Sh. Ravinder Kumar Mantoo, Delhi V. ITO, New Delhi

CO 121/DEL/2011

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 6420 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-09-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 12-09-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 20-04-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK SENIOR
• Assessee Lawyers: VIRENDRA CHAUHAN
• Keywords: Additional evidence
• Section: 68; 69; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F : NEW DELHI) SHRI C.L. SETHI, JUDICIAL MEMBER AND BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.3908/DEL./2010 (ASSESSMENT YEAR : 2006-07) ITO, WARD 21 (3), VS. SHRI RAVINDER KUMAR MANTOO , NEW DELHI. 209, S.G.L. PLAZA, SECOND FLOOR, SECTOR 9, ROHINI, DELHI. (PAN : AAVPM3523D) CO NO.121/DEL/2011 (IN ITA NO.3908/DEL./2010) (ASSESSMENT YEAR : 2006-07) SHRI RAVINDER KUMAR MANTOO, VS. ITO, WARD 21 (3), 209, S.G.L. PLAZA, SECOND FLOOR, NEW DELHI. SECTOR 9, ROHINI, DELHI. (PAN : AAVPM3523D (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VIRENDRA CHAUHAN, AR REVENUE BY : SMT. PRATIMA KAUSHIK, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THE APPEAL FILED BY THE REVENUE AND CROSS OBJECTION FILED BY THE ASSESSEE ARISE OUT OF THE ORDER OF CIT (APPEALS)-XX II, NEW DELHI DATED 14.06.2010 FOR THE ASSESSMENT YEAR 2006-07. 2. THE GROUNDS OF APPEAL TAKEN BY THE REVENUE READ AS UNDER :- ITA NO.3908/DEL./2010 CO NO.121/DEL./2011 2 1. THE LD. CIT (A) ERRED IN LAW AND ON FACTS IN DE LETING THE ADDITION OF RS.19,49,700/- MADE BY THE ASSESSING OF FICER ON ACCOUNT OF UN-EXPLAINED CASH DEPOSIT UNDER SECTION 68 OF THE I.T. ACT, 1961. 2. THE LD. CIT (A) ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITIONS IN CONTRAVENTION OF RULE 46A AND ACCEPTIN G ADDITIONAL EVIDENCES WITHOUT GIVING AN OPPORTUNITY TO THE ASSESSING OFFICER TO EXAMINE THE SAME. 3. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ALL OR ANY OF THE AFORESAID GROUNDS OF APPEAL AND ADD ANY OTHER G ROUND OF APPEAL. THE GROUNDS TAKEN BY THE ASSESSEE IN THE CROSS OBJE CTION ARE AS UNDER :- 1. THAT UNDER THE FACTS & CIRCUMSTANCES OF THE CAS E AND IN LAW THE LEARNED AO HAS GROSSLY ERRED WHILE COMPLETI NG THE ASSESSMENT U/S 144 OF THE ACT, WITHOUT SERVING ON T HE RESPONDENT MANDATORY NOTICE U/S 143(2) OF THE ACT, THEREFORE, THE ASSESSMENT COMPLETED AS SUCH MAY BE HELD AB-INI TIO VALID. 2. THAT UNDER THE FACTS & CIRCUMSTANCES OF THE CAS E AND IN LAW THE LEARNED AO HAS GROSSLY ERRED WHILE COMPLETI NG THE ASSESSMENT U/S 144 OF THE ACT, WITHOUT GIVING AN OP PORTUNITY OF BEING HEARD UNDER PROVISO TO SECTION 144(1), THE REFORE, THE ASSESSMENT COMPLETED AS SUCH MAY BE HELD AB-INITIO VALID. 3. THAT UNDER THE FACTS & CIRCUMSTANCES OF THE CASE AND IN LAW THE HON'BLE CIT(A) HAS GROSSLY ERRED WHILE ADJU DICATING ON THE AFORESAID GROUNDS, THEREFORE, THE ORDERS PAS SED BY THE HON'BLE CIT (A) MAY BE MODIFIED IN FAVOUR OF THE RESPONDENTS. 3. AT THE OUTSET OF THE HEARING, THE LEARNED AR SUB MITTED THAT HE WANTS TO WITHDRAW THE CROSS OBJECTION. THE BENCH HAS ALLOWE D TO WITHDRAW THE CROSS OBJECTION, THEREFORE, THE SAME IS DISMISSED AS WITH DRAWN. ITA NO.3908/DEL./2010 CO NO.121/DEL./2011 3 4. IN THE REVENUES APPEAL, THE ISSUE INVOLVED IS D ELEING THE ADDITION OF RS.19,49,700/- MADE BY THE AO ON ACCOUNT OF UNEXPLA INED CASH DEPOSIT U/S 69 OF THE INCOME-TAX ACT, 1961 AND THE REVENUE HAS ALSO PLEADED THAT THE CIT (A) HAS ADMITTED THE ADDITIONAL EVIDENCES IN CONTRA VENTION OF RULE 46A WITHOUT GIVING AN OPPORTUNITY TO THE AO. 5. THE ASSESSEE IS AN INDIVIDUAL AND IS ALSO PERSON DISPLACED FROM JAMMU & KASHMIR. THE ASSESSEE IS ALSO PARTNER OF M/S. OM A TRADING CORPORATION, SECTOR 9, ROHINI, DELHI AND THE FIRM IS DEALING IN THE BUSINESS OF HOUSEHOLD APPLIANCES. 6. LEARNED DR RELIED ON THE ORDER OF THE AO AND SUB MITTED THAT THE ASSESSEE HAS NOT FIELD RELEVANT DETAILS BEFORE THE AO AND CIT (A) HAS VIOLATED RULE 46A AND SHE PRAYED THAT THE ORDER OF CIT (A) M AY BE SET ASIDE. ON THE OTHER HAND, THE LEARNED AR RELIED ON THE ORDER OF T HE CIT (A) ALSO SUBMITTED THAT THE DOCUMENTS EXPLAINING SOURCE OF CASH DEPOSI TS WERE SENT TO AO TWICE PRIOR TO DECISION BY CIT (A). AO HAD NOT AVAILED T HIS OPPORTUNITY TO VERIFY THE CLAIM, HENCE CIT (A) IS JUSTIFIED IN DELETING T HE ADDITION. 7. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE. THE ASSESSMENT ORDER WAS PASSED BY THE AO ON 19.11.2008 U/S 144 OF THE INCOM E-TAX ACT. THE REVENUE RECEIVED INFORMATION FROM AIR THAT ASSESSEE HAS DEP OSITED CASH TO THE TUNE OF RS.19,49,700/-. THE AO ADDED THE WHOLE OF THE AMOU NT IN THE INCOME OF THE ASSESSEE WHILE PASSING THE ORDER U/S 144. THE ASSE SSEE FILED AN APPEAL BEFORE ITA NO.3908/DEL./2010 CO NO.121/DEL./2011 4 THE CIT (A). THE DETAILS EXPLAINING SOURCE OF CASH DEPOSITS IN BANK WERE SUBMITTED TO CIT (A). THE CIT (A) FORWARDED THE DE TAILS SUBMITTED TO THE AO. THE AO OBJECTED TO ADMIT THESE EVIDENCES. HOW EVER, HE HAD NOT EXAMINED THEIR VERACITY. CIT (A) HAS HIMSELF EXAMI NED THE DETAILS FILED BEFORE HIM AND HAS GIVEN A FINDING THAT THE DOCUMEN TS EXPLAIN THE SOURCE OF CASH DEPOSIT. THE SOURCE OF THE CASH DEPOSITS IN T HE BANK IS FROM WITHDRAWAL FROM THE SAME BANK ACCOUNT OR CASH RECEIVED FROM TH E PARTNERSHIP CONCERN, M/S. OMA TRADING CORPORATION. THE NECESSARY ENTRIE S ARE AVAILABLE IN ITS BOOKS OF ACCOUNTS. THE NECESSARY DETAILS WERE FILE D BEFORE THE CIT (A) ALONG WITH NARRATIONS. CIT (A) HAS PERUSED THE DOCUMENTS AND HAS ACCEPTED THE SOURCE OF THE DEPOSITS AS EXPLAINED ONE. SINCE THE SOURCE OF THE CASH DEPOSIT IN THE BANK ACCOUNT IS EXPLAINED, WE FIND NO FAULT IN THE ORDER OF THE CIT (A) AND DISMISS THE GROUND TAKEN BY THE REVENUE. 8. IN THE RESULT, THE APPEAL OF THE REVENUE AS WELL AS CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 16 TH DAY OF SEPTEMBER, 2011. SD/- SD/- (C.L. SETHI) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 16 TH DAY OF SEPTEMBER, 2011 TS ITA NO.3908/DEL./2010 CO NO.121/DEL./2011 5 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXII, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.