MANOJ KUMAR KATARIA, Jaipur v. ITO, Dausa

ITA 178/JPR/2011 | 2006-2007
Pronouncement Date: 02-09-2011 | Result: Allowed

Appeal Details

RSA Number 17823114 RSA 2011
Bench Jaipur
Appeal Number ITA 178/JPR/2011
Duration Of Justice 6 month(s) 2 day(s)
Appellant MANOJ KUMAR KATARIA, Jaipur
Respondent ITO, Dausa
Appeal Type Income Tax Appeal
Pronouncement Date 02-09-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 02-09-2011
Assessment Year 2006-2007
Appeal Filed On 28-02-2011
Judgment Text
1 ITA 178-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 178/JP/2011 ASSTT. YEAR : 2006-07. SHRI MANOJ KUMAR KATARIA VS. THE INCOME-TAX OFFI CER PROP. M/S. M.S. MOTORS WARD DAUSA. C/O GUPTA GARG & CO. (CA) H-1/35 RAM VIHAR BUILDING OPP. GPO M.I. ROAD JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SATISH GUPTA RESPONDENT BY : SHRI D.K. MEENA DATE OF HEARING : 24.8.2011 DATE OF PRONOUNCEMENT : 02.09.2011. ORDER DATE OF ORDER : 02/09/2011. PER R.K. GUPTA J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2006-07. 2. THE ASSESSEE IS OBJECTING IN CONFIRMING THE ADDI TION OF RS. 6 69 350/- MADE UNDER SECTION 68 OF I.T. ACT. 3. AN ADDITION OF RS. 7 44 750/- WAS MADE BY AO UND ER SECTION 68 FOR WANT OF CONFIRMATION OF CREDITORS. OUT OF MANY CREDITORS 4 WERE PRODUCED BEFORE AO. HOWEVER AO WAS NOT SATISFIED AS IN HIS VIEW CREDITWORTHINES S AND GENUINENESS OF THE TRANSACTION REMAINED UNPROVED. ACCORDINGLY THE IMPUGNED ADDITIO N WAS MADE. IT WAS SUBMITTED 2 BEFORE LD. CIT (A) THAT ASSESSEE HAS TAKEN VERY SMA LL LOANS FROM 39 PERSONS WHICH WERE LATER ON REPAID BY THE ASSESSEE TO ALL THE CREDITOR S. IDENTITY OF ALL 39 PERSONS WAS PROVED AS CONFIRMATIONS OF ALL THE CREDITORS WERE FILED. 4 CASH CREDITORS WERE EXAMINED BY THE AO AND THEY HAVE CATEGORICALLY ADMITTED IN HAVING G IVEN LOANS TO THE ASSESSEE. RELIANCE WAS PLACED ON THE DECISION IN THE CASE OF KANHAIALA L JANGID 217 CTR 354 (RAJ.) IN THE CASE OF LABH CHAND BOHRA 219 ITR 571 (RAJ.) IN CA SE OF ORISSA CORPORATION PVT. LTD. 159 ITR 78 (SC) AND VARIOUS OTHER CASES. 4. AFTER CONSIDERING SUBMISSIONS AND PERUSING THE M ATERIAL ON RECORD THE LD. CIT (A) ALLOWED PART RELIEF OF RS. 75 400/- AS 4 CASH C REDITORS WERE PRODUCED. THE REMAINING AMOUNT OF RS. 6 69 350/- WAS CONFIRMED BY LD. CIT ( A). 5. NOW THE ASSESSEE IS IN APPEAL HERE BEFORE THE TR IBUNAL. 6. THE LD. COUNSEL OF THE ASSESSEE FILED WRITTEN SU BMISSIONS. 7. ON THE OTHER HAND THE LD. D/R HAS PLACED RELIAN CE ON THE ORDERS OF THE AO AND LD. CIT (A). 8. AFTER CONSIDERING SUBMISSIONS AND PERUSING THE M ATERIAL ON RECORD WE NOTED THAT ALL THE CREDITORS HAVE GIVEN PETTY LOANS RANGING BE TWEEN RS. 17 500/- TO RS. 19 800/- TO THE ASSESSEE. CONFIRMATIONS OF ALL THE CREDITORS W ERE FILED. A LETTER WAS ALSO FILED BEFORE AO STATING THAT IF THE AO IS NOT SATISFIED THEN HE MAY ISSUE SUMMONS TO THE CREDITORS FOR EXAMINATION. HOWEVER NO SUMMON WAS ISSUED UNDER S ECTION 131. THIS FACT WAS ALSO BROUGHT TO THE KNOWLEDGE OF THE LD. CIT (A). AS CO NFIRMATIONS OF ALL THE CREDITORS WERE FILED AND THEY WERE NOT FOUND INCORRECT THEREFORE WE HOLD THAT ASSESSEE HAS DISCHARGED HIS ONUS LAY UPON HIM. LOOKING TO THE SMALLNESS OF LOAN AMOUNT AND OTHER FACTORS AS DISCUSSED ABOVE WE ARE OF THE VIEW THAT AO AND LD. CIT (A) WERE NOT JUSTIFIED IN MAKING 3 AND CONFIRMING THE ADDITION UNDER SECTION 68. VARI OUS CASE LAWS RELIED UPON BEFORE LD. CIT (A) AS WELL AS HERE BEFORE THE TRIBUNAL ARE IN SUPPORT OF THE CASE OF THE ASSESSEE. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES WE DELET E THE ADDITION OF RS. 6 69 350/- MADE UNDER SECTION 68. 9. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . 10. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 02 .09.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR D/- COPY FORWARDED TO :- SHRI MANOJ KUMAR KATARIA MAHUWA. THE ITO WARD DAUSA. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 178/JP/2011) BY ORDER AR ITAT JAIPUR.