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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH
Before: Shri Amarjit Singh
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before: Shri Amarjit Singh, Accountant Member And Ms. Madhumita Roy, Judicial Member ITA No. 2400/Ahd/2016 Assessment Year 2012-13
Shri Ramchandra B. The ITO, Finaviya, 7, Saraswati Ward-7(2)(4), Apartment Opp. Maliniwadi, Vs Ahmedabad Nr. Hinglajimata Temple, (Respondent) India Colony, Thakkarbapanagar, Ahmedaadb-382350 PAN: AAGPF6518A (Appellant)
Revenue by: Shri V.K. Singh, Sr. D.R. Assessee by: Shri Karan Shah, A.R.
Date of hearing : 11-06-2018 Date of pronouncement : 25-06-2018 आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-
This assessee’s appeal for A.Y. 2012-13, arises from order of the CIT(A)- 7, Ahmedabad dated 05-07-2016, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.
The assessee has raised following grounds of appeal:- “1. The Ld. CIT (A) has grossly erred in law and on facts in dismissing the appeal. He ought to have allowed the appeal fully in accordance with the grounds of appeal raised by the appellant before him. I. ADDITION U/S.69 OF THE ACT - RS.8.00.000/-
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The Ld. CIT(A) has erred in law and on facts in confirming the addition of Rs.8,00,000/- u/s. 69 of the Act made by the Ld. A.O while making an observation that the contention of appellant cannot be accepted and it is evident that the capital account provided by appellant showing that it had taken cash of Rs. 8 lakhs from partnership firm was false. 2. The Ld. CIT(A) has failed to properly consider the submission filed by the appellant as well as various judicial pronouncements relied upon therein.” 3. The brief case of the case is that return of income declaring income of Rs. 3,97,430/- was filed on 29th March, 2013. Subsequently, the case was selected under scrutiny by issuing of notice u/s. 143(2) of the act on 14th August, 2013. On scrutiny, the assessing officer noticed that assessee has made investment in land at Sargasan, Gandhinagar jointly with 8 other co-owners wherein the share of investment in the land of the assessee was Rs. 10,13,750/-. The assessee claimed that he has withdrawn cash of Rs. 8 lacs from his capital account with the partnership firm Shreeji Corporation. During the course of assessment proceedings the assessing officer has verified from the copy of return of income of M/s. Shreeji Corporation for assessment year 2011-12 and noticed that as per capital account of the assessee with the partnership firm no cash withdrawal was reflected in the capital account of the assessee. Consequently, the assessing officer has made addition of Rs. 8 lacs as unexplained investment as per section 69 of the act.
Aggrieved assessee filed appeal before the ld. CIT(A). The ld. CIT(A) has sustained the addition reiterating the same reason as mentioned by the assessing officer. During the course of appellate proceedings before us, the ld. counsel has furnished copy of capital account of the assessee in the books of accounts of Shreeji Corporation partnership firm demonstrating that assessee has withdrawn were 3 lacs and 5 lacs in cash on 17th Feb, 2011 and 26th March, 2011 respectively out of the capital account maintained with the partnership firm Shreeji Corporation during the financial year 2010-11. He has also furnished copy of balance sheet as on 31st March, 2011 of the partnership firm Shreeji Corporation indicating total capital of the two partners reflected at Rs. 13,82,475.82 and assessee’s capital was shown at Rs. 11,25,949.07/-. He has
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also filed copy of income tax return filed by the partnership firm for the assessment year 2011-12 showing total capital of the partners at Rs. 13,82,476/- . He has contended that all these documents and information required to be examined to prove the genuineness of the claim of the assessee. On the other hand, the assessing officer has supported the order of lower authorities.
We have heard both the sides and perused the material on record. During the course of assessment proceedings, the assessee has claimed that source of investment of Rs. 8 lacs in the land was out of the withdrawal made from the partners’ capital a/c in the partnership firm M/s Shreji Corporation. The assessing officer has stated that as per the capital a/c of the assessee provided with the return of income of the partnership firm M/s. Shreeji Corporation for assessment year 2011-12 there was no cash withdrawal of Rs. 8 lacs made by the assesse of the capital a/c. However, during the course of appellate proceedings before us the ld. counsel has submitted copy of income tax return filed by the partnership firm M/s Shreeji Corporation for assessment year 2011- 12 showing total capital of the partner at Rs.13,82,476/-. He has also submitted copy of balance sheet of the partnership firm in which the capital a/c of the partner was shown as on 31/03/2011 as under:- Name of partner Credit balance of capital a/c. (i) Ghanshyambhai B. Finavia Rs. 2,56,526.075 (ii) Ramchandra B. Finaviya Rs. 11,25,949.07
He has also submitted copies of the partners’ capital a/c. in the books of partnership firm reflecting cash withdrawal as cited above in this order. After perusal of the details filed and material on record we observe that it is not feasible to adjudicate this issue on merit without examination of correctness of the material/detail furnished during the course of appellate proceedings before us, therefore, we restore this issue to the file of the assessing officer for deciding denovo after verification/examination of the correctness and genuineness of the
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material furnished by the assessee. Accordingly, the appeal of the assessee is allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 25-06-2018
Sd/- Sd/- (MADHUMITA ROY) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 25/06/2018 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद