ITO, New Delhi V. Mr. Gokal Chand Khanna, New Delhi

ITA 1361/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6845 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-06-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 07-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Unexplained investment; Unexplained expenditure; Salary income; Additional evidence; Corroborative evidences
• Section: 69C; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH C, NEW DELHI BEFORE SHRI S. V. MEHROTRA, ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER I.T.A. NO.1361/DEL/2013 (ASSESSMENT YEAR 2009-10) ITO, WARD 11(2), VS. MR. GOKAL CHAND KHANNA, NEW DELHI NO.1, SRI RAM ROAD, CIVIL LINES, NEW DELHI-54 GIR / PAN : ASTPK7258H (APPELLANT) (RESPONDENT) APPELLANT BY :SHRI RAJESH KUMAR, SR. DR RESPONDENT BY :SHRI RANJAN CHOPRA, CA DATE OF HEARING: 23.06.2016 DATE OF PRONOUNCEMENT: 21.07.2016 ORDER PER BEENA A. PILLAI, JM: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER DATED 03.12.2012 PASSED BY CIT(A) -XIII, NEW DELHI, FOR THE ASSESSMENT YEAR 2009-10 ON THE FOLLOWING GROUNDS OF APPEAL: I) THE LD. CIT(A) HAS ERRED ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW IN DELETING TH E ADDITIONS OF UNEXPLAINED INVESTMENT IN MUTUAL FUND, UNEXPLAINED INVESTMENT IN SHARES AND UNEXPLAINED CASH CREDIT WITHOUT ANY SUPPORTING DOCUMENTARY EVIDENCES. II) THE LD. CIT(A) HAS ERRED ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW WITHOUT GOING INTO THE MERITS AND FACTS OF THE CASE PROPERLY. 2 I.T.A.NO.1361./DEL/2013 2. THE BRIEF FACTS OF THE CASE ARE AS UNDER: 2.1 THE ASSESSEE IS A DIRECTOR IN M/S. FAST FOODS P VT. LTD. AND ALSO PARTNER IN M/S. EXCHANGE AGENCIES. H E DERIVES INCOME FROM SALARY, SHARE OF PROFIT FROM PARTNERSHIP FIRM, INTEREST AND DIVIDEND. IN THE ASS ESSMENT YEAR UNDER CONSIDERATION, ASSESSING OFFICER HAS MAD E ADDITION ON ACCOUNT OF UNEXPLAINED INVESTMENTS IN MUTUAL FUNDS OF RS.59,83,826/- AN UNEXPLAINED ADDIT ION IN SHARE OF RS.57,14,423/-. ASSESSING OFFICER ALSO MADE ADDITION OF RS.5,84,212/- AS UNEXPLAINED EXPENDITUR E U/S 69C OF THE I. T. ACT. FURTHER, THE ASSESSING OFFIC ER ADDED RS.1,20,000/- ON ACCOUNT OF LOW HOUSEHOLD WITHDRAWA LS. 2.2 AGGRIEVED BY THE ASSESSMENT ORDER, ASSESSEE FIL ED AN APPEAL BEFORE LD. CIT(A) WHO DELETED THE ADDITIONS MADE BY THE ASSESSING OFFICER. AGGRIEVED BY THE ORDER O F LD. CIT(A), THE REVENUE IS IN APPEAL BEFORE US NOW. 3. GROUND NO.1. LD. D.R. SUBMITTED HAT IT WAS FROM THE AIR INFORMATION THAT THE FACTS REGARDING INVEST MENTS MADE BY THE ASSESSEE IN KOTAK MUTUAL FUNDS AMOUNTIN G TO RS.60,13,826/- DURING THE YEAR UNDER CONSIDERATI ON, CAME INTO LIGHT. LD. D.R. SUBMITTED THAT THE ASSES SEE HAS NOT SUBMITTED THE DETAILS REGARDING THE INVESTMENTS MADE EVEN AFTER REPEATED OPPORTUNITIES BEING GIVEN TO HI M. LD. A.O. HAS RIGHTLY MADE THE ADDITION ON ACCOUNT OF UNEXPLAINED INVESTMENTS AND MUTUAL FUNDS U/S 69 OF THE ACT. 3 I.T.A.NO.1361./DEL/2013 3.1 ON THE CONTRARY, LD. A.R. SUBMITTED THAT THE ASSESSEE CAME TO KNOW REGARDING AIR INFORMATION REC EIVED BY THE ASSESSING OFFICER ONLY WHEN HE RECEIVED THE ASSESSMENT ORDER. HE SUBMITTED THAT THERE WAS NO SP ECIFIC QUERY THAT WAS RAISED BY THE LD. A.O. IN RESPECT OF INVESTMENT IN KOTAK MUTUAL FUNDS FOR THE YEAR UNDER CONSIDERATION. HE REFERRED TO THE RELEVANT LETTER WHICH HAS BEEN PLACED AT PAGE 30 OF THE PAPER BOOK ASKING FOR THE AIR INFORMATION WHICH WAS SUBSEQUENTLY PROVIDED, P LACED AT PAGES 31.-33 OF THE PAPER BOOK. LD. A.R. SUBMIT TED THAT THE MUTUAL FUNDS WITH KOTAK MENTIONED IN AIR INFORMATION WAS MADE BY HIS WIFE MRS. TEJ KHANNA WI TH THE ASSESSEE AS JOINT HOLDER. THE ASSESSEE HAD SUB MITTED THE BOOKS OF ACCOUNT STATEMENT OF KOTAK TO SUBSTANT IATE THE SAME. LD. CIT(A) ACCORDINGLY REMANDED THESE DOCUMENTS TO THE A.O. FOR HIS COMMENTS. THE ASSESS ING OFFICER IN HIS REMAND REPORT OBSERVED AS UNDER: THE LD. A.O. HAS OBSERVED THAT IN VIEW OF THE PROVISIONS OF RULE 46A THE ASSESSEE IS NOT ENTITLE D TO PRODUCE ADDITIONAL EVIDENCE PARTICULARLY SUPPORTING EVIDENCES FOR INVESTMENTS MADE IN MUTUAL FUNDS AS PER AIR INFORMATION. 3.2 LD. A.R. SUBMITTED THAT DURING THE ASSESSMENT PROCEEDINGS, NO EVIDENCES WERE CALLED FOR BY THE AS SESSING OFFICER REGARDING THE INFORMATION OF INVESTMENT GIV EN IN AIR WHICH WAS NOT PROVIDED TO THE ASSESSEE DURING T HE ASSESSMENT PROCEEDINGS. LD. A.R. SUBMITTED THAT THE 4 I.T.A.NO.1361./DEL/2013 SOURCE OF INVESTMENT IN KOTAK SECURITIES PLACED ON RECORD FOR CONSIDERATION BEFORE THE LD. CIT(A) IS AS UNDER : SOURCE OF INVESTMENT IN KOTAK SECURITIES IS DETAIL ED AS UNDER: I) AS ON DECEMBER 2003, SHARES AMOUNTING TO RS. 22.43 LACS WERE INVESTED IN HDFC BANK, COPY OF HDFC DEPOSITORY SERVICES STATEMENT OF HOLDING IS HEREBY ENCLOSED FOR YOUR REFERENCE. II) SUBSEQUENTLY, THE SAME WAS INVESTED WITH KOTAK SECURITIES VIDE LETTER DATED 05.11.2004 (COPY ENCLOSED) III) LATER ON, ON 30.05.2005, AN INVESTMENT WAS MADE IN SHARES OF FORTUNE EQUITY PORTFOLIO OF RS. 25.70 LACS (COPY OF LETTER DATED 30.05.2005 IS ENCLOSED). IV) FURTHER, INVESTMENT OF RS. 42 LACS WAS MADE ON 04.09.200' TO INCUBATOR EQUITY PORTFOLIO OF KOTAK - PMS. V) THESE FUNDS ALONG WITH DIVIDEND EARNED REINVESTED, WERE USED FROM TIME TO TIME IN THE INVESTMENT IN MUTUAL FUNDS UNDER CONSIDERATION. 3.3 WE HAVE PERUSED THE MATERIAL PLACED ON RECORD, ORDERS OF AUTHORITIES BELOW AND THE ARGUMENTS ADVAN CED BY BOTH THE PARTIES. IT IS OBSERVED THAT LD. CIT( A) HAS CONSIDERED THE SUBMISSIONS OF THE ASSESSEE REGARDIN G THE BANK STATEMENTS ISSUED BY KOTAK SECURITIES VIS--VIS THE OBSERVATIONS OF THE A.O. IN THE ASSESSMENT ORDER AS WELL AS IN THE REMAND REPORT. THE LD. CIT(A) OBSERVED AS UNDER: IT IS SEEN THAT AS ON DECEMBER 2003, THE WIFE OF T HE APPELLANT SMT. TEJ KHANNA INVESTED RS.22.43 LACS IN HDFC BANK. IN THIS REGARD THE APPELLANT HAS FILED COPY OF THE HDFC BANK DEPOSITARY SERVICES AS ON 31.03.2003 WHEREIN THE PORTFOLIO VALUE HAS BEEN SHOWN AT RS.22,43,193.90. THIS AMOUNT WAS RE- 5 I.T.A.NO.1361./DEL/2013 INVESTED BY SMT. TEJ KHANNA IN KOTAK SECURITIES VID E LETTER DATED 05.11.2004. THE COPY OF THE LETTER ISS UED BY KOTAK SECURITIES IS PLACED ON RECORD. M/S. KOTAK SECURITIES ISSUED A LETTER ON 30.03.2005 WHEREIN TH EY HAVE ACCEPTED A CASH CORPUS BY CHEQUE OF RS. 25,70,000/-, WHICH WAS INVESTED IN FORTUNE EQUITY PORTFOLIO. FURTHER, THE WIFE OF THE APPELLANT SMT. TEJ KHANNA RE-INVESTED THE SAID AMOUNT IN INCUBATOR EQUITY PORTFOLIO OF KOTAK SECURITIES. THE AMOUNT OF INVESTMENT WAS RS.42,00,000/-. THIS HAS BEEN ACCEPTED BY KOTAK SECURITIES VIDE THEIR LETTER DATE D SEPTEMBER 2007 ISSUED TO SMT. TEJ KHANNA. THIS AMOUNT ALONG WITH THE DIVIDEND WAS RE-INVESTED BY MIS KOTAK SECURITIES FROM TIME TO TIME BY THE KOTAK SECURITIES IN VARIOUS INVESTMENT SCHEMES. DURING TH E YEAR SMT. TEJ KHANNA FURTHER INVESTED RS.10,00,000/ - IN KOTAK MUTUAL FUNDS ON 19.12.2008 WHICH WAS MADE INVESTED FROM HER BANK ACCOUNT RUNNING WITH PUNJAB NATIONAL BANK. FURTHER, THE AIR INFORMATION RECEIVED IN THE CASE OF GOKAL CHAND KHANNA HAS BEEN TALLIED WITH THE KOTAK SECURITIES PORTFOLIO MANAGEM ENT SYSTEM MAINTAINED IN THE NAME OF TEJ KHANNA WHEREIN APPELLANT IS SIMPLY A JOINT NAME HOLDER. TH E AIR INFORMATION SHOWS THAT AMOUNT INVESTED ON TIME TO TIME ON DIFFERENT DATES. ON VERIFICATION WITH TH E PMS STATEMENT IT IS SEEN THAT THE INVESTMENT MADE B Y THE KOTAK SECURITIES ON BEHALF OF SMT. TEJ KHANNA TALLIED WITH THE AIR INFORMATION RECEIVED IN THE CA SE OF APPELLANT. IT IS SEEN THAT DURING THE YEAR SMT. TEJ KHANNA MADE FRESH INVESTMENT OF RS.10,00,000/-ONLY AND OTHER INVESTMENTS WERE RE-INVESTED OUT OF THE INVESTMENT AND DIVIDEND OF RS.42,00,000/-MADE IN SEPTEMBER 2007. IT IS SEEN THAT TOTAL VALUE OF THE INVESTMENT AS PER AIR INFORMATION COMES TO RS.60,13,826/-WHICH INCLUDES THE AMOUNT OF RS.10,00,000/-INVESTED BY WAY OF CHEQUE BY SMT. TEJ KHANNA WITH KOTAK SECURITIES ON 19.12.2008. THE VALUE OF INVESTMENT TALLIES WITH THE SOURCES OF FUN DS I.E. RS.42,00,000/-INVESTED IN SEPTEMBER 2007 AND RS. 10,00,000/-DURING THE YEAR FROM PUNJAB NATIONAL BANK, THE REST OF THE AMOUNT OF RS. 8,13, 826/- IS 6 I.T.A.NO.1361./DEL/2013 ACCRETION TO THE FUNDS INVESTED BY WAY OF DIVIDENDS AND OTHER BENEFITS ACCRUED TO THE PMS ACCOUNT. IN VIEW OF THE ABOVE, IT IS HELD THAT INVESTMENT IN KO TAK SECURITIES PMS ACCOUNT DOES NOT BELONG TO THE APPELLANT AND SAME PERTAINS TO SMT. TEJ KHANNA WIFE OF THE APPELLANT WHO IS SEPARATELY ASSESSED TO TAX. THEREFORE, THE ADDITION MADE BY THE ASSESSING OFFIC ER OF THE INVESTMENTS PERTAINING TO SMT. TEJ KHANNA WE RE NOT JUSTIFIED AND SAME IS DELETED. 3.4 WE DO NOT FIND ANY INFIRMITY IN THE ABOVE FINDI NGS BY LD. CIT(A). ACCORDINGLY, WE DISMISS THIS GROUND OF APPEAL FILED BY THE REVENUE. 4. GROUND NO.2 IS AGAINST THE DELETION OF ADDITION MADE BY ASSESSING OFFICER IN RESPECTS OF UNEXPLAINE D INVESTMENT IN SHARES AND SECURITIES U/S 69 OF THE A CT. LD. D.R. SUBMITTED THAT THE ASSESSEE WAS ASKED TO FURNI SH THE STATEMENT OF HIS AFFAIRS SEVERAL TIMES TO FIND OUT THE DETAILS OF INVESTMENT MADE DURING THE YEAR AND THE SOURCE OF SUCH INVESTMENT. THE ASSESSEE FILED THE STATEME NT OF WEALTH AS ON 31.03.2008 AND 31.03.2009 VIDE LETTER DATED 12.08.2011. LD. A.O. ON PERUSAL OF THE STATEMENT REPRODUCED AT PAGE 8 & 9 OF LD. CIT(A)S ORDER, OBS ERVED THAT THE VALUE OF ASSETS HAS INCREASED FROM RS.91,39,001/- TO RS.1,45,94,598/- WITHOUT ANY REDUCTION FROM INCOME EARNED DURING THE YEAR ON ACC OUNT OF HOUSEHOLD EXPENSES AND THE INVESTMENTS MADE BY H IM IN RESPECT OF DEDUCTIONS CLAIMED UNDER CHAPTER VIA. THE ASSESSEE WAS ASKED TO EXPLAIN AS TO HOW THE VALUE O F ASSETS HAVE INCREASED FROM OPENING BALANCE OF RS. 91,39,001/- TO THE CLOSING BALANCE OF RS.1,45,94,59 8/- 7 I.T.A.NO.1361./DEL/2013 ESPECIALLY WHEN THE VALUE OF ALL ASSETS IN THE CHAR T WERE TAKEN AT BOOK VALUE. THE ASSESSEE WAS ASKED TO FURN ISH THE DETAILS OF ASSETS AS WELL AS THE LIABILITIES AS ON 31-03- 08 AND 31-03-09. 4.1 LD. ASSESSING OFFICER MADE ADDITION ON THE GROU ND THAT NO DETAILS WERE SUBMITTED BY THE ASSESSEE AS C ALLED FOR. 4.2 ON AN APPEAL BEFORE LD. CIT(A), DELETED ADDITIO N MADE BY LD. A.O. AGGRIEVED BY THE ORDER OF LD. CIT (A), THE REVENUE IS IN APPEAL BEFORE US NOW. 4.3 LD. D.R. SUBMITTED THAT THE ASSESSEE HAS TRIED TO COVER UP THE UNEXPLAINED INVESTMENT IN SHARES MADE DURING THE YEAR BY INFLATING THE VALUE OF SHARES AS ON 31.03.2008. LD. D.R. SUBMITTED THAT THE ASSESSEE HA S NOT FURNISHED REQUIRED DETAILS IN-SPITE OF MANY OPPORTU NITIES GIVEN TO HIM FROM TIME TO TIME. HE SUBMITTED THAT N O DETAILS OF SHARES HELD AS ON 31-03-2008 AND 31-03-2 009 WAS SUBMITTED TO ARRIVE AT A CONCLUSION AS TO WHICH STATEMENT OF AFFAIR IS CORRECT. LD. D.R. SUBMITTED THAT THE SOURCES OF ACQUISITION OF SHARES TO THE EXTENT OF RS.57,14,423/- REMAINS UNEXPLAINED. HE ;SUBMITTED T HAT IN ABSENCE OF ANY DETAILS FILED BY THE ASSESSEE, T HE STATEMENT OF AFFAIRS FILED BY THE ASSESSEE CANNOT B E BELIEVED TO BE CORRECT AND THE VALUE OF ADDITION TO SHARES DURING THE YEAR AS PER THE EARLIER STATEMENT OF AFF AIRS IS TREATED AS UNEXPLAINED INVESTMENT IN SHARES. HE 8 I.T.A.NO.1361./DEL/2013 SUBMITTED THAT ADDITION OF RS.57,14,423/- MAY BE SUSTAINED. 4.4 ON THE CONTRARY, LD. A.R. SUBMITTED THAT THE STATEMENT OF WEALTH FILED BY THE ASSESSEE AS ON 31.03.2008 AND 31.03.2009 VIDE LETTER DATED 12.08.2 011 SHOWING THE INVESTMENT IN SHARES WERE RS.58,09,001/ - AS ON 31.03.2009 AND WAS INADVERTENTLY SHOWN AT RS.12,19,957/- AS ON 31.03.2008. HE SUBMITTED THAT RS.12,19,975/- WAS ACTUALLY THE AMOUNT OF CAPITAL G AIN FOR THE ASSESSMENT YEAR 2008-09. LD. A.R. REFERRED TO PAGES 40 TO 43 OF THE PAPER BOOK TO SUBSTANTIATE TH E INADVERTENT MISTAKE AND SUBMITTED THAT THE STATEMEN T OF WEALTH WAS REVISED AND CORRECTED AMOUNTING TO RS.69,34,380/- AS ON 31.03.2008. LD. A.R. SUBMITTE D THAT ALL THE DOCUMENTS WERE REMANDED BY THE LD. CIT (A) TO LD. A.O. FOR VERIFICATION. HOWEVER THE ASSESSING O FFICER HAS MADE THE ADDITION ONLY ON THE BASIS OF SURMISES AND CONJECTURES WITHOUT BRINGING ANY MATERIAL ON RECORD WHICH COULD SHOW THAT THESE INVESTMENTS IN SHARES REMAINED UNEXPLAINED. HE SUBMITTED THAT EVEN DURI NG REMAND PROCEEDINGS, THE ASSESSING OFFICER DID NOT C ALL FOR ANY FURTHER DETAILS OR INFORMATION REGARDING THE SH ARES HELD AS ON 31.03.2008 AND 31.03.2009. 4.5 WE HAVE PERUSED THE MATERIAL PLACED ON RECORD, ORDERS OF AUTHORITIES BELOW AND SUBMISSIONS OF BOTH THE PARTIES. ON GOING THROUGH THE STATEMENT PROVIDED B Y KOTAK SECURITIES PLACED AT PAGES 42 & 43 OF THE PAP ER 9 I.T.A.NO.1361./DEL/2013 BOOK, IT CAN BE VERIFIED THAT THE COST OF INVESTMEN T MADE IN SHARES AS ON 312.03.2008 IS SHOWN AT RS.69,34,38 0/- INSTEAD OF RS.12,19,957/-. IN THE STATEMENT OF WEA LTH FILED BY THE ASSESSEE ON 31.03.2008 AND 31.03.2009 , THE INVESTMENTS WERE SHOWN AT RS.58,09,001/- AS ON 31.03.20-09 WHICH WAS INADVERTENTLY SHOWN AT RS.12,19,957/- AS ON 31.03.2008, AN D RS.12,19,957/ - WAS ACTUALLY CAPITAL GAIN BEING SHOWN IN THE HANDS OF ASSESSEE. LD. A.R. SUBMITTED THE STATEMENT OF REAL IZED PROFITS BY THE ASSESSEE ON INVESTMENT OF SHARES FOR THE YEAR UNDER CONSIDERATION. LD. A.O. HELD IN THE ASSE SSMENT ORDER THAT THE ASSESSEE HAS INCREASED THE OPENING B ALANCE FROM RS.12,19,957/- TO RS.69,34,380/-. FROM THE STATEMENT ISSUED BY KOTAK SECURITIES, IT IS OBSERVE D THAT THE VALUE OF INVESTMENT IN SHARES WAS RS.69,34,379. 75 AS ON 31.03.2008. THESE HUMAN ERROR / MISTAKE IN RECORDING THE FIGURES WAS RECTIFIED BY THE ASSESSEE . IT HAS BEEN OBSERVED BY LD. CIT(A) THAT THERE IS NO DIFFER ENCE IN THE INVESTMENT SHOWN IN SHARES AS ON 31.03.2008 AND 3.103.2009. LD. CIT(A) HELD AS UNDER: IN VIEW OF THE EQUITY INVESTMENT STATEMENT ISSUED BY KOTAK SECURITIES, IT IS HELD THAT VALUE OF HOLDING COSTS OF SHARES AS ON 31.03.2008 WAS RS.69,34,379.75 AND NOT RS.12,19,957/-. AS SUCH, THERE WAS NO UNEXPLAINED INVESTMENT IN THE SHARES OF THE ASSESSE E. THE ASSESSEE ACTUALLY HELD INVESTMENT IN SHARES AT RS.69,34,379.75 AND SAME WAS REFLECTED IN HIS RETUR N OF INCOME. HENCE, THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED INVESTMENT IN SHARES W NOT JUSTIFIED AND SAME IS DELETED. 10 I.T.A.NO.1361./DEL/2013 4.5 WE DO NOT FIND ANY INFIRMITY IN THE FINDINGS OF LD. CIT(A) AND UPHOLD THE SAME. WE, THUS DISMISS THIS GROUND OF APPEAL OF REVENUE. 5. GROUND NO.3 IS REGARDING DELETION OF ADDITION MADE BY LD. CIT(A) IN RESPECT OF FOREIGN TRAVEL EXPENDIT URE INCURRED BY THE ASSESSEE AMOUNTING TO RS.5,84,212/- WHICH WAS HELD AS UNEXPLAINED EXPENDITURE U/S 69C O F THE ACT. 5.1 LD. D.R. SUBMITTED THAT THE ASSESSEE COULD NOT FILE ANY DETAIL REGARDING THE FOREIGN TRAVEL ALONG WITH BILLS AND VOUCHERS IN RESPECT OF EXPENSES INCURRED. HE SUBMI TTED THAT THE ADDITIONS MADE BY THE ASSESSING OFFICER SH OULD BE SUSTAINED AS NO DOCUMENTS / RECORDS / CONFIRMATI ON / EVIDENCES ETC. WERE PLACED ON RECORD TO SUBSTANTIAT E THE FOREIGN TOUR EXPENSES. 5.2 ON THE CONTRARY, LD. A.R. SUBMITTED THAT THE ASSESSEE HAD INCURRED AMOUNT OF RS.5,84,212/- TOWAR DS FOREIGN TRIP AND HIS WIFE MRS. TEJ KHANNA HAD PAID RS.5,12,207/- TOWARDS FOREIGN EXPENSES. THE BILLS R ELATED TO THE EXPENDITURE MADE BY THE ASSESSEE HAD BEEN SUBMITTED WITH THE LD. A.O. AT THE TIME OF ASSESSME NT PROCEEDINGS VIDE LETTER NO. 333 DATED 11.05.2012. HOWEVER THE LD. AO HAD STATED IN THE ASSESSMENT ORD ER THAT NO DOCUMENT, RECORD, CONFIRMATION, EVIDENCES E TC. WAS PLACED ON RECORD TO SUBSTANTIATE THE AMOUNT AND NATURE OF FOREIGN TOUR EXPENSES. 11 I.T.A.NO.1361./DEL/2013 5.3 LD. A.R. SUBMITTED THAT ASSESSEE HAD SUBMITTED ALL THE RELEVANT DOCUMENTS LIKE BANK STATEMENTS, TRAVEL BILLS, PROOF OF TRAVEL ETC. TO THE LD. A.O. AT THE TIME OF ASSESSMENT PROCEEDINGS, WHICH ARE AS UNDER: TOWARDS AMOUNT RS. EVIDENCE FOREIGN EXCHANGE RS4,21,966/- RS.90,2412/- COPY OF BILL ENCLOSED (P[AID TO R.R. SEN & BROS. PVT. LTD.) COPY OF BILL ENCLOSED (PAID TO R. R. SEN & BROS PVT. LTD.) TRAVEL TICKETS RS.72,005/- PROOF ENCLOSED (PAID TO TRAVEL AGENT TOUCH OF CLASS THROUGH PNB 5.4 LD. A.R. SUBMITTED THAT THESE DETAILS AND EVIDE NCES WERE REMANDED TO THE A.O. FOR VERIFICATION. LD. A.O . REJECTED THE CONTENTION OF THE ASSESSEE WITHOUT VER IFYING THESE DOCUMENTS. 5.5 IT IS OBSERVED THAT LD. A.O. HAS ADDED RS.5,84 ,212/- ON ACCOUNT OF UNEXPLAINED EXPENDITURE INCURRED BY T HE ASSESSEE ON FOREIGN TRAVELLING BY THE ASSESSEE ALON G WITH HIS FAMILY. DURING THE COURSE OF ASSESSMENT PROCEED INGS, ASSESSEE FILED COPY OF THE BANK STATEMENT ALONG WIT H THE BILLS FOR PURCHASE OF FOREIGN CURRENCY AND TICKETS BY THE ASSESSEE (PAPER BOOK PAGES 44-53). IT IS CLAIMED BY THE ASSESSEE THAT HE HAS PURCHASED FOREIGN CURRENCY FRO M R.R. SEN & BROTHERS OF RS.4,21,966/-AND RS. 90,241/ -, FOR WHICH THE COPY OF BILL WAS FILED BY THE ASSESSE E ALONG WITH ITS SUBMISSION DATED 1L.05.2011. IT IS SEEN TH AT PURCHASE OF FOREIGN CURRENCY HAS BEEN PAID BY CHEQU E BY THE ASSESSEE FROM HIS BANK ACCOUNT RUNNING WITH THE PUNJAB NATIONAL BANK. IT IS SEEN THAT AMOUNT OF RS.4,21,966/-AND RS.90,241/-HAVE BEEN CLEARED FROM THE 12 I.T.A.NO.1361./DEL/2013 ACCOUNT OF THE ASSESSEE ON 26.03.2009 AND 20.03.200 9 IN THE NAME OF R.R. SEN AND BROTHERS. THE PURCHASE OF TRAVELLING TICKETS OF RS.72,005/-IS ALSO PAID FROM PUNJAB NATIONAL BANK ON 16.04.2008 WHICH IS REFLECTED IN T HE STATEMENT. IT IS SUBMITTED BY THE ASSESSEE THAT FOR EIGN TRAVEL UNDERTAKEN BY THE ASSESSEE IN MARCH 2009 WAS PARTLY FINANCED BY HIS WIFE SMT. TEJ KHANNA AND SHE HAS WITHDRAWN RS.5,12,207/-WHICH IS ALSO CONFIRMED BY T HE ASSESSING OFFICER IN THE ASSESSMENT ORDER AT PARA-3 OF THE ORDER. THE TICKET EXPENSES OF MARCH 2009 TICKETS WE RE PAID BY THE ASSESSEES WIFE FROM THE WITHDRAWALS MA DE BY HER. AS FAR AS THE TICKET OF APRIL 2008 IT IS SEEN THAT SAME HAS BEEN PAID BY THE ASSESSEE FROM HIS BANK ACCOUNT . 5.5 IT IS OBSERVED THAT LD. CIT(A) HAS DELETED THE ADDITION AS THE ASSESSEE HAS EXPLAINED THE EXPENDITURE MAE. WE DO NOT FIND ANY INFIRMITY WITH THE FINDINGS OF LD. CIT (A) AND, THEREFORE, WE HOLD THAT THE EXPENDITURE INCURRED BY THE ASSESSEE STANDS FULLY EXPLAINED. 5.6 IN THE RESULT, GROUND NO.3 RAISED BY THE REVENU E STANDS DISMISSED. 6. IN THE RESULT, APPEAL FILED BY THE REVENUE STAND S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST JULY, 2016. SD./- SD./- (S. V. MEHROTRA) (BEENA A. PILLA I) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 21.07.2016 SP. 13 I.T.A.NO.1361./DEL/2013 COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. TRUE COPY. BY ORDER (ITAT, NEW DELHI) S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS 21/7/16 SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 21/7 SR. PS/PS 7 FILE SENT TO BENCH CLERK 21/7 SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER