SANGRAM AVINASH PATIL,RAIGAD vs. ITO WD 2, PANVEL

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ITA 2021/MUM/2014Status: DisposedITAT Mumbai18 May 2016AY 2008-093 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal admitted the additional evidence in the interest of natural justice. The matter was set aside and restored to the Assessing Officer for examination of the new evidence.

What were the facts?

The assessee claimed loans from close relatives with agricultural income. The Assessing Officer and CIT(A) added these amounts under Section 68 for failure to prove the creditworthiness of creditors. The assessee sought to admit additional evidence of agricultural holdings.

What were the issues?

Whether the additional evidence regarding the creditworthiness of loan creditors should be admitted, and if so, how it should be examined.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

Before: SHRI B.R.BASKARAN, AM & SHRI AMARJIT SINGH, JM

For Appellant: Shri Kunal Mangal
Hearing: 06.04.2016Pronounced: 18.05.2016

Assessee by: Shri Kunal Mangal Department by: Shri A.K.Nayak सुनवाई क� तार�ख / Date of Hearing: 06.04.2016 घोषणा क� तार�ख /Date of Pronouncement: 18.05.2016 आदेश / O R D E R PER AMARJIT SINGH, JM:

The appeal filed by the assessee is directed against the order dated 24.01.2014 passed by the Commissioner of Income Tax (Appeals)-I, Mumbai [hereinafter referred to as the “CIT(A)”] relevant to the assessment year 2008-09.

ITA No.2021/Mum/14 A.Y.2008-09

2.

The learned counsel appeared for the assessee moved an application for admission of certain additional evidence. He further submitted that the assessee has obtained funds from his close relatives who are having sufficient agricultural income. At the time of hearing, the assessee was not in a position to furnish the details of agricultural holding and hence the Assessing Officer as well as learned CIT(A) added the loan amounts u/s 68 of the Act by holding that the assessee has not treated the creditworthiness of the creditors. The learned AR submitted that the assessee has now furnished the details of agricultural holding by way of additional evidences and accordingly prayed that these evidences may kindly be admitted.

3.

We have heard the learned DR and perused the record we notice that the addition made u/s. 68 of the Act has been confirmed by the learned CIT(A) on the ground that the assessee has failed to prove the creditworthiness of the creditors. Now the assessee has filed certain additional evidences to prove the creditworthiness of the creditors hence in the interest of natural justice we admit these additional evidences. Since additional evidences requires examination at the end of Assessing Officer we set aside the order of learned CIT(A) and restore the matter to the file of Assessing Officer.

4.

It is asserted that certain creditors are not co-operating with the Assessing Officer and hence the Assessing Officer may kindly be directed to examine them by issuing summons. Since the entire issues

ITA No.2021/Mum/14 A.Y.2008-09 have been restored to the file of Assessing Officer, therefore, the assessee is hereby directed to furnish any relevant information to the Assessing Officer for acting in accordance with law. Any explanation and also the contentions / evidences if any adducible by the assessee may be produced before the Assessing Officer in accordance with law.

5.

In result the appeal filed by the Assessee is treated as allowed for statistical purpose.

Order pronounced in the open court on 18th May, 2016.

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