LEVEL E SOLUTIONS P LTD., Jaipur v. ITO, Jaipur

ITA 291/JPR/2011 | 2005-2006
Pronouncement Date: 23-09-2011 | Result: Dismissed

Appeal Details

RSA Number 29123114 RSA 2011
Assessee PAN AAACL9440L
Bench Jaipur
Appeal Number ITA 291/JPR/2011
Duration Of Justice 5 month(s) 22 day(s)
Appellant LEVEL E SOLUTIONS P LTD., Jaipur
Respondent ITO, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 23-09-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 23-09-2011
Assessment Year 2005-2006
Appeal Filed On 01-04-2011
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO. 291/ JP/2011 ASSESSMENT YEAR 2005-06 PAN: AAACL 9440 L M/S. LEVEL E SOLUTIONS (P) LTD. VS. THE ITO 43-B GOPAL BARI WARD 2 (2) JAIPUR JAIPUR (APPELLANT ) (RESPONDENT) ASSESSEE BY: SHRI SIDHARTH RANKA DEPARTMENT BY : SHRI K.C. MEENA DATE OF HEARING: 19-09-2011 DATE OF PRONOUNCEMENT: 23-09-2011 ORDER PER N.L. KALRA AM:- THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORD ER OF THE LD. CIT(A) 1 JAIPUR DATED 07-02-2011 FOR THE ASSESSM ENT YEAR 2005-06. 2.1 THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 8.00 LACS MADE ON AC COUNT OF UNSECURED LOANS RECEIVED FROM SHRI NARESH GROVAR AS UNEXPLAINED CAS H CREDIT. 2.2 THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF SOFTWARE DEVELOPMENT. DURING THE YEAR UNDER CONSIDERATION T HE ASSESSEE HAS SHOWN UNSECURED LOAN OF RS. 8.00 LACS FROM SHRI NARESH GR OVAR. THE ASSESSEE WAS 2 REQUESTED TO FILE THE CONFIRMATION VIDE LETTER DATE D 18-09-2007 BUT NO CONFIRMATION WAS FILED BY THE ASSESSEE. THE ASSESSE E WAS REQUESTED TO FILE THE CONFIRMATION TIME AND AGAIN. IT WAS INTIMATED BY THE ASSESSEE VIDE LETTER DATED 5-11-07 THAT THE COPY OF I.T. RETURN OF SHRI NARESH GROVAR WILL BE SUBMITTED ON THE NEXT DATE OF HEARING BUT NOTHING W AS FILED BY THE ASSESSEE ON THE SUBSEQUENT DATE OF HEARINGS. THE AO THEREFOR E ADDED A SUM OF RS. 8.00 LACS AS UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT. 2.3 THE LD. CIT(A) HAS CONFIRMED THE ADDITION AFTER OBSERVING AS UNDER:- DURING THE HEARING OF APPEAL AN AFFIDAVIT WAS FILED ON BEHALF OF SHRI NARESH GROVAR ADMITTING GIV ING LOAN OF RS. 8.00 LACS TO THE ASSESSEE COMPANY BY CH EQUE. IT WAS STATED THAT CONFIRMATION COULD NOT BE FILED AS HE WAS OUT OF INDIA AND THEREAFTER HIS MOTHER WAS SERI OUSLY ILL. COPY OF AFFIDAVIT BEING ADDITIONAL EVIDENCE W AS FORWARDED TO THE AO FOR HIS REMAND REPORT ON 13-02- 09. REMINDERS WERE SENT TO THE AO ON 21-05-09 10-12-09 10-09-10 AND 10-01-11. AS THE AO HAS FORWARDED HIS COPIES OF LETTERS DATED 10-09-10 AND 10-01-11 REQUE STING TO FURNISH DOCUMENTARY EVIDENCE IN RESPECT OF CASH CREDITS THE APPEAL WAS FIXED FOR HEARING LAST TIME ON 7- 02011 WHEN THE A.R. HAS INFORMED IN WRITING THAT HE WAS NOT WELL AND THE APPELLANT HAS NOTHING TO FURNISH F URTHER. 3 BY GIVING PAN ALONGWITH COMPLETE ADDRESSES THE IDENTITY OF THE CREDITORS IS ESTABLISHED. THE APPEL LANT HAS NOT FILED COPY OF BANK ACCOUNT OF SHRI GROVAR. IN THE AFFIDAVIT SHRI GROVAR HAS STATED THAT HE HAS SENT RS. 5 LACS BY DEMAND DRAFT ON 20-02-04 AND RS. 3 LACS BY CHEQUE ON 15-3-04. BY NOT SUBMITTING COPY OF BANK ACCOUNT OF SHRI GROVAR AND ALSO BY NOT GIVING COMPL ETE DETAILS OF PAYMENTS RECEIVED LIKE NAME OF BANK WH ERE HE HAS BANK ACCOUNT AND WHERE BANK DRAFT WAS PRODUC ED THE APPELLANT FAILED TO DISCHARGE ITS BURDEN TO PRO VE THE CREDITWORTHINESS OF THE CREDITORS AS WELL AS GENUIN ENESS OF THE TRANSACTIONS. THE CREDIT OF RS. 8 LAC REMAIN S TO BE FULLY EXPLAINED AND THEREFORE ADDITION OF RS. 8 L ACS U/S 68 IS HEREBY CONFIRMED. AS SUCH THE GROUND OF APPE AL IS DECIDED AGAINST THE APPELLANT. 2.4 WE HAVE HEARD BOTH THE PARTIES. WE HAVE PERUSED THE COPY OF AFFIDAVIT FILED BY THE ASSESSEE BEFORE THE LD. CIT(A). IN THE AFFIDAVIT THE CREDITOR HAS NOT EXPLAINED THE SOURCE OF THE AMOUNT DEPOSITED WI TH THE ASSESSEE IN THE AFFIDAVIT IT IS SUBMITTED THAT A SUM OF RS. 5.00 L ACS WAS GIVEN THROUGH DRAFT ON 20-02-04 AND RS. 3.00 LACS BY CHEQUE ON 15-03-04 IN THE WRITTEN SUBMISSIONS THE LD. AR HAS SUBMITTED THAT THE AMOU NTS HAVE NOT BEEN CREDITED IN THE ASSESSMENT YEAR UNDER CONSIDERATION . HOWEVER WE HAVE 4 NOTICED THE ANNEXURE COPY OF SCHEDULE U/S 269SS ATT ACHED WITH THE PAPER BOOK. IN RESPECT OF THE CREDITOR SHRI NARESH GROVAR THE DETAILS ARE AS UNDER:- NAME ADDRESS & PAN (IF AVAILABLE WITH THE ASSESSEE ) OF THE LENDER OR DEPOSITOR AMOUNT OF LOAN TO THE EXTENT OR DEPOSIT TAKEN OR ACCEPTED WHETHER THE LOAN OR DEPOSIT WAS SQUARED UP DURING THE PREVIOUS YEAR MAXIMUM AMOUNT OUTSTANDING THE ACCOUNT AT ANY TIME DURING THE PREVIOUS YEAR WHETHER THE LOAN OR DEPOSIT WAS TAKEN OR ACCEPTED OTHERWISE THAN BY AN ACCOUNT PAYEE CHEQUE OR AN ACCOUNT PAYEE DRAFT 1.SHRI NARESH GROVAR NAGPUR PAN ADNPG0426 G 8 00 000/- NO 8 00 000/- BY CHEQUE ONLY 2.5 FROM THIS SCHEDULE IT IS CLEAR THAT THE AMOUNT S HAVE BEEN RECEIVED DURING PREVIOUS YEAR RELEVANT TO ASSESSMENT YEAR UN DER CONSIDERATION. THUS THE EVIDENCE WHICH IS AVAILABLE ON RECORD DOES NOT SHOW THAT AFFIDAVIT CANE BE ACCEPTED BECAUSE THE EVIDENCE ALONGWITH RETURN S HOWED THAT THE AMOUNTS HAVE BEEN DEPOSITED DURING THE YEAR UNDER CONSIDERA TION . BOTH THE LOWER AUTHORITIES PROVIDED SUFFICIENT OPPORTUNITY TO THE ASSESSEE TO FILE THE CONFIRMATION OF THE CREDITOR. WE THEREFORE HOLD TH AT THE LD. CIT(A) WAS JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 8.00 LA CS. 5 3. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DIS MISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 23-09 -2011 SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 23/09/2011 *MISHRA COPY FORWARDED TO :- 1. M/S. LEVEL E SOLUTIONS (P) LTD. JAIPUR 2. THE ITO . WARD 2(2) JAIPUR 3. THE LD. CIT BY ORDER 4. THE LD. CIT(A) 5. THE LD.DR 6. THE GUARD FILE (ITA NO.291/JP /11) A.R ITAT JAIPUR 6