Ration card of low economic strata no prove of Financial Status
IN THE INCOME TAX APPELLATE TRIBUNAL
The Relevant Text of the Order as follows :
8. At the outset, I do not find merit in the order of the Ld. Revenue Authorities. From the facts of the case it is apparent that Smt. B. Nirmala is engaged in the activity of running a small shop. Therefore, she has some source of income. Further, possessing ration card of low economic strata does not categorically prove that the assessee does not have any resources to earn reasonable income or financially unsound. Moreover, apparently the entire transactions are made through the banking channel. Accumulating an amount of Rs. 3 lakhs by an individual engaged in a small business activity is not an unrealistic factor.
Keeping in view of the facts and circumstances of the case I am of the considered view that the loan transaction cannot be treated as bogus. Therefore, I hereby set aside the order of the Ld. CIT (A) on this issue and further direct the Ld. AO to delete the addition of Rs. 3 lakhs made in the hands of the assessee being the loan received from Smt. B. Nirmala.
9. Before parting, it is worthwhile to mention that this order is pronounced after 90 days of hearing the appeal, which is though against the usual norms, I find it appropriate, taking into consideration of the extra-ordinary situation in the light of the lock-down due to Covid-19 pandemic. While doing so, I have relied in the decision of Mumbai Bench of the Tribunal in the case of DCIT Vs. JSW Ltd. In ITA No.6264/M/2018 and 6103/M/2018 for AY 2013-14 order dated 14th May 2020.
10. In the result, appeal of the assessee is allowed.
Pronounced in the open court on the 24th July, 2020.
Tags: Judgement, Appellant Tribunal, Income Tax
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