Only the right person is liable to be taxed and not the wrong person

The brief facts of the case is that during the scrutiny proceedings, the Assessing Officer observed that assessee is the beneficiary of accommodation entry provided by Shri Pravin Kumar Jain-Group.Therefore, Assessing Officer, after considering the reply of the assessee and as per the findings of the Investigation Team,noted that in case of Shri Pravin Kumar Jain-Group, the transactions made by the assessee (M/s. KhusbooIspat Pvt. Ltd.) was bogus, therefore, made addition to the tune of Rs.24,73,949/-.

On appeal, Ld. CIT(A) confirmed the action of the Assessing Officer. Aggrieved, the assessee filed an appeal before the tribunal. Ld. Counsel submitted that bank statement, on the basis of which, the Assessing Officer had made addition, does not belong to assessee, hence there is no question of addition in the hands of the assessee.The ld Counsel pointed out that assessee`s main contention before theld CIT(A) was that SBI account No. 30723329134, from where the money was transferred though RTGS did not belong to assessee and it belonged to M/s Jenil Empire. The ld Counsel submitted before the Bench, the Copy of SBI bank a/c no. 30723329134 for AY.2009-10. Therefore, ld Counsel prayed the Bench that entire addition made by the Assessing Officer should be deleted.

ITAT in its order relied on the decision of the Hon’ble Supreme Court in ITO Vs. CH. Atchaiah (1996) 218 ITR 239 (SC) has held that the income should be assessed on the right person, right year and it should be on the right income. From the aforesaid decision of the Hon’ble Supreme Court only the right person and the right person alone is liable to be taxed and not the wrong person. ITAT observed that the ld Counsel submitted copy of SBI bank a/c no. 30723329134 for AY.2009-10, which pertains to M/s Jenil Empire. Therefore, the assessee is not owner of transactions contained in the said bank statement, hence income should not be taxable in the hands of the assessee, as the assessee is not a right person to pay tax on the transactions mentioned in the said bank statement. Therefore, it is of the view that an opportunity should be given to the assessing officer to examine the said bank statement. Hence, it set aside the order of ld CIT(A) and remit the issue back to the file of the assessing officer with the direction to examine SBI bank a/c no. 30723329134, and transactions therein, and if the Assessing Officer finds that transactions mentioned in the said bank statement do not pertain to assessee, he should delete the addition. Therefore, for statistical purposes, the assessee`s appeal is treated to be allowed.

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