Shiv Shankar Gupta v. Income-tax Officer-IV(4), Lucknow
[Citation -2019-LL-0906-154]

Citation 2019-LL-0906-154
Appellant Name Shiv Shankar Gupta
Respondent Name Income-tax Officer-IV(4), Lucknow
Court ITAT-Lucknow
Relevant Act Income-tax
Date of Order 06/09/2019
Assessment Year 2006-07
Judgment View Judgment
Keyword Tags delay in filing appeal • reasonable cause • condonation of delay • additional grounds • cheque deposit • unexplained cash credit • books of account • unsecured loan • non-maintenance of accounts
Bot Summary: Learned A. R. stated that in view of these facts and circumstances, the delay may be condoned and the appeal of the assessee may be heard on merits. The additional ground taken by the assessee reads as under: The Assessing Officer erred on facts and in law in making addition of Rs.4,21,100/- u/s 68 of the I.T. Act by treating the cheque deposits in the bank account as unexplained cash credits despite the fact that the appellant does not maintain books of account and therefore, the charging of section 68 cannot be pressed into service. Learned counsel for the assessee submitted that in view of the judgment of Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. vs. CIT 229 ITR 383, the additional ground may be admitted and adjudicated. Learned A. R. stated that it is undisputed that the assessee was not maintaining any books of account and Assessing Officer has made an addition of Rs.4,21,100/- on the basis of entries found in the bank statements of the assessee u/s 68 of the Act, which is not permissible as the provision of section 68 clearly states that any amount credited in the books of account can only be added as per the provisions of section 68 of the Act. The learned A.R. placed his reliance on the order of Hon'ble Patna High Court in the case of CIT Bihar vs. Bihari Bros Ltd for the proposition that once the assessee had received unsecured loans through cheques and assessee submitted the details of creditors, the assessee is deemed to have discharged its onus. The addition u/s 68 can only be made if any unexplained sum is found credited in the books of account of the assessee. Since we have adjudicated the additional ground taken by the assessee, the remaining grounds do not call for any adjudication.


IN INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH SMC, LUCKNOW BEFORE SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA No.673/Lkw/2018 Assessment year:2006-07 Shri Shiv Shankar Gupta, Vs. Income Tax Officer-IV(4), 69, Ram Nagar, Aishbagh, Lucknow. Lucknow. PAN:ADGPG1373D (Appellant) (Respondent) Appellant by Shri B. P. Yadav, Cost Accountant Respondent by Shri Ajay Kumar, D.R. Date of hearing 05/09/2019 Date of pronouncement 06/09/2019 ORDER PER T. S. KAPOOR, A.M. This is appeal filed by assessee against order of learned CIT(A)-2, Lucknow dated 29/08/2018 pertaining to assessment year 2006- 2007. 2. At outset, Learned A. R. invited our attention to fact that there has occurred delay of 11 days in filing appeal and in this respect our attention was invited to affidavit duly signed by advocate of assessee wherein he has stated that due to ill health of his wife, filing of appeal got delayed. Learned A. R. stated that in view of these facts and circumstances, delay may be condoned and appeal of assessee may be heard on merits. Learned D. R. had no objection to condonation of delay. I, having found reason for delay in filing appeal reasonable, condoned delay and asked Learned A. R. to proceed with his arguments. I.T.A. No.673/Lkw/2018 2 Assessment year:2006-07 3. Learned A. R. submitted that he has taken additional ground of appeal, which is purely legal issue and which is coming out of facts of case. additional ground taken by assessee reads as under: Assessing Officer erred on facts and in law in making addition of Rs.4,21,100/- u/s 68 of I.T. Act by treating cheque deposits in bank account as unexplained cash credits despite fact that appellant does not maintain books of account and therefore, charging of section 68 cannot be pressed into service. Learned counsel for assessee submitted that in view of judgment of Hon'ble Supreme Court in case of National Thermal Power Co. Ltd. vs. CIT 229 ITR 383 (SC), additional ground may be admitted and adjudicated. Learned D. R. had no objection to admission of additional ground and therefore, Learned A. R. was asked to proceed with his arguments on additional ground. 4. Learned A. R. stated that it is undisputed that assessee was not maintaining any books of account and Assessing Officer has made addition of Rs.4,21,100/- on basis of entries found in bank statements of assessee u/s 68 of Act, which is not permissible as provision of section 68 clearly states that any amount credited in books of account can only be added as per provisions of section 68 of Act. Learned A. R. further stated that assessee had received all unsecured loans through cheques and in this respect filed copy of bank statement highlighting entries of receipt of cheques. learned A.R. placed his reliance on order of Hon'ble Patna High Court in case of CIT Bihar vs. Bihari Bros (P) Ltd for proposition that once assessee had received unsecured loans through cheques and assessee submitted details of creditors, assessee is deemed to have discharged its onus. I.T.A. No.673/Lkw/2018 3 Assessment year:2006-07 5. Learned D. R., on other hand, placed his reliance on orders of authorities below. 6. I have heard rival parties and have gone through material placed on record. I find that assessee had filed return of income declaring income of Rs.71,530/-. assessee is engaged in dealing of batteries of motor vehicle and had declared turnover of Rs.17,95,807/- on which profit of Rs.1,48,154/- was offered to tax. return was filed under provisions of section 44AF of Act, which establishes that assessee was not maintaining books of account. I further find that Assessing Officer has made addition of Rs.4,21,100/- out of various cheques credited in bank account of assessee. assessee during course of assessment proceedings had filed confirmations regarding receipt of unsecured loans from these persons. I further find that these additions were made on basis of entries in bank statement as assessee was not maintaining any books of account. addition u/s 68 can only be made if any unexplained sum is found credited in books of account of assessee. Here is case where sum was not found credited in books of account and therefore, addition made u/s 68 is not sustainable and hence order of learned CIT(A) is reversed and appeal of assessee is allowed. Since we have adjudicated additional ground taken by assessee, remaining grounds do not call for any adjudication. 7. In result, appeal of assessee stands allowed. (Order pronounced in open court on 06/09/2019) Sd/. (T.S. KAPOOR) Accountant Member Dated:06/09/2019 Singh I.T.A. No.673/Lkw/2018 4 Assessment year:2006-07 Copy of order forwarded to : 1. Appellant 2. Respondent. 3. Concerned CIT 4. CIT(A) 5. D.R., I.T.A.T., Lucknow Shiv Shankar Gupta v. Income-tax Officer-IV(4), Lucknow
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