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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: HON’BLE KUL BHARAT & HON’BLE MANISH BORAD
PER MANISH BORAD, AM.
The above captioned appeal filed at the instance of assessee
pertaining to Assessment Year 2012-13 is directed against the
orders of Ld. Commissioner of Income Tax (Appeals)-I (in short
‘Ld.CIT(A)’], Indore dated 30.01.2017 which are arising out of the
Juzer Bannatwala ITA No.354/Ind/2017
order u/s 143(3) of the Income Tax Act 1961(In short the ‘Act’)
dated 23.03.2015 framed by ITO-2(4), Indore.
The assessee has raised following grounds of appeal;
“1. That the learned CIT(A) erred in confirming the addition of Rs.35,00,000/- on account of alleged unexplained creditors u/s 68. That the assessee has proved all the ingredients of section 68, the addition so made require to be deleted”.
From perusal of the record, we find that the instant appeal is
time barred by 9 days. We have gone through the submission for
condonation of delay along with the affidavit and find that the
assessee was suffering from illness which prevented him from filing
appeal before the Tribunal. We, in the interest of justice and the
reasonable cause mentioned in the affidavit, condone the delay of 9
days and admitt the appeal for adjudication.
At the outset Ld. Counsel for the assessee referring to the
affidavit of Shri Sohanlal Kumawat submitted that he is one of the
alleged unexplained creditor and the affidavit has been filed in order
to explain the cash credit. He prayed for granting one more
opportunity to go before the Ld.A.O so as to explain the alleged
Juzer Bannatwala ITA No.354/Ind/2017
creditors of Rs.35,00,000/- which was added to the income by
Ld.A.O u/s 68 of the Act. He also stated as an Officer of the court,
that all the alleged creditors, for which the addition has been made
by the Ld.A.O, shall be produced before the Ld.A.O in the set aside
proceedings, so that the Learned Assessing Officer can confront the
creditors so as to satisfy about the identity, genuineness and
creditworthiness of the cash creditors of Rs.35,00,000/-.
Per contra Ld. Departmental Representative though supported
the orders of lower authorities but did not oppose this request of
the Ld. Counsel for the assessee for afresh adjudication of the issue
subject to the personal appearances of all the alleged cash creditors
before the Ld.A.O to be examined for the identity, genuineness and
creditworthiness.
We have heard rival contentions and perused the records
placed before us. We find that the assessee is engaged in the
business of plying light vehicle, brokerage and agricultural income.
Return of income was filed on 03.01.2013 declaring income of
Juzer Bannatwala ITA No.354/Ind/2017
Rs.2,30,246/-. The case was selected for scrutiny u/s 143(2) of the
Act and the assessment u/s 143(3) was completed on 23.03.2015
after making addition of unexplained cash creditors of
Rs.35,00,000/- from four different creditors as well as addition of
Rs.1,52,000/- for income from other sources. Assessee filed an
appeal before Ld.CIT(A) but failed to succeed on the ground relating
to addition for unexplained cash creditors u/s 68 of the Act at
Rs.35,00,000/-. Now the assessee is in appeal before the Tribunal.
The Ld. Counsel for the assessee requested for one more
opportunity to go before Ld.A.O to prove the identity, genuineness
and creditworthiness of the four cash creditors namely S/Shri
Bhupendra Singh, Malkhan Singh, Manohar Singh and Sohanlal for
the alleged unexplained cash credit of Rs.7,00,000/-,
Rs.6,00,000/-, Rs.7,00,000/- and Rs.15,00,000/- respectively. The
assessee has also filed an affidavit on 28.12.2018 of Shri Sohanlal
in order to explain the credit of Rs.15,00,000/- on 28.12.2018. The
revenue has not objected to the request for afresh examination of
the issue.
Juzer Bannatwala ITA No.354/Ind/2017
We therefore in the given facts and circumstances of the case
and in view of the request made by both the parties set aside the issue raised in this appeal to the file of Assessing Officer for denovo
adjudication with the direction to the assessee to produce all the
above referred four cash creditors along with necessary details and
document before the Ld.A.O, who will examine the identity,
genuineness and creditworthiness of the alleged unexplained cash
creditors totaling to Rs.35,00,000/- and after being satisfied should
decide accordingly. Needless to mention that reasonable
opportunity of being heard should be provided to the assessee.
In the result the appeal of the assessee is allowed for
statistical purposes.
The order pronounced in the open Court on 11.01.2019.
Sd/- Sd/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER �दनांक /Dated : 11 January, 2019 /Dev
Juzer Bannatwala ITA No.354/Ind/2017
Copy to: The Appellant/Respondent/CIT concerned/CIT(A) concerned/ DR, ITAT, Indore/Guard file. By Order, Asstt.Registrar, I.T.A.T., Indore