Nitin Kumar Garg, Ghaziabad V. ITO, Ward-2(5), Ghaziabad

ITA 1306/DEL/2021

AI Insights

The case involves an appeal by Nitin Kumar Garg against the order of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, Delhi, which arose from an assessment order passed by the Assessing Officer under Sections 144 and 147 of the Income Tax Act, 1961 for the Assessment Year 2012-13. The Income Tax Department had gathered information that the assessee purchased immovable property during the relevant financial year, and notices were issued to assess the unexplained investment. The Assessing Officer treated a portion of the investment as unexplained due to non-compliance with notices. The CIT(A) partially accepted the assessee's explanation but confirmed a significant amount as unexplained. The Tribunal, considering the additional evidence provided by the assessee, decided to remit the matter back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121619 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 27-08-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 03-10-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 144; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” DELHI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.1306/DEL/2021 Assessment Year 2012-13 Nitin Kumar Garg Ch. No.206-207, Ansal Satyam RDC, Rajnagar Ghaziabad. Vs. ITO, Ward-2(5) Ghaziabad TAN/PAN: AEWPG4730M (Appellant) (Respondent) Appellant by: Shri Akhilesh Kumar, Adv. Respondent by: Ms. Smita Singh, Sr.DR Date of hearing: 28 08 2023 Date of pronouncement: 06 10 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The ca pt ioned appeal has been fi l ed b y t he assessee agai nst t he order of t he ld. Commi ssioner of I nco me Tax (Appeal s) - Nat iona l Faceless Appe al Cent re (NF A C), Delhi (‘CI T(A) ’ i n s hor t) dated 15. 09. 2021 ari si ng f ro m the assess ment or der dat ed 14. 12. 2019 passed b y t he Assessi ng Of fi cer ( AO) under Sect ion 144 r . w. Sect ion 147 of the I nco me Tax Act, 1961 (t he Act) concerni ng AY 2012- 13. 2. Br iefl y st at ed, the Inco me Ta x Depart me nt gathered AIR infor mat i on that t he assessee has purchase d i mmovabl e pr o pert y of Rs. 1,0 1, 82, 000/- on 1 0.0 8. 2018, i. e., duri ng t he Fina nci al Year 2011- 12 r el evant t o Assess ment Year 2012- 13 i n questi on. I.T.A. No.1306/Del/2021 2 Consequent l y, not i ce un der S ecti on 148 r. w. Sect ion 147 wer e issued t o assess t he une xplai ned i nvest ment . The s how ca use not ices u nder Sect i on 144 were i ssued i n vie w of t he non co mpli ances of t he not ices. The assessee sub mit ted bef ore t he Assessi ng Of ficer t hat the purchas e of i mmovable proper t y of Rs.1,01,8 2,0 00/- , st amp dut y of Rs. 7, 13, 000/ - were made j oi ntl y wi t h S hri Sac hi n Gar g. The sour ce of pur chase of prope rt y w as stated t o be Home Loan of Rs. 50 l akh t ake n fr o m Punj ab Nat ional Bank and unsecur ed l oan taken fr o m diff er ent ent i ti es to t he t une of Rs. 42, 60, 000/ - an d Rs. 9, 22, 000/ - paid b y t he assessee. The Assessing Of ficer call ed f or t he evi dences a nd doc u ment s r el at ing t o secure d and unsecured loan taken and the past savi ngs ge ne rat ed. The assessee fai l ed to gi ve repl y. The Assessi ng Offi ce r acc or di ngl y tr eated 50% of t he tot al invest ment being Rs. 54, 47, 500/ - as une xpl ai ned i nvest me nt . 3. Aggri eved, the assessee pr ef err ed appeal bef ore the CIT( A) . The CIT( A), i n the f irst appeal , af ter takin g not e of t he fact s e manat ing fr o m recor ds, obser ved t hat source of invest ment to the ext ent of Rs. 2, 52, 500/ - i s f ound t o be explai ne d. The CI T( A) accor dingl y confi r med the re maini ng amount of Rs. 51, 95, 000/- as unexpl ai ned invest ment . 4. Furt her aggri eved, the assessee pr ef err ed appe al bef or e the Tri bunal. 5. I t is co ntended on be hal f of the assessee that loa n of Rs. 50 lakh has been avai led b y t he assessee which was erroneousl y consi dered to pert ai n t o t he ot her j oi nt owners. Simi l ar l y, bank state ment o f the assessee and other docu me nts wer e not I.T.A. No.1306/Del/2021 3 app reciated. The assessee al so fil ed cert ain addit io nal evi dences i. e., cop y of conf i r mat ion of t he lenders etc. to establ i sh t he sourc e. 6. I n t he l i ght of t he sub mi ssions ma de on behal f of the assessee and havi ng re gar d t o the addit ional evi dences pl aced, we co nsider i t expedi ent t o re mit t he mat ter back to t he fi le of the Assessing Off i cer for c onsidera ti on of t he i ssue afr esh. T he assessee shall be at li bert y t o establ ish t he source of funds f or acqui si t ion of pr oper t y and pl ace such corr oborati on as ma y be consi dered necess ar y. We thus set aside t he or der of the CI T(A) and r e mi t t he mat ter bac k to t he fi le of the Assessi ng Of fi cer f or consi derat i on of issue afresh in acc ordance wi th l aw af t er givi ng reasonable opport uni t y t o t he assessee. 7. I n the result , the appeal of t he assessee i s al lowed f or stati sti cal purpose s. Order pronounced in the open Court on 06/10/2023 Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] VICE PRESIDENT ACCOUNTANT MEMBER DATED: /10/2023 Prabhat