Mr. Girdhari Lal Puri, New Delhi V. ITO, New Delhi

ITA 1432/DEL/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0183 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 08-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K SAROHA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI C BEN CH, NEW DELHI BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER SHRI N.K. BILLAIYA, ACCOUNTANT MEMBE R ITA NO. 1432/DEL/2017 [A.Y 2007-08] SHRI GIRDHARI LAL PURI VS. THE INCOME TAX OFFICE R 4/204, UPPER SECOND FLOOR WARD 45(4) SUBHASH NAGAR, NEW DELHI NEW DELHI PAN: APZPP 1903 P (APPLICANT) ( RESPONDENT) ASSESSEE BY : SHRI SAMEER K APOOR, CA DEPARTMENT BY : SHRI A.K. SAROHA, CIT- DR DATE OF HEARING : 19.12.2019 DATE OF PRONOUNCEMENT : 31.12.2019 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] 15, NEW DELH I DATED 28.07.2016 PERTAINING TO ASSESSMENT YEAR 2007-08. 2 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT T HE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 21,29,15,314/- MA DE ON PROTECTIVE BASIS BY THE ASSESSING OFFICER. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSING OFFICER RECEIVED INFORMATION FROM THE ACIT, CENTRAL CIRCLE 10, NEW DELHI THAT THE ASSESSEE IS PROPRIETOR OF THREE FIRMS, NAMELY, M/S MY FAIR INTERNATIONAL, M/S SUPREMO TRADING COMPANY AND M/S VEE VEE ENTERPRISES WHICH HAVE PROVIDED ACCOMMODATION ENTRI ES OF RS. 21,29,15,314/- . THE ASSESSING OFFICER CAME TO KNO W THAT ALL THESE FIRMS WERE CONTROLLED BY ONE SHRI VAIBHAV JAIN AND THESE FIRMS WERE BEING OPERATED IN THE NAME OF THE ASSESSEE. 4. AS PER LETTER NO. F. NO. ACIT/CIRCLE-10/2012-13/ 1241 DATED 20.03.2014, THE ACIT INFORMED THAT INCOME IN THE HA NDS OF THESE THREE FIRMS AMOUNTING TO RS. 21,29,15,314/- HAS BEEN CONS IDERED IN THE HANDS OF SHRI VAIBHAV JAIN ON SUBSTANTIVE BASIS. H OWEVER, TO PROTECT THE INTEREST OF THE REVENUE, ADDITION OF RS. 21,29, 15,314/- WAS AGAIN MADE IN THE HANDS OF THE ASSESSEE ON PROTECTIVE BAS IS. 3 5. THE ASSESSEE AGITATED THE MATTER BEFORE THE LD. CIT(A) BUT WITHOUT ANY SUCCESS. 8. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE BROU GHT TO OUR NOTICE THE DECISION OF THE CO-ORDINATE BENCH IN THE CASE O F VAIBHAV JAIN ITA NOS. 3770 TO 3775/DEL/2014 FOR ASSESSMENT YEARS 200 06-07 TO 2011-12 ORDER DATED 12.04.2018. IT IS THE SAY OF THE LD. C OUNSEL FOR THE ASSESSEE THAT IN THE HANDS OF VAIBHAV JAIN, THE ADD ITIONS HAVE BEEN UPHELD. IT IS THE SAY OF THE LD. COUNSEL FOR THE A SSESSEE THAT SINCE SUBSTANTIVE ADDITIONS ARE NOW CONFIRMED IN THE HAND S OF VAIBHAV JAIN, PROTECTIVE ADDITION IN THE HANDS OF THE ASSESSEE SH OULD BE DELETED. 9. THE LD. DR FAIRLY CONCEDED TO THIS. 10. WE HAVE GIVEN THOUGHTFUL CONSIDERATION TO THE O RDERS OF THE AUTHORITIES BELOW. AS MENTIONED ELSEWHERE, SUBSTAN TIVE ADDITIONS HAVE BEEN MADE IN THE HANDS OF SAIBHAV JAIN. WE HA VE CAREFULLY PERUSED THE ORDER OF THE CO-ORDINATE BENCH IN THE C ASE OF VAIBHAV JAIN ITA NOS. 3770 TO 3775/DEL/2014 [SUPRA]. WE FIND FO RCE IN THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. TH E ENTIRE ADDITIONS HAVE BEEN CONFIRMED IN THE HANDS OF VAIBHAV JAIN. THEREFORE, THERE IS 4 NO NEED TO DOUBLY ADD THE SAME AMOUNT ON PROTECTIVE BASIS IN THE ASSESSEES HANDS. THE ASSESSING OFFICER IS, ACCORD INGLY, DIRECTED TO DELETE THE PROTECTIVE ADDITION FROM THE HANDS OF TH E ASSESSEE. GROUND RAISED BY THE ASSESSEE IS ALLOWED. 11. IN THE RESULT, THE APPEAL OF THE ASSESSEE IN I TA NO. 1432/DEL/2017 IS ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 31.12 .2019. SD/- SD/- [SUSHMA CHOWLA ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 31 ST DECEMBER, 2019 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI 5 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P S/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER