Ashok Chiranjivlal Jaiswal v. ITO, Ward-2(2), Aurangabad
[Citation -2016-LL-0921-136]

Citation 2016-LL-0921-136
Appellant Name Ashok Chiranjivlal Jaiswal
Respondent Name ITO, Ward-2(2), Aurangabad
Court ITAT-Pune
Relevant Act Income-tax
Date of Order 21/09/2016
Assessment Year 2005-06
Judgment View Judgment
Keyword Tags unexplained investment • government servant • unsecured loan • house property
Bot Summary: A letter dated 12-03-2012 was served on the assessee to 2 ITA No.1773/PN/2016 explain the source of above investment. After repeated reminders the assessee appeared before the AO and submitted that he could not attend the proceedings due to heart attack. So far as the source for investment in the flat is concerned the assessee explained the sources as under : Sr. No. Source Amount 1. The assessee has made a submission on 30/03/2012 which is in pre-assessment stage when a letter was addressed to the assessee to explain the sources of investment made in the house. The assessee has not provided any details in respect of the mode and manner of payment made for the purchase of house property. The Ld. Counsel for the assessee submitted that due to prolonged illness of the assessee details could not be furnished before the CIT(A). So far as the unsecured loan from relatives and friends are concerned, the Ld. Counsel for the assessee submitted that an amount of Rs.75,000/- was obtained from the elder brother of the assessee who has expired on 25-04-2005 for which no confirmation could be obtained.


IN INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.K. PANDA, AMITA No.1773/PN/2016 Assessment Year : 2005-06 Shri Ashok Chiranjivlal Jaiswal, H.No.4-12-46, Baijipura, Appellant Aurangabad PAN : ABFPJ2351P v/s ITO, Ward-2(2), Aurangabad . Respondent Appellant by : Shri Kedar Joshi Respondent by : Smt. Sumitra Banerji Date of Hearing :21.09.2016 Date of Pronouncement:21.09.2016 ORDER PER R.K.PANDA, AM : This appeal filed by assessee is directed against order dated 14-06-2016 of CIT(A)-2, Aurangabad relating to Assessment Year 2005-06. 2. Although number of grounds have been raised by assessee they all relate to order of CIT(A) in confirming addition of Rs.3,58,400/-. 3. Facts of case, in brief, are that assessee is individual and was employee of Maharashtra State Road Transport Corporation. In this case, AIR information was obtained according to which assessee has purchased flat at Aurangabad for consideration of Rs.10,31,000/- during F.Y. 2004-05 relevant to A.Y. 2005-06. letter dated 12-03-2012 was served on assessee to 2 ITA No.1773/PN/2016 explain source of above investment. It was stated by assessee that he has not filed return of income but submitted details of source utilized for purchase of above property. Since no return was filed AO issued notice u/s.148. Subsequently notice u/s.142(1) was also served on assessee. After repeated reminders assessee appeared before AO and submitted that he could not attend proceedings due to heart attack. So far as source for investment in flat is concerned assessee explained sources as under : Sr. No. Source Amount (Rs.) 1. State Bank of Indore 6,00,000/- 2. ST Co-op Bank Ltd. 83,850/- 3. ST Co-op Bank Ltd. 80,000/- 4. MCRTCECCS Bank Ltd. 15,000/- (Short Loan A/c.No.455) 5. Gold Loan 88,000/- 6. Unsecured loan from relatives 75,000/- from Shantilal C. Jaiswal 7. Unsecured loan from relatives 50,000/- from Gyanchand Mahajan 8. Loan from Mr. Nitin Modi 25,000/- 9. Own Contribution 28,000/- 4. AO accepted sources mentioned at Sl.Nos. 1 to 3 and 9 above. However, he disallowed unsecured loan of Rs.1,50,000/- as per sources mentioned at Sl.Nos. 6, 7 and 8 for want of proof. Similarly, in absence of any details he disallowed gold loan of Rs.88,000/- and loan of Rs.15,000/- obtained from MCRTCECCS Bank Ltd. 5. In appeal, Ld.CIT(A) confirmed addition made by AO in absence of any appearance before him by observing as under : 5. In this case hearings were fixed on 19/08/2015, 12/10/2015, 26/11/2015, 09/12/2015, 23/12/2015, 05/04/2016, 27/04/2016 and on 23/05/2016. On 09/12/2015 one Shri Subhash D.Magare, ITP, attended but he did not submit his LA or any written submissions. On his request case was adjourned to 23/12/2015. On 05/04/2016 3 ITA No.1773/PN/2016 assessee had appeared and he did not make any submission. On his request case was adjourned to 27/04/2016. On 27/04/2016 one Shri Amol P.Godha, CA, appeared and he submitted his LA. On his request case was adjourned for hearing on 23/05/2016. However, no one appeared on appointed date. In fact there has been no compliance by assessee till date of passing of this order. assessee has not even sought any adjournment. Under circumstances it appears that assessee is not interested in pursuing appeal and therefore I am passing appellate order on ex parte basis after considering facts on record. 6. perusal of assessment order shows that despite several opportunities of being heard given to assessee, there has been non- compliance. assessee has made submission on 30/03/2012 which is in pre-assessment stage when letter was addressed to assessee to explain sources of investment made in house. Thereafter there has been no compliance by assessee whatsoever. It is duty of assessee to show with cogent proof sources of investment made in house property and if certain amount is not explained, same is liable to be added back to total income of assessee as unexplained investment. assessee has not provided any details in respect of mode and manner of payment made for purchase of house property. He has not provided any confirmation for unsecured loan taken from different individuals. Similarly one loan has been taken after purchase of property and hence could not be utilised for purpose of making payment for purchase of property. Apart from stating that he had taken gold loan of Rs.88,000/-, no evidence for same was provided either in assessment or in appellate stages and Similarly utilisation of loan taken from MSRTCECCS Bank for purposes of making investment in house property was also not shown. Under circumstances I hold that assessing officer had correctly added aforesaid amount to total income of assessee and there is no infirmity in addition made in assessment. All grounds of appeal are dismissed. 6. Aggrieved with such order of CIT(A) assessee is in appeal before Tribunal. 7. Ld. Counsel for assessee submitted that due to prolonged illness of assessee details could not be furnished before CIT(A). He submitted that details relating to gold loan of Rs.88,000/- and loan of Rs.15,000/- obtained from MCRTCECCS Bank Ltd. are available with assessee. So far as unsecured loan from relatives and friends are concerned, Ld. Counsel for assessee submitted that amount of Rs.75,000/- was obtained from elder brother of assessee who has expired on 25-04-2005 for which no confirmation could be obtained. However, he was 4 ITA No.1773/PN/2016 Government servant at irrigation department of State of Maharashtra and was regular tax payer. Similarly, Rs.50,000/- from Shri Gyanchand Mahajan was obtained for which assessee is having affidavit from Shri Gyanchand Mahajan. Similarly confirmation also is obtained from Mr. Nitin Modi for loan of Rs.25,000/-. He submitted that given opportunity assessee is in position to explain source of loans before CIT(A) or AO. He accordingly submitted that matter may be set aside to file of AO or CIT(A). 8. Ld. Departmental Representative while supporting order of CIT(A) submitted that she has no objection if matter is set aside to file of CIT(A). 9. After considering arguments made by both sides, I find AO made disallowance of Rs.3,58,400/- as unexplained investment u/s.69 of I.T. Act. since assessee could not explain source to this extent towards investment in flat. I find since nobody appeared before CIT(A) on date of hearing he upheld addition made by AO. It is submission of Ld. Counsel for assessee that due to heart attack of assessee he could not give details of source to Authorised Representative who represented before AO. Similarly, representative who appeared before CIT(A) also could not produce those details on date of hearing. It is also submission of Ld. Counsel for assessee that given opportunity he is in position to explain source of loan of Rs.3,58,400/-. Considering totality of facts of case and in interest of justice I deem it proper to restore issue to file of CIT(A) with direction to give one more opportunity to assessee 5 ITA No.1773/PN/2016 to substantiate his case. grounds raised by assessee are accordingly allowed for statistical purposes. 10. In result, appeal filed by assessee is allowed for statistical purposes. Order pronounced in open court at time of hearing itself, i.e. on 21-09-2016. Sd/- (R.K. PANDA) ACCOUNTANT MEMBER Pune; Dated :21st September, 2016. Copy of Order forwarded to : 1. Appellant 2. Respondent 3. CIT(A)-2, Aurangabad 4. CIT-2, Aurangabad 5. SMC Bench DR, ITAT, SMC Bench Pune; 6. 2/ Guard file. BY ORDER, True Copy True Copy Sr. Private Secretary ITAT, Pune Ashok Chiranjivlal Jaiswal v. ITO, Ward-2(2), Aurangabad
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