DCIT, MORADABAD V. SHRI RAKESH KUMAR, CHANDAUSI

ITA 1442/DEL/2017

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals), Moradabad, which had deleted several additions made by the Assessing Officer (AO) regarding unexplained cash credits and disallowances related to unsecured loans and various expenses. The Tribunal noted the absence of the legal heir of the deceased assessee in the proceedings and dismissed the appeal, allowing the Revenue to seek recalling of the order if necessary.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23529 (ITAT-DELHI)
• Duration Of Justice: 7 year(s) 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 12-09-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 09-03-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Bogus

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BEFORE SHRI KUL BHARAT, SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No [Assessment Year : DCIT, Circle-II, Moradabad. APPELLANT Appellant by Respondent by Date of Hearing Date of Pronouncement PER KUL BHARAT, JM : The present appeal passed by Ld.CIT(A), Moradabad 2012-13. The Revenue has raised following grounds of appeal: 1. “That the Ld. Commissioner of Income Tax erred in law and on the facts of the case in deleting the addition of Rs. 44,67,438/ credits of Rs. 37,25,628/ u/s 68 of the I.T. Act, 1961 a paid to loan depositors of Rs. 7,41,810/ 2. That the Ld. Commissioner of Income Tax (Appeal), Moradabad has erred in law and on the facts of the case in deleting the addition of Rs. 3,25,30,988/ unaccounted credit entries in a IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “F” BENCH: NEW DELHI SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No.1442/Del/2017 Assessment Year : 2012-13] vs Shri Rakesh Kumar, C/o-M/s. Rakesh Oil Co., Jawahar Road, Chandausi. PAN-ABIPK2946E RESPONDENT Shri Akhilesh Yadav, Sr.DR None 12.09.2024 Date of Pronouncement 15.10.2024 ORDER appeal filed by the Revenue is directed against the order Moradabad dated 30.01.2017 for the assessment year has raised following grounds of appeal:- That the Ld. Commissioner of Income Tax (Appeal), Moradabad has erred in law and on the facts of the case in deleting the addition of Rs. 44,67,438/- made on account of unsecured loan are bogus cash credits of Rs. 37,25,628/- & added back as unexplained cash credit u/s 68 of the I.T. Act, 1961 and disallowance of alleged interest paid to loan depositors of Rs. 7,41,810/-. That the Ld. Commissioner of Income Tax (Appeal), Moradabad has erred in law and on the facts of the case in deleting the addition of Rs. 3,25,30,988/- made on account of unexplained and unaccounted credit entries in assessee's various bank accounts. Page | 1 MEMBER & SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER M/s. Rakesh Oil Co., irected against the order for the assessment year (Appeal), Moradabad has erred in law and on the facts of the case in deleting the addition of made on account of unsecured loan are bogus cash & added back as unexplained cash credit nd disallowance of alleged interest That the Ld. Commissioner of Income Tax (Appeal), Moradabad has erred in law and on the facts of the case in deleting the addition of explained and ssessee's various bank accounts. 3. That the Ld. Commissioner of Income Tax (Appeal), Moradabad has erred in law and on the facts of the case in deleting the addition of Rs. 3,88,991/ expenses invoking the provision of 44AE. 4. That the order of the Ld. Commissioner of Income Tax (Appeal), Moradabad is erroneous in law and on facts may be cancelled and the order of the Assessing Officer may be restored. 5. Any other grounds may be taken during the course of the hearing of the appeal may also be kindly allowed. 2. At the time of hearing, no one attended the proceedings on behalf of the assessee. It is seen from the records that despite opportunities to the assessee behalf of the assessee. Therefore, the appeal hearing in the absence of the assessee and material available on record. 3. Facts giving rise to the present appeal are that the assessee filed return of income on 27.09.201 14,29,470/-. The case was selected for scrutiny Officer (“AO”) issued statutory notices to the assessee. In response thereto, Ld. Authorized Representative (“AR”) of the assessee attended the proceedings. The assessee is engaged in the business of petrol pump, sale of MS, HSD, lubricants and running tanker. the AO noticed that there assessee was called upon to explain the unsecured liability. The AO on the That the Ld. Commissioner of Income Tax (Appeal), Moradabad has erred in law and on the facts of the case in deleting the addition of Rs. 3,88,991/- made on account of disallowance out of tanker expenses invoking the provision of 44AE. That the order of the Ld. Commissioner of Income Tax (Appeal), Moradabad is erroneous in law and on facts may be cancelled and the order of the Assessing Officer may be restored. er grounds may be taken during the course of the hearing of the appeal may also be kindly allowed.” At the time of hearing, no one attended the proceedings on behalf of the assessee. It is seen from the records that despite providing to the assessee, no one has been attending the proceedings on behalf of the assessee. Therefore, the appeal of the Revenue is taken up for hearing in the absence of the assessee and is being adjudicated on the basis of material available on record. Facts giving rise to the present appeal are that the assessee filed .2012 through e-mode, declaring total income of INR The case was selected for scrutiny assessment. The Assessing statutory notices to the assessee. In response thereto, Ld. Authorized Representative (“AR”) of the assessee attended the proceedings. The assessee is engaged in the business of petrol pump, sale of MS, HSD, lubricants and running tanker. During the course of assessment proceedings, the AO noticed that there were unsecured loan liability. Accordingly assessee was called upon to explain the unsecured liability. The AO on the Page | 2 That the Ld. Commissioner of Income Tax (Appeal), Moradabad has erred in law and on the facts of the case in deleting the addition of owance out of tanker That the order of the Ld. Commissioner of Income Tax (Appeal), Moradabad is erroneous in law and on facts may be cancelled and er grounds may be taken during the course of the hearing of At the time of hearing, no one attended the proceedings on behalf of the providing multiple , no one has been attending the proceedings on is taken up for adjudicated on the basis of Facts giving rise to the present appeal are that the assessee filed his , declaring total income of INR assessment. The Assessing statutory notices to the assessee. In response thereto, Ld. Authorized Representative (“AR”) of the assessee attended the proceedings. The assessee is engaged in the business of petrol pump, sale of MS, HSD, ourse of assessment proceedings, Accordingly, the assessee was called upon to explain the unsecured liability. The AO on the basis that the assessee failed to establish creditworthiness and genui the transaction, made addition by invoking the provision of section 68 Income Tax Act, 1961 (“the Act”). Thereby, the AO added unsecured liability of INR 37,25,628 7,41,810/-. The AO further on treating the credit entries in different bank accounts of the assessee, made addition of INR 3,25,30,988.90/ made disallowance out of tanker plying business of INR disallowance is out of telephone, car and and INR 50,000/- respectively. Thus, he assessed the total income of the assessee at INR 3,89,04,160/ 4. Aggrieved against this, the assessee preferred who after considering the submissions, deleted the addition related to unsecured loan and interest thereon, credit entries in the different bank accounts of the assessee and expenses related tanker plying. 5. Aggrieved against th before this Tribunal. 6. We have heard Ld. Sr. available on record and gone through the orders of the authorities below. find that it is noticed from the records that there is a letter placed on record by the Ld. Counsel for the assessee that it was intimating about the death of the assessee. The Revenue was asked to bring Legal Heir of the assessee on record the assessee failed to establish creditworthiness and genui the transaction, made addition by invoking the provision of section 68 Income Tax Act, 1961 (“the Act”). Thereby, the AO added unsecured liability of INR 37,25,628/- and the interest expenditure thereon of INR . The AO further on treating the credit entries in different bank accounts of the assessee, made addition of INR 3,25,30,988.90/- made disallowance out of tanker plying business of INR 3,88,991/ disallowance is out of telephone, car and unverified expenses of INR 37,270/ respectively. Thus, he assessed the total income of the assessee at INR 3,89,04,160/-. Aggrieved against this, the assessee preferred appeal before Ld.CIT(A), who after considering the submissions, partly allowed the appeal. Thereby, he deleted the addition related to unsecured loan and interest thereon, credit entries in the different bank accounts of the assessee and expenses related Aggrieved against the order of Ld.CIT(A), the Revenue has We have heard Ld. Sr. DR for the Revenue and perused the material available on record and gone through the orders of the authorities below. find that it is noticed from the records that there is a letter placed on record by for the assessee that it was intimating about the death of the assessee. The Revenue was asked to bring Legal Heir of the assessee on record Page | 3 the assessee failed to establish creditworthiness and genuineness of the transaction, made addition by invoking the provision of section 68 of the Income Tax Act, 1961 (“the Act”). Thereby, the AO added unsecured loan and the interest expenditure thereon of INR . The AO further on treating the credit entries in different bank -. Further, he 3,88,991/- and adhoc expenses of INR 37,270/- respectively. Thus, he assessed the total income of the appeal before Ld.CIT(A), partly allowed the appeal. Thereby, he deleted the addition related to unsecured loan and interest thereon, credit entries in the different bank accounts of the assessee and expenses related to has filed appeal DR for the Revenue and perused the material available on record and gone through the orders of the authorities below. We find that it is noticed from the records that there is a letter placed on record by for the assessee that it was intimating about the death of the assessee. The Revenue was asked to bring Legal Heir of the assessee on record which has not been done despite various opportunities. The appeal cannot proceed without bring on the record the Legal Heir of the assessee. We therefore, dismiss the appeal of the Revenue with a liberty to seek recalling of the order if they wish to proceed with assessee. Grounds raised by the Revenue are accordingly, dismissed. 7. In the result, the appeal of the Order pronounced in the open Court on Sd/- (AVDHESH KUMAR MISHRA ACCOUNTANT MEMBER * Amit Kumar * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT not been done despite various opportunities. The appeal cannot proceed without bring on the record the Legal Heir of the assessee. We therefore, dismiss the appeal of the Revenue with a liberty to seek recalling of the order if they wish to proceed with the matter against the Legal Heir of the assessee. Grounds raised by the Revenue are accordingly, dismissed. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 15th October, 2024 Sd/- MISHRA) (KUL BHARAT JUDICIAL MEMBER ASSISTANT REGISTRAR ITAT, NEW DELHI Page | 4 not been done despite various opportunities. The appeal cannot proceed without bring on the record the Legal Heir of the assessee. We therefore, dismiss the appeal of the Revenue with a liberty to seek recalling of the matter against the Legal Heir of the assessee. Grounds raised by the Revenue are accordingly, dismissed. 4. KUL BHARAT) JUDICIAL MEMBER ASSISTANT REGISTRAR ITAT, NEW DELHI "