Designer Realtors Pvt Ltd, New Delhi V. Deputy Commissioner of Income-tax, New Delhi

ITA 1350/DEL/2015

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5115 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 09-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Keywords: Search and seizure; Assessment record
• Section: 40A(3); 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI G.D. AGARWAL, VICE PRESIDENT & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA NO.1350/DEL/2015 ASSESSMENT YEAR: 2011-12 DESIGNER REALTORS P. LTD. M-11, MIDDLE CIRCLE, CONNAUGHT CIRCUS, NEW DELHI. PAN: AADCD1057G (APPELLANT) VS DCIT, CENTRAL CIRCLE -32, NEW DELHI. (RESPONDENT) ASSESSEE BY: SHRI PIYUSH KAUSHIK, ADVOCATE REVENUE BY: MS NIDHI SRIVASTAVA, CIT- DR ORDER PER K. NARASIMHA CHARY, JM CHALLENGING THE ORDER DATED 21.11.2014 IN APPEAL NO .206/13-14 PASSED BY THE LD. COMMISSIONER OF INCOME-TAX (APPEA LS)-XXX, NEW DELHI (FOR SHORT LD. CIT(A)}, ASSESSEE PREFERRED T HIS APPEAL. 2. BRIEF FACTS OF THE CASE ARE THAT PURSUANT TO THE SEARCH AND SEIZURE OPERATION CARRIED OUT AT VARIOUS PREMISES OF M/S BP TP LTD. AND ITS GROUP CONCERNS AND ASSOCIATED PERSONS ON 7.2.2010 AND CON CLUDED ON 5.2.2011AND SINCE THE ASSESSEE IS ASSOCIATED WITH B PTP GROUP, THE CASE OF THE ASSESSEE WAS TAKEN UP FOR SCRUTINY BY ISSUAN CE OF NOTICE U/S 142(1) DATE OF HEARING 01.05.2019 DATE OF PRONOUNCEMENT 13.05.2019 2 OF THE INCOME-TAX ACT, 1961 (THE ACT). ASSESSEE FILED RETURN OF INCOME ON 22.9.2011 DECLARING THE TOTAL INCOME AS N IL. HOWEVER, LD. AO BY ORDER DATED 28.3.2013 MADE ADDITION OF RS.2,68,9 45/- ON ACCOUNT OF THE POST-DATED CHEQUES AND A SUM OF RS.2 LACS ON AC COUNT OF DISALLOWANCE U/S 40A(3) OF THE ACT AND ASSESSED THE INCOME AT RS.4,68,945/-. LEARNED CIT(A) ALLOWED THE APPEAL I N PART, BUT CONFIRMED THE ADDITION OF RS.2 LACS, WHICH IS RELEV ANT FOR THE PURPOSE OF THIS APPEAL, BY FOLLOWING HIS OWN ORDER IN THE CASE OF M/S BUSINESS PARK PROMOTERS P. LTD. IN APPEAL NO.521/09-10/309 BY ORD ER DATED 24.12.2012 FOR THE ASSTT. YEAR 2006-07. HENCE, THE ASSESSEE I S IN THIS APPEAL. THOUGH THE ASSESSEE PREFERRED THE APPEAL ON MANY GR OUNDS, AT THE TIME OF ARGUMENTS, ALL THE GROUNDS WERE GIVEN UP EXCEPT GROUND NO.3, WHICH RELATES TO THE ADDITION OF RS. 2 LACS MADE BY THE L D. AO U/S 40A(3) OF THE ACT. 3. IT IS SUBMITTED BY THE LEARNED AR THAT THE ORDER IN THE CASE OF M/S BUSINESS PARK PROMOTERS P. LTD., REFERRED TO BY THE AUTHORITIES BELOW FOR SUSTAINING THE ADDITION OF RS.2 LACS U/S 40A(3) WAS CONSIDERED BY A COORDINATE BENCH OF THIS TRIBUNAL IN ITA NO.1404/DE L/2013 AND BY ORDER DATED 20.4.2015, THE TRIBUNAL DELETED THE SAI D ADDITION. 4. LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORI TIES BELOW. 5. WE HAVE GONE THROUGH THE RECORD. IT COULD BE SE EN FROM THE ASSESSMENT RECORD THAT THE LEARNED AO ALSO REFERRED TO THE ORDER DATED 20.4.2012 IN APPEAL NO.521/09-10/309 FOR THE ASSTT. YEAR 2006-07 IN THE CASE OF M/S BUSINESS PARK PROMOTERS P. LTD. PAS SED BY THE FIRST APPELLATE AUTHORITY. LEARNED CIT(A) ALSO WHILE PLA CING RELIANCE ON THE SAID DECISION SUSTAINED THE ADDITION. IT IS NOT IN DISPUTE THAT IN SO FAR AS 3 THAT PARTICULAR ADDITION U/S 40A(3) IS CONCERNED, UNDER SIMILAR SET OF FACTS, A COORDINATE BENCH OF THIS TRIBUNAL IN ITA N O.1404/DEL/2013 BY ORDER DATED 20.4.2015 DELETED THE SAME. 6. IT IS, THEREFORE, CLEAR THAT THE VERY BASIS ON W HICH THE LD. AO MADE THE ADDITION AND THE LEARNED CIT(A) SUSTAINED THE A DDITION IS NO LONGER IN EXISTENCE. WE, THEREFORE, IN THIS FACTUAL SITUATIO N, WHILE RESPECTFULLY FOLLOWING THE DECISION OF A COORDINATE BENCH OF THI S TRIBUNAL, DELETE THE ADDITION. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH MAY, 2019. SD/- SD/- (G.D. AGARWAL) (K. NARASIMHA CHARY) VICE PRESIDENT JUDICIAL MEMBER DATED: 13 TH MAY, 2019 VJ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 DRAFT DICTATED ON 01.5.2019 DRAFT PLACED BEFORE AUTHOR 02.5.2019 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS KEPT FOR PRONOUNCEMENT ON DATE OF UPLOADING ORDER ON THE WEBSITE FILE SENT TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.