Sh. Harjot SIngh Khurana, New Delhi V. ITO, New Delhi

CO 404/DEL/2011

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 0353 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 28 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 24-03-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 11-03-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 27-12-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: HARJOT SINGH KHURANA
• Assessee Lawyers: T VASANTHAN
• Keywords: Gift; Additional evidence
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI C.M. GARG : JUDICIAL MEMBER ITA NO. 4714/DEL/2011 ASSTT. YR: 2005-06 INCOME-TAX OFFICER, VS. HARJOT SINGH KHURANA, WARD 46(4), NEW DELHI. C-531, SARITA VIHAR, NEW D ELHI. PAN: AFNPK 4584 R AND C.O. NO. 404/DEL/2011 ( IN ITA NO. 4714/DEL/2011) ASSTT. YR: 2005-06 HARJOT SINGH KHURANA, VS. INCOME-TAX OFFICER, C-531, SARITA VIHAR, NEW DELHI. WARD 46(4), NEW DE LHI. ( APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI T.VASANTHAN SR. DR RESPONDENT BY : SHRI HARJOT SINGH KHURANA DATE OF HEARING: 11/03/2015. DATE OF ORDER : 24/03/2015. O R D E R PER S.V. MEHROTRA, A.M:- THE APPEAL, PREFERRED BY THE REVENUE, AND THE CROSS -OBJECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST CIT(A)S ORDER DA TED 03-08-2011 RELATING TO A.Y. 2005-06. 2. THE ASSESSEE FILED ITS RETURN OF INCOME DECLARIN G NET TAXABLE INCOME OF RS. 4,55,310/-. THE AO RECEIVED AN INFORMATION FROM ITO , CIB-1,BANGALOE VIDE LETTER DATED 9-8-2009 THAT ASSESSEE HAD DEPOSITED CASH AMO UNTING TO RS. 17,72,906/- IN 2 ITA 4714/D/11 & CO404/D/11 HIS BANK ACCOUNT WITH CANARA BANK DURING FY 2004-05 . ACCORDINGLY, NOTICE U/S 148 WAS ISSUED. THE AO EXAMINED THE ASSESSEES ACCO UNT WITH CITI BANK, HDFC BANK AND CANARA BANK AND NOTED THAT TOTAL AMOUNT OF CASH AMOUNTING TO RS. 20,17,406/- WAS FOUND TO BE DEPOSITED IN BANK ACCOU NT. AFTER CONSIDERING THE ASSESSEES EXPLANATION, HE MADE ADDITION OF RS. 20, 17,406/- U/S 68 OF THE I.T. ACT AND ON ACCOUNT OF GAIN ON SALE OF PROPERTIES AT RS . 5,08,344/-. 2.1. BEFORE LD. CIT(A), THE ASSESSEE HAD FILED CASH FLOW STATEMENT IN WHICH CASH BALANCE OF RS. 7,91,200/- WAS SHOWN AS GIFTS RECEIV ED FROM ASSESSEES FATHER AND MOTHER WHO WERE ALSO IN GOVERNMENT SERVICE. 2.2. LD. CIT(A) ACCEPTED THE ASSESSEES CONTENTION ON THIS BASIS AND FURTHER OBSERVED THAT THE BALANCE ADDITION MADE BY THE AO F ROM CASH WITHDRAWALS AND REDEPOSITED IN THE FINANCIAL YEAR WAS ALSO ESTABLIS HED FROM THE CASH FLOW STATEMENT. 2.3. FURTHER, AS REGARDS THE ADDITION ON ACCOUNT OF LANDED PROPERTY SOLD, THE ASSESSEE HAD FILED THREE SALE-DEEDS, WHICH HAD BEEN NOTED BY LD. CIT(A) AT PAGE 5. AFTER CONSIDERING THEM, THE ADDITION WAS DELETED. 2.4. BEING AGGRIEVED WITH THE ORDER OF LD. CIT(A), THE DEPARTMENT IS IN APPEAL BEFORE US AND ASSESSEE HAS FILED CROSS OBJECTIONS. 3. GROUND NO. III) TAKEN BY THE DEPARTMENT READS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN:- .. .. III) IN ACCEPTING ADDITIONAL EVIDENCE OTHER THAN DU RING THE COURSE OF PROCEEDINGS BEFORE THE AO WITHOUT GIVING AN OPPORTUNITY TO THE AO TO EXAMINE THE EVIDENCE/ DOCU MENTS FILED BY THE ASSESSEE IN CONTRAVENTION OF RULE 46A. 4. IN CROSS-OBJECTION, THE ASSESSEE HAS PRIMARILY T AKEN A GROUND THAT NO ADDITIONAL EVIDENCE WAS FILED. 3 ITA 4714/D/11 & CO404/D/11 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE RECORD OF THE CASE. WE FIND THAT LD. CIT(A) HAS CLEARLY TAKEN INT O CONSIDERATION THE CASH FLOW STATEMENT ALONG WITH FURTHER DETAILS PROVIDED BY AS SESSEE AS WELL AS THE SALE-DEEDS WHICH WERE NOT PRODUCED BEFORE AO. NO OPPORTUNITY W AS PROVIDED TO AO TO EXAMINE THESE DOCUMENTS. WE, THEREFORE, SET ASIDE T HE ORDER OF LD. CIT(A) AND RESTORE THE MATTER BACK TO THE FILE OF AO FOR DECID ING THE ISSUE DE NOVO AFTER CONSIDERING THE EVIDENCE TO BE PRODUCED BEFORE HIM. 6. SINCE, WE HAVE RESTORED THE MATTER BACK TO THE F ILE OF LD. CIT(A) FOR DECISION AFRESH, THE CROSS OBJECTION FILED BY THE ASSESSEE H AS BECOME INFRUCTUOUS AND STANDS DISMISSED ACCORDINGLY. 7. IN THE RESULT, DEPARTMENTS APPEAL IS PARTLY ALL OWED AND ASSESSEES APPEAL IS DISMISSED ORDER PRONOUNCED IN OPEN COURT ON 24/03/2015. SD/- SD/- (C.M. GARG) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 24/03/2015. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.