Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI BENCH ‘C’, NEW DELHI
Before: Sh. A. D. JainDr. B. R. R. Kumar
The present appeals have been filed by the assessee against the orders of the ld. CIT(A)-16, New Delhi dated 26.11.2018.
Since, the issues involved in all these appeals are identical, they were heard together and being adjudicated by a common order.
The case has been fixed for early hearing as per the order dated 27.08.2021. to 745/Del/2019 2 Gian Chand & Sons (HUF)
During the hearing before us, the ld. AR relied on the order of the Co-ordinate Bench of ITAT in dated 16.06.2020 in the case M/s Shagun Jewellers (P) Ltd. Vs ACIT.
The ld. DR relied on the orders of the authorities below. to 745/Del/2019 3 Gian Chand & Sons (HUF) 6. We have perused the above quoted order and find the background and facts of the case are similar except the quantum involved. For the sake of ready reference, the relevant portion of the order relied by the ld. AR is reproduced as under:
“5. Briefly stated, the facts of the case are that a search was conducted at Ahmadabad and New Delhi in which certain documents were found and seized by the search party. From the documents found, unaccounted money lending business of Shri Asharam Bapu and his associates came into light. It also came to the knowledge of the Revenue that there were several beneficiaries. Statement of one Shri Devi Das Tikamdas was recorded u/s 131A r.w.s 131 of the Act on 25th and 26th September, 2015.
In his statement, Shri Devi Das Tikamdas Chattani stated that whole of the loan account was maintained by one Shri Popat Lal Vani. Shri Devi Das Tikamdas Chattani also stated that one Shri Sant Lal Aggarwal was handler of Rs. 200 crores at Delhi from where the loan was disbursed to around 100 parties, out of which 60 such parties were transacted through Shri Sant Lal Aggarwal.
7. The Assessing Officer of the assessee was informed by the Investigation Wing of the department that from verification of documents seized, it clearly appears that Shri Sant Lal Aggarwal received cash loans from Shri Asharam and further disbursed to other parties and the assessee is one of the beneficiaries. According to the Assessing Officer, the following cash loans were given to the assessee: to 745/Del/2019 4 Gian Chand & Sons (HUF) Date Beneficiary Name Debit Credit Group Contra 01.07.2009 Shagun Jewellers 0 72,00,090 Govind Delhi 01.07.2009 Shagun Jewellers 72,00,090 0 Govind Interest Pvt. Ltd. received 01.07.2009 Shagun Jewellers 75,00,000 0 Govind Delhi 29.03.2010 Shagun Jewellers 0 83,16,000 Govind Delhi 29.03.2010 Shagun Jewellers 83,16,000 0 Govind Interest Pvt. Ltd. received 29.03.2010 Shagun Jewellers 83,00,000 0 Govind Delhi Total 3,13,16,090 1,55,16,090
8. On the strength of the information received from the ADIT, INV, the Assessing Officer assumed jurisdiction u/s 148 of the Act and accordingly, statutory notices were issued and served upon the assessee. ……..
Coming to the merits of addition of Rs. 1,55,16,090/-, once again, the entire addition revolves around the statement of Shri Devi Das Tikamdas Chattani. In his statement, Shri Devi Das Tikamdas Chattani stated that Shri Sant Lal Aggarwal is handler and is the main person for disbursing cash loan to 60 parties. The alleged cash loans given to the assessee is already exhibited elsewhere at para 7 hereinabove.
As mentioned elsewhere, the foundation of the impugned addition is the statement of Shri Devi Das Tikamdas Chattani. Except for that, there is no direct evidence brought on record to show that any cash transactions took place between the assessee and the said person.
On the contrary, the statement of Shri Sant Lal Aggarwal which is part of the assessment order and is extracted at pages 17 to 24 of the assessment order shows that Shri Sant Lal Aggarwal, answering to question No. 13, emphatically stated to 745/Del/2019 5 Gian Chand & Sons (HUF) that he does not know who Shri Devi Das Tikamdas Chattani is. Once again, answering to question No. 18, Shri Sant Lal Aggarwal stated that he does not know who is Shri Devi Das Tikamdas Chattani. Answering to question No. 19, Shri Sant Lal Aggarwal stated that he does not know Shri Devi Das Tikamdas Chattani and never handled Rs. 200 crores and no such transaction was done by him except selling rice to the Ashram. In the very same statement, Shri Sant Lal Aggarwal accepted the transaction of M/s Index Securities and Research Pvt Ltd and the appellant company.
The Assessing Officer never confronted Shri Devi Das Tikamdas Chattani to Shri Sant Lal Aggarwal. If the statement of Shri Devi Das Tikamdas Chattani is to be believed, then on the same facts, statement of Shri Sant Lal Aggarwal cannot be ignored or brushed aside lightly. Merely because the statement of Shri Sant Lal goes in favour of the assessee, cannot be a reason to disbelieve the same. As mentioned elsewhere, there is no direct evidence brought on record which could suggest that some cash transactions took place between the assessee and the searched person. The observations made by the Assessing Officer at page 25 of the assessment order clearly show that the entire addition has been made on surmises and conjectures. The relevant para of the assessment order reads as under:
From above it is clear that M/s. Shagun Jewellers has had transactions with M/s Index Securities & Research Put Ltd which was a conduit company managed by Mr.Santlal Aggarwal who has further acted on behalf of Sh. Asharam Bapu. Hence, it cannot be ruled out that cash loan were received by the assessee from Santlal Aggarwal. Moreover, the seized material retrieved, clearly indicates that the assessee company has paid to 745/Del/2019 6 Gian Chand & Sons (HUF) Rs. 1,55,16,090/- in cash on account of interest on such cash loan.
Considering the facts of the case in hand, in the light of statement of Shri Sant Lal Aggarwal, we do not find any merit in the impugned addition and the same is directed to be deleted. Accordingly, Ground Nos. 4 and 5 are allowed.”
The amounts mentioned in the ledger account in the case of the assessee which is the similar ledger considered by the ITAT in the order of the M/s Shagun Jewellers is mentioned below: A.Y. 2009-10 Date Debit Credit Beneficiary Name Contra Group 01.04.2008 30000 0 Gian Chand Mohinder Kumar Delhi 01.04.2008 0 30000 Gian Chand Mohinder Kumar Interest received 14.06.2008 270000 0 Gian Chand Mohinder Kumar Delhi 14.06.2008 0 270000 Gian Chand Mohinder Kumar Delhi 26.07.2008 0 11000000 Gian Chand Mohinder Kumar Interest received 26.09.2008 487800 0 Gian Chand Mohinder Kumar Delhi 26.09.2008 0 4878000 Gian Chand Mohinder Kumar Interest received 01.01.2009 567000 0 Gian Chand Mohinder Kumar Delhi 01.01.2009 0 567000 Gian Chand Mohinder Kumar Interest received 01.01.2009 1000000 0 Gian Chand Mohinder Kumar Delhi 31.03.2009 540000 0 Gian Chand Mohinder Kumar Interest received 31.03.2009 0 540000 Gian Chand Mohinder Kumar Delhi to 745/Del/2019 7 Gian Chand & Sons (HUF) A.Y. 2010-11 Date Debit Credit Beneficiary Name Contra FY Group 06.12.2009 1000000 0 Gian Chand Mahender Delhi 2009-10 07.01.2009 534300 0 Gian Chand Mahender Delhi 2009-10 07.01.2009 0 534300 Gian Chand Mahender Interest 2009-10 received 29.09.2009 513000 0 Gian Chand Mahender Delhi 2009-10 29.09.2009 0 513000 Gian Chand Mahender Interest 2009-10 received 0 Gian Chand Mahender Delhi 31.10.2009 2000000 2009-10 0 Gian Chand Mahender Delhi 12.07.2009 2000000 2009-10 0 Gian Chand Mahender Delhi 01.08.2010 461700 2009-10 461700 Gian Chand Mahender Interest 01.08.2010 0 2009-10 received 0 Gian Chand Mahender Delhi 28.03.2010 405000 2009-10 405000 Gian Chand Mahender Interest 28.03.2010 0 2009-10 received A.Y. 2011-12 Date Debit Credit Beneficiary Name Contra FY Group 04.01.2010 0 4000000 Gian Chand Mahender Delhi 2010-11 24.04.2010 0 1000000 Gian Chand Mahender Delhi 2010-11 24.06.2010 532200 0 Gian Chand Mahender Delhi 2010-11 24.06.2010 0 532200 Gian Chand Mahender Interest 2010-11 received 17.08.2010 2500000 0 Gian Chand Mahender Delhi 2010-11 1000000 Gian Chand Mahender Delhi 09.09.2010 0 2010-11 0 Gian Chand Mahender Delhi 10.01.2010 514800 2010-11 514800 Gian Chand Mahender Interest 10.01.2010 0 2010-11 received 0 Gian Chand Mahender Delhi 12.03.2010 1000000 2010-11 0 Gian Chand Mahender Delhi 18.01.2011 491100 2010-11 491100 Gian Chand Mahender Interest 18.01.2011 0 2010-11 received 31.03.2011 472500 0 Gian Chand Mahender Delhi 2010-11 31.03.2011 0 472500 Gian Chand Mahender Interest 2010-11 received ITA Nos. 741 to 745/Del/2019 8 Gian Chand & Sons (HUF) A.Y. 2012-13 Date Debit Credit Beneficiary Name Contra FY Group 30.06.2011 412500 0 Gian Chand Mahender Delhi 2011-12 30.09.2011 0 412500 Gian Chand Mahender Interest 2011-12 received 09.02.2011 1500000 0 Gian Chand Mahender Delhi 2011-12 30.09.2011 461250 0 Gian Chand Mahender Delhi 2011-12 30.09.2011 0 461250 Gian Chand Mahender Interest 2011-12 received 0 Gian Chand Mahender Delhi 27.12.2011 432000 2011-12 432000 Gian Chand Mahender Interest 27.12.2011 0 2011-12 received 0 Gian Chand Mahender Delhi 02.08.2012 1000000 2011-12 A.Y. 2013-14 Date Debit Credit Beneficiary Name Contra FY Group 29.06.2012 450000 0 Gian Chand Mahender D. Kumar 2012-13 29.06.2012 0 450000 Gian Chand Mahender Interest 2012-13 received 03.10.2012 450000 0 Gian Chand Mahender D. Kumar 2012-13 03.10.2012 0 450000 Gian Chand Mahender Interest 2012-13 received 01.01.2013 458000 0 Gian Chand Mahender D. Kumar 2012-13 458000 Gian Chand Mahender Interest 01.01.2013 0 2012-13 received
Since, the order of the ITAT has already dealt with the copy of the ledger account, statements of various persons recorded during the search and post search, in the absence of any new material brought before us, we decline to deviate from the ratio in the order of the ITAT in the case of M/s Shagun Jewellers Pvt. Ltd.
With regard to the Ground No. 5 in the A.Y. 2011-12 pertaining to repayment of loan since the same being the part to 745/Del/2019 9 Gian Chand & Sons (HUF) of the same ledger account, the similar ratio of adjudication applies mutatis mutandis.
In the result, all the appeals of the assessee are allowed. Order Pronounced in the Open Court on 01/11/2021.