Anil Kumar Narula, New Delhi V. DCIT, New Delhi

ITA 129/DEL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96929 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 13-07-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 07-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVI SHARAN SINGH
• Assessee Lawyers: DINESH MEHTA
• Keywords: Income from undisclosed sources

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH SMC SMC SMC SMC : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO S SS S . .. . 129/DEL/2014 & 131/DEL/2014 129/DEL/2014 & 131/DEL/2014 129/DEL/2014 & 131/DEL/2014 129/DEL/2014 & 131/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2005 2005 2005 2005 - -- - 06 & 2010 06 & 2010 06 & 2010 06 & 2010 - -- - 11 1111 11 SHRI ANIL KUMAR NARULA, SHRI ANIL KUMAR NARULA, SHRI ANIL KUMAR NARULA, SHRI ANIL KUMAR NARULA, SD SDSD SD- -- -380, TOWER APARTMENTS, 380, TOWER APARTMENTS, 380, TOWER APARTMENTS, 380, TOWER APARTMENTS, PITAMPURA, PITAMPURA, PITAMPURA, PITAMPURA, NEW DELH NEW DELH NEW DELH NEW DELHI I I I 110 034. 110 034. 110 034. 110 034. PAN : AAIPN6092R. PAN : AAIPN6092R. PAN : AAIPN6092R. PAN : AAIPN6092R. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -23, 23, 23, 23, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DINESH MEHTA, CA. RESPONDENT BY : SHRI DEVI SHARAN SINGH, SR.DR. DATE OF HEARING : 13.07.2015 13.07.2015 13.07.2015 13.07.2015 DATE OF PRONOUNCEMENT : 03.08.2015 03.08.2015 03.08.2015 03.08.2015 ORDER ORDER ORDER ORDER THESE TWO APPEALS BY THE ASSESSEE FOR THE ASSESSME NT YEARS 2005-06 AND 2010-11 ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)- XII, NEW DELHI DATED 8 TH NOVEMBER, 2013. THESE ARE BEING DISPOSED OF WITH THIS CONSOLIDATED ORDER. ITA NO.129/DEL/2014 ITA NO.129/DEL/2014 ITA NO.129/DEL/2014 ITA NO.129/DEL/2014 (AY 2005 (AY 2005 (AY 2005 (AY 2005- -- -06) : 06) : 06) : 06) :- -- - 2. THE GROUND OF APPEAL NO.1 OF THE ASSESSEE IS GEN ERAL IN NATURE AND NEEDS NO ADJUDICATION. 3. GROUND NO.2 OF THE ASSESSEES APPEAL IS AS UNDER :- THAT THE LD.CIT(A) WAS NOT JUSTIFIED ON FACTS AND CIRCUMSTANCES OF THE CASE, TO UPHOLD THE ORDER OF ASSESSING OFFICER IN MAKING ADDITION OF RS.1,00,000 /- ON ACCOUNT OF UNSECURED LOAN RECEIVED FROM SHRI LAXMAN DASS, BY TREATING THE SAME AS UNEXPLAINED CASH CRED IT. ITA-129 & 131/DEL/2014 2 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAS FILED CONFIRMATION FROM THE CREDITOR R EGARDING THE UNSECURED LOAN OF `1 LAKH FROM SHRI LAXMAN DASS WHO IS AN INCOME TAX ASSESSEE AND HIS PERMANENT ACCOUNT NUMBER WAS ALSO GIVEN IN THE CONFIRMATION OF ACCOUNT. A COPY OF THE SAME HAS BE EN FILED IN THE COMPILATION FILED BEFORE THE TRIBUNAL. 5. THE LEARNED DR HAS RELIED ON THE ORDER OF THE AS SESSING OFFICER. HE REFERRED TO THE RELEVANT PARAGRAPH OF THE ASSESS MENT ORDER IN SUPPORT OF THE CASE OF THE REVENUE. 6. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE CIT(A). I F IND THAT REGARDING THE LOAN OF `1 LAKH RECEIVED FROM SHRI LAXMAN DASS, THE ASSESSEE HAS FILED THE NECESSARY EVIDENCE IN THE FORM OF CONFIRMATION OF ACCOUNT FROM THE CREDITOR SHRI LAXMAN DASS WHO HAS MENTIONED HIS PER MANENT ACCOUNT NUMBER IN THE SAID CONFIRMATION, COPY OF WHICH HAS BEEN FILED IN THE COMPILATION BEFORE THE TRIBUNAL. I FIND THAT THE A SSESSING OFFICER HAS NOT MADE ANY FURTHER INVESTIGATION IN THIS MATTER A ND THERE WAS NO MATERIAL TO DISBELIEVE THE DOCUMENTARY EVIDENCE FIL ED BY THE ASSESSEE. THE SAID CREDITOR SHRI LAXMAN DASS HAS ALREADY EXPI RED. IN THESE FACTS OF THE CASE, I AM OF THE VIEW THAT THE ASSESSEE HAS DISCHARGED ITS INITIAL ONUS TO ESTABLISH THE IDENTITY OF THE CREDITOR, HIS CREDITWORTHINESS AND THE GENUINENESS OF THE TRANSACTION AND, ACCORDINGLY , THE ADDITION MADE, BEING WITHOUT ANY MERIT, IS DELETED AND GROUN D NO.2 OF THE ASSESSEES APPEAL IS ALLOWED. 7. GROUND NO.3 OF THE ASSESSEES APPEAL READS AS UN DER:- THAT THE LD.CIT(A) WAS NOT JUSTIFIED ON FACTS AND CIRCUMSTANCES OF THE CASE, TO UPHOLD THE ORDER OF ASSESSING OFFICER IN MAKING ADDITION OF RS.50,000/- IN RESPECT OF REFUND RECEIVED FROM DDA BY TREATING IT AS UNDISCLOSED INCOME. ITA-129 & 131/DEL/2014 3 8. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAS RECEIVED A REFUND FROM THE DDA AND THE SAME WAS TREATED AS UNDISCLOSED INCOME OF THE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE HAS EXPLAINED AND PRODUCED NECESSARY EVIDE NCE BEFORE THE ASSESSING OFFICER THAT IT HAS APPLIED FOR A FLAT OF DDA AND DEPOSITED `50,000/- THROUGH DEMAND DRAFT ISSUED VIDE CHEQUE D ATED 6.7.2004 DRAWN ON ITS BANK VIZ., BANK OF INDIA. SUBSEQUENTL Y, THE APPLICATION MONEY DEPOSITED WITH THE DDA WAS REFUNDED BACK TO T HE ASSESSEE AND DULY REFLECTED IN HIS BANK ACCOUNT ON 17.9.2004. T HE COPY OF BANK ACCOUNT WITH WRITTEN SUBMISSIONS WAS FILED BEFORE T HE ASSESSING OFFICER AND THE COPY OF THE SAME HAS BEEN FILED BEFORE THE TRIBUNAL. 9. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESS ING OFFICER. 10. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE CIT(A). IN VIEW OF THE EVIDENCE FILED BY THE ASSESSEE IN THE FORM OF COPY OF ITS BA NK STATEMENT WITH ITS BANKER BANK OF INDIA WHEREIN THE RELEVANT REFUND AM OUNT IS REFLECTED ON 17.9.2004 AND THE DEMAND DRAFT WAS PURCHASED ON 6.7.2004 THROUGH CHEQUE DATED 6.7.2004 DRAWN ON BANK OF INDI A, I AM OF THE VIEW THAT NO CASE FOR ADDITION IS MADE OUT BY THE R EVENUE, WHICH IS ACCORDINGLY DELETED, AND GROUND NO.3 OF THE ASSESSE ES APPEAL IS ALLOWED. ITA NO.1 ITA NO.1 ITA NO.1 ITA NO.131 3131 31/DEL/2014 /DEL/2014 /DEL/2014 /DEL/2014 (AY 20 (AY 20 (AY 20 (AY 2010 1010 10- -- -11 1111 11) : ) :) : ) :- -- - 11. GROUND NO.1 OF THE ASSESSEES APPEAL IS GENERAL IN NATURE AND NEEDS NO ADJUDICATION. 12. GROUND NO.2 OF THE ASSESSEES APPEAL IS AS UNDE R:- THAT THE LD.CIT(A) WAS NOT JUSTIFIED ON FACTS AND CIRCUMSTANCES OF THE CASE, TO UPHOLD THE ORDER OF ITA-129 & 131/DEL/2014 4 ASSESSING OFFICER IN MAKING ADDITION OF RS.1,21,729 /- ON ACCOUNT OF AMOUNT RECEIVED ON MATURITY OF RECURRING DEPOSIT WITH SYNDICATE BANK BY TREATING IT AS UNDIS CLOSED INCOME. 13. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AMOUNT OF `1,21,729/- WAS RECEIVED ON ACCOUNT OF MATURITY OF RECURRING ACCOUNT WITH SYNDICATE BANK AND THE COPY OF THE SAME HAS BE EN FILED IN THE COMPILATION BEFORE THE TRIBUNAL AND, THEREFORE, THE AMOUNT COULD NOT BE ADDED AS INCOME FROM UNDISCLOSED SOURCES IN THE HANDS OF THE ASSESSEE. 14. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSES SING OFFICER AND REFERRED TO THE RELEVANT PORTION OF THE ASSESSMENT ORDER IN SUPPORT OF THE CASE OF THE REVENUE. 15. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE CIT(A). I H AVE ALSO PERUSED THE COPY OF THE RECURRING DEPOSIT ACCOUNT NO.9036251000 6003 OF THE ASSESSEE WITH SYNDICATE BANK, BARAKHAMBA ROAD, NEW DELHI, COPY OF WHICH HAS BEEN FILED IN THE COMPILATION BEFORE THE TRIBUNAL. I FIND THAT THE ASSESSEE HAS DEPOSITED CASH OF SMALL DENOMINATI ON MOSTLY `3,000/- MONTH AFTER MONTH AND THE TOTAL AMOUNT OF `1,22,314.72 WAS RECEIVED BY THE ASSESSEE ON MATURITY OF THE RECURRI NG DEPOSIT ACCOUNT WITH SYNDICATE BANK. IN THESE FACTS OF THE CASE, I AM OF THE CONSIDERED VIEW THAT THE AMOUNT RECEIVED ON MATURITY OF RD ACC OUNT WITH SYNDICATE BANK COULD NOT BE ADDED AS UNDISCLOSED IN COME IN THE HANDS OF THE ASSESSEE AND, ACCORDINGLY, THE ADDITION MADE IS DELETED AND GROUND NO.2 OF THE ASSESSEES APPEAL IS ALLOWED. 16. GROUND NO.3 OF THE ASSESSEES APPEAL READS AS U NDER:- THAT THE LD.CIT(A) WAS NOT JUSTIFIED ON FACTS AND CIRCUMSTANCES OF THE CASE, TO UPHOLD THE ORDER OF ITA-129 & 131/DEL/2014 5 ASSESSING OFFICER IN MAKING ADDITION OF RS.4,60,000 /-, IN RESPECT OF ADVANCE RECEIVED FROM SANJAY SINGH CHOUD HARY AGAINST PURCHASE OF PROPERTY AS UNEXPLAINED CASH CR EDIT. 17. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS RECEIVED THE ADVANCE OF `4,60,000/- FR OM ONE SHRI SANJAY SINGH CHOUDHARY AGAINST PURCHASE OF PROPERTY AND HA S FILED CONFIRMATION FROM SAID SHRI SANJAY SINGH CHOUDHARY BEFORE THE ASSESSING OFFICER. HOWEVER, THE ASSESSING OFFICER COULD NOT APPRECIATE THE EXPLANATION OF THE ASSESSEE DUE TO SHORTAGE OF TIME IN COMPLETING THE ASSESSMENT. 18. THE LEARNED DR SUBMITTED THAT THE ONUS WAS ON T HE ASSESSEE TO PROVE THE SOURCE OF ADVANCE OF `4,60,000/- TO THE S ATISFACTION OF THE ASSESSING OFFICER. HE RELIED ON THE ORDER OF THE A SSESSING OFFICER. 19. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE CIT(A). I F IND THAT THE FACTS OF THE CASE JUSTIFY THAT THE ISSUE SHOULD BE RESTORED TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO PASS A DE NOVO ORDER ON THIS ISSUE IN ACCORDANCE WITH LAW AFTER ALLOWING REASONA BLE OPPORTUNITY OF HEARING TO THE ASSESSEE AND THE ASSESSEE SHALL BE A T LIBERTY TO FILE ANY EVIDENCE IN SUPPORT OF ITS CASE. I DIRECT ACCORDIN GLY. 20. IN THE RESULT, THE APPEAL OF THE ASSESSEE FOR T HE ASSESSMENT YEAR 2005-06 IS ALLOWED AND FOR ASSESSMENT YEAR 2010-11 IS ALLOWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 3 RD AUGUST, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-129 & 131/DEL/2014 6 COPY FORWARDED TO: - 1. APPELLANT : SHRI ANIL KUMAR NARULA, SHRI ANIL KUMAR NARULA, SHRI ANIL KUMAR NARULA, SHRI ANIL KUMAR NARULA, SD SDSD SD- -- -380, TOWER APARTMENTS, 380, TOWER APARTMENTS, 380, TOWER APARTMENTS, 380, TOWER APARTMENTS, PITAMPURA, NEW DELHI PITAMPURA, NEW DELHI PITAMPURA, NEW DELHI PITAMPURA, NEW DELHI 110 034. 110 034. 110 034. 110 034. 2. RESPONDENT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CE CECE CENTRAL CIRCLE NTRAL CIRCLE NTRAL CIRCLE NTRAL CIRCLE- -- -23, NEW DELHI. 23, NEW DELHI. 23, NEW DELHI. 23, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR