SHRI JUZER BANNATWALA,INDORE vs. THE ITO-2(4), INDORE

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ITA 354/IND/2017Status: DisposedITAT Indore11 January 2019AY 2012-136 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay and set aside the issue to the Assessing Officer for de novo adjudication. The assessee was directed to produce all four creditors for examination of their identity, genuineness, and creditworthiness.

What were the facts?

The assessee's appeal for AY 2012-13 was filed 9 days late due to illness. The primary issue was an addition of Rs. 35,00,000/- on account of alleged unexplained creditors under Section 68.

What were the issues?

Whether the cash credits amounting to Rs. 35,00,000/- were adequately explained by the assessee to satisfy the conditions of Section 68 of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: HON’BLE KUL BHARAT & HON’BLE MANISH BORAD

For Appellant: Shri S.S. Solanki, C.A Date of Hearing
For Respondent: Shri K.C. Selvamani, Sr.DR, Shri S.S. Solanki, C.A Date of Hearing
Hearing: 10.01.2019Pronounced: 11.01.2019

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 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.

2.

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”.

3.

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.

4.

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 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/-.

5.

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.

6.

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 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.

7.

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.

8.

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.

9.

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 Copy to: The Appellant/Respondent/CIT concerned/CIT(A) concerned/ DR, ITAT, Indore/Guard file. By Order, Asstt.Registrar, I.T.A.T., Indore

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