The ACIT, Gandhidham Circle,, GANDHIDHAM v. Shri Suresh N. Gupta,, GANDHIDHAM

ITA 1183/RJT/2010 | 1996-1997
Pronouncement Date: 04-11-2011 | Result: Dismissed

Appeal Details

RSA Number 118324914 RSA 2010
Assessee PAN TANOS1181T
Bench Rajkot
Appeal Number ITA 1183/RJT/2010
Duration Of Justice 1 year(s) 1 month(s) 7 day(s)
Appellant The ACIT, Gandhidham Circle,, GANDHIDHAM
Respondent Shri Suresh N. Gupta,, GANDHIDHAM
Appeal Type Income Tax Appeal
Pronouncement Date 04-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 04-11-2011
Date Of Final Hearing 30-09-2011
Next Hearing Date 30-09-2011
Assessment Year 1996-1997
Appeal Filed On 27-09-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH RAJKOT BEFORE SHRI D.K. TYAGI (JM) AND SHRI A.L. GEHLOT (A M) I.T.A. NO.1181/RJT/2010 - AY 1996-97 I.T.A. NO.1182/RJT/2010 - AY 1997-98 ACIT GANDHIDHAM CIRCLE VS SMT. RANJANA S GUPTA GANDHIDHAM PLOT NO.186 SECTOR NO.4 GANDHIDHAM-KUTCH (APPELLANT) (RESPONDENT) I.T.A. NO.1183/RJT/2010 - AY 196-97 I.T.A. NO.1184/RJT/2010 - AY 1997-98 THE ACIT GANDHIDHAM CIRCLE VS SHRI SURESH N GUPTA GANDHIDHAM L/H OF LATE SMT. GEETADEBVI N GUPTA PLOT NO.186 SECTOR NO.4 GANDHIDHAM-KUTCH (APPELLANT) (RESPONDENT) I.T.A. NO.1185/RJT/2010 (ASSESSMENT YEAR 1996-97) THE ACIT GANDHIDHAM CIRCLE VS SMT. PUSHPA M GUPTA GANDHIDHAM PLOT NO.210 SECTOR NO.4 GANDHIDHAM-KUTCH (APPELLANT) (RESPONDENT) I.T.A. NO.1186/RJT/2010 (ASSESSMENT YEAR 1998-99) THE ACIT GANDHIDHAM CIRCLE VS SHRI RAMESH M GUPTA GANDHIDHAM C/O KIRAN ROADLINES 11 AGRAWAL BHAVAN (APPELLANT) (RESPONDENT) DATE OF HEARING : 30-09-2011 DATE OF PRONOUNCEMENT : 11-11-2011 APPELLANT BY : SHRI MK SINGH RESPONDENT BY: SHRI MP SARDA ITA NO.1181-1186/RJT/2010 2 O R D E R PER BENCH ALL THESE SIX APPEALS FILED BY THE REVENUE ARE DIR ECTED AGAINST THE CONSOLIDATED ORDER OF THE CIT(A)-II RAJKOT DATED 3 0-06-2010 FOR THE ASSESSMENT YEAR 1996-97 IN ITA NOS 1181 TO 1185/RJT/2010 AND F OR THE ASSESSMENT YEAR 1998-99 IN ITA NO.1186/RJT/2010. SINCE ALL THE APP EALS CARRY COMMON ISSUE FOR CONSIDERATION AND THEY BELONG TO THE SAME GROUP OF ASSESSEES FOR THE SAKE OF CONVENIENCE THESE APPEALS WERE HEARD TOGETHER AND ARE DISPOSED OF BY THIS COMMON ORDER. 2. THE SOLE COMMON ISSUE RAISED IN THESE APPEALS PE RTAINS TO ADDITION U/S 68 OF THE ACT AND THE INTEREST CREDITED / PAID THEREON . SINCE THE ADDITION IS BASED ON IDENTICAL SET OF FACTS THE ITA NO.1186/RJT/2010 IN THE CASE OF SHRI RAMESH N GUPTA IS CONSIDERED FOR DELIBERATION. 3. THIS IS THE SECOND ROUND OF LITIGATION BEFORE TH E TRIBUNAL. IN THE FIRST ROUND OF LITIGATION BEFORE THE TRIBUNAL THE ITAT VIDE OR DER DATED 22-07-2008 IN ITA NO.1349/RJT/2005 BY FOLLOWING ANOTHER ORDER DATED 3 1-08-2006 PASSED BY THE TRIBUNAL IN THE CASE OF ACIT VS SANJAY M DAVE IN IT A NO.1372/RJT/2005 RESTORED THE ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH THE FOLLOWING OBSERVATIONS: 3. WE HAVE HEARD THE RIVAL CONTENTIONS PERUSED TH E RECORDS PLACED BEFORE US. LOOKING INTO FACTS AND CIRCUMSTA NCES OF THE CASE WE FIND THAT THE ISSUE IN CONTROVERSY IS COVE RED BY THE ITA NO.1181-1186/RJT/2010 3 DECISION OF THE RAJKOT BENCH OF THE TRIBUNAL IN THE CASE OF ACIT V/S SANJAY M DAVE IN ITA NO.1372/RJT/2005 FOR THE ASSES SMENT YEAR 1996-97 ORDER DATED 31.8.2006 IN WHICH ONE OF US (J M) IS PARTY. THE FINDINGS OF THE TRIBUNAL IN THE CASE RELIED UPO N FOR THE SAKE OF CONVENIENCE ARE REPRODUCED BELOW: 4. WE HAVE HEARD THE RIVAL SUBMISSIONS OF BOTH THE PARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE WE FIND THAT THE ASSESSEE HAS RECEIVED THE AMOUNT OF RS.5 L AKHS AND RS.3 LAKHS FROM SHRI HASMUKH H BARICHA AND SMT . URMILA H BORICHA. THE REVENUES CASE IS THAT THESE TWO PERSONS ARE ONLY NAME LENDER AND THEIR BANK ACCOUNT S HAVE BEEN USED BY OTHER FOR CONVERTING BLACK MONEY INTO WHITE. BUT WE FIND THAT THE ASSESSEE HAS RECEIVED THE MONE Y THROUGH SHRI ANUPCHAND MANGALJI MORABIA. SHRI ANU[P CHAND MANGALJI MORABIA WAS BEFORE THE SETTLEMENT COMMISSI ON BY PETITION WHEREIN HE HA ADMITTED HIS HAVING PLACED T HE ABOVE DEPOSITS AMONGST MAY OTHER DEPOSITS OUT OF HIS UNDI SCLOSED INCOME AND THE SETTLEMENT APPLICATION HAS BEEN ADMI TTED AND HE HAS PAID TAX ON THE AMOUNT OF THE DEPOSITS I NCLUDING THE ABOVE DEPOSITS. SHRI ANUPCHAND MANGALJI MORABI A HAS OFFERED THE SUM OF RS.1 79 00 000/- AS ADDITIONAL I NCOME FOR ASSESSMENT YAR 1996-97. THE ADDITIONAL INCOME FOR ASSESSMENT YEAR 19960-97. THE LEARNED AR OF THE ASSESSEE STATED THAT THE SETTLEMENT COMMISSION HAS ADMITTED THE PETITION OF SHRI ANUPCHAND MANGALJI VI DE ITS ORDER DATED 8.5.2000 UNDER SECTION 245D(1) AND ANUP CHAND MANGALJI MORABIA HAS ALREADY PAID THE TAX DISCLOSED BEFORE THE SETTLEMENT COMMISSION. WHILE WORKING OUT THE UNDISCLOSED INCOME FOR ASSESSMENT YEAR 1996-97 THE SUM OF RS.5 LAKHS AND RS.3 LAKHS IN ADVANCED BY HAMUKH H BARICHA AND SMT. URMILA H BORICHA RESPECTIVELY TO T HE ASSESSEE HAS BEEN CONSIDERED WHICH IS EVIDENT FROM THE DETAILS GIVEN AS ANNEXURE TO THE SETTLEMENT PETITIO N COPY OF WHICH IS PLACED ON RECORD ON PAGE 38 OF THE PAPER B OOK. THE CIT(A) HAS CONSIDERING THE SAME HAS DELETED THE ADDITION. WE FIND THAT WHEN THE SETTLEMENT COMMISS ION HAS ALREADY ADMITTED HE PETITION WE ARE OF THE VIEW TH AT THESE REQUIRES VERIFICATION AND THEREFORE WE SET ASIDE T HE ORDER OF THE CIT(A) AND RESTORE THIS ISSUE TO THE FILE OF TH E ASSESSING OFFICER TO DECIDE THE SAME AFRESH AS ACCORDING PAYM ENT IN THE SETTLEMENT COMMISSION AS PER LAW. ITA NO.1181-1186/RJT/2010 4 RESPECTFULLY FOLLOWING THE DECISION OF THE TRIBUNAL IN THE CASE RELIED UPON WE DECIDE THE APPEAL FILED BY THE REVENUE A I NDICATED ABOVE. 4. THE ASSESSING OFFICER WHILE GIVING EFFECT TO TH E ABOVE ORDER OF THE TRIBUNAL HAS REPEATED THE ADDITION IN THE REFRAMED ASSESSMENT WITH THE FOLLOWING OBSERVATIONS: 7. THE ASSESSEE HAD SUBMITTED THAT THE ABOVE MENTI ONEDE DEPOSITS HAD BEEN RECEIVED THROUGH SHRI ANUPCHAND M ORABIA. SHRI ANUPCHAND MORABIA WAS BEFORE THE HONBLE SETTLEMENT COMMISSION BY PETITION WHEREIN HE HAD ADMITTED HIS HAVING PLACED THE ABOVE DEPOSITS AMONGST MANY OTHER DEPOSITS OU T OF HIS UNDISCLOSED INCOME AND THE SETTLEMENT APPLICATION H AD BEEN ADMITTED AND HE HAD PAID THE TAX ON AMOUNT OF THE D EPOSITS INCLUDING THE ABOVE DEPOSITS TOO. UNDER THE CIRCUM STANCES THE ASSESSEE HAD REQUESTED TO TREAT THE SAME AS EXPLAIN ED. IT IS APPARENT FROM THE RECORDS THAT SHRI ANUPCHAND MORABIA HAD NOT HONORED THE COMMITMENTS AS FAR AS THE DECIS ION OF THE HONBLE SETTLEMENT COMMISSIONS IS CONCERNED. SUBSEQUENT TO THE DECISION OF THE HONBLE SETTLEME NT COMMISSION IT IS SEEN THAT MR. ANUPCHAND MORABIA H AD NOT PAID THE ENTIRE TAX LIABLE TO BE PAID. THIS HAS BEEN CO NFIRMED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER THE CASE OF MER. ANUPCHAND MORABIA. IN VIEW OF THE ABOVE FACT IT W ILL BE PREMATURE TO PRESUME THAT THE ORDER OF THE HONBLE SETTLEMENT COMMISSION HAS BEEN COMPLIED WITH. IN ABSENCE OF THE TOTAL CO MPLIANCE IT CAN NOT BE SAID THAT THE STAND OF MR. ANUPCHAND MORABIA IS VINDICATED. ITA NO.1181-1186/RJT/2010 5 IT IS HELD THAT THE CONTENTION OF THE ASSESSEE IS P REMATURE AT THIS STAGE AND THEREFORE RS.5 00 000/- IS TREATED AS UNE XPLAINED CASH CREDITS AND TAXED U/S 68 OF THE ACT. 4.1 THE ASSESSING OFFICER HAS ALSO ADDED THE INTERE ST CREDITED / PAID ON THE CASH CREDITS IN THE TOTAL INCOME DETERMINED BY HIM. THE SYNOPSIS OF THE ADDITIONS REPEATED BY THE ASSESSING OFFICER IN THE FRESH ASSESSMENT ORDERS FRAMED BY HIM IN ALL THE ASSESSEES BEFORE US IS AS BELOW: CASH CREDIT INTEREST TOTAL SHRI SURESH N GUPTA RS. 10 00 000 RS. 43 069 RS. 10 43 069 AY 1996-97 AY 1997-98 RS. - RS. 78 333 RS. 78 333 SMT. RANJANA S GUPTA AY 1996-97 RS. 10 00 000 RS. 44 384 RS.10 44 384 AY 1997-98 - RS. 78 333 RS. 78 333 SMT PUSHPA N GUPTA AY 1996-97 RS. 10 00 000 RS. 43 069 RS.10 43 069 SHRI RAMESH N GUPTA AY 1998-99 RS. 5 00 000 RS. 50 860 RS. 5 50 860 5. IN NUTSHELL THE CASE OF THE ASSESSING OFFICER W HILE REPEATING THE ADDITIONS IN THE FRESH ASSESSMENT FRAMED BY HIM IS THAT SHRI ANUPCHAND MORABIA WHO HAS ADMITTED THE INCOMES ON ACCOUNT OF THE IMPUGNED CAS H CREDITS IN HIS CASE BEFORE THE SETTLEMENT COMMISSION HAS NOT PAID THE TAXES D UE THEREON AND THEREFORE DUE CREDIT FOR THE ADMISSION OF INCOME BY SHRI SHRI ANUPCHAND MORABIA BEFORE THE SETTLEMENT COMMISSION CANNOT BE GIVEN TO THE AS SESSEES. ITA NO.1181-1186/RJT/2010 6 6. HOWEVER ON APPEAL THE CIT(A) DELETED THE ADDIT IONS BUT SUBJECT TO VERIFICATION BY THE ASSESSING OFFICER OF CERTAIN FA CTS. THE CIT(A) OBSERVED THAT IN THE DE NOVO ASSESSMENT PROCEEDINGS THE ASSESSING OF FICER HAS TRAVELLED BEYOND THE DIRECTIONS ISSUED BY THE TRIBUNAL. THE CIT(A) PERUSED THE ORDER OF THE SETTLEMENT COMMISSION PASSED U/S 245(4) DATED 03-01 -2008 IN THE CASE OF SHRI ANUPCHAND MORABIA AND NOTED THAT AT PARAGRAPH 2.3 O F THE SAID ORDER IT STATED THAT THE CIT(DR) STATED AT THE BAR ON 17-12-2007 T HAT THE TAXES ETC. WERE PAID WAS NOTED AND WAS ACTED UPON. FURTHER THE PARA 11. 10 OF THE SAID ORDER CLEARLY INDICATED THAT THE COMMISSION ACCEPTED THE INCOME D ISCLOSED BY SHRI MORABIA WHICH WOULD COVER THE IMPUGNED SUMS OF CASH CREDITS GIVEN AS UNSECURED LOANS TO THE APPELLANTS IN THE NAMES OF SHRI CHAPSI BORIC HA SMT. URMILA BORICHA SHRI PRAMOD R CHHADDA SHRI BABULAL PATEL. UNDER THE C IRCUMSTANCES THE CIT(A) WAS OF THE VIEW THAT THEE IS NO REASON FOR UPHOLDIN G THE ADDITIONS MADE BY THE ASSESSING OFFICER. THE CIT(A) HAS ALSO NOTED THAT ON IDENTICAL SET OF FACTS IN THE CASE OF SHRI DEEPAK M AGARWAL FOR ASSESSMENT YEAR 1 996-97 AND 1997-98 SIMILAR ADDITIONS WERE DELETED BY THE CIT(A). HOWE VER THE CONTENTION OF THE ASSESSEE THAT EVEN IF SHRI ANUPCHAND MORABIA HAD NO T PAID THE TAXES STILL NO ADVERSE INFERENCE COULD BE TAKEN AGAINST THE ASSESS EE WAS NOT ACCEPTED BY THE CIT(A) FOR THE REASON THAT THE APPEALS COULD BE ALL OWABLE ONLY ON THE CONDITION THAT SHRI ANUPCHAND MORABIA PAID THE TAXES ON THE I NCOMES ADMITTED BEFORE THE SETTLEMENT COMMISSION AND THAT EITHER SHRI ANUPCHAN D MORABIA OR THE ASSESSEE HAS TO PAY TAX ON THE UNDISCLOSED INCOME SURFACED I N THE FORM OF CASH CREDITS. ITA NO.1181-1186/RJT/2010 7 THUS THE CIT(A) ALLOWED THE APPEALS SUBJECT TO VER IFICATION BY THE ASSESSING OFFICER OF THE PAYMENT OF TAXES. AGGRIEVED THE RE VENUE IS IN APPEALS. 7. THE LD.DR RELYING UPON THE ORDERS OF ASSESSING O FFICER SUBMITTED THAT THE ASSESSEE HAS FAILED TO PROVE THAT SHRI ANUPCHAND MO RABIA HAS PAID THE TAXES ON THE INCOMES ADMITTED BY HIM BEFORE THE SETTLEMENT C OMMISSION. 8. THE LD.AR ON THE OTHER HAND RELIED UPON THE OR DER OF CIT(A) AND SUBMITTED THAT IN THE DE NOVO ASSESSMENT PROCEEDING S THE ASSESSEE HAD FURNISHED SUFFICIENT EVIDENCE TO SHOW THAT AMOUNT O F ADDITION MADE U/S 68 IN THE HANDS OF THE ASSESSEE HAS BEEN DECLARED BY SHRI ANU PCHAND MORABIA BEFORE THE SETTLEMENT COMMISSION. THE LD.AR SUBMITTED THAT SH RI MORABIA HAS PAID TAXES ON SUCH INCOMES ADMITTED IN HIS PETITION FILED BEFO RE THE SETTLEMENT COMMISSION AND THESE FACTS ARE EVIDENT FROM THE RELEVANT PORTI ON OF THE SETTLEMENT PETITION WHEREAT IT IS STATED THAT DEPOSIT OF RS.4 LAKHS FRO M SHRI PRAMOD R CHEDA AND RS.1 LAKH FROM SHRI BABU PATEL HAS BEEN SPECIFICALL Y INCLUDED IN QUANTIFYING THE ADDITIONAL INCOME DISCLOSED IN THE SETTLEMENT PETIT ION BY SHRI ANUPCHAND MORABIA. HE HAS SUBMITTED THAT THE TAX PAYABLE ON THE ADMITTED INCOME ON THE BASIS OF ORDER OF SETTLEMENT COMMISSION PASSED U/S 245D(1) IS PAID BY SHRI MORABIA AND THE DETAILS THEREOF WITH COPIES OF RECE IPTS / CHALLANS WERE PRODUCED. AN AFFIDAVIT CONFIRMING THE FACT BY SHRI ANUPCHAND MORABIA WAS ALSO SUBMITTED. IT IS ALSO THE SUBMISSION OF THE LD.AR THAT THE LAW RELATING TO THE PROVISIONS GOVERNING SETTLEMENT CASES WAS AMENDED BY THE FINAN CE ACT 2007. VIDE SECTION 245D(2D) THE TAX AND INTEREST ON ADMITTED I NCOME OUGHT TO HAVE BEEN PAID BEFORE THE SETTLEMENT COMMISSION PROCEEDS TO D ISPOSE OF THE PETITION U/S ITA NO.1181-1186/RJT/2010 8 245D OF THE ACT. THE LD.AR SUBMITTED THAT THE ASSE SSING OFFICER HAS FAILED TO APPRECIATE THAT WHAT IS RELEVANT IS ADMISSION OF IN COMES BY SHRI ANUPCHAND MORABIA AND PAYMENT OF TAX ON SUCH ADMITTED INCOMES . THE LD.AR SUBMITTED THAT THE ASSESSEE HAS DISCHARGED THE BURDEN CAST ON THE ASSESSEE BY SECTION 68 OF THE ACT. IT IS ALSO THE SUBMISSION OF THE LD.AR THAT THE CIT(A) HAS RELIED UPON ANOTHER ORDER PASSED BY THE CIT(A) IN THE CASE OF S HRI DEEPAK M AGARWAL. IN THAT CASE THE ITAT VIDE ITA NO.1097 & 1098/RJT/20 09 ORDER DATED 23-09-2010 HAS DISMISSED THE APPEALS. 9. WE HAVE HEARD THE LD.REPRESENTATIVES OF THE PART IES RECORD PERUSED. THE CASE OF THE ASSESSING OFFICER IS THAT SHRI ANUPCHAN D MORABIA WHO OWNED UP THE IMPUGNED CASH CREDITS IN HIS HANDS IN A PETITION FI LED BEFORE THE SETTLEMENT COMMISSION HAS NOT HONOURED THE ORDER U/S 2345D(4) DATED 03-01-2008 AS HE HAS NOT PAID THE TAXES ON THE INCOMES ADMITTED BY H IM. HOWEVER WE FIND THAT THE CIT(A) AFTER CONSIDERING THE ASSESSEES SUBMIS SIONS HAS DELETED THE ADDITION SUBJECT TO VERIFICATION BY THE ASSESSING O FFICER. WHILE DOING SO THE CIT(A) HAS RELIED UPON HIS ORDER IN THE CASE OF SHR I DEEPAK M AGARWAL WHICH HAS BEEN UPHELD BY THE ITAT IN ITA NO.1097 & 1098/R JT/2009 ORDER DATED 23-09- 2010. THE ITAT WHILE UPHOLDING THE ORDER OF THE C IT(A) IN THE CASE OF SHRI DEEPAK M AGARWAL HAS FOLLOWED THE ORDER OF THE AH MEDABAD BENCH SMC IN THE CASE OF SHIV SHANKAR CO IN ITA NO.1394/AHD/2004 ORDER DATED 28-02-2005. IN THE CASE OF SHRI DEEPAK M AGARWAL (SUPRA) THE T RIBUNAL HELD AS FOLLOWS: ITA NO.1181-1186/RJT/2010 9 7. THE LD.A.R. RELIED ON THE DECISION OF ITAT AHME DABAD IN ITA NO.1394/AHD/2004 IN THE CASE OF SHIV SHANKAR & CO W HEREIN THE HONBLE TRIBUNAL HAS VIDE PARA 3 RECORDED AS UNDER: 3 I HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE PARTIES AND PERUSED THE MATERIAL PLACED BEFORE ME. THE ASSESSEE HAS CLAIMED TO HAVE RECEIVED THE SUM OF RS.3 00 000/- FROM SHRI PK PATEL ON 18 TH MAY 1996. IT IS THE CASE OF THE REVENUE THAT SHRI P.K. PATEL IS ONLY A NAME LENDER AND HIS BANK ACCOUNT IS BEEN USED BY OTHERS FOR CONVERTING BLACK MONEY INTO WHITE. SHRI P.K. PATEL ALSO IN HIS STATEMENT RECORDED U/S 133(1) ON 28-3-1999 ADMI TTED THAT HE HAS NOT GIVEN ANY MONEY TO ANYBODY BUT SOME OTHER PERSONS HAVE ADVANCED THE MONEY IN HIS NAME. NOW S HRI ANUPCHAND MANGALJI MORABIA IN HIS POSITION BEFORE T HE SETTLEMENT COMMISSION DATED 9-8-1999 HAS ADMITTED T HAT THE DEPOSIT IN THE BANK ACCOUNT OF SHRI P.K. PATEL IS OUT OF HIS UNDISCLOSED INCOME. HE HAS OFFERED THE SUM OF RS.1 79 00 000/- AS ADDITIONAL INCOME FOR A.Y. 1996 -97. THE SETTLEMENT COMMISSION HAS BEEN ADMITTED VIDE ITS OR DER DATED 8-5-2000 U/S 245D(1). SHRI ANUPCHAND MANGALJ I MORABIA HAS ALREADY PAID THE TAX TO THE TUNE OF RS.91 01 747/- ON THE ADDITIONAL INCOME DISCLOSED B EFORE THE SETTLEMENT COMMISSION. WHILE WORKING OUT THE UNDIS CLOSED INCOME FOR A.Y. 1996-97 THE SUM OF RS.3 LACS ADVANC ED BY SHRI P.K. PATEL TO THE ASSESSEE HAS BEEN CONSIDERED WHICH IS EVIDENT FROM THE DETAILS GIVEN AS ANNEXURE TO TH E SETTLEMENT PETITION COPY OF WHICH IS AT PAGE 67 OF THE ASSESSES PAPER BOOK. IN VIEW OF ABOVE FACTS SO F AR AS THE ASSESSEE IS CONCERNED THE SUM OF RS.3 00 000/- IS ALONE TAKEN BY THE ASSESSEE AND THOUGH THE MONEY IS GIVEN IN THE NAME OF SHRI P.K. PTEL BUT IT WAS IN FACT BELONGING TO SHRI ANUPCHAND MANGALJI MORABIA BUT IT WAS A LOAN IN THE HANDS F THE ASSESSEE AND THEREFORE ONCE THE SOURCE OF LOAN IN THE HANDS OF SHRI ANUPCHAND MANGALJI MORABIA HAD BEEN ADMITTED TO BE OUT OF U8NDISCLOSED INCOME IN HIS HA NDS THE SAME CANNOT BE TREATED AS UNDISCLOSED INCOME IN THE HANDS OF THE ASSESSEE. IN THE VIEW OF THE ABOVE I DO NO T FVIND ANY JUSTIFICATION FOR UPHOLDING THE ADDITION OF RS.3 00 000/- IN THE HANDS OF THE ASSESSEE. THE SAME IS DELETED ALONG W ITH THE INTEREST THEREON AMOUNTING TO RS.1 926/-. ITA NO.1181-1186/RJT/2010 10 8. WE FIND THAT THE FACTS OF THE CASE BEFORE THE IT AT AHMEDABAD ARE IDENTICAL. RESPECTFULLY FOLLOWING TH E ITAT AHMEDABADS ORDER WE HOLD THAT ON THE FACTS OF THE CASE THE ASSESSEE HAVING ESTABLISHED THREE REQUISITES FOR EX PLAINING CASH CREDITS NO ADDITION U/S 68 IS JUSTIFIED. THE CONT ENTIONS OF SETTLEMENT PETITION ELABORATELY CORROBORATE THE SUB MISSIONS IN SUPPORT OF CASH CREDIT. WE HAVE IN A SEPARATE APPE AL FO MR. MORABIA GIVEN A FINDING BASED ON THE PROCEEDINGS BE FORE THE HONBLE SETTLEMENT COMMISSION THAT HE HAS FULLY COM PLIED WITH HIS OBLIGATION TO PAY TAX & INTEREST. UNDER THE CIRCUM STANCES ADDITION IS STRAIGHT AWAY DIRECTED TO BE DELETED. IN THE LIGHT OF THE ABOVE DISCUSSION AND THE EARLIE R ORDER OF THE ITAT IN THE CASE OF SHRI DEEPAK M AGARWAL CITED SUPRA WE DO NOT FIN D ANY INFIRMITY IN THE ORDER OF CIT(A). THE ORDER OF CIT(A) IS CONFIRMED. 10. IN THE RESULT THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON -11-2011. SD/- SD/- (D.K. TYAGI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER RAJKOT DT : NOVEMBER 2011 PK/- ORDER PRONOUNCED IN OPEN COURT ON 11-11-2011 SD/- SD/- (T.K. SHARMA) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER ITA NO.1181-1186/RJT/2010 11 COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-II RAJKOT 4. THE CIT-I RAJKOT 5. THE DR I.T.A.T. RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR ITAT RAJKOT