ITO WD-3(5), BOKARO vs. SRI NIRMAL SINGH, BOKARO

1 ITA No.57/Ran/2017 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No.57/Ran/2017 Assessment Year : 2012-2013 ITO, Ward-3(5), Bokaro vs Sri Nirmal Singh, Prop: M/s J.K.Enterprises, 53, Co-operative Colony, Bokaro-827001 PAN No. : ARUPS 2858 R .. Respondent (Appellant) Revenue by Shri A.K.Mohanty,JCIT(Jr. DR) Assessee by Shri Manish Mishra, Adv. Date of Hearing : 26.11.2018 Date of Pronouncement : 27.11.2018

O R D E R Per Pavan Kumar Gadale, JM:

The Revenue has filed this appeal against the order of CIT(A),

Hazaribag, dated 06.12.2016 for the assessment year 2012-2013 on

the following grounds of appeal :-

“1 On the facts and in the circumstances of the case the Ld. CIT(A) was justified in deleting the addition of Rs.1.25 crore as the source, nature, genuineness & creditworthiness ”of the given credit entry in the books of account of the assessee was not established

income electronically on 29.03.2013 declaring total income of

Rs.10,01,060/-. The case was selected for scrutiny under CASS and

the AO issued notices u/s.143(2)/142(1) of the Act to the assessee.

2 ITA No.57/Ran/2017 Accordingly, the AO made various additions and assessed the total

income of the assessee at Rs.1,35,98,010/- and passed order

u/s.143(3) of the Act, dated 28.03.2015.

before the CIT(A). In the appellate proceedings, the AR of the assessee

appeared and argued the grounds and reiterated the submissions

made before the AO. The CIT(A) after considering the submissions of

the assessee and the findings of AO, partly allowed the appeal of the

assessee.

appeal before the Tribunal.

source, nature, genuineness and creditworthiness of the given credit entry

in the books of account of the assessee was not established and therefore

prayed for allowing the appeal of Revenue.

on record. We find that the CIT(A) dealt on the disputed issue has called

for the remand report from the AO and the AO has submitted the remand

report from which the CIT(A) observed that since the entire sum of money

so received have been disbursed to 105 villagers/land owners as per list

submitted by the assessee duly evidenced by sale agreements for

acquiring different acres of land in a village, named Chandankyari, the

3 ITA No.57/Ran/2017 taxability of the amounts in the hands of the assessee does not arise in the

facts and circumstances of the case and deleted the addition. The

observation of the CIT(A) in this regard is as under :-

“3.3 In view of the above remand report of the Assessing Officer duly forwarded and endorsed by the JCIT vide letter dated 25/11/2016, I find that the contentions of the appellant are acceptable. The addition of Rs. 1.25 crore on this issue is, therefore, not warranted in the hands of the appellant for the reasons that the money was received from Koyela Thermal Power Pvt. Ltd., New Delhi for purchase of land from the villagers at Bokaro for setting up of a Thermal Power Station. In the balance- sheet, 1.25 crore was shown as an advance received for land purchase on the asset side and liability was shown to Koyela Thermal Power Pvt. Ltd. against the same. Since the entire sums of money so received have been disbursed to 105 villagers/land owners as per list submitted by the appellant duly evidenced by sale agreements for acquiring different acres of land in a village, named Chandankyari, the taxability of the amounts in the hands of the appellant does not arise in the facts and circumstances of the case. The Assessing Officer is, therefore, directed to delete the addition of Rs.1.25 crore. The appellant succeeds on the grounds of appeal on this issue.”

of Assessing Officer and could not bring any new cogent evidence to

controvert the findings of the CIT(A) in this regard. Accordingly, we are of

the opinion that having considered the remand report and findings of the

AO and submissions of the assessee, the CIT(A) has passed a reasoned

4 ITA No.57/Ran/2017 order, which we uphold the same and dismiss the ground of appeal of

Revenue.

Order pronounced in the open court on 27/11 /2018 Sd/- Sd/- (N.S.SAINI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi, Dated 27/11/2018 Prakash Kumar Mishra , Sr. Ps Copy of the Order forwarded to : 1. The Appellant – ITO, Ward-3(5), Bokaro 2. The Respondent – Sri Nirmal Singh, Prop: M/s J.K.Enterprises, 53, Co- operative Colony, Bokaro-827001 3. The CIT(A) concerned 4. CIT , concerned 5. DR, ITAT, Ranchi 6. Guard file. BY ORDER, //True Copy// SR.PS, ITAT, RANCHI