TMI Blog2024 (1) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be held as unexplained under section 68 of the Act in the absence of contrary information. Likewise, there cannot be addition of one item in the hands of two different person. Keeping in mind the aforesaid decision as well as keeping in mind that Smt. Hansaben Manilal Patel has already been substantially taxed and Ramesh G. Thakor s addition also deleted by the learned CIT(A) as the source was clearly proved by the assessee. In our considered opinion, the appellate authority as well as the Income Tax Appellate Tribunal concurrently reversed the findings of the Assessing Officer on the said count, and thus, it could not be said that any question much less any substantial question of law arises. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL R. MEHTA Appearance: For the Appellant(s) No. 1 : Mrs Kalpana K Raval(1046) For the Opponent(s) No. 1 : Mr Rutul P Desai(6498) ORAL ORDER (PER : HONOURABLE MR. JUSTICE NIRAL R. MEHTA) [1] The present Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short, the Act ), at the instance of the appellant Revenue, is directed against the judgement and orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as one of the parties to the sale deeds, passing of ex- parte assessment orders for A Yes. 2009-10 and 2010-11 wherein the issue of 7 sale deeds has been examined for A. Y. 2009-10 and also the credit entries in the bank account with Indian Bank maintained by Smt. Hansaben M. Patel. The amounts of loans have been given through account paper cheques which are evidenced in the bank accounts of the appellant as well as of Smt. Hansaben M. Patel which have also been cross verified. Therefore, the second ingredient is also proved. The third ingredient is the creditworthiness of the loan-giver, i.e. Smt. Hansaben M. Patel which is also proved beyond doubt on the strength of the copies of sale deeds filed by the appellant evidencing the payments to Smt. Hansaben M. Patel through cheques which are further strengthened by the copies of all the relevant pages of the bank accounts maintained by Smt. Hansaben M. Patel. It appears to me that if appellant would have been fit at the time of assessment proceedings, the Assessing Officer would not have made the impugned addition of Rs. 18,12,50,000/-. However, since the appellant has filed ample details and decisions of various courts in support o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant evidencing the payments to Shri Mukesh J. Shah through cheques which are further strengthened by the copies of all the relevant pages of the bank accounts maintained by Shri Mukesh J. Shah, Now, since the facts of loan transactions made with Shri Mukesh J Shah are similar to those of Smt. Hansaben Manilal Patel alongwith the case laws relied as mentioned in the findings given above and as the appellant has filed ample details in support of the contentions so raised, the relief as prayed by the appellant for the addition of Rs. 1,50,00,000/- is granted and this addition is deleted, Accordingly, the part ground of appeal in relation to this addition is allowed. (C) M/s Ambe Trade Lad, (Rs. 5,00,00,000/-) Corp Pvt. Ltd. (Rs. 5,00,00,000/-) The appellant has filed the copies of contra confirmation account for F.Ys. 2008-09 and 2009-10 i.e. for assessment years 2009-10 and 2010-11, copy of acknowledgement of return of Income for these years, copy of bank statement of appellant, certificate from ROC for change of name and copies of balance- sheets as on 31.03.2009 31.03.2010 of this company formerly known as J.P. Fincorp Services Pvt. Ltd This company h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per the copy of sale deed no. 663 registered on 21.02.2009. As per this sale deed, Shri Kamal Manubhai Gohil has received the amount of Rs. 8,44,69,500/- confirming party out of total sale consideration of Rs. 9,20,20,500/-. On the strength of these documents, the appellant has contended that the identity, genuineness of the transactions and the creditworthiness of the person giving loans have been proved in the remand report, the AO has pointed out that the ledger copy of account of Shri RM Thakur was not filed but it was the ledger account copy of Shri Kamal Gohil and therefore, the same cannot be accepted. Findings This person has also received the money through banking channels and advanced the sum of Rs. 2,80,00,000/- within three months of executing the sale deed on 21.02.2009. Therefore, all the three ingredients, i.e. identity before the registering authority, genuineness of transactions being routed through banking channel and the creditworthiness by way of having sufficient fund on account of money received as confirming party are proved. Therefore, the addition of Rs. 2,80,00,000/- cannot be treated as unexplained in view of these fresh evidences coupl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und no. 5 of appeal against initiation of penalty proceedings u/s. 271(1)(c) of the Act being premature is not entertained and is dismissed. 9.0 In the result, the appeal is partly allowed. [7] Being aggrieved and dissatisfied by the aforesaid, the appellant Revenue approached the Tribunal by way of an appeal being Appeal No. 63/Ahd/2020 for the Assessment Year 2010-11. The Tribunal, vide its order dated 5th July 2023, dismissed the appeal by holding as under: 8. We have given our thoughtful consideration and perused the materials available on record. It is settled principle of law the Income Tax Act nowhere provides that parallel assessments can be made in respect of the same income on two different persons. The assessee right from the beginning of the reassessment proceedings submitted that the source of the funds from the creditors and their source (i.e. source on source) is also proved by the assessee. Therefore the Assessing Officer made a protective addition of Rs. 28.68 crores as unexplained money in the hand of the assessee. The Co-ordinate Bench of this Tribunal in the case of M/s. Capaxo Logistics Pvt. Ltd. and M/s. Ambe Tradecorp Pvt. Ltd. are on ident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was received through banking channel. Before the Appellate Authority, the assesee could establish that M/s. Rachna Finlease Pvt. Ltd. had received money from one Smt. Hansaben H. Patel and from one Shri Rameshbhai Thakore and the said factum was fortifiable from the bank statement of the creditor M/s. Rachna Finlease Pvt. Ltd. It was noted by the Appellate Authority that the said aspect was recorded by the 5.1 Assessing Officer also in paragraph No. 6.1.3 of its order, which reads as under, On verification of the bank book of Rachna Finelease Pvt. Ltd. it is found that the fund have travelled within minutes of being credited from the bank account of Hansaben H. Patel and Rameshbhai Thakor and immediately the funds have landed in the bank account of JP Fincorp Services Pvt. Ltd. (Renamed as Ambe Tradecorp Pvt. Ltd.). 5.2 It could be said that the finding of the Assessing Officer that the identity and creditworthiness of said party was not proved, was devoid of any basis, on the contrary, the facts established by the assessee suggested otherwise. The genuineness of transaction was shown by producing bank statements and also by explaining the source of fund at t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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