Santilata Sahoo, Cuttack v. DCIT, Cuttack

ITA 432/CTK/2011 | 2007-2008
Pronouncement Date: 17-02-2012

Appeal Details

RSA Number 43222114 RSA 2011
Assessee PAN ACTPS8378L
Bench Cuttack
Appeal Number ITA 432/CTK/2011
Duration Of Justice 4 month(s)
Appellant Santilata Sahoo, Cuttack
Respondent DCIT, Cuttack
Appeal Type Income Tax Appeal
Pronouncement Date 17-02-2012
Appeal Filed By Assessee
Bench Allotted DB
Tribunal Order Date 17-02-2012
Date Of Final Hearing 18-01-2012
Next Hearing Date 18-01-2012
Assessment Year 2007-2008
Appeal Filed On 17-10-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE : SHRI K.K.GUPTA AM AND SHRI K.S.S.PRASAD RAO JM ITA NO. 432/CTK/2011 (ASSESSMENT YEAR 2007 - 08) SMT.SANTILATA SAHO PROP.M/S.S.B.S.INDUSTRIES CHAULIAGANJ CUTTACK 753 004 PAN: ACT PS 8378 L VERSUS DCIT CIRCLE 1(1) CUTTACK. (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI B.PANDA AR FOR THE RESPONDENT SHRI S.C.MOHANTY DR DATE OF HEARING : 18.01.2012 DATE OF PRONOUNCEMENT : 17.02.2012 ORDER SHRI K.S.S.PRASAD RAO JM : THIS APPEAL IS FILED BY THE ASSESSEE HAVING BEEN AGGRIEVED BY THE ORDER DT.25.7.2011 OF THE COMMISSIONER OF INCOME - TAX (APPEALS) FOR THE ASSESSMENT YEAR 2007 - 08 IN THE CASE OF THE ASSESSEE. 2. THE ASSESSEE HAS RAISED THE SOLITARY ISSUE CHALLENGING THE ADDITION MADE OF 13 LAKHS U/S.68 OF THE I.T.ACT 196 CLAIMED BY THE ASSESSEE TAKEN AS LOAN FROM ONE BINOD CHANDRA SAHOO KARTA OF H.U.F. 3. BOTH THE PARTIES WERE HEARD REGARDING THE ISSUE AND ITS LEGAL IMPLICATION. 4. ON CAREFUL CONSIDERATION OF THE MATE RIAL MADE AVAILABLE TO THE TRIBUNAL IN THE LIGHT OF RIVAL SUBMISSIONS OF BOTH THE PARTIES THE RELEVANT FACTS ARE THAT THE ASSESSEE IS DOING BUSINESS OF FABRICATION OF GRILLS IN THE NAME & STYLE OF M/S.S.B.S. INDUSTRIES . DURING THE COURSE OF ASSESSMENT TH E ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAD OBTAINED UNSECURED LOAN OF 13 00 000. ON VERIFICATION OF EVIDENCE PRODUCED IN SUPPORT OF THE CLAIM THE ASSESSING OFFICER FOUND THAT THE LOANS HAD BEEN OBTAINED IN CASH FROM BINOD CHANDRA SAHOO (HUF) AND THE SOURCE OF THE CREDITOR WAS CLAIMED TO BE FROM HOUSE PROPERTY INCOME AND AGRICULTURE. THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE FAILED TO PRODUCE THE RETURNS OF INCOME FOR THE ASSESSMENT YEAR ITA NO.432/CTK/2011 2 UNDER CONSIDERATION BUT FILED THE RETURNS OF INCOME FO R ASSESSMENT YEAR 2008 - 09 WHICH REFLECTED A HOUSE PROPERTY INCOME OF 2 84 000. HOWEVER THERE WAS NO MENTION OF ANY AGRICULTURAL INCOME. THERE WAS NO ENTRY IN THE COLUMNS FOR ASSETS AND LIABILITY TO SUGGEST THAT THE LOAN WAS OUTSTANDING OR AVAILABILITY OF FUNDS. THEREFORE THE ASSESSING OFFICER HELD THAT THE CREDITWORTHINESS OF THE CREDITOR IS NOT ON CORRECT FOOTING. THUS THE ASSESSEE HAS FAILED TO DISCHARGE HER ONUS OF PROVING THE CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. HE THEREFORE MADE T HE ADDITION OF 13 00 000 TO THE TOTAL INCOME OF THE ASSESSEE AS UNEXPLAINED CASH CREDIT U/S.68. AGGRIEVED THE ASSESSEE PREFERRED APPEAL BEFORE THE LEARNED CIT(A) AND BEING UNSUCCESSFUL HAS COME UP IN THE PRESENT APPEAL BEFORE THE TRIBUNAL. 5. HAVING HEARD BOTH THE PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD . THE LEARNED AR OF THE ASSESSEE HAS FURNISHED ALL THE DETAILS IN THE PAPER BOOK AS TO THE AVAILABILITY OF FUNDS WITH THE CASH CREDITOR SHOWING THAT BESIDES RENT RECEIVED OF 95 000 THE CASH CREDITOR SH RI BINOD SAHOO HAS SHOWN INCOME OF 13 71 481.25 FROM SALE OF AGRICULTURAL LAND (PATERNAL PROPERTY) OF ABOUT A0.2545 DEC. IN SUPPORT OF WHICH THE ASSESSEE HAS ALSO FURNISHED THE COPIES OF SALE DEED ETC. FROM WHICH IT IS NOTICED THAT THE CASH CREDITOR HA D SUFFICIENT FUNDS TO GIVE LOAN OF 13 00 000 TO THE ASSESSEE. WE FIND THAT THE AUTHORITIES BELOW HAVE NOT EXAMINED THESE DOCUMENTS AND THEREFORE WE SET ASIDE THE IMPUGNED ORDERS OF THE DEPARTMENTAL AUTHORITIES AND RESTORE THE ISSUE TO THE FILE OF THE AS SESSING OFFICER FOR DE NOVO CONSIDERATION IN THE LIGHT OF THE EVIDENCES PRODUCED IN THE PAPER BOOK AND THEREAFTER PASS NECESSARY CONSEQUENTIAL ORDER OF COURSE STRICTLY FOLLOWING THE PRINCIPLES OF NATURAL JUSTICE BY GIVING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO.432/CTK/2011 3 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. S D/ - SD/ - (K.K.GUPTA) ACCOUNTANT MEMBER (K.S.S.PRASAD RAO) JUDICIAL MEMBER DATE: 17.02.2012 H.K.PADHEE SENIOR PRIVATE SECRETARY. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT: SMT.SANTILATA SAHO PROP.M/S.S.B.S.INDUSTRIES CHAULIAGANJ CUTTACK 753 004 2. THE RESPONDENT: DCIT CIRCLE 1(1) CUTTACK. 3. THE CIT 4. THE CIT(A) 5. THE DR C UTTACK 6. GUARD FILE (IN DUPLICATE) TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY.