The ACIT, Bhopal v. M/s Jyoti construction Co., Harda

ITA 220/IND/2009 | 2005-2006
Pronouncement Date: 10-05-2010 | Result: Dismissed

Appeal Details

RSA Number 22022714 RSA 2009
Assessee PAN AADFJ4369G
Bench Indore
Appeal Number ITA 220/IND/2009
Duration Of Justice 1 year(s) 8 day(s)
Appellant The ACIT, Bhopal
Respondent M/s Jyoti construction Co., Harda
Appeal Type Income Tax Appeal
Pronouncement Date 10-05-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 10-05-2010
Date Of Final Hearing 06-05-2010
Next Hearing Date 06-05-2010
Assessment Year 2005-2006
Appeal Filed On 02-05-2009
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE BEFORE SHRI JOGINDER SINGH JUDICIAL MEMBER AND SHRI V.K. GUPTA ACCOUNTANT MEMBER ITA NO.220/IND/2009 A.YS. 2005-06 ASSTT. COMMISSIONER OF INCOME TAX 1(1) BHOPAL . APPELLANT VS M/S JYOTI CONSTRUCTION COMPANY HARDA (PAN AADFJ 4369 G) . RESPONDENT APPELLANT BY : SHRI V.K. KARAN RESPONDENT BY : SHRI S.S. DESHPANDE CA O R D E R PER JOGINDER SINGH JM THIS APPEAL IS BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(A) DATED 3.2.2009 ON THE GROUND THAT THE LD. FI RST APPELLATE AUTHORITY ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE ERRED IN DELETING THE ADDITION OF RS.8 LACS MADE U/S 68 AS UNEXPLAINED CR EDIT IN THE NAME OF SHRI MANGILAL PATEL. 2. DURING HEARING OF THIS APPEAL WE HAVE HEARD SHR I V.K. KARAN SENIOR DEPARTMENTAL REPRESENTATIVE AND SHRI S.S. DESHPANDE 2 LD. COUNSEL FOR THE ASSESSEE. THE CRUX OF ARGUMENTS ON BEHALF OF THE REVENUE IS IN SUPPORT TO THE IMPUGNED ADDITION WHER EAS THE LEARNED COUNSEL FOR THE ASSESSEE SUPPORTED THE IMPUGNED ORD ER. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON THE FILE. BRIEF FACTS ARE TH AT THE ASSESSEE IS A PARTNERSHIP FIRM ENGAGED IN CONTRACT BUSINESS DECL ARED TOTAL INCOME OF RS.1 83 768/- IN ITS RETURN ANNEXED WITH AUDITED AC COUNTS ON 27.10.2005. IN RESPONSE TO THE NOTICES THE ASSESSEE FURNISHED WRITTEN SUBMISSIONS TO THE QUERIES RAISED DURING THE ASSESSMENT PROCEED INGS. THE BOOKS OF ACCOUNTS BILLS VOUCHERS ETC. PRODUCED BY THE ASS ESSEE WERE TEST CHECKED BY THE LEARNED ASSESSING OFFICER. THE ASSE SSEE ALSO SHOWED AN AMOUNT OF RS.26 45 111/- ON ACCOUNT OF UNSECURED LOANS. DURING THE ASSESSMENT PROCEEDINGS THE ASSESSEE FILED CONFIRMAT ION LETTERS FROM THE CREDITORS. IT WAS FOUND BY THE ASSESSING OFFICER T HAT MOST OF THE UNSECURED LOANS WERE RECEIVED FROM FAMILY MEMBERS A ND FROM OTHER PERSONS ALSO. THE ASSESSEE WAS ASKED TO PRODUCE SH RI VINAY AGRAWAL SHRI RAJIV MOHTA AND SHRI MAGNILAL PATEL. THE STAT EMENT OF SHRI AGRAWAL AND SHRI MOHTA WERE RECORDED BY THE ASSESSING OFFIC ER ON 30.7.2007. SINCE SHRI MAGNILAL PATEL WAS AN AGED PERSON AND AL SO A HEART PATIENT COULD NOT BE PRODUCED WHEREAS VIDE LETTER DATED 3.1 0.2007 THE ASSESSEE FILED THE COPY OF BANK ACCOUNTS STATEMEN T OF AFFAIRS OF SHRI MAGNILAL PATEL SUPPORTED BY THE AFFIDAVIT. SHRI MA GNILAL PATEL WAS HAVING 3 16.74 HECTARES OF AGRICULTURAL LAND. THE ASSESSEE ALSO FILED LEASE AGREEMENT OF SHRI MAGNILAL PATEL WITH SHRI NANDRAM. THE ASSESSEE RECEIVED RS. 8 LACS FROM SHRI MAGNILAL PATEL. THE ASSESSING OFFICER EXAMINED THE DETAILS OF CREDIT AND DEBIT ENTRIES OF THE ACCOUNT OF SHRI MAGNILAL PATEL AS IS MENTIONED FROM PAGES 4 AND 5 A ND FINALLY TREATED THE AMOUNT AS UNEXPLAINED CREDIT U/S 68 OF THE ACT AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. ON APPEAL THE LEARNED COM MISSIONER OF INCOME TAX (APPEALS) DELETED THE ADDITION BY HOLDIN G THAT THE ASSESSEE HAS FULLY EXPLAINED THE IDENTITY CREDIT WORTHINESS AND GENUINENESS OF THE LENDER. THE IDENTITY WAS PROVED WITH THE HELP OF L AND HOLDING COPY OF BANK PASSBOOK AND AFFIDAVIT OF SHRI MAGNILAL PATEL. FOR CREDIT WORTHINESS AND GENUINENESS OF TRANSACTIONS THE FOL LOWING DOCUMENTS WERE CLAIMED TO BE SUBMITTED BEFORE THE AUTHORITIES BELOW :- (I) COPY OF LAND HOLDING OF SHRI MANGILAL PATEL OF 16.74 ACRE AGRICULTURE LAND WAS SUBMITTED. FULL PARTICULARS OF LAND WERE ALSO DETAILED IN AFFIDAVIT. (II) COPY OF LEASE LAND AGREEMENT FOR 15.00 ACRES O F LAND CULTIVATED BY MR. MANGILALPATEL WAS ALSO SUBMITTE D ALONG WITH COPY OF KHASRA KHATONI OF LAND. (III) COPY OF BANK PASS BOOK AND OVERDRAFT ACCOUNT WAS SUBMITTED. 4 (IV) DETAILED STATEMENT OF AFFAIR OF SHRI MAGNILAL PATEL SHOWING EACH AND EVERY ENTRY. (V) COPY OF ACCOUNT IN M/S JYOTI CONSTRUCTION COMPA NY SHOWING OPENING BALANCE OF RS. 6 00 000/- AS ON 01.04.200 4. (VI) ALL THE TRANSACTIONS WERE ROUTED THROUGH ACCOU NT PAYEE CHEQUES. (VII) COPY OF BANK PASS BOOK OF MR. MANGILAL PATEL. (VIII) COPY OF BANK ACCOUNT OF M/S JYOTI CONSTRUCTI ON COMPANY. (IX) SHRI MAGNILAL PATEL HIMSELF ACCEPTED THE TRANS ACTION THROUGH AFFIDAVIT (X) THE ENTIRE LOAN WAS REPAID THROUGH ACCOUNT PAYE E CHEQUE TO SHRI MAGNILAL PATEL. THE COPY OF ACCOUNT OF 2007 -08 WAS ALSO FURNISHED. IN THE LIGHT OF THE ABOVE IT CAN BE SAID THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ADOPTED A FAIR APPROACH IN DEL ETING THE ADDITION. THE RATIO LAID DOWN IN THE CASE OF STL EXTRUSION PR IVATE LIMITED [IT(SS)A NOS.259 AND 260/IND/2008] BY INDORE BENCH OF THE TRIBUNAL FURTHER FORTIFIES THE CASE OF THE ASSESSEE. THE AS SESSEE HAS DULY DISCHARGED ITS ONUS BY PROVING THE IDENTITY CAPACI TY AND GENUINENESS OF THE TRANSACTION. IT IS PERTINENT TO MENTION HERE T HAT EVEN THE LOAN AMOUNT WAS REPAID THROUGH ACCOUNT PAYEE CHEQUE AND THE COP Y OF ACCOUNT OF SHRI MAGNILAL PATEL OF ASSESSMENT YEAR 2007-08 WAS DULY SUBMITTED 5 BEFORE THE ASSESSING OFFICER. THE RATIO LAID DOWN I N ADDL. CIT V. BAHRI BROTHERS PRIVATE LIMITED; 154 ITR 244 (PAT) FURTHER FORTIFIES THE CASE OF THE ASSESSEE. SINCE NO CONTRARY MATERIAL WAS BROUG HT ON RECORD BY THE REVENUE THEREFORE WE HAVE FOUND NO INFIRMITY IN T HE CONCLUSION DRAWN B BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) THEREFORE IT IS AFFIRMED. FINALLY THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 10 TH MAY 2010. SD SD (V.K. GUPTA) (JOGINDER SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MAY 10 2010 COPY TO: APPELLANT RESPONDENT CIT CIT(A) DR G UARD FILE *DBN/