Shri Rambirsingh D. Bakshi, v. The ACIT., Valsad Circle,, Valsad

ITA 1692/AHD/2007 | 2003-2004
Pronouncement Date: 12-08-2010 | Result: Allowed

Appeal Details

RSA Number 169220514 RSA 2007
Bench Ahmedabad
Appeal Number ITA 1692/AHD/2007
Duration Of Justice 3 year(s) 3 month(s) 17 day(s)
Appellant Shri Rambirsingh D. Bakshi,
Respondent The ACIT., Valsad Circle,, Valsad
Appeal Type Income Tax Appeal
Pronouncement Date 12-08-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 12-08-2010
Date Of Final Hearing 12-08-2010
Next Hearing Date 12-08-2010
Assessment Year 2003-2004
Appeal Filed On 25-04-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI MAHAVIR SINGH JUDICIAL MEMBER AND SHRI D. C. AGRAWAL ACCOUNTANT MEMBER ITA NO.1692/AHD/2007 & ITA NO.2474/AHD/2008 ASSESSMENT YEARS :2003-04 & 2004-05 DATE OF HEARING:12.8.10 DRAFTED:13.8.10 SHRI RANBIRSHING D BAKSHI NEW LUCKY NATIONAL SCRAP TRADERS N.H. NO.8 ATUL DIST. VALSAD PAN NO.ABQPB9445H V/S . ACIT VALSAD CIRCLE VALSAD (APPELLANT) .. (RESPONDENT) ASSESSEE BY :- SHRI S.N.SOPARKAR SR-AR & SHRI P.M.MEHTA AR REVENUE BY:- SHRI S.C.TIWARI SR-DR O R D E R PER MAHAVIR SINGH JUDICIAL MEMBER:- THESE TWO APPEALS BY THE ASSESSEE ARE ARISING OUT OF THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-VALSAD IN APPE AL NOS. CIT(A)/VLS/59 & 446/06-07 BY DIFFERENT DATE I.E. 18-12-2006 AND 16- 10-2007. THE ASSESSMENTS WERE FRAMED ACIT VALSAD CIRCLE VIDE HIS ORDERS DATED 17 -03-2006 AND 29-12-2006 U/S.143(3) OF THE INCOME-TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEARS 2003-04 & 2004-05 RESPECTIVELY. 2. THE ONLY COMMON ISSUE IN THESE APPEALS OF ASSESS EE IS AS REGARDS TO CONFIRMING THE ADDITION OF CASH CREDIT U/S.68 OF TH E ACT ON THE AMOUNT OF RS.13.70 ITA NO.1692/AHD/07 & 2474/AHD/08 A.YS. 03-04 & 04- 05 SH RANBIRSINGH D BAKSHI V. ACIT VLS CIR. PA GE 2 LAKHS AND RS.11 41 500/- IN ASSESSMENT YEARS 2003-0 4 AND 2004-05 RESPECTIVELY. FOR THIS ASSESSEE HAS RAISED THE RESPECTIVE ISSUES AS UNDER:- ASSESSMENT YEAR 2003-04 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E APPELLANTS CASE THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.13 70 000 U/S.68 OF THE I.T. ACT.. 2(A) THE CIT(A) HAS GROSSLY OVERLOOKED THE FACT THA T THE APPELLANTS MAIN BUSINESS IS TO EMPLOY MANY SECURITY GUARDS WHO ARE MOBILE AND HAVE TO KEEP SOME SECURITY DEPOSIT LOOKING TO THE NATURE OF DUT Y. (B) THE EMPLOYEES ARE NOT PERMANENT AND ARE MOBILE AND THEREFORE THE PARTICULARS MAY NOT BE AVAILABLE DUE TO VERY NATURE OF THEIR MOBILITY AND EMPLOYMENT. ASSESSMENT YEAR 2004-05 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.11 41 500 FOR CASH CR EDITS. 2. THE APPELLANT CRAVES LEAVE TO ADD ALTER AMEND AND/OR WITHDRAW ANY GROUND OR GROUNDS OF APPEAL EITHER BEFORE OR DURING THE COURSE OF HEARING OF THE APPEAL. 3. THE BRIEF FACTS LEADING TO THE ABOVE COMMON ISSU E ARE THAT THE ASSESSEE IS A SENIOR CITIZEN ASSESSED IN THE STATUS OF AN INDIVID UAL AND RUNS A BUSINESS OF PROVIDING SECURITY GUARDS TO VARIOUS INSTITUTIONS F OR WHICH REGULAR BOOKS OF ACCOUNT ARE MAINTAINED. DURING THE COURSE OF ASSESSMENT PRO CEEDINGS ASSESSING OFFICER MADE INTER ALIA ADDITION OF RS.11 41 500/- FOR THE TOTAL GROSS AMOUNTS APPEARING IN THE NAMES OF SOME PEOPLE AS CASH CREDITS. THE AO DU RING THE COURSE OF ASSESSMENT PROCEEDINGS VERIFIED FROM THE CASH BOOK THAT HE HAS TAKEN CASH LOAN RANGING FROM 17 000 TO 19 000/- FROM SEVERAL PERSONS. THE AO REQ UIRED TO PRODUCE THESE PERSONS FOR VERIFICATION AND ALSO TO FILE CONFIRMATIONS TO PROVE THE GENUINENESS OF CREDITS. THE ASSESSEE FILED CONFIRMATIONS OF THESE CREDITORS BUT COULD NOT PRODUCE THEM IN PERSON. THE AO ACCORDINGLY MADE ADDITION OF CASH CREDITS A MOUNTING TO RS.11 41 500/- AND RS.13.70 LAKH IN ASSESSMENT YEAR 2004-05 AND 2003-0 4 RESPECTIVELY. AGGRIEVED ASSESSEE PREFERRED APPEAL BEFORE CIT(A). ITA NO.1692/AHD/07 & 2474/AHD/08 A.YS. 03-04 & 04- 05 SH RANBIRSINGH D BAKSHI V. ACIT VLS CIR. PA GE 3 4. THE CIT(A)CONFIRMED THE ADDITION AS THE ASSESSE E COULD NOT PRODUCE THE PERSONS FOR PERSONAL VERIFICATION IN BOTH THE YEARS . AGGRIEVED ASSESSEE CAME IN SECOND APPEAL BEFORE US. 5. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE STAT ED THAT ON THIS POINT THE CIT(A) IN PARAS 5 TO 12 ON PAGES 3 TO 8 OF THE IMPU GNED ORDER THEN IN PARA MARKED 13 AT THE TOP OF PAGE 8 SUMMARILY REJECTED THE ASS ESSEES CONTENTIONS AND CONFIRMED THE ADDITION BY OBSERVING THAT THE AFORES AID PEOPLE HAVE NOT BEEN PRODUCED IN PERSON EITHER BEFORE THE ASSESSING OFFI CER OR BEFORE HIM. HE STATED THAT THE DETAILED SUBMISSIONS RECORDED IN THE APPELLATE ORDER FROM PARAS 5 TO 12 ON PAGES 3 TO 8 HAVE NOT BEEN PROPERLY CONSIDERED BY T HE CIT(A). ACTUALLY 14 REPORTED DECISIONS WHICH HAVE BEEN DESCRIBED AND NOTICED IN PARA 11 ON PAGES 5 TO 7 OF THE IMPUGNED ORDER HAVE NOT BEEN ATTEMPT TO BE EITHER D ISTINGUISHED OR HELD AS OTHERWISE INAPPLICABLE TO THE ASSESSEES CASE. ACCO RDINGLY HE STATED THAT THE DECISIONS CITED THEREIN ON BEHALF OF THE ASSESSEE S UPPORT THE ASSESSEES CASE AND THE CIT(A) WAS NOT JUSTIFIED IN SUMMARILY REJECTING ASSESSEES CONTENTIONS AND UPHOLDING THE ADDITION MADE BY ASSESSING OFFICER. 6. WE FIND THAT THE CIT(A) HAS CONFORMED THE ADDITI ON MERE FOR THE FAILURE TO PRODUCE THE PERSONS CONCERNED IS NOT SUFFICIENT FOR DISBELIEVING THE ASSESSEES VERSION OF RECEIPT OF MONEY FROM THE PERSONS CONCER NED. WE FURTHER FIND THAT THE ASSESSEE IS A SENIOR CITIZEN HAVING BUSINESS OF EMP LOYING SECURITY PERSONNEL AND TAKING THE TOTALITY OF CIRCUMSTANCES INTO ACCOUNT I T WAS NOT AT ALL A FIT CASE FOR MAKING ADDITION U/S.68 WITHOUT CONSIDERING THE CIRCUMSTANC ES IN ENTIRETY BUT WE HEREBY ADD THAT THE ASSESSEE ALSO HAS TO CO-OPERATE WITH THE R EVENUE AND WILL SATISFY THE PROCEDURE OF LAW AS ENVISAGED IN SECTION 68 OF THE ACT. ACCORDINGLY WE ARE OF THE VIEW THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO T HE ASSESSEE TO EXPLAIN THE CASH CREDITS IN BOTH THE YEARS. ACCORDINGLY THIS COMMON ISSUE IN ASSESSEES APPEALS IS SET ASIDE TO THE FILE OF THE ASSESSING OFFICER. 7. AS REGARDS TO ALTERNATIVE CONTENTIONS OF THE LD. COUNSEL FOR THE ASSESSEE THAT IN THE ASSESSMENT YEAR 2003-04 ADDITION OF CASH CRE DIT WAS MADE TO THE EXTENT OF ITA NO.1692/AHD/07 & 2474/AHD/08 A.YS. 03-04 & 04- 05 SH RANBIRSINGH D BAKSHI V. ACIT VLS CIR. PA GE 4 RS.13.70 LAKH IN CASE THE ADDITION IS CONFIRMED IN THIS YEAR THE ASSESSEE AS CLAIMED TO HAVE SQUARED UP THESE CASH CREDITS IN THAT CASE THE ASSESSING OFFICER WILL ALLOW TELESCOPING IN ASSESSMENT YEAR 2004-05 AND ADDITION SHOULD BE RESTRICTED TO THE EXTENT OF RS.13.70 LAKH ONLY IN BOTH THE YEARS. THI S DIRECTION IS ONLY SUBJECT TO THE ASSESSEE HAVING SQUARED UP THESE CASH CREDITS IN AS SESSMENT YEAR 2003-04. THE AO WILL DECIDE ACCORDINGLY. 8. IN THE RESULT BOTH THE APPEAL OF ASSESSEE ARE ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 12/08 /2010 SD/- SD/- (D.C.AGRAWAL) (MAHAVIR SINGH) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD DATED : 12/08/2010 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)-VLS 4. THE CIT CONCERNS. 5. THE DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT AHMEDABAD