Aloke Anand, New Delhi V. ITO, New Delhi

ITA 1548/DEL/2013

• Counselvise Citation: 154820114 RSA 2013
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 15-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMEER SHARMA
• Keywords: Income from undisclosed sources

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI T.S. KAPOOR ITA NOS. 1547 & 1548/DEL/2013 ASSTT. YR: 2006-07 ALOKE ANAND VS. INCOME-TAX OFFICER, C/0 BHATIA & BHATIA, CAS WARD 27(2), NEW DELHI. 12, CENTRAL LAND, BENGALI MARKET, NEW DELHI-110001. PAN: AAFHA 4302 Q ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI RAJAN BHATIA CA RESPONDENT BY : SHRI SAMEER SHARMA SR. DR O R D E R PER R.P. TOLANI, J.M : THESE ARE TWO ASSESSEES APPEALS ONE AGAINST QUA NTUM AND THE OTHER AGAINST THE PENALTY IMPOSED U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961 RELATING TO A.Y. 2006-07. 2. IN QUANTUM APPEAL, THE ASSESSEE HAS CHALLENGED T HE CONFIRMATION OF ADDITION MADE ON ACCOUNT OF INVESTMENT OF RS. 2,00, 000/- IN HDFC MUTUAL FUND AS INCOME FROM UNDISCLOSED SOURCES. 3. BRIEF FACTS ARE: THE ASSESSEE IS CLAIMED TO BE R EGULARLY ASSESSED TO TAX AND RETURN OF INCOME WAS FILED. THE ASSESSMENT RESU LTED IN EX PARTE AS THE ASSESSEE DID NOT RECEIVE PROPER NOTICES. THE ASSESS ING OFFICER FOUND THAT THE ASSESSEE HAD MADE INVESTMENT OF RS. 2 LACS IN HDFC MUTUAL FUNDS. AS THE ITA 1547 & 1548/DEL/2013 2006-07 & 2007-08 2 ASSESSMENT WAS EX PARTE, THE ABOVE AMOUNT WAS ADDED U/S 68. AGGRIEVED, ASSESSEE PREFERRED FIRST APPEAL, WHERE ADDITIONAL E VIDENCE WAS FILED EXPLAINING THAT THE INVESTMENT IN HDFC MUTUAL FUND WAS MADE OUT OF WITHDRAWAL FROM INDIAN OVERSEAS BANK (IOB). ACCORDI NG TO ASSESSEE, IT HAD EXPLAINED THE SOURCE OF DEPOSIT IN IOB BEING THE SA LE OF OTHER MUTUAL FUNDS. CIT(A) ERRONEOUSLY HELD THAT ASSESSEE COULD NOT EXP LAIN THE SOURCE OF DEPOSIT IN IOB AS THE CIT(A) WANTED TO EXPLAIN THE SOURCE OF THE SOURCE AND ACCORDINGLY THE ADDITION WAS CONFIRMED. AGGRIEVED, ASSESSEE IS BEFORE US. 4. LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO WRITTEN SUBMISSIONS. IN THE WRITTEN SUBMISSIONS FILED BEFOR E CIT(A) ALL THESE FACTS WERE DISCLOSED. HOWEVER, CIT(A) HAS NOT APPRECIATED THE SAME. LD. COUNSEL MAKES CATEGORICAL STATEMENT AS UNDER: (I) THE ASSESSEE INVESTED RS. 2,00,000/- IN HDFC MUTUA L FUNDS BY WAY OF A CHEQUE ISSUED ON INDIAN OVERSEAS BANK, JAI PUR. (II) THE BALANCE IN INDIAN OVERSEAS BANK JAIPUR ACCOUNT COMPRISED OF SALE OF OTHER MUTUAL FUNDS HELD BY THE ASSESSEE. TH ESE FACTS CAN BE PROVED BY THE ASSESSEE BY DOCUMENTARY EVIDENCE. (III) THE STATEMENT IS CORRECT AND IF THE SAME IS FOUND T O BE OTHERWISE THE ASSESSING OFFICER WHILE FRAMING THE SET ASIDE A SSESSMENT CAN TAKE A SUITABLE NOTE OF IT AND CAN TAKE APPROPRIATE ACTION IN PENALTY PROCEEDINGS WHICH MAY ARISE IN CASE ASSESSEES STAT EMENT IS FOUND TO BE INCORRECT. (IV) IT IS PLEADED THAT THE MATTER MAY BE SET ASIDE, RES TORED BACK TO THE FILE OF ASSESSING OFFICER WHERE ASSESSEE UNDERTAKES TO PRODUCE THE RELEVANT EVIDENCE. 5. LD. DR IS HEARD. ITA 1547 & 1548/DEL/2013 2006-07 & 2007-08 3 6. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH THE ENTIRE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE EMPHATICALLY CLAI MS THAT HE HAS NOT EARNED ANY INCOME WHICH HAS ESCAPED ASSESSMENT BUT THE AMO UNT HAS BEEN REINVESTED BY REALIZATION OF EXISTING MUTUAL FUNDS. IN THE INTEREST OF SUBSTANTIAL INTEREST, WE ARE INCLINED TO SET ASIDE THE MATTER BACK TO THE FILE OF ASSESSING OFFICER TO DECIDE THE ISSUE AFRESH, KEEPI NG IN VIEW THE UNDERTAKEN GIVEN BY THE ASSESSEES COUNSEL AS MENTIONED ABOVE. 6.1. SINCE WE HAVE SET ASIDE THE QUANTUM TO THE FIL E OF ASSESSING OFFICER, CONSEQUENTLY THE CORRESPONDING PENALTY U/S 271(1)(C ) IMPOSED AT RS. 48,160/- IS ALSO SET ASIDE, WHICH MAY BE CONSIDERED WHILE REFRAMING THE ASSESSMENT. 7. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN OPEN COURT ON 16-09-2013. SD/- SD/- ( T.S. KAPOOR ) ( R.P. TOLANI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16 TH SEPT. 2013. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR ITA 1547 & 1548/DEL/2013 2006-07 & 2007-08 4