BAJRANG LAL MUHAL,GHAZIABAD V. INCOME TAX OFFICER, WARD 2(1)(5), GHAZIABAD

ITA 3583/DEL/2023

AI Insights

The case revolves around an appeal by Bajrang Lal Muhal against an order from the Commissioner of Income-Tax (Appeals)/National Faceless Appeal Centre, which had arisen from an earlier order by the ITO, Ward 2(1)(5), Ghaziabad. The dispute centered on the reassessment under Section 147 read with Section 144 of the Income Tax Act, 1961, for the Assessment Year 2012-13, concerning unexplained credit card payments amounting to Rs.10,19,550. The assessee, employed by TCI Co., used his personal credit card for expenses related to his employer's transport operations, which were later reimbursed. The Tribunal noted that the lower authorities had not adequately considered the affidavit and documents provided by the assessee's employer, which explained the nature of the expenses and the source of the funds used for the credit card payments.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 27316 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 21-10-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 11-12-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: WAY OF AN AFFIDAVIT
• Section: 147; 144; 69

Judgement Text

" THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘SMC’ NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER ITA No. 3583/Del/2023 Assessment Year: 2012-13 Bajrang Lal Muhal, 973/B, Shalimar Garden Extn.-1, Sahibabad Ghaziabad-201005 (UP) Vs. ITO Ward-2(1)(5), Ghaziabad. PAN : AOMPM4148M (Appellant) (Respondent) ORDER PER MS. MADHUMITA ROY: JUDICIAL MEMBER: The instant appeal filed by the assessee is directed against an order dated 10.06.2023 passed by Commissioner of Income-Tax (A)/ National Faceless Appeal Centre (NFAC), arising out of the order dated 03.12.2019 passed by the ITO, Ward 2(1)(5), Ghaziabad under Assessee by N o n e Department by Shri Sanjay Kumar, Sr. DR Date of hearing 21.10.2024 Date of pronouncement 29.10.2024 5 ITA No. 3583/Del/2023 Section 147 read with Section 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Year 2012-13. 2. None appeared on behalf of the assessee at the time of call. It appears from the record that, though, notices were served, no one represented before us ever. Having no alternative, the matter is decided ex parte. 3. The assessee before us works for a Transporter, namely, TCI Co. made credit card or payment of Rs.10,19,548/-. In the absence of supporting documents and any explanation with regard to source of credit card payments furnished by the assessee, reassessment was completed under Section 147 read with Section 144 of the Act upon making addition of the entire amount of Rs.10,19,550/- to the total income of the assessee under Section 69 of the Act. Relevant to mention that the assessee since having an income around Rs.2,50,000 yearly i.e. below exemption limit did not file the return of income. He was also looking after the branch office of his employer at UP Boarder and incurring day to day expenses through his personal credit card for the running and maintenance of vehicles on behalf of Mr. Dharamvir Singh which was used to be reimbursed by lump sum deposits in the 5 ITA No. 3583/Del/2023 bank account. The credit card is mainly in respect of payment made to petrol pump and maintenance of vehicles and other charges as he books the truck in UP Boarder and used to get the fuel tanks filled on his own account by paying through his personal credit card as the case made out by the assessee. 4. The assessed, before the AO, failed to submit any document and before the First Appellate Authority, filed an affidavit affirmed by his employer, namely, Dharambir Singh explaining deposit of Rs.16,00,000/- in HDFC Bank No.0433100001477. It has been specifically stated that such amount has been deposited for diesel, driver own expenses and maintenance of the trucks loaded from UP Boarder on behalf of the Transporter TCI Company. It is relevant to mention that letter from Mr. Dharambir Singh confirming the employment of the assessee before us, engaged in the business of plying, hiring or leasing goods carriage along with the copy of the PAN have been duly furnished before the Ld. CIT(Appeals). However, such explanation rendered by the assessee and the documents so filed in support of the same is found to have been not considered in its proper perspective by the Ld. CIT(Appeals) while 5 ITA No. 3583/Del/2023 confirming the addition made by the Assessing Officer. It is noted that, no contrary evidence is also found to be available with the revenue department while confirming such addition against the assessee which needs consideration, particularly, when the explanation so rendered by the employer of the assessee by way of an affidavit seems to be genuine. Thus, the addition is found to be not sustainable in the eyes of law, and thus, deleted. 6. In the result, the appeal filed by the assessed is allowed. Order pronounced in the open court on 29/10/2024. Sd/- (MADHUMITA ROY) JUDICIAL MEMBER Dated: 29th October, 2024. Mohan Lal Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "