Sh. Aman Arora, New Delhi V. ITO, New Delhi

CO 36/DEL/2011

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 6791 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 29-12-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-12-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 11-02-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K MONGA
• Assessee Lawyers: PANKAJ JAIN
• Keywords: Unexplained investment; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : A : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI I.P. BANSAL, JUDICIAL MEMBER ITA NO.4235/DEL/2010 ASSESSMENT YEAR : 2005-06 ITO, WARD 24 (1), ROOM NO.186, CR BUILDING, NEW DELHI. VS. AMAN ARORA, C-37A, GREEN PARK MAIN, NEW DELHI. PAN : AAEPA6848C C.O. NO.36/DEL/2011 (ITA NO.4235/DEL/2010) ASSESSMENT YEAR : 2005-06 AMAN ARORA, C-37A, GREEN PARK MAIN, NEW DELHI. PAN : AAEPA6848C VS. ITO, WARD 24 (1), ROOM NO.186, CR BUILDING, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI PANKAJ JAIN, FCA, REVENUE BY : SHRI A.K. MONGA, SR.DR ORDER PER BENCH: THE APPEAL IS FILED BY THE REVENUE AND THE CROSS OBJE CTIONS ARE FILED BY THE ASSESSEE. BOTH OF THEM ARE DIRECTED AGAIN ST THE ORDER PASSED BY THE CIT (A) DATED 16 TH JUNE, 2010 FOR ASSESSMENT YEAR 2005- 06. GROUNDS OF APPEAL FILED BY THE REVENUE READ AS U NDER:- ITA NO.4235/DEL/2010 C.O. NO.36/DEL/2011 2 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEAR NED CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS.5,94, 924/- MADE ON ACCOUNT OF UNACCOUNTED CASH. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARN ED CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS.1,95,847/ - MADE ON ACCOUNT OF UNEXPLAINED INVESTMENT. 3. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND A NY OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEA RING OF THE APPEAL. 1.1 GROUNDS OF CROSS OBJECTIONS FILED BY THE ASSESSEE READ AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEAR NED CIT (A) HAS DELETED THE ADDITION OF RS.5,94,924/- FROM THE TOTAL INCOME OF RESPONDENT IN ASSESSMENT YEAR 2005-06 WHICH IS JUSTIFIED. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARN ED CIT (A) HAS DELETED THE ADDITION OF RS.195847/- FROM THE TOTA L INCOME OF RESPONDENT IN ASSESSMENT YEAR 2005-06 WHICH IS JUSTIFIED. 3. THE RESPONDENT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY OF THE GROUNDS OF CROSS OBJECTIONS BEFORE OR DURING THE C OURSE OF HEARING OF THE APPEAL. 2. AS IT CAN BE SEEN FROM THE CROSS OBJECTIONS RAISED BY THE ASSESSEE, THEY ARE ONLY SUPPORTING THE ORDER PASSED BY THE CIT (A) ON WHICH THE REVENUE HAS CONTESTED THE DELETION. 3. IT WAS ADMITTED BY BOTH THE PARTIES THAT THE TAX E FFECT ON THE DELETIONS CHALLENGED BY THE REVENUE IS LESS THAN ` 3 LA C. THE ONLY POINT OF DISPUTE WHICH WAS RAISED BY THE REVENUE IS THAT THE PRESENT APPEAL HAS BEEN FILED ON 14 TH SEPTEMBER, 2010 WHICH IS PRIOR TO THE DATE OF CIRCULAR WHICH IS DATED 9 TH FEBRUARY, 2011 (INSTRUCTIONS NO.3) VIDE WHICH THE TAX EFFECT LIMIT WAS INCREASED TO ` 3 LAC F ROM ` 2 LAC. THE APPEAL BEING FILED PRIOR TO 9 TH FEBRUARY, 2011, THE LIMIT SHOULD BE ITA NO.4235/DEL/2010 C.O. NO.36/DEL/2011 3 CONSIDERED TO BE ` 2 LAC AND, THEREFORE, THE DEPARTM ENTAL APPEAL SHOULD BE ADMITTED AND DECIDED ON MERITS. 4. IN THIS VIEW OF THE SITUATION, AFTER HEARING BOTH THE PARTIES, IN VIEW OF THE DECISION OF HONBLE JURISDICTIONAL HIGH C OURT (DELHI HIGH COURT) IN THE CASE OF CIT VS. M/S P.S. JAIN & CO. (ITA NO.179/1991) VIDE ORDER DATED 2 ND AUGUST, 2010, IT HAS BEEN HELD THAT THE NEW CIRCULAR WILL BE APPLICABLE TO THE PENDING APPEALS ALSO. THIS D ECISION WAS LATER ON RE-AFFIRMED BY HONBLE DELHI HIGH COURT IN THE C ASE OF CIT VS. DELHI RACE CLUB (ITA NO.128/2008) VIDE ORDER DATED 3 RD MARCH, 2011. COPY OF BOTH THESE ORDERS HAVE BEEN PLACED ON OUR RECORD. THEREFORE, FOLLOWING THE AFOREMENTIONED DECISIONS OF HONBLE JUR ISDICTIONAL HIGH COURT, WE DISMISS THE APPEAL FILED BY THE REVENUE ON T HE BASIS OF LOW TAX EFFECT. 5. AS POINTED OUT EARLIER, THE CROSS OBJECTIONS FILED B Y THE ASSESSEE ARE ONLY SUPPORTING THE ORDER OF THE CIT (A) AND THE DEPARTMENTAL APPEAL HAS BEEN DISMISSED ON ACCOUNT OF LOW TAX EFFECT. THE C.O. DOES NOT SURVIVE FOR ADJUDICATION, HENCE, THE SAME IS ALSO D ISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE AS WELL AS THE CROSS OBJECTIONS FILED BY THE ASSESSEE BOTH ARE DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 29.12.20 11. SD/- SD/- [G.D. AGRAWAL] [I.P. BANSAL] VICE PRESIDENT JUDICIAL MEMBER DATED, 29.12.2011. DK ITA NO.4235/DEL/2010 C.O. NO.36/DEL/2011 4 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES