Sh. Nanak Chand Bansal, New Delhi V. DCIT, Faridabad

ITA 1188/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7731 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2008-2009
• Appeal Filed On: 01-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARAMITA M BISWAS
• Keywords: Income from undisclosed sources; Set aside
• Section: 143(3); 153A; 143(2); 132

Judgement Text

ITA NO.- 1188/DEL/2017. NANK CHAND BANSAL. PAGE | 1 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: E: NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 1188/DEL/2017 ( ASSESSMENT YEAR: 2008-09) SH. NANAK CHAND BANSAL, H. NO. 122, SECTOR-9, FARIDABAD, HARYANA. VS. DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-II, FARIDABAD. PAN NO: AAUPC9499B APPELLANT RESPONDENT ASSESSEE BY : SHRI SOMIL AGARWAL, ADV. REVENUE BY : MS. PARAMITA M. BISWAS, CIT(DR) ORDER PER ANADEE NATH MISSHRA, AM [A] THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE IMPUGNED APPELLATE ORDER DATED 20.01.2017 PASSED BY LEARNED COMMISSIONER OF INCOME-TAX (APPEALS), KARNAL, [IN SHORT, LD.CIT(A)] PERTAINING TO ASSESSMENT YE AR 2008-09. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- 1. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANC ES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN UPHOLDING THE ACTI ON OF THE LD. AO IN MAKING AN ADDITION OF RS. 4,75,000/- ON ACCOUNT OF CASH DEPOS ITED IN THE BANK ACCOUNT BY TREATING AS ALLEGED INCOME FROM UNDISCLOSED SOURCES AND THAT TOO IN THE PROCEEDINGS U/S 153A OF THE ACT IN THE ABSENCE OF A NY INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SEARCH. ITA NO.- 1188/DEL/2017. NANK CHAND BANSAL. PAGE | 2 2. THAT IN ANY CASE AND IN ANY VIEW OF THE MATTER, ACTION OF LD. CIT(A) IN CONFIRMING THE ACTION OF LD. AO IN MAKING AN ADDITI ON OF RS. 4,75,000/- IS BAD IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THAT THE APPELLANT CRAVES THE LEAVE TO ADD, ALTE R OR AMEND THE GROUNDS OF APPEAL AT ANY STAGE AND ALL THE GROUNDS ARE WITHOUT PREJUDICE TO EACH OTHER . (B) SEARCH OPERATION UNDER SECTION 132 OF INCOME TAX A CT, 1961 (I.T. ACT, FOR SHORT) WAS CONDUCTED IN THE CASE OF THE ASSESSEE ON 09.05.2012. THE ASSESSMENT ORDER DATED 26.02.2015 WAS PASSED BY THE ASSESSING OFFICER (AO, FOR SHORT) UNDER SECTION 153A R.W.S. 143(3) OF I.T. ACT, WHEREIN TWO SEPARATE ADDITIONS OF RS. 2,25,000/- AND RS. 2,50,000/- (TOTALING RS. 4,75,000/-) WERE MADE BY THE AO ON ACCOUNT OF CASH DEPOSITS IN ASSESSEES BANK ACCOUNT. (B.1) AGGRIEVED, THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A). VIDE AFORESAID IMPUGNED APPELLATE ORDER DATED 20.01.2017, LD. CIT( A) DISMISSED THE ASSESSEES APPEAL AND CONFIRMED THE AFORESAID ADDITIONS TOTALI NG RS. 4,75,000/-. THIS PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE A FORESAID IMPUGNED APPELLATE ORDER DATED 20.01.2017 OF LD. CIT(A). IN THE COURSE OF A PPELLATE PROCEEDINGS IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) A PAPER BOOK CONTAINING THE FOLLOWING PARTICULARS WAS FILED FROM THE ASSESSEES SIDE: 1. COPY OF NOTICE U/S 153A DATED 06.08.2013 2. COPY F ACKNOWLEDGEMENT OF RETURN FILED ON 10.09 .2013 U/S 153A FOR AY 2008- 09 3. COPY OF PANCHNAMA (H. NO. 122, SECTOR-9, FARIDA BAD) RELATING TO SEARCH ALONG WITH ANNEXURES. 4. COPY OF STATEMENT OF SH. SURESH BANSAL, SON OF T HE ASSESSEE, RECORDED DURING SEARCH. ITA NO.- 1188/DEL/2017. NANK CHAND BANSAL. PAGE | 3 5. COPY OF NOTICE U/S 143(2) DATED 08.08.2014 ALONG WITH QUESTIONNAIRE 6. COPY OF ASSESSEES REPLY DATED 22.09.2014 FILED BEFORE LD. AO 7. COPY OF ASSESSEES REPLY DATED 19.11.2014 FILED BEFORE LD. AO 8. COPY OF ASSESSEES REPLY DATED 29.12.2014 FILED BEFORE LD. AO 9. COPY OF ASSESSEES REPLY DATED 06.02.2015 FILED BEFORE LD. AO 10. COPY OF ASSESSEES REPLY DATED 06.02.2015 FIL ED BEFORE LD. AO 11. COPY OF SHOW CAUSE NOTICE DATED 21.01.2015 12. COPIES OF EVIDENCES REGARDING CASH I. COPY OF BANK STATEMENT OF THE ASSESSEE II. COPY OF DETAIL OF DRAWINGS OF BANSAL FAMILY III. COPY OF FORM-16 OF THE ASSESSEE IV. COPY OF ACKNOWLEDGEMENT OF RETURN FILED ON 18. 03.2009 FOR V. COPY OF COMPUTATION OF INCOME FOR AY 2008-09 13. COPY BANK STATEMENT OF THE ASSESSEE SHOWING DAT ES OF CASH DEPOSITED INTO BANK ACCOUNT. 14. COPY OF ASSESSMENT ORDER DATED 26.02.2015 PASSE D U/S 153A / 143(3) FOR AY 2008-09. 15. COPY OF WRITTEN SUBMISSIONS FILED BEFORE LD. CI T(A). 16. COPY OF LD. CIT(A)S ORDER DATED 20.01.2017 PAS SED U/S 153A / 143(3) FOR AY 2008-09. (B.2) A COPY OF ORDER OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS KABUL CHAWLA (2015) 281 CTR 0045(DEL), WAS ALSO FILED FROM THE A SSESSEES SIDE, IN THE COURSE OF APPELLATE PROCEEDINGS IN ITAT. (C) AT THE TIME OF HEARING BEFORE US, THE LD. COUNSEL FOR ASSESSEE SUBMITTED THAT NO INCRIMINATING MATERIALS WERE UNEARTHED DURING THE S EARCH, AND THEREFORE THE AFORESAID ITA NO.- 1188/DEL/2017. NANK CHAND BANSAL. PAGE | 4 ADDITIONS TOTALING RS. 4,75,000/- ARE UNWARRANTED I N VIEW OF THE ORDER OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA. TH E LD. COUNSEL FOR ASSESSEE CONTENDED THAT THE ISSUES IN DISPUTE ARE SQUARELY C OVERED IN FAVOUR OF THE ASSESSEE, ON FACTS OF THE CASE, BY THE AFORESAID ORDER OF HONBL E DELHI HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA (SUPRA). THE LD. COUNSEL FOR ASSES SEE ALSO SUBMITTED THAT, IN ANY CASE, THE AFORESAID ADDITIONS TOTALING RS. 4,75,000 /- ARE UNWARRANTED IN ASSESSMENT YEAR 2008-09 BECAUSE THE AFORESAID DEPOSITS MADE IN THE BANK ACCOUNT WERE NOT MADE IN THE BANK ACCOUNT DURING THE PREVIOUS YEAR RELEVA NT TO ASSESSMENT YEAR 2008-09. HE EXPLAINED, WITH THE HELP OF THE AFORESAID PAPER BOO K (WITH PARTICULAR REFERENCE TO THE COPY OF BANK ACCOUNT) THAT THE AFORESAID DEPOSIT OF RS. 2,25,000/- WAS MADE ON 24.04.2008(ERRONEOUSLY RECORDED AS 24.04.2008 BY TH E AO IN THE ASSESSMENT ORDER). HE FURTHER SUBMITTED THAT THE AFORESAID DEPOSIT OF RS. 2,50,000/- WAS MADE IN THE BANK ON 06.06.2008. BOTH THE AFORESAID TRANSACTIONS, HE CONTENDED, PERTAINED TO ASSESSMENT YEAR 2009-10 AND NOT TO ASSESSMENT YEAR 2008-09 WITH WHICH WE ARE CONCERNED IN THE PRESENT APPEAL. THE LD. COUNSEL F OR ASSESSEE ACCORDINGLY CONTENDED, THAT THE AFORESAID ADDITIONS ARE UNWARRANTED IN ASS ESSMENT YEAR 2008-09 BECAUSE THE TRANSACTIONS DO NOT PERTAIN TO RELEVANT PREVIOUS YE AR. THE LEARNED COMMISSIONER OF INCOME TAX (DEPARTMENTAL REPRESENTATIVE), [LD. CIT (DR), FOR SHORT], AGREED THAT THE AFORESAID TRANSACTIONS OF BANK DEPOSITS TOTALING RS . 4,75,000/- DO NOT PERTAIN TO PREVIOUS YEAR RELEVANT TO ASSESSMENT YEAR 2008-09( WHICH WE ARE CONCERNED WITH IN THE PRESENT APPEAL) AND THAT THE ADDITIONS ARE UNWA RRANTED IN ASSESSMENT YEAR 2008- 09. THE LD. CIT(DR) ALSO DID NOT CONTROVERT THE CON TENTION OF THE LD. COUNSEL FOR ITA NO.- 1188/DEL/2017. NANK CHAND BANSAL. PAGE | 5 ASSESSEE THAT ON FACTS OF THE CASE, THE ISSUES IN D ISPUTE ARE SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY ORDER OF HONBLE DELHI HIGH COUR T IN THE CASE OF CIT VS. KABUL CHAWLA (SUPRA). IN VIEW OF THE FOREGOING, WE SET ASIDE THE AFORESAID IMPUGNED APPELLATE ORDER DATED 20.01.2017 OF THE LD. CIT(A) AND DIRECT THE AO TO DELETE THE AFORESAID ADDITIONS TOTALING RS. 4,75,000/-. (D) IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29/01/2020. SD/- SD/- (AMIT SHUKLA) (ANADEE NATH M ISSHRA) JUDICIAL MEMBER ACCOUN TANT MEMBER DATED: 29/01/2020 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.- 1188/DEL/2017. NANK CHAND BANSAL. PAGE | 6 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER