GANESHLAL RAMESHWARDAS AGRAWA,BHARAT NAGAR vs. ITO WARD 1 JALNA, JALNA

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ITA 1244/PUN/2023Status: DisposedITAT Pune26 March 2024AY 2010-2011Bench: SHRI SATBEER SINGH GODARA (Judicial Member)3 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition was not sustainable as it was solely based on the vendor's statement, which was not produced for cross-examination. The Tribunal also referred to a CBDT circular which stated that such statements alone are not sufficient for additions.

What were the facts?

The assessee's appeal for AY 2010-11 challenges an addition of Rs. 3,01,000/- made on account of alleged on-money payment. This addition was based on the vendor's search statement, which was not provided to the assessee for cross-examination.

What were the issues?

Whether an addition can be made solely on the basis of a vendor's search statement without providing it for cross-examination and in contravention of CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE “SMC” BENCH : PUNE [VIRTUAL HEARING]

Before: SHRI SATBEER SINGH GODARA

Hearing: 13.03.2024Pronounced: 26.03.2024

Date of Hearing : 13.03.2024 Date of Pronouncement : 26.03.2024 ORDER PER SATBEER SINGH GODARA, J.M. :

This assessee’s appeal for assessment year 2010-11, arises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No.ITBA/NFAC/S/250/2021-22/1041232161(1), dated 22.03.2022, involving proceedings u/s.143(3) r.w.s147 of the Income Tax Act, 1961 (in short “the Act”). Heard both the parties at length. Case file perused.

2.

The assessee’s sole substantive ground raised in the instant appeal challenges correctness of both the learned lower authorities action adding the alleged on-money payment of Rs.3,01,000/- going by the some incriminating material found/seized during the course of search carried out in case of the 2 ITA.No.1244/PUN/2023 Ganeshlal Rameshwardas Agrawal vendor concerned. Ms. Deshpande vehemently argued that the vendor herein Mr. Rajesh Bhagwandas Soni, Jalna had got recorded his search statement admitting receipt of the on-money from assessee’s side.

3.

I have given my thoughtful consideration to the vehement rival stands herein and find no merit in the impugned addition since the same has been made only on the basis of the vendor’s alleged search statement which hardly carries any significance as per the CBDT’s landmark Circular F.No.286/2/2003 dated 10.03.2023. It is further coupled with the fact that the learned lower authorities have also not made available the vendor’s search statement to the assessee nor could they produce him for the purpose of cross examination in the course of assessment. Be that as it may, once it is clear that the impugned addition is not in consonance of the CBDT Circular, it deserves to be deleted. Ordered accordingly.

4.

This assessee’s appeal is allowed in above terms.

Order pronounced in the open Court on 26th March, 2024.

Sd/- [SATBEER SINGH GODARA] JUDICIAL MEMBER Pune, Dated : 26th March, 2024 Satish

3 ITA.No.1244/PUN/2023 Ganeshlal Rameshwardas Agrawal

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