ITO, Jaipur v. MAHABALI BUILDERS & DEVE., Jaipur

ITA 273/JPR/2011 | 2006-2007
Pronouncement Date: 16-09-2011 | Result: Dismissed

Appeal Details

RSA Number 27323114 RSA 2011
Bench Jaipur
Appeal Number ITA 273/JPR/2011
Duration Of Justice 5 month(s) 17 day(s)
Appellant ITO, Jaipur
Respondent MAHABALI BUILDERS & DEVE., Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 16-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 16-09-2011
Assessment Year 2006-2007
Appeal Filed On 30-03-2011
Judgment Text
1 ITA 273-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 273/JP/2011 ASSTT. YEAR : 2006-07. THE INCOME-TAX OFFICER VS. M/S. MAHABALI BUILDER S & DEV. WARD 2(4) 80/354 MANSAROVAR JAIPUR. JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K. MEENA RESPONDENT BY : NONE DATE OF HEARING : 12.9.2011. DATE OF PRONOUNCEMENT : 16.9.2011. ORDER DATE OF ORDER : 16/09/2011. PER R.K. GUPTA J.M. THIS IS AN APPEAL BY DEPARTMENT AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2006-07. 2. THE DEPARTMENT IS OBJECTING IN DELETING THE ADDI TION OF RS. 9 75 000/- MADE BY AO UNDER SECTION 68 OF THE IT ACT. 3. THE LD. D/R PLACED RELIANCE ON THE ORDER OF AO. 4. ON THE OTHER HAND NONE APPEARED ON BEHALF OF THE ASSESSEE. THE APPEAL IS BEING DISPOSED OFF AFTER CONSIDERING THE ORDERS OF THE AO AND LD. CIT (A). 5. DURING THE ASSESSMENT PROCEEDINGS THE AO NOTICE D THAT THE PARTNERS OF THE ASSESSEE FIRM INTRODUCED THEIR FUNDS THROUGH CASH O R THROUGH THEIR BANK ACCOUNTS TO PURCHASE THE AGRICULTURAL LAND. HOWEVER WHEN ASKED TO EXPLAIN THE SAME THE ASSESSEE 2 COULD NOT PRODUCE THE BOOKS OF ACCOUNT FOR VERIFICA TION. CERTAIN DETAILS FILED DURING ASSESSMENT PROCEEDINGS WERE EXAMINED AND THE POSITI ON IN RESPECT OF EACH PARTNER WAS ALSO EXAMINED. IT WAS NOTICED THAT PARTNER SHRI RAM PRATAP INTRODUCED CASH OF RS. 3 48 200/-. COPY OF RETURN OF SHRI RAM PRATAP DALL HUF WAS ALSO FILED. THE AO NOTICED THAT SINCE THE ASSESSMENT HAS NOT BEEN COMPLETED IN CASE OF SHRI RAM PRATAP THEREFORE HE MADE AN ADDITION OF RS. 3 48 200/- ON ACCOUNT OF UNEXPLAINED DEPOSIT BY PARTNER. THE AO FURTHER NOTED THAT ANOTHER PARTNER SHRI KRISHAN KUMAR GHORELA HAS DEPOSITED RS. 7 00 000/- THROUGH HIS BANK ACCOUNT AND A SUM OF RS . 3 00 000/- WAS DEPOSITED IN CASH IN THE BANK ACCOUNT. THE SOURCE OF CASH OF RS. 3 00 0 00/- WAS CLAIMED TO BE CASH RECEIVED FROM M/S. AGAMPUR TRADING CO. HANUMANGARH. CERTIF ICATE FROM THE FIRM WAS ALSO FILED. THE AO ALSO NOT ACCEPTED THIS DEPOSIT OF RS. 3 00 0 00/- BY OBSERVING THAT BOOKS OF ACCOUNT OF M/S. AGAMPUR TRADING CO. COULD NOT BE PR ODUCED. THE AO FURTHER NOTICED THAT ANOTHER PARTNER SHRI JAI NARAYAN HAS DEPOSITED RS. 6 00 000/- OUT OF WHICH RS. 1.5 LAC WAS INTRODUCED IN CASH. NO SATISFACTORY EXPLANA TION WAS GIVEN IN RESPECT OF CASH DEPOSIT. THEREFORE HE MADE ADDITION OF THIS AMOUNT ALSO. IN THIS WAY TOTAL ADDITION OF RS. 9.75 LACS WAS MADE BY AO UNDER SECTION 68 IN THE HA NDS OF THE ASSESSEE FIRM. 6. DETAILED WRITTEN SUBMISSIONS WERE FILED BEFORE L D. CIT (A). IT WAS SUBMITTED THAT ALL THE PARTNERS ARE REGULARLY ASSESSED TO TAX AND THEY HAVE THEIR AGRICULTURAL HOLDING ALSO. PAN NUMBERS OF ALL THE PARTNERS WERE GIVEN. THEREFO RE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION. AFTER CONSIDERING THE SUBMISSIONS A ND PERUSING THE MATERIAL ON RECORD THE LD. CIT (A) NOTED THAT PARTNERS HAVE EXPLAINED THEI R SOURCE OF INCOME AND HAVE ALSO EXPLAINED THE SOURCE OF DEPOSIT. THEREFORE NO ADDI TION COULD HAVE BEEN MADE IN THE HANDS OF THE FIRM. RELIANCE WAS PLACED ON THE DECIS ION OF HONBLE JURISDICTIONAL HIGH 3 COURT IN THE CASE OF KANHAIYA LAL JANGID 8 DTR 38. HE FURTHER OBSERVED THAT ALL THE EVIDENCES WERE FURNISHED IN SUPPORT OF THE CASE OF THE ASSESSEE AND AO SHOULD HAVE ACCEPTED THESE EVIDENCES. ACCORDINGLY HE DELETED T HE ADDITION BY FURTHER OBSERVING THAT ONUS LAY UPON ASSESSEE HAS BEEN DULY DISCHARGED. 7. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A) WE FIND NO INFIRMITY IN THE FINDING OF LD. CIT (A) AS THE FINDINGS OF LD. C IT (A) ARE FINDING OF FACT. THE PARTNERS HAVE MADE THE DEPOSITS IN THE FIRM THEY ARE ASSESS ED TO TAX. SOURCE OF DEPOSIT HAVE ALSO BEEN EXPLAINED BY THEM BY FILING THE REQUIRED DETAI LS. EVEN OTHERWISE IF ANY ADDITION CAN BE MADE THAT COULD BE MADE IN THE HANDS OF PARTNERS AND NOT IN THE HANDS OF FIRM AS ALL THE PARTNERS ARE ASSESSED TO TAX AND COMPLETE INFORMATI ON IN REGARD TO SOURCE OF DEPOSIT HAVE BEEN FURNISHED BY THEM. IN VIEW OF THESE FACTS AND CIRCUMSTANCES AND IN VIEW OF THE REASONING GIVEN BY LD. CIT (A) WE CONFIRM HIS ORDER . 8. IN THE RESULT APPEAL OF THE DEPARTMENT IS DISMI SSED. 9. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 16. 9.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR D/- COPY FORWARDED TO :- THE ITO WARD 2(4) JAIPUR. M/S. MAHABALI BUILDERS & DEVE. JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 273/JP/2011) BY ORDER AR ITAT JAIPUR. 4