Dy. C.I.T.-4(1), Agra v. M/s Gaurang Cold Storage, Agra

ITA 177/AGR/2011 | 2004-2005
Pronouncement Date: 30-03-2012 | Result: Dismissed

Appeal Details

RSA Number 17720314 RSA 2011
Assessee PAN AAFFG0939D
Bench Agra
Appeal Number ITA 177/AGR/2011
Duration Of Justice 10 month(s) 12 day(s)
Appellant Dy. C.I.T.-4(1), Agra
Respondent M/s Gaurang Cold Storage, Agra
Appeal Type Income Tax Appeal
Pronouncement Date 30-03-2012
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 30-03-2012
Assessment Year 2004-2005
Appeal Filed On 18-05-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH AGRA BEFORE SHRI BHAVNESH SAINI JUDICIAL MEMBER AND SHRI A.L. GEHLOT ACCOUNTANT MEMBER ITA NO.177/AGR/2011 ASSESSMENT YEAR: 2004-05 DY. COMMISSIONER OF INCOME TAX 4(1) VS. M/S. GAURA NG COLD STORAGE AGRA. M-48 RASHMI NAGAR KAMALA NAGAR AGRA (PAN: AAFFG 0939 D (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.K. SHARMA JR. D.R. RESPONDENT BY : NONE DATE OF HEARING : 22.03.2012 DATE OF PRONOUNCEMENT : 30.03.2012 ORDER PER A.L. GEHLOT ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 18.01.2011 PASSED BY THE LD. CIT(A)-II DEHRADUN (CAMP: AGRA) FOR THE ASSESSMENT YEAR 2004-05 ON THE FOLLOWING GROUNDS :- 1. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEAL S) HAS ERRED IN LAW AND ON FACTS IN TREATING THE GIFT OF RS.4 00 000/- CLAIMED TO HAVE BEEN RECEIVED BY THE PARTNER FROM HIS FATHER A S GENUINE WITHOUT EXAMINING THE CREDITWORTHINESS OF THE DONOR AND TH E GENUINENESS OF ITA NO.177/AGR/2011 A.Y. 2004-05 2 THE GIFT TRANSACTION ALTHOUGH THESE TWO FACTS SHOUL D HAVE BEEN EXAMINED BEFORE DECIDING THE ISSUE. 2. THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS ) HAS ERRED IN LAW AND ON FACTS IN DECIDING THE CAPITAL CONTRIBUTI ON OF RS.8 92 548/- BY SHRI ANIL KUMAR SHARMA AS GENUINE IGNORING THE F ACT THAT HE COULD NOT PROVE HIS CREDITWORTHINESS TO CONTRIBUTE SUCH A HUGE AMOUNT AND WAS NOT ABLE TO ESTABLISH THE GENUINENESS OF EARNIN G THE AGRICULTURAL INCOME BY PRODUCING PROPER EVIDENCE OF CULTIVATION. 3. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME -TAX (APPEALS) BEING ERRONEOUS IN LAW AND ON FACTS DESERVES TO BE QUASHED AND THAT OF THE ASSESSING OFFICER DESERVES TO BE RESTORED. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD OR ALTER ANY OR MORE GROUND OR GROUNDS OF APPEAL AS MAY BE DEEMED FIT AT THE TIME OF HEARING OF APPEAL. 2. NONE WAS PRESENT ON BEHALF OF THE ASSESSEE THOUG H NOTICE WAS SERVED UPON THE ASSESSEE AS PER THE ACKNOWLEDGEMENT DUE ON RECO RD. AFTER HEARING THE LD. DEPARTMENTAL REPRESENTATIVE WE PROCEED TO DECIDE T HE APPEAL ON MERIT. 3. THE GROUNDS OF APPEAL ARE NOT IN ACCORDANCE WITH INCOME TAX APPELLATE RULES. HOWEVER THE EFFECTIVE GROUND IS IN RESPECT OF DELETION OF ADDITION OF RS.8 92 548/- OUT OF TOTAL ADDITION OF RS.14 63 830 /- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF CAPITAL CONTRIBUTION OF ONE OF THE PA RTNER SHRI ANIL KUMAR SHARMA. 4. THE BRIEF FACTS OF THE GROUND ARE THAT THE ASSES SEE DERIVES INCOME FROM COLD STORAGE. THE ASSESSEE IS A PARTNERSHIP FIRM. DURI NG THE ASSESSMENT PROCEEDINGS ITA NO.177/AGR/2011 A.Y. 2004-05 3 THE ASSESSING OFFICER NOTICED THAT ONE OF THE PARTN ER SHRI ANIL KUMAR SHARMA INTRODUCED CAPITAL RS.14 63 830/- DURING THE YEAR A ND THE ASSESSING OFFICER ASKED THE ASSESSEE FIRM TO EXPLAIN THE SOURCE OF THE SAID CAPITAL CONTRIBUTION BY PARTNER SHRI ANIL KUMAR SHARMA. THE EXPLANATION WAS FURNIS HED BY THE ASSESSEE STATING THAT RS.4 00 000/- WAS RECEIVED BY SHRI ANIL KUMAR SHARMA FROM HIS FATHER OUT OF SALE CONSIDERATION OF LAND SOLD BY HIS FATHER. RS. 15 000/- AND RS.30 000/- WERE SHOWN TO BE RECEIVED FROM MS. PARWATI AND NIKKI AND BALANCE AMOUNT HAS BEEN SHOWN OUT OF AGRICULTURAL INCOME. THE ASSESSING OF FICER DID NOT SATISFY WITH THE EXPLANATION OF THE ASSESSEE AND MADE ADDITION OF RS .14 63 830/- ON THE GROUND THAT THE ASSESSEE HAS FAILED TO PROVE THE GENUINENESS OF RECEIPT OF MONEY FROM PARTNER SHRI ANIL KUMAR SHARMA. THE ASSESSEE COULD NOT PRO VE THE AVAILABILITY OF FUND TO THE TUNE OF RS.14 63 830/- WITH ANIL KUMAR SHARMA. THE ASSESSING OFFICER MADE THE ADDITION SINCE THE ASSESSEE HAS CREDITED THIS A MOUNT IN ITS BOOKS OF ACCOUNT. THE CIT(A) DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITION TO THE EXTENT OF RS.4 00 000/- ACCEPTING THE ASSESSEES EXPLANATION THAT THE SAID AMOUNT OF RS.4 00 000/- WAS GIFT RECEIVED BY PARTNER FROM HIS FATHER. THE CIT(A) NOTED WHILE DELETING THE SAID AMOUNT THAT IN THE REMAND R EPORT THE ASSESSING OFFICER DID NOT DOUBT ABOUT THE CREDITWORTHINESS AND GENUINENES S OF THE TRANSACTION. THE CIT(A) ACCEPTED RS.9 92 548/- ON ACCOUNT OF AGRICUL TURAL INCOME AND FOR BALANCE AMOUNT OF RS.5 00 000/- ADDITION WAS SUSTAINED BY T HE CIT(A). THE CIT(A) DID ITA NO.177/AGR/2011 A.Y. 2004-05 4 NOT ACCEPT THE ASSESSEES EXPLANATION THAT RS.71 28 2/- WAS OUT OF PAST SAVING. THUS OUT OF TOTAL ADDITION OF RS.14 63 830/- MADE BY THE ASSESSING OFFICER ON ACCOUNT CAPITAL CONTRIBUTION BY PARTNER SHRI A K SH ARMA THE CIT(A) SUSTAINED ADDITION TO THE EXTENT OF RS.5 71 282/- AND BALANCE AMOUNT OF RS.8 92 584/- HAS BEEN DELETED AGAINST WHICH THE REVENUE IS IN APPEAL . AS REGARDS WHETHER THE ASSESSEE HAS FILED ANY APPEAL OR NOT THE REGISTRY WAS DIRECTED TO REPORT IN THIS REGARD. ON THE BASIS OF RECORD IT WAS REPORTED TH AT NO APPEAL HAS BEEN FILED BY THE ASSESSEE. 5. ADMITTED FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM. THE ADDITION WAS MADE BY THE ASSESSING OFFICER AS ONE O F THE PARTNERS SHRI ANIL KUMAR SHARMA HAS INTRODUCED CAPITAL RS.14 63 830/- DURING THE YEAR UNDER CONSIDERATION. IN SUCH CASES IF THE ASSESSEE FIRM IS ABLE TO FURN ISH PRIMA FACIE EVIDENCE THAT AMOUNT DEPOSITED WAS AS CAPITAL CONTRIBUTION BY THE PARTNER UNDER SUCH CIRCUMSTANCES THE PARTNER IS TO EXPLAIN THE SOURCE OF DEPOSIT AND SUCH DEPOSIT IN THE FORM OF CAPITAL CONTRIBUTION CANNOT BE ADDED IN THE HANDS OF THE ASSESSEE FIRM AS HELD BY THE ALLAHABAD HIGH COURT IN THE CASE OF INDIA RICE MILLS VS. CIT 218 ITR 508 AND IN THE CASE OF CIT VS. JAISWAL MOTOR FI NANCE 141 ITR 706 (ALLD). IN THE CASE UNDER CONSIDERATION THE CIT(A) EXAMINED T HE EXPLANATION FURNISHED BY THE ASSESSEE AND DELETED PART OF ADDITION ON THE G ROUND THAT THE PARTNER OF THE FIRM ITA NO.177/AGR/2011 A.Y. 2004-05 5 HAS SEPARATELY EXPLAINED THE PART OF CAPITAL CONTRI BUTION. IN THE LIGHT OF THE ABOVE JUDGMENT OF JURISDICTIONAL HIGH COURT IN THE CASE O F INDIA RICE MILLS VS. CIT 218 ITR 508 AND IN THE CASE OF CIT VS. JAISWAL MOTOR FI NANCE 141 ITR 706 (ALLD) THE GROUND RAISED BY THE REVENUE HAVE NO SUBSTANCE. HOWEVER UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE WE CONFIRM THE ORDER OF THE CIT(A). 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSE D. (ORDER PRONOUNCED IN THE OPEN COURT ON 30.03.2012) SD/- SD/- (BHAVNESH SAINI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 30 TH MARCH 2012 PBN/* COPY OF THE ORDER FORWARDED TO: APPELLANT RESPONDENT CIT CONCERNED CIT (APPEALS) CONCERNED D.R. ITAT AGRA BENCH AGRA GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL AGRA TRUE COPY