SHRI VINAY GOYAL,JAIPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX, JAIPUR

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ITA 228/JPR/2018Status: DisposedITAT Jaipur07 August 2018AY 2010-113 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had sufficiently substantiated the creditworthiness of the loan creditor through her income returns, balance sheets, and bank statements. The Tribunal found no basis for the addition made under Section 68.

What were the facts?

The assessee received a loan of Rs. 6,30,000/- from his mother. The Assessing Officer (AO) added Rs. 1,30,000/- to the assessee's income, suspecting the cash deposits in the mother's account prior to the loan were the assessee's own money routed through her.

What were the issues?

Whether the addition made by the AO under Section 68 for unexplained cash credits in the form of a loan from the mother was justified, considering the provided documentation.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR

Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 228/JP/2018

For Appellant: Shri Vishal Gupta (CA) jktLo dh vksj ls@
Hearing: 06/08/2018Pronounced: 07/08/2018

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; ikWy jko] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 228/JP/2018 fu/kZkj.k o"kZ@Assessment Year : 2010-11 cuke Shri Vinay Goyal ACIT, Vs. B-22, Goyal Hospital Mandir Circle-7, Marg, Jaipur Subhash Nagar, Jaipur-16 LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AASPG2161L vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Vishal Gupta (CA) jktLo dh vksj ls@ Revenue by : Smt Rajendra Jha lquokbZ dh rkjh[k@ Date of Hearing : 06/08/2018 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 07/08/2018 vkns'k@ ORDER

PER: VIKRAM SINGH YADAV, A.M.

This is an appeal filed by the assessee against the order of ld. CIT(A)-3, Jaipur dated 08.12.2017 for Assessment Year 2010-11 wherein the assessee has challenged the addition of Rs. 1,30,000/- u/s 68 of the Act.

2.

Briefly stated, the facts of the case are that the during the FY relevant to impunged assessment year, the assessee has received a loan of Rs. 6,30,000/- from his mother Smt. Asha Goyal. The assessee was asked to furnish the confirmation, ITR copy, statement of affairs and her creditworthiness to advance such a loan to the assessee. In response, the assessee submitted the confirmation of Smt. Asha Goyal, her bank statement copy of her ITR and balance sheet of last two years, and also an affidavit in support of explaining the sources funds which have been advanced to the

ITA No. 228/JP/2018 Shri Vinay Goyal, Jaipur Vs ACIT, Jaipur assessee. The Assessing Officer observed that there are two cash deposits totalling to Rs. 1,30,000/- in the bank account of Smt. Asha Goyal just prior to the disbursement of loan to the assessee. Further, the AO observed that Smt. Asha Goyal is a senior Citizen, doesn’t have a regular cash source and there is a preponderance of probability that this money is assesse’s own money which is routed through her mother’s bank account as an unsecured loan. Therefore, he added the sum of Rs. 1,30,000/- to the income of the assessee.

3.

Being aggrieved, the assessee carried the matter in appeal before the ld. CIT(A) and reiterated the submissions made before the Assessing Officer. The ld. CIT(A) observed that the assessee has failed to prove the credit- worthiness of the cash creditor and the money was deposited just before the date on which loan was given to the assessee. Accordingly, he confirmed the addition so made by the AO.

4.

Being aggrieved, the assessee is in appeal before us. Regarding the creditworthiness of Smt. Asha Goyal, the ld AR submitted that the same is duly substantiated through her return of income for AY 2009-10 and 2010-11, the balance-sheet for those two years as well as the copy of bank account and cash book maintained by the assessee.

5.

On perusal of the balance-sheet for the year ended March 31 2010, it is noted that Smt. Asha Goyal has shown a sum of Rs. 9,63,584/- in her capital account and the free reserves amounting to Rs. 154,411/- totalling to Rs. 11,17,995/- which demonstrate her creditworthiness to advance Rs 6,30,000/- to the assessee. Further, she has regular source of income from running the ambulance services and also interest receipt on various savings and other investments reflected in her profit/loss account. Further, we find that the confirmation as well as the affidavit from Smt. Asha Goyal is also available on record which clearly demonstrates the loan funds advanced to the assessee. 2

ITA No. 228/JP/2018 Shri Vinay Goyal, Jaipur Vs ACIT, Jaipur In the light of the same, we are of the considered view that there is no basis for making the addition u/s 68 of the Act. In the result, the addition made by the AO is hereby deleted.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open Court on 07/08/2018.

Sd/- Sd/- ¼fot; ikWy jko½ ¼foØe flag ;kno½ (Vijay Pal Rao) (Vikram Singh Yadav) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Jaipur Dated:- 07/08/2018 *Ganesh Kr आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू vihykFkhZ@The Appellant- Shri Vinay Goyal, Jaipur 1. izR;FkhZ@The Respondent- ACIT, Circle-7, Jaipur 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. 228/JP/2018) 6.

vkns'kkuqlkj@ By order, सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत.

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