Smt. Kreeti Chhabra, Dewas v. THE ADDL. CIT RANGE-1, Ujjain

ITA 437/IND/2016 | 2011-2012
Pronouncement Date: 05-10-2016 | Result: Partly Allowed

Appeal Details

RSA Number 43722714 RSA 2016
Assessee PAN ALRPC7001R
Bench Indore
Appeal Number ITA 437/IND/2016
Duration Of Justice 5 month(s) 2 day(s)
Appellant Smt. Kreeti Chhabra, Dewas
Respondent THE ADDL. CIT RANGE-1, Ujjain
Appeal Type Income Tax Appeal
Pronouncement Date 05-10-2016
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 05-10-2016
Assessment Year 2011-2012
Appeal Filed On 03-05-2016
Judgment Text
SMT. KIRTI CHHABRA ITA NO. 437/IND/2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE .. ..!' #$ # !% BEFORE SHRI D.T. GARASIA JUDICIAL MEMBER AND SHRI O.P. MEENA ACCOUNTANT MEMBER I.T.A. NO. 437/IND/2016 ASSESSMENT YEAR: 20011-12 SMT. KIRTI CHHABRA DEWAS PAN ALRPC 7001R :: APPELLANT VS ADDL. CIT RANGE 1 UJJAIN :: RESPONDENT /APPELLANT BY SHRI S.S. DESHPANDE RESPONDENT BY SHRI K.G. GOYAL ! DATE OF HEARING 8.9.2016 '#$% ! DATE OF PRONOUNCEMENT 5.10.2016 ' O R D E R PER SHRI D.T. GARASIA JM THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A) UJJAIN DATED 1.3.2016. SMT. KIRTI CHHABRA ITA NO. 437/IND/2016 2 2. THE ONLY GROUND PRESSED BEFORE THE TRIBUNAL IS THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN SUSTAININ G THE ADDITION OF RS. 9 LACS ON ACCOUNT OF CASH CREDIT. 3. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE IS EARNING INCOME FROM TUITION CAPITAL GAIN AND INTEREST. THE ASSESSING OFFICER HAS MADE THE ADDITION OF CASH CREDIT OF RS.9 LACS. THE ASSESSEE HAS TAKEN UNSECURED LOAN FROM M/S SAI TRADERS ON 29.5.2010 23.3.2011 AND 25.3.2011 AMOUNTING TO RS.2 LACS RS. 5 LACS AND RS. 2 LACS RESPECTIVELY BY ACCOUNT PAYEE CHEQUE. THE ASSESSEE HAS FILED LOAN CONFIRMATION LETTER CONTAINING COMPLETE DETAILS OF TRANSACTION COPY OF INCOME TAX RETURN AND BANK ACCOUNT. THE LEARNED ASSESSING OFFICER VERIFIED THE CASH BOOK AND THE LENDER WAS OUT OF STATION AND HE DID NOT APPEAR BEFORE THE ASSESSING OFFICER AND FILED COPY OF ACCOUNT OF THE LENDER WITH THE STATE BANK OF INDIA. THE LENDER HAS WITHDRAWN THE SMT. KIRTI CHHABRA ITA NO. 437/IND/2016 3 AMOUNT FROM CC LOAN ACCOUNT WITH BANK OF BARODA AND DEPOSITED THE SAME INTO STATE BANK OF INDIA. THE LENDER IS DOING THE BUSINESS OF ANAJ MANDI. THE LEARNED ASSESSING OFFICER WAS OF THE VIEW THAT THE LENDER HAS NO CAPACITY TO GIVE THE LOAN THEREFORE HE DISALLOWED THE SAME WHICH THE LEARNED CIT(A) HAS CONFIRMED. THE RELEVANT FINDINGS OF THE LEARNED CIT( A) ARE AS UNDER :- GROUND NOS. 1 2 & 3 :- THROUGH THESE GROUNDS OF APPEAL THE APPELLANT HAS CHALLENGED THE ADDITION OF RS.9 00 000/- ON ACCOUNT OF UNPROVED LOAN. THE APPELLANT HAS TAKEN THE LOAN OF RS.9 00 000/- FROM SHRI SAI TRADERS. SHRI SAI TRADERS BEFORE ADVANCING THE LOAN TO THE APPELLANT MADE THE CASH DEPOSIT BEFORE ISSUING THE CHEQUE. THE DETAILS ARE AS UNDER :- SMT. KIRTI CHHABRA ITA NO. 437/IND/2016 4 DATE DEPOSIT/WITHDRAWAL BY AMOUNT (IN RS.) 21.05.2010 BY CASH DEPOSIT RS.2 00 000 29.05.2010 TO ASSESSEE RS.2 00 000 23.03.2011 BY CASH DEPOSIT RS.15 00 000 23.03.2011 TO ASSESSEE RS.5 00 000 25.03.2011 BY CASH DEPOSIT RS.7 00 000 25.03.2011 TO ASSESSEE RS.2 00 000 THE PROPRIETOR OF M/S SHRI SAI TRADERS SUBMITTED THAT THE ABOVE CASH DEPOSIT HAS BEEN MADE AFTER MAKING WITHDRAWAL FROM CC ACCOUNT WITH BANK OF BARODA DEWAS BRANCH. THE CASH WITHDRAWAL HAS BEEN MADE IN THE MONTH OF MARCH 2011 WHEREAS THE CASH DEPOSIT IS ALSO PERTAINING TO MAY 2010. THE ENTRIES OF THE WITHDRAWAL CANNOT BE CO-RELATED WITH THE CASH DEPOSIT MADE IN THE BANK ACCOUNT. DURING THE SMT. KIRTI CHHABRA ITA NO. 437/IND/2016 5 COURSE OF REMAND PROCEEDINGS THE A.O. RECORDED THE STATEMENT OF SHRI RAJESH RATHORE (PROP. M/S SHRI SAI TRADERS) ON 03.11.2015. IN THE STATEMENT SHRI RAJESH RATHORE FAILED TO EXPLAIN THE PURPOSE OF WITHDRAWING OF SUCH HUGE CASH AND KEEPING IT AT THE HOUSE WITHOUT ANY REASON. THEREFORE THE APPELLANT FAILED TO ESTABLISH THE CREDIT WORTHINESS AND GENUINENESS OF THE TRANSACTION. THEREFORE THE ADDITION MADE BY THE A.O. AMOUNTING TO RS.9 00 000/- IS CONFIRMED. THE APPEAL ON THESE GROUNDS IS DISMISSED. AGAINST THE ABOVE FINDINGS OF THE LEARNED CIT(A) THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. BEFORE US THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT ALL THE NECESSARY EVIDENCES HAVE BEEN PRODUCED BEFORE THE LD. CIT(A) BY WAY OF BANK STATEMENTS. ALL ENTRIES ARE APPEARING IN THE CASH BOOK SMT. KIRTI CHHABRA ITA NO. 437/IND/2016 6 OF THE LENDER. THERE IS NO DISPUTE REGARDING THE LOAN TAKEN FROM THE BANK. IT WAS FURTHER SUBMITTED THAT THE CASH WITHDRAWN FROM THE BANK WAS HARDLY KEPT FOR TEN TO FIFTEEN DAYS WHICH WAS EXPLAINED BY THE CREDITOR THAT IT WAS WITHDRAWN FOR THE BUSINESS PURPOSES FOR THE PURCHASE OF THE GRAINS IN THE MANDI. HE THUS SUBMITTED THAT THE SOURCE OF SOURCE IS ALSO PROVED AND SINCE THE TRANSACTIONS HAVE BEEN ROUTED THROUGH BANK THE GENUINENESS CANNOT BE DOUBTED. 5. ON THE OTHER HAND THE LD. DR RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 6. WE HAVE HEARD BOTH THE SIDES. WE FIND THAT IN THE STATEMENT RECORDED BY THE A.O. THE LENDER HAS ADMITTED THE FACT ABOUT ADVANCING THE LOAN TO THE ASSESSEE AND HAS ALSO FILED THE NECESSARY BANK STATEMENTS TO PROVE THE SOURCE OF THE ADVANCE. IN VIEW OF THIS WE ARE OF THE VIEW THAT THE CREDITS STAND FU LLY SMT. KIRTI CHHABRA ITA NO. 437/IND/2016 7 EXPLAINED AND THERE IS NO WARRANTY TO SUSTAIN THE ADDITION. WE THUS SET ASIDE THE ORDER OF THE LEARNED CIT(A) AND ALLOW THIS GROUND OF THE ASSESSEE. 7. AT THE TIME OF HEARING THE GROUND NO. 2 WAS NOT PRESSED BY THE LEARNED COUNSEL FOR THE ASSESSEE. THE SAME IS THEREFORE DISMISSED. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE STANDS PARTLY ALLOWED. PRONOUNCED IN OPEN COURT ON 5.10.2016 SD/- SD/- ( ..!') (..) #$ ( (O.P.MEENA) (D.T.GARASIA) ACCOUNTANT MEMBER J UDICIAL MEMBER (') / DATED : 5.10.2016. DN/