9911796707
TMI Blog2012 (8) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... t, while making the additions. Notional interest on provision of interest free loan - assessee contended that it was personal loan given to the family friend to facilitate him to purchase the land and the property was merely mortgaged as a security and was to be returned back after return of money - Held that:- Addition was made by the AO on the plea that full details of the transactions were not furnished by the assessee and he drew adverse inference. In the absence of any positive material brought by the Revenue, addition is deleted since notional income is not taxable under the Act - Decided in favor of assessee - ITA No. 59 & 60/Ind/2012 - - - Dated:- 13-6-2012 - SHRI JOGINDER SINGH, AND SHRI R.C. SHARMA, JJ. Appellant by Shri Keshav Saxena, CIT DR RespondentS by Shri S.S. Solanki O R D E R PER JOGINDER SINGH, judicial member The Revenue is aggrieved by the impugned orders dated 17.11.2011 passed by the learned first appellate authority, Indore. 2. During hearing, we have heard Shri Keshav Saxena, learned CIT DR and Shri S.S. Solanki, ld. Counsel for the assessee. At the outset, the ld. Counsel for the assessee submitted that impugned issues are cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in view of the fact that there were no fund available with the assessee at the beginning of the A.Y. 2007-08 as has been worked out in the assessment order of the A.Y. 2006-07. This amount of Rs. 558678/-is therefore being added as unexplained advances to the total income of the assessee u/s 69A of the IT Act. Proceedings under section 271(1)(c) are being initiated on this issue. 4.9.2 The AR of the appellant apart from detailed submissions filed in the matter of consideration of opening capital coming from earlier years prior to the period covered by search assessment, further contended that it was a matter on record that the appellant was engaged in money lending business for which silver articles were pawned with the appellant group by borrowers of money. Thus it was admitted fact on record that these silver articles were available with the appellant against money advanced, which has been duly considered on the basis of Girvi register for A.Y. 2000-01 to 2007-08 i.e. the year under consideration. Thus it was summed up that whichever may the issue was examined, such articles cannot be treated as unexplained and were fully explainable on the basis of funds available from prior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue is identical to the above consolidated ground whereas the ld. Counsel for the assessee defended the impugned order. 3. We have considered the rival submissions and perused the material available on the record. Since common issues are involved in all the appeals, these can be disposed by a common and consolidated order for the sake of brevity. The facts, in brief, are that survey u/s 133A of the Act, 1961 (the Act, hereinafter) was carried out at the business premised of the assessees on 13.9.2006 which was later on converted into search u/s 132(1) of the Act. The assessees, at the relevant time, were engaged in girvi business (pawning business). During search, girvi registers were found in which transactions relating to pawning business were recorded. The relevant extracts from the assessment order which led to the addition are reproduced hereunder: - On verification of seized books of accounts/documents, a large number of entries related to the interest income from pawning business and the investment thereof pertaining to financial year 1999-2000 relevant to assessment year 2000-2001 were found. The transaction made in these Girvi Registers are in coded form. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1178150 Shri Umesh Kumar Soni 89430 1517756 961210 3.1 Against the aforesaid additions, the assessees preferred appeal before the learned first appellate authority and made following submissions: - a. That when the assessee s family consists of 7 members and all are doing business jointly, why interest income was divided amongst 5 members. We are enclosing copies of returns of all 7 members of Assessment year 2000-01 and last 3-4 year for providing our case. b. It is a settled law that only income of that particular year can be taxed and credit for opening capital will have to be allowed. For these preposition reliance is placed on following decisions :- i. Hon 'ble Rajasthan High Court in the case of CIT v. Satyendra Kumar Doshi reported in 315 ITR 172 held that addition as a result of estimation of opening capital involved prior to the block period and in the block assessment while computing the undisclosed income for the block period, capital passessed by the assessee prior to the block period as revealed from the ledger and the material seized during the search could not be treated as undisclosed income of the fires assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 148 was given to the assessee, where the Assessing Officer had mentioned the specific no. of girvi register seized by the department and total amount of income treated as undisclosed. The copy of the said registers were obtained by the assessee during post search proceedings. However, inner details of calculations are enclosed. The totals of repayments received by the assessee, interest income earned and advances made as recorded in the concerned Girvi Registers (for the F.Y. 1999-2000) are as under: - Girvi Register L.D. No. Page No. of Girvi Register Repayment Received Interest Received BS-4 1 to 38 410 410 BS-11 1 to 91 2844 694 BS-12 1 to 54 306656.70 65184.70 BS-13 1 to 65 695080.25 110500.25 TOTAL 1004990.95 176788.95 Girvi Register I.D. No. Page No. of Girvi Register Advances made BS-11, 12 13 - 774722 Ground No. 2 2.6 Inner details of calculation are enclosed. 2.7(i) For this assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the successor Assessing Officer for assessment year 2000-01 to 2007-08 wherein working out of the advance and the repayment receipt were duly considered. Even in the remand report, nothing contrary was brought to the notice of the learned first appellate authority. The remand report was also duly considered. In view of these uncontroverted facts, we find no infirmity in the conclusion drawn in the impugned order. So far as the contention of the Revenue that the details were not got verified by the learned Commissioner of Income Tax (Appeals) is also without any basis because the learned first appellate authority reached to a conclusion after examining the remand report/appraisal report from the Assessing Officer, therefore, on this count also, there is no merit in the assertion of the Revenue. Identical is the situation for ground nos.4 4.1 of the grounds raised by the Revenue, therefore, the stand of the learned Commissioner of Income Tax (Appeals) is affirmed. Finally, all the appeals of the Revenue are having no merit, consequently, dismissed. This order was pronounced in the open Court in the presence of ld. representatives of both sides at the conclusion of the hearin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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