The ACIT, Central Circle-2,, Baroda v. Shri Kanubhai C.Patel,

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD B BENCH (BEFORE S/SHRI D.T. GARASIA JUDICIAL MEMBER AND A.N. PAHUJA ACCOUNTANT MEMBER) ITA.NO.2820/AHD/2007 ASSTT.YEAR : 2002-2003 ACIT CC-2 BARODA. VS. SHRI KANUBHAI C. PATEL AT.& POST VILLAGE BANEJADA BORSAD DIST. ANAND. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI H.N.SINGH ASSESSEE BY : SHRI B.T.THAKKAR O R D E R PER D.T. GARASIA JUDICIAL MEMBER: THIS IS REVENUES APPEAL AGAINST THE ORDER OF THE CIT(A)-IV AHMEDABAD DATED 13-2-2007. THE ONLY GROUND RAISED IN THE APPEAL IS AS UNDER: 1. THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN DELE TING THE ADDITION OF RS.7 50 000/- MADE ON ACCOUNT OF UNEXPLAINED EXP ENDITURE INCURRED BY THE ASSESSEE. 2. DURING THE COURSE OF SEARCH LOOSE PAPER FILES I NVENTORISED AS PER ANNEXURE-A/2 WAS FOUND AND SEIZED. ON PAGE NO.30 O F THE SAID ANNEXURE DETAILS REGARDING EXPENSES OF RS.13 28 600 WERE FOU ND. THE ASSESSEE SUBMITTED THAT RS.7 50 000/- WERE RECEIVED FROM VAR IOUS RELATIVES. THE ASSESSEE HAS ALSO FILED AFFIDAVITS OF SUCH PERSONS. THE EXPLANATION OF THE ASSESSEE WAS NOT ACCEPTED. THE AO HELD THAT IN SUC H LOOSE PAPERS THERE WAS NO REFERENCE THAT THESE MONEY HAS COME FROM VARIOUS PERSONS AS NOW CLAIMED. NONE OF THESE PERSONS WHOSE AFFIDAVITS HAVE BEEN FI LED REMEMBERED THE DATE OF SUCH MONEY BEING GIVEN. THEREFORE THE AO HAS MADE THE ADDITION OF RS.7 50 000/- AS UNACCOUNTED UNEXPLAINED INCOME OF THE ASSESSEE. 3. THE MATTER CARRIED TO THE CIT(A) AND THE CIT(A) HAS DELETED THE ADDITION. ITA.NO.2820/AHD/2007 -2- 2.1 I HAVE CAREFULLY CONSIDERED THE CONTENTIONS OF ID.COUNSEL AS WELL AS GONE THROUGH THE RECORDS. THE APPELLANT ALSO FILED AFFIDAVITS FROM ALL SEVEN PERSONS FROM WHOM MONEY WAS RECEIVED BY THE APPELLANT. HOWEVER THE ASSESSING OFFICER DID N OT FIND THIS EVIDENCE AS SATISFACTORY ON THE GROUND THAT DATES W ERE NOT MENTIONED IN THE AFFIDAVITS. ON PERUSAL OF THE ASSESSMENT ORD ER IT HAS BEEN NOTICED THAT THE ASSESSING OFFICER HAS NOT ASCERTAI NED ABOUT THE SANCTITY OF THE AFFIDAVITS FILED. ON PERUSAL OF JUD GMENT OF HON'BLE ALLAHABAD HIGH COURT IT HAS BEEN NOTICED THAT AFFI DAVIT FILED CANNOT BE REJECTED WITHOUT CALLING FURTHER DOCUMENT ARY EVIDENCE ETC. KEEPING IN VIEW OF ABOVE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS RESPECTFULLY FOLLOWING THE JUDGMENT OF HON' BLE ALLAHABAD HIGH COURT (SUPRA) THE ADDITION OF RS.7 50 000/- IS DELETED AND FIRST GROUND OF APPEAL IS ALLOWED. 4. WE HAVE HEARD RIVAL CONTENTIONS OF BOTH THE PART IES AND LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE WE FIND THAT THE CIT (A)HAS DELETED THE ADDITION ON THE GROUND THAT THE ASSESSE HAS FILED THE AFFIDAVIT AND ONCE THE AFFIDAVIT HAS BEEN FILED AS PER THE DECISION OF HONBLE ALLAHABAD HIG H COURT IN THE CASE OF SHRI SOHANLAL GUPTA VS. CIT 33 ITR 786 THE SAME CANNOT BE REJEC TED WITHOUT CALLING FURTHER DOCUMENTARY EVIDENCES. WE FIND THAT THE AO HAS NOT MADE ANY FURTHER INQUIRIES AND THE CIT(A) HAS DELETED THE ADDITION AND THEREFORE H IS ORDER IS JUST AND PROPER AND OUR INTEREFERENCE IS NOT REQUIRED. 5. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 9 TH APRIL 2010. SD/- SD/- (A.N.PAHUJA) ACCOUNTANT MEMBER (D.T. GARASIA) JUDICIAL MEMBER PLACE : AHMEDABAD DATE : 09-04-2010 VK* COPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT ITA.NO.2820/AHD/2007 -3- 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT. BY ORDER AR ITAT AHMEDABAD