AHD /2010 ITO VS. SHRI RAJENDRA P PALAN ASST.YEAR 2006-07 - 2 - 2. FACTS IN BRIEF AS EMERGED FROM THE CORRESPONDING ASSESSMENT ORDER PASSED U/S.143(3) DATED 29/12/2008 WERE THAT THE AS SESSEE IN INDIVIDUAL CAPACITY IS IN THE BUSINESS OF SHARE AND COMMODITY TRADING. IT WAS NOTED THAT THERE WERE UNSECURED LOANS OF THE FOLLOWING PA RTIES: POOJA BROKERS RS.96 90 000 SARASWATI TRADERS RS.33 30 000 D.S. TRADERS RS. 6 00 000 2.1. AFTER DISCUSSING THE POSITION OF ACCOUNTS THE AO HAS DECIDED TO TAX THE FOLLOWING AMOUNTS BY INVOKING THE PROVISION S OF SECTION 68 AS UNDER:- (I) POOJA BROKERS RS.61 95 000/- (II) SARASWATI TRADERS RS.27 25 000/- (III) D.S. TRADERS RS. 6 00 000/- TOTAL RS.95 20 000/- ========== 2.2. RESULTANTLY AN ADDITION OF RS.95 20 000/- WAS MADE AS UNEXPLAINED DEPOSITS WHICH WAS CHALLENGED BEFORE THE FIRST APPELLATE AUTHORITY. 3. THE LD.CIT(A) HAS CALLED FOR A REMAND REPORT AND WE HAVE NOTED THAT THE SAID REMAND REPORT WAS INTRODUCED BY THE C IT(A) IN PARA 2.4; RELEVANT PORTION IS REPRODUCED BELOW:- 6. IN RESPONSE TO THE SUMMONS SHRI RATANLAL VEPARI LAL JAIN KARTA OF VEPARILAL HAKAMCHAND HUF (PROPRIETOR OF SA RASWATI TRADERS) ATTENDED AND SUBMITTED COPIES OF BANK STAT EMENTS AND COPY OF ACCOUNT OF RAJENDRA P PALAN FROM HIS BOOKS OF ACCOUNTS AND PAN DETAILS. HIS STATEMENT WAS RECORDED U/S.13 1 OF THE ACT 1961. HE CONFIRMED THAT SARASWATI8 TRADERS HAD GIV EN UNSECURED ITA NO.1057/AHD /2010 ITO VS. SHRI RAJENDRA P PALAN ASST.YEAR 2006-07 - 3 - LOAN OF RS.33 30 000/- DURING THE F.Y 2005-06 ON TH E DATES AS MENTIONED IN THE COPY OF ACCOUNTS. HE ALSO STATED THAT RS.6 05 000/- WERE RECEIVED BACK DURING F.Y 2005-06 AND THE OUTSTANDING AS ON 31/03/2006 WAS RS.27 25 000/- WHI CH WAS LSO RECEIVED BACK DURING F.Y 2006-07. 7. IN RESPONSE TO THE SUMMONS SHRI NIKUNJ RAMESHBHA I SONI ACCOUNTANT OF M/S.POOJA BROKERS DULY AUTHORIZED BY SHRI HITESH BOHRA. PARTNER OF M/S.POOPA BROKERS ATTENDED AND SUBMITTED COPIES OF BANK STATEMENTS AND COPY OF ACCOUNT OF RA JENDRA P PALAN FROM THEIR BOOKS OF ACCOUNTS AND PAN DETAILS. HIS STATEMENT WAS RECORDED U/S 131 OF THE IT ACT 1961. HE CONFIRMED THAT POOJA BROKERS HAD GIVEN UNSECURED LOAN OF RS.6 1 95 000/- DURING THE FINANCIAL YEAR 2005-06 ON THE DATES AS M ENTIONED IN THE COPY OF ACCOUNTS. HE ALSO STATED THAT THE LOAN OUTSTANDING AS ON 31/03/2006 WAS RS.11 35 000/- WHICH WS ALSO REC EIVED BACK DURING FINANCIAL YEAR 2006-07. HOWEVER THE RETURN OF INCOME FOR THE A.Y 2006-07 IS YET TO BE FILED. 8. IN CASE OF D.S. TRADERS THE DETAILS WERE VERIF IED FROM THE COPY OF ACCOUNT. BANK STATEMENTS AND CONFIRMATION OF TH E PROPRIETOR MR.D.S.PATEL. 9. THE PAN DETAILS OF THE ABOVE PARTIES WERE ALSO DULY VERIFIED. NO DISCREPANCY ERE FOUND ON VERIFICATION OF ACCOUNT S FROM THE ASSESSEES LEDGER AND COPY OF ACCOUNTS SUBMITTED BY THE ABOVE PARTIES. THESE ENTRIES WERE CROSS CHECKED WITH BAN K STATEMENTS OF ASSESSEE AS WELL AS PARTIES. 3.1. THE LD.CIT(A) HAS CONCLUDED AS UNDER:- 2.6. THE MATTER HAS BEEN CONSIDERED. IN HIS DETAI LED AND EXHAUSTIVE REPORT DATED 08/01/2010 THE ASSESSING O FFICER HAS DONE A GOOD JOB OF VERIFICATION OF THE ISSUES RAISE D IN THE ORIGINAL ASSESSMENT ORDER. AS A RESULT THEREOF FROM ALL TH E THREE PARTIES HE HAS BEEN ABLE TO GET THE CONFIRMATIONS OF THE TRANS ACTIONS WITH THE APPELLANT AND HAS ALSO BEEN ABLE TO VERIFY THOSE PA RTIES PRIMARY RECORDS ABOUT THE TRANSACTIONS IN QUESTION. ONCE T HE PARTIES HAVE CONFIRMED THE TRANSACTIONS AND THE PARTIES CONCERNE D ARE ITA NO.1057/AHD /2010 ITO VS. SHRI RAJENDRA P PALAN ASST.YEAR 2006-07 - 4 - IDENTIFIABLE AND HAS AMPLE CREDITWORTHINESS (ALL OF THEM BEING INCOME-TAX ASSESSEES) OBVIOUSLY THE ASSESSEE HAS D ISCHARGED ITS PRIMARY ONUS. APPARENTLY THE ASSESSING OFFICER HAS NOT FOUND ANYTHING OBJECTIONABLE IN THE TRANSACTION BETWEEN T HE ASSESSEE AND THESE PARTIES. IN SUCH CIRCUMSTANCES THERE IS NO SCOPE TO HOLD THAT CREDITS IN QUESTION ARE UNEXPLAINED. 4. HAVING HEARD THE SUBMISSIONS OF BOTH THE SIDES A ND ON EXAMINATION OF THE FACTS OF THE CASE AS NARRATED BY LD.CIT(A) ON THE BASIS OF THE REMAND REPORT RECEIVED FROM THE AO IT IS EV IDENT THAT THE SAID THREE PARTIES HAVE FURNISHED THEIR PAN DETAILS AND THOSE WERE DULY VERIFIED. ON VERIFICATION OF THEIR RESPECTIVE ACCO UNTS NO DISCREPANCY WAS NOTICED BY THE REVENUE DEPARTMENT. IT HAS ALSO BEE N REPORTED THAT THOSE ENTRIES WERE CROSS-CHECKED WITH BANK STATEMENTS. S INCE THE ASSESSEE WAS IN A POSITION TO OBTAIN THE CONFIRMATION OF THE TRA NSACTIONS OF THE SAID THREE PARTIES AND THOSE PARTIES HAVE CREDITWORTHINE SS AND THOSE WERE INCOME TAX ASSESSEES THEREFORE THE ASSESSEE HAS DIS CHARGED HIS PRIMARY ONUS. THERE WAS NO OBJECTIONABLE EVIDENCE AGAINST THIS ASSESSEE. IN THE ABSENCE OF ANY ADVERSE COMMENT OR MATERIAL AGAINST THIS ASSESSEE WE HEREBY AFFIRM THE LEGAL AS WELL AS FACTUAL FINDING OF LD.CIT(A). THE GROUND RAISED BY THE REVENUE IS THEREFORE DISMISSED . 5. IN THE RESULT REVENUES APPEAL STANDS DISMISSED . SD/- SD/- ( ANIL CHATURVEDI ) ( MUKUL KR . SHRAWAT ) ACCOUNTANT MEMBER JUDI CIAL MEMBER AHMEDABAD; DATED 29/ 02 /2012 0 .. .../ T.C. NAIR SR. PS ITA NO.1057/AHD /2010 ITO VS. SHRI RAJENDRA P PALAN ASST.YEAR 2006-07 - 5 - / ( %+1 2 1+ / ( %+1 2 1+ / ( %+1 2 1+ / ( %+1 2 1+/ COPY OF THE ORDER FORWARDED TO : 1. $ / THE APPELLANT 2. %&$ / THE RESPONDENT. 3. + )3 / CONCERNED CIT 4. )3() / THE CIT(A)-GANDHINAGAR 5. 167 %+ / DR ITAT AHMEDABAD 6. 78 9* / GUARD FILE. /) /) /) /) / BY ORDER &1+ %+ //TRUE COPY// : :: :/ // / ' ' ' ' ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD 1. DATE OF DICTATION..28.2.12 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 28.2.12 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S 29.2.12 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 29.2.12 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 9. DATE OF DESPATCH OF THE ORDER