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Income Tax Appellate Tribunal, JAIPUR BENCHES (SMC
Before: SHRI VIJAY PAL RAOvk;dj vihy la-@ITA No. 682 & 683/JP/2018
fu/kZkfjrh dh vksj ls@ Assessee by : Shri Nikhilesh Kataria (C.A.) jktLo dh vksj ls@ Revenue by : Smt. Runi Pal (JCIT) lquokbZ dh rkjh[k@ Date of Hearing : 18/09/2019 mn?kks"k.kk dh rkjh[k@ Date of Pronouncement : 20/09/2019 vkns'k@ ORDER PER: VIJAY PAL RAO, J.M. These two appeals by the assessee are directed against the composite orders of the ld. CIT(A)-2, Udaipur dated 23.03.2018 for the A.Ys. 2008-09 & 2009-10 respectively. The assessee has raised common grounds in these appeals. The ground raised for the assessment year 2008-09 are as under:-
2 ITA 682 &683/JP/18 Sh. Ganesh Goyal vs. ACIT
“1. Rs. 33600/- The ld. AO erred in law as well as on the facts of the present case in making addition on account of investment in LIP U/s 80C of the Act and the ld. CIT(A) erred in sustaining the same. 2. Rs. 462400/- The ld. AO erred in law as well as on the facts of the present case in making addition on account of creditors and the ld. CIT(A) erred in sustaining the same. The appellant prays your honor’s indulgence to add, amend, modify or delete all or any ground of appeal.”
2. At the time hearing, the learned counsel for the assessee has stated at bar that the assessee does not press ground no. 1 for both the appeals and therefore the same may be dismissed as not pressed. The ld. DR has raised no objection if ground no. 1 of the assessee’s appeals are dismissed as not pressed. Accordingly the ground no. 1 of the assessee’s appeals are dismissed being not pressed.
3. Ground no. 2 is regarding the addition made by the AO on account of outstanding creditors shown by the assessee at the end of the year. The AO has noted that there is outstanding credit balance of Rs. 4,62,400/- for the assessment year 2008-09 and Rs. 50,000/- for the assessment year 2009-10. The assessee was asked to furnish the confirmation of the creditor of M/s Srita Textile but no such confirmation was submitted by the assessee and consequently the AO has made the additions of the outstanding credit for both the assessment year. On appeal, the ld. CIT(A) has confirmed the addition on the ground that the assessee has not produced any evidence in support of the claim.
3 ITA 682 &683/JP/18 Sh. Ganesh Goyal vs. ACIT
Before the Tribunal, the ld. AR of the assessee submitted that while confirming the addition the ld. CIT(A) has given a liberty to the assessee to file the relevant proof before the AO while the appeal effect order is passed. He has pointed out that the AO has already passed the effect order without considering this issue and without giving opportunity to the assessee to file the relevant proof in respect of the credit in question. The ld. AR has also filed the copies of the giving effect order dated 18.04.2018 and submitted that the AO has not considered this aspect or to verify the relevant proof to be filed by the assessee. Hence, he has pleaded that the matter may be remanded to the record of the Assessing Officer for proper verification of the proof to be filed by the assessee.
On the other hand, the ld. DR has relied upon the orders of the authorities below.
I have considered the rival submissions as well as the relevant material on record. The AO has made additions of Rs. of Rs. 4,62,400/- for the assessment year 2008-09 and Rs. 50,000/- for the assessment year 2009-10 on account of the outstanding credit in the name of M/s Sarita Textile. The assessee was asked to file the confirmation, however the AO has stated in the order that no confirmation was filed by the assessee. The ld. CIT(A) though the recorded the fact that the assessee filed bank account of M/s Sarita Textile in support of the claim, however no other
4 ITA 682 &683/JP/18 Sh. Ganesh Goyal vs. ACIT evidence was filed. The ld. CIT(A) has decided in this in para 8.3 is as under:-
“8.3 No evidence is filed before me in any way, be it bank account as no 15670200001201 in the name of Sarita Textile being accounts of the assessee or confirmation. Therefore, I am not able to decide if this was account of the appellant himself or some third person. If it is account of the appellant as said by the AO, then also it is not sure if this account is accounted or not. Merely because, the assessment is made by estimating G.P. on turnover that would not absolve the appellant to produce confirmation of creditors or to prove that the account was accounted in the books of account. The appellant is free to file relevant proof before the AO while appeal effect order is passed. If nothing is produce for verification before the AO, this addition is would stand as confirmed.”
Thus, the ld. CIT(A) has granted the liberty to the assessee to file the relevant proof before the AO while the effect order is passed but the Assessing Officer has also passed the appeal effect order without considering the issue of addition made on account of credit balance. The assessee has claim that the amount was received from M/s Sarita Textile through cheques and it is also reflected in the bank account however, to prove the genuineness of the transaction the assessee has to file the relevant record as well as confirmation from the creditor. Since, the AO has not considered this issue while giving effect to the order of the ld. CIT(A) therefore, it is apparent that the finding of the ld. CIT(A) on this issue has not been given effect by the AO. Hence, in the facts and 5 ITA 682 &683/JP/18 Sh. Ganesh Goyal vs. ACIT circumstances of the case ground no. 2 of assessee’s appeal for both the assessment years is set aside to the record of the Assessing Officer for deciding afresh after verification of the relevant proof to be filed by the assessee in support of the claim.
In the result, assessee’s appeals are partly allowed for statistical purposes.
Order pronounced in the open court on 20/09/2019.
Sd/- ¼ fot; iky jko ½ (VIJAY PAL RAO) U;kf;d lnL; @Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 20/09/2019 *Santosh आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू vihykFkhZ@The Appellant- Sh. Ganesh Goyal, Ajmer. 1. izR;Fkh@ The Respondent- The ACIT, Central Circle, Ajmer. 2. vk;dj vk;qDr@ CIT 3. vk;dj vk;qDr¼vihy½@The CIT(A) 4. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZ QkbZy@ Guard File (ITA No. 682 & 683/JP/2018) 6. vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेज. त्महपेजतंत