Narayani Trading, New Delhi V. ITO Ward 36(1), New Delhi

ITA 1015/DEL/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 0425 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 30-07-2024
• Assessment Year: misc
• Appeal Filed On: 04-03-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JATENDER KUMAR KALE
• Section: 12; 64

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR US, JUDICIAL MEMBER ITA No.1015/Del/2024 Assessment Year 2017-18 Narayani Trading CSC No.3/18, Sector-2 Rohini Naharpur, New Delhi Vs. ITO, Ward-36(1) Delhi TAN/PAN: AAJFN2461M (Appellant) (Respondent) Applicant by: Ms. Rano Jain, Advocate Ms. Mani Jain, CA Sh. Pranshu Singhal, CA Respondent by: Sh. Jatender Kumar Kale, Sr.DR Date of hearing: 31 07 2024 Date of pronouncement: 06 08 2024 O R D E R PER PRADIP KUMAR KEDIA - A.M.: T he c a p ti o n e d a p pe a l h as b e e n fi le d b y t he a ss es se e ag ai n s t t h e or d e r o f t he C o m m i s s i o n e r o f I n c o m e T a x (A pp ea l s) - Nat i o n al F ac e l es s A ppe a l C e nt re ( N F A C) , D el h i (‘ C I T (A ) ’ i n sh or t ) d a t e d 23 . 0 2. 2 0 2 4 a ri si ng fr o m t he a s se ss me nt o rd er d a t e d 3 1. 03 . 2 02 2 pa s se d b y t he A s se s si ng O ff ic e r ( A O ) u nde r S ec t i o n 14 7 r. w . S ec t i on 1 4 4 o f t he I nc o m e T a x A c t , 1 96 1 ( t h e A c t ) co n c e rn i n g A . Y . 20 1 7- 18. 2. A s pe r t he G r ou nd s o f A p pe a l, t he a s s e ss e e ha s cha ll e n g e d t he or d e r p a s se d b y t he C I T( A ) d en yi n g to a d mi t t h e a p pe a l o f t he a ss es se e on t he c o nt o ur s o f S e c t i on 2 4 9( 4 ) ( b) o f t he A c t a n d th us de c li ne d t o a d ju di c a t e t h e a p p e a l o n m e ri t s. ITA No.1015/Del/2024 2 3. B ri e f l y s t a t ed , t he ca se o f t h e a s se s se e w a s r e op e n e d un de r S ec t i on 14 7 o f t h e A c t fo r A . Y . 2 01 7 -1 8 o n t h e gr o un ds o f c a s h de p o s it s i n t h e ba n k a c c o u nt . I t w a s f ur t h e r not e d b y t h e A O t ha t t he a ss es se e ha s no t fi l e d a n y r e t u r n o f in c o me fo r t h e y e a r u n d e r c on si de r a t i o n. Wh i l e fr a mi n g t h e a s se s s me n t , t h e A O e ve nt u al l y ob s er ve d t ha t i n co me d e c la re d b y t h e as se ss e e a s p er re t u r n o f i nc o m e i s ‘ N ot a va i la bl e ’ a nd a s s e sse d t h e ta xa bl e i nc o m e at Rs. 1, 1 2, 3 0 , 00 0 / - b y ma k i n g a n a dd i t i on o f R s. 1, 1 2 , 30, 0 00/ - t o w ar d un e x p l a i n e d ca sh d ep o si t s. 4. A g gri e v e d, t he a ss e ss e e p r e f e r re d a p pe a l b e f or e th e CI T( A ). Th e C I T ( A ) d ec l i n e d t o a d j u di c a t e t h e ap pe a l o f t h e a sse s s ee o n me r it s on t he gr o u n d t ha t as se s se e h a s fa i l e d t o m ak e p a y me nt o f a n a m ou nt e q u a l t o t h e a m o un t o f ad va nc e t a x w hi ch i s pr er e qu i s i t e fo r a d mi s si on o f ap pe a l i n t h e c a se o f no n- f i l e r a s se s se e in t e r m s o f S ec t i on 2 49 ( 4 )( b) o f t h e A c t . Th e C I T( A ) a c c o r d i n g ly d e c l i ne d t o a d mi t t h e a p p e al o f th e a s se s s ee a nd d i s m i s se d t he a p p e a l i n l im i n e w it h o ut a dj ud ic a t i o n on me ri t s. 5. F u rt h e r a gg ri e ve d, t h e a s se s s ee pr e fe rr ed a p pe a l b e f or e t he Tr i bu n a l . 6. W h e n t h e ma t te r w a s c al l e d for h e ar i n g, t h e l d . c o u n se l f or t h e a ss es se e su b m it t e d t h a t th e a dd i t i o ns h a ve b ee n m a de o n a cc ou nt o f un e x p l a i n e d c a sh de p o s i t s. Wh il e d o i n g so, t he i nc ome o f t h e a ss es se e o t h e r t ha n ca sh d e p o s it s h a ve b e e n t a ke n at ‘ N . A . ’ T he l ia bi l i ty t o w ar ds pa y m e nt o f a d va nc e t a x w o u ld ar ise o n l y w h er e t h e a ss es se e h a s e ar ne d c h a r g e a b l e i nc o m e a n d n ot f il e d R O I . Th e t a x l ia bi l i ty o n c o n t r o ve r t e d i ss u e o f t a xa b i l i t y o f c ash d ep o si t s i s de p e n d e n t o n a dj u di c a t i o n o f i s su e o n me r it s a nd i nc i d e nc e o f t a x c an no t b e p r o po ne d in t h e g ar b o f S ec t i on 24 9 ( 4) (b ) o f t h e A c t . Th e re fo r e , no a d v a nc e t a x l i a bi l i t y a r is e s t o th e as s e ss e e un de r t h e ITA No.1015/Del/2024 3 c ir cu ms t a nc e s w h e n t he ad di ti o n s ma d e b y t h e A O u nde r c on t r ov er sy a re e x c l u d e d f o r t h e p ur po s es o f S e c t i o n 2 4 9( 4) ( b) o f t h e A ct . T he a dd i t i o ns o n a c c o u nt o f c a sh d e p os i t s i s h i g h l y a rgu a bl e a nd me r e de p o s it s o f c a sh i n th e b a n k a c c o u nt w ou l d no t t a nta m ou n t t o a c c ru al o f a n y c h a r g e a b l e i nc o m e i n t he ha nd s o f t h e a ss e s se e p e r se. T h e a m bi t o f s ub -c l au se (b ) o f su b -S e c ti on ( 4) o f S e c t io n 24 9 w o ul d n ot e xt en t t o c o v er su c h h i g hl y su b j e c t i v e a dd it i on s. Re fe re n c e w a s ma de t o se v e r a l d e ci si on s r e n d e r e d by t he C o - or di n at e Be nc h o f Tr i bu n a l in c l u d i n g de c i s i o n r e n de re d i n th e c a se o f D i li p H i ral al Ch a u d h ar i v s. IT O , Wa rd - N a n d u r ba r, IT A N o . 64 2 / P u n / 202 4 or de r da t e d 0 5 . 06. 2 0 24. T h e l d. c o un sel t h u s s u b m i t t e d th a t i n t he a b se n ce o f a n y st a t ut or y o b li g a t i o n fa s t en ed u nd e r S e c t i on 24 9( 4 )(b ) o f t he A ct , t he C I T ( A ) ha s fel l i n e rr o r f or n ot a dj u di c a ti n g th e is su e o n me r it s. 7. T he l d . D R fo r t he Re v e n u e , on t h e o th e r h an d, su pp o r t e d t he or d e r o f t h e C IT (A ) . 8. W e h av e c a r e f u l l y c o ns i d e r e d t he ri v a l s u b m i ss ion s an d pe r u s ed t h e fi rs t ap pe l la t e or d e r an d t h e a ss es s m e nt or d e r. 9. T he i nc o m e pr io r t o t h e a d d i t i o n i n t h e i n s t a n t c a s e ha s be e n t ak en a t ‘N A ’ . Th e a dd it i o n s h a v e be en ma d e on c a s h d e p o si t s o n t h e gr o un d t h a t s o u rc e o f su ch c a s h d ep os i t s i s u n e xp l ai n e d an d t he re fo r e , c h a r g ea b l e t o t ax . T he n at u r e a n d s o u rc e o f c a s h de po s i t s i n t he b a n k a c c o un t i s a q u e s ti on o f f a c t a n d t he ta x a b il i t y t h e re o f a s re v e n u e i n c o m e d e p e n ds o n a p p ra i s a l o f do c u m e nt s a nd e xpl a n a t io ns t ow a r ds na t u re an d s our c e as m a y b e o f fe r e d by t h e a ss e s se e . Th e re fo r e , t h e st a t ut o r y o b l i g at i on s f or pa y m e n t o f ad v a nc e t a x o n suc h de p os i t s c o n te m p l a te d u nd er S e c ti on 24 9( 4 ) ( b) ma y n ot ne c es sa r il y a ri se . W e t hu s fi n d m e ri t i n t h e p le a of t he A sse s se e fo r se t t i ng a si de t he a c t io n o f CI T (A ) . We th u s se t a s id e t h e ord er o f t he ITA No.1015/Del/2024 4 CI T ( A ) a nd r e st o r e t he m a t t e r b a c k t o t h e fi l e o f th e C I T ( A ) fo r de no v o ad ju di c at i o n o n mer i t s. 10 . I n t he re su lt , t h e a pp e a l o f t h e a sse ss e e i s a llo w e d fo r st a t i st ic a l pu r p os e s . Order dictated and pronounced in the open Court on 06 August, 2024. Sd/- Sd/- [YOGESH KUMAR US] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: August, 2024 Prabhat