DCIT, Chandigarh V. Sh. Moti Lal Jindal, Chandigarh

ITA 13/CHANDI/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80967 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-10-2014
• Assessment Year: 2003-2004
• Appeal Filed On: 02-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 13/CHD/2014 ASSESSMENT YEAR : 2003-04 THE D.C.I.T., VS. SHRI.MOTI LAL JINDAL, CENTRAL CIRCLE I, #14, NAC MANIMAJRA, CHANDIGARH. CHANDIGARH. PAN: ABIPJ44941N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH, DR RESPONDENT BY : SHRI SUDHIR SEHGAL DATE OF HEARING : 30.10.2014 DATE OF PRONOUNCEMENT : 31.10.2014 O R D E R PER BHAVNESH SAINI, J.M. : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)(CENTRAL), GURGAON DATED 31.10.2013 FOR AS SESSMENT YEAR 2003-04 ON THE FOLLOWING GROUNDS OF APPEAL :- (I) WHETHER ON HE FACTS AND IN THE CIRCUMSTANCES O F THE CASE THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITI ON OF RS.2,84,000/- MADE BY AO ON ACCOUNT OF INVESTMENT IN SHARES OF M/S HIMLAND AGRO FOODS LTD. TO THE TUNE OF RS.2,34,000/- AND RS.50,000/- IN THE SHARE OF M/S HEERA MOTI HEALTHCARE PRODUCTS WITHOUT APPRECIATING THE FACTS OF THE CASE. 2. WHETHER ON HE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITI ON 2 OF RS.7,00,000/- AS CAPITAL INTRODUCED IN M/S HEERA MOTI AGRO PRODUCTS. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT ON BOTH THE ABOVE ADDITIONS WHICH HAVE BEEN DELETED BY THE LEARNED CI T (APPEALS) AS MENTIONED IN THE GROUNDS OF APPEAL ABO VE, THE ASSESSEE SUBMITTED THAT DURING THE COURSE OF SURVEY OPERATION CONDUCTED IN THE PREMISES OF THE ASSESSEE, THE ASSE SSEE HAS VOLUNTARILY SURRENDERED RS.10 LACS OUT OF WHICH INV ESTMENTS WERE MADE FOR A SUM OF RS.2,34,000/- IN THE SHARES OF M/S HIM LAND AGRO FOODS LTD. AND RS.50,000/- IN THE SHA RES OF M/S HEERA MOTI HEALTHCARE PRODUCTS LTD. FURTHER S UBMISSION WAS MADE SIMILARLY THAT OUT OF THE SAME SURRENDERED AMOUNT, RS.7 LACS WAS INTRODUCED AS CAPITAL IN M/S HEERA MO TI AGRO PRODUCTS. THE LEARNED CIT (APPEALS) NOTED THAT TH E COPY OF THE SURRENDER LETTER WAS NOT FILED BEFORE THE ASSES SING OFFICER WHICH LED TO THESE ADDITIONS AND NOW THE ASSESSEE H AS FURNISHED THE COPY OF THE SURRENDER LETTER SURRENDE RING RS.10 LACS, WHICH WOULD COVER DISCREPANCIES IN THE BOOKS OF ACCOUNT OF TRANSACTIONS CARRIED OUT BY THE DIRECTORS/PROMOT ERS IN THEIR INDIVIDUAL CAPACITY. IT WAS ALSO STATED THA T THE SURRENDER WAS PART OF THE RECORD AND THE ASSESSMENT ORDER UNDER SECTION 143(3) OF THE INCOME TAX ACT WAS ALSO PASSED ON COMPUTATION OF INCOME AND CASH FLOW STATEMENT WAS A LSO FURNISHED. THE LEARNED CIT (APPEALS), THEREFORE, DIRECTED THAT ADVERSE INFERENCE COULD NOT BE TAKEN AGAINST T HE ASSESSEE FOR MAKING BOTH THE ADDITIONS. IT WAS DIRECTED TH AT WHILE APPEAL EFFECT IS GIVEN BY THE ASSESSING OFFICER, TH E ASSESSING OFFICER SHALL VERIFY THE RECORD. 3 12. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET CONTENDED THAT THE ASSESSING OFFICER WHILE GIVING T HE APPEAL EFFECT TO THE ORDER OF THE LEARNED CIT (APPEALS) UN DER SECTION 250 OF THE INCOME TAX ACT DATED 19.11.2013 AND AFTE R VERIFICATION DELETED BOTH THE ADDITIONS WHILE GIVIN G APPEAL EFFECT TO THE ORDER. THE LEARNED D.R. FOR THE REV ENUE DID NOT DISPUTE THIS FACT. THE COPY OF THE SAME IS FILED IN THE PAPER BOOK ALONGWITH THE SURRENDER LETTER AND EVIDENCE OF SHOWING SURRENDER IN THE RETURN OF INCOME AND TAX PAID THER EON. 13. CONSIDERING THE ABOVE FACTS WHEN THE ASSESSING OFFICER HIMSELF WHILE GIVING APPEAL EFFECT HAS ACCEPTED THE CLAIM OF THE ASSESSEE AND DELETED THE ABOVE ADDITIONS, THERE WAS NO JUSTIFICATION FOR THE REVENUE TO PREFER THE PRESENT DEPARTMENTAL APPEAL. THE DEPARTMENTAL APPEAL HAS BECOME INFRUCTUOUS AND IS NOT MAINTAINABLE IN THE PRESENT FORM AND IS LIABLE TO BE DISMISSED. 14. IN THE RESULT, THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF OCTOBER, 2014. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 31 TH OCTOBER, 2014 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4