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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI KUL BHARAT & SHRI MANISH BORAD
Appellant by N O N E Respondent by Shri R.S. Ambedkar, Sr. D.R. Date of Hearing: 11.11.2019 Date of Pronouncement: 04.12.2019 आदेश / O R D E R PER KUL BHARAT, J.M: This appeal by the assessee pertaining to the assessment year 2004-05 against order of the CIT(A), Ujjain dated 6.10.2014.
[ Gruh Nirman Sanstha, Ujjain]
Facts of the case are that earlier, this Tribunal had decided this appeal vide order dated 8.2.2016, thereafter, the assessee moved an application for modifying the order as the ground No.3 of the appeal remained to be decided.
This Tribunal vide order dated 7.6.2018 recalled the order dated 8.2.2016. Thereafter, an application was moved by the department pointing out that the assessee had requested to recall the order to the extent of deciding ground No.3. Therefore, vide order dated 24.7.2019, the Tribunal had modified its order dated 7.6.2018 and directed to fix the appeal for deciding ground No.3, after considering the joint request of the parties. No one appeared on behalf of the assessee. It is seen from the records that on the last date of hearing also, no one had appeared on behalf of the assessee, however, the Ld. D.R. was present. Therefore, this appeal is taken up for hearing
[ Gruh Nirman Sanstha, Ujjain] in the absence of the assessee. Ground No.3 of the appeal reads as under:
“3. On the facts and in the circumstances of the case the learned CIT(A) has erred in confirming addition of Rs.129085/- on account the interest payment were made to the members of society against the deposit made by these member’s for their plots.” 3. We find on record a submission dated 10.11.2015 by the authorised representative of the assessee in respect of ground No.3. We therefore proceed to decide ground No.3 in the absence of the assessee on the basis of material available on records. Submissions of the assessee are as under:
“Detail of interest payment is as under Shri Mukesh/Ramgopal Yadav Rs.16975/- The Ld A.O. made addition of Rs.16975/- in the income of assessee on the ground that confirmation letter was not produced by assessee. Our submission is as under:
[ Gruh Nirman Sanstha, Ujjain] [ Gruh Nirman Sanstha, Ujjain] [ Gruh Nirman Sanstha, Ujjain]
Ld. Sr. D.R. opposed these submissions and supported the orders of the authorities below. He submitted that the [ Gruh Nirman Sanstha, Ujjain] assessee failed to furnish confirmation from the parties to whom interest was paid. He took us through the assessment order para No.6 and the decision of the Ld. CIT at para No.4.3 of the impugned order.
We have considered the rival submissions, perused the materials available on records and gone through the orders of the authorities below. The Ld. CIT(A) has given a finding on fact in para No.4.3 of his order by observing as under:
4.3 Through this ground of appeal the appellant has challenged the addition of Rs.1,29,085/- on account of interest payment. The appellant has made the interest payment of Rs.2,22,300/-. The interest payment has been made to the members of the society against the deposit made by these members for their plot. The appellant failed to furnish the confirmations regarding interest payment except Smt. Vandana Joshi (Rs.58,400/-) and Smt. Madhuri Joshi (Rs.34,815/-). Therefore, the claim of the appellant is being allowed with respect to the interest payment to Smt. Vandana Joshi and Smt. Madhuri Joshi. The appellant failed to furnish the evidences in respect of interest payment claim of Rs.1,29,085/-. Therefore, the addition made by the A.O. amounting to Rs.1,29,085/- is confirmed. This ground of appeal is Dismissed.
6. The expenditure is disallowed for want of confirmation by the assessee. The contention of the assessee is that the [ Gruh Nirman Sanstha, Ujjain] receivers had duly acknowledged receipt of the interest.
Vouchers of payment of interest as per the assessee were enclosed in the paper book furnished before the Ld. CIT(A).
However, the Ld. CIT has not discussed about the vouchers filed by the assessee. In our considered view, the Ld. CIT(A) ought to have given some finding regarding the acknowledgement furnished by the assessee in the form of voucher. The A.O. has also not made any independent enquiry from the persons to whom the assessee claimed to have paid interest. In our considered view, the A.O. ought to have made some enquiry regarding this claim.
Therefore, the addition made is not justified and the A.O. is directed to delete this addition. Ground No.3 of the appeal is allowed. It is further clarified that the contents of the order dated 8.2.2016 thereby the other grounds have been decided would also form part of this order as well, same are not reproduced herein for the sake of brevity.
[ Gruh Nirman Sanstha, Ujjain]
In the result, the appeal filed by the assessee is allowed.
Order was pronounced in the open court on 04.12.2019.