NEERAJ VAISHNAV ,SHAJAPUR vs. THE ACIT 2(1) UJJAIN, UJJAIN

Assessee has raised following grounds of appeal;

Brief facts relating to this issue are that the assessee is an individual and earned income as commission agent. Return of income e-filed on 28.03.2015 declaring income of Rs.46,65,533/-. Survey u/s 133A of the Act was carried out on 09.07.2013. Case manually selected for scrutiny followed by serving of notices u/s 143(2) & 142(1) of the Act. During the course of assessment proceedings Ld. AO observed that there stood unsecured loan of Rs.5,00,000/- from Smt. Ratna Devi Vaishnav. The assessee failed to provide any document to explain the loan which resulted into addition u/s 68 for unexplained cash credit of Rs.5,00,000/-. Income assessed at Rs.51,06,533/-.

Aggrieved assessee preferred an appeal before the Ld. CIT(A) before whom it was claimed that alleged amount of Rs.5,00,000/- was received during the financial year 2011-12 relating to assessment year 2012-13 and not during assessment year 2014-15. Additional evidences filed in support of this claim were referred to assessing officer for giving remand report and the same was received by Ld. CIT(A) on 23.11.2017. However, Ld. CIT(A) confirmed the impugned addition for the failure on the part of the assessee to discharge the burden of proof by not establishing the genuineness creditworthiness of transactions. 2

Now assessee is in appeal before the Tribunal.

Ld. counsel for the assessee submitted that no additions should have been made for A.Y. 2014-15, as the alleged cash credit of Rs.5,00,000/- was received during the assessment year 2012-13. He also submitted that before Ld. CIT(A), copy of income tax return of Smt. Ratna Devi Vaishnav, affidavit and bank statement were filed. Thus he prayed for deletion of addition.

Per contra, Ld. Departmental Representative (DR) vehemently argued supporting the orders of lower authorities.

We have heard rival contentions and perused the records placed before us. Sole issue raised in this appeal relates to addition for unexplained cash credit of Rs.5,00,000/- being loan received from Smt. Ratna Devi. From perusal of the bank statement of Smt. Ratna Devi placed at page 8 of the paper book shows that she issued account payee cheques to the assessee on 14.12.2011 at Rs.5,00,000/-. Thus, this fact remains undisputed that the alleged cash credit was received by the assessee during F.Y. 2011-12 i.e. assessment year 2012-13. No such unsecured loan was received during the year under appeal. We, thus without going into the adjudication of the fact that whether the identity, genuineness and creditworthiness of the loan amount is established or not, are of the considered view that no addition could have been made during the financial year 2014-15 for unexplained cash credit because alleged amount was not received during the year under appeal. Action if ITANo.842/Ind/2018 Shri Neeraj Vaishnav any may have been taken by the revenue authorities under the provision of law for assessment year 2012-13 during which the alleged amount was received. Thus, the sole ground raised by the assessee is allowed.

In the result appeal of the assessee is allowed. The order pronounced in the open Court on 28.01.2020.