Sh. Gurinder Singh Sikka, New Delhi V. ACIT, New Delhi

ITA 1572/DEL/2012

• Counselvise Citation: 157220114 RSA 2012
• Duration Of Justice: 2 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 13-10-2014
• Assessment Year: 2003-2004
• Appeal Filed On: 04-04-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Assessee Lawyers: K R MANJANI
• Keywords: Gift; Additional evidence
• Section: 133A; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH C CC C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG, JUDICIAL , JUDICIAL , JUDICIAL , JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 1572/DEL/2012 1572/DEL/2012 1572/DEL/2012 1572/DEL/2012 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2003 2003 2003 2003 - -- - 04 0404 04 SHRI GURINDER SINGH SIKKA, SHRI GURINDER SINGH SIKKA, SHRI GURINDER SINGH SIKKA, SHRI GURINDER SINGH SIKKA, C CC C- -- -23, PREET VIHAR, 23, PREET VIHAR, 23, PREET VIHAR, 23, PREET VIHAR, DELHI DELHI DELHI DELHI. .. . PAN : ARQPS6880H. PAN : ARQPS6880H. PAN : ARQPS6880H. PAN : ARQPS6880H. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -38(1), 38(1), 38(1), 38(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.R. MANJANI, ADVOCATE. RESPONDENT BY : SHRI SATPAL SINGH, SR.DR. ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LEARNED CIT(A)-XXVIII, NEW DELHI DATED 12 TH MARCH, 2012 FOR THE AY 2003-04. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IN THIS A PPEAL READS AS UNDER:- LD.A.O. AS WELL AS LD.CIT(A) HAVE ERRED ON FACTS A S WELL AS IN LAW IN SUSTAINING ADDITION OF RS.9,60,351/- I N RESPECT OF AMOUNT RECEIVED FROM HARPREET KAUR, EVEN THOUGH THERE IS PROPER SOURCE THEREOF ESPECIALLY WH EN THE LD.CIT(A) HAVE ADMITTED THE ADDITIONAL EVIDENCE WHICH PROVES THE CASE OF THE APPELLANT. 3. THE FACTS OF THE CASE ARE THAT FOR THE YEAR UNDE R CONSIDERATION, THE ASSESSEE HAD FILED THE ORIGINAL RETURN OF INCOM E ON 30 TH SEPTEMBER, 2003 DECLARING AN INCOME OF `2,72,470/-. A SURVEY UNDER SECTION 133A OF THE ACT WAS CARRIED OUT IN HIS CASE ON 25.8.2006 . DURING THE COURSE ITA-1572/DEL/2012 2 OF SURVEY, THE ASSESSEE HAS MADE A DISCLOSURE OF `1 ,34,96,000/- ON ACCOUNT OF FOLLOWING ITEMS:- 1. SHARE APPLICATION MONEY IN I) SIKKA AUTOMOBILES PVT.LTD. 9,00,000/- II) SIKKA OVERSEAS PVT.LTD. 87,00,000/- III) M/S G.S. PROMOTERS PVT.LTD. 8,90,000/- 2. GIFTS (HARPREET) DAUGHTER OF THE ASSESSEE 30,06,000/- ------------------ TOTAL 1,34,96,000/- ------------------ 4. A NOTICE UNDER SECTION 148 WAS ISSUED ON 26.03.2 008, IN RESPONSE TO WHICH, THE ASSESSEE FILED THE RETURN OF INCOME ON 24.04.2008 DECLARING INCOME OF `1,37,68,470/-. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 143(3)/148 O N 17.12.2008 AT THE TOTAL INCOME OF `1,38,68,470/- WHICH INCLUDED I NCOME AS PER RETURN OF INCOME AT `1,37,68,470/- AND ADDITION ON ACCOUNT OF MARRIAGE EXPENSES `1,00,000/-. THE ASSESSEE FILED APPEAL BE FORE THE LEARNED CIT(A) IN WHICH THE ASSESSEE DISPUTED THE ADDITION OF `10,06,000/- IN RESPECT OF GIFTS RECEIVED BY HARPREET KAUR. DURING THE PROCEEDINGS BEFORE THE CIT(A), THE ASSESSEE CORRECTED THE ABOVE ADDITION AND REDUCED THE SAME TO `9,60,351/-. THE ASSESSEE ALSO FILED THE ADDITIONAL GROUND BEFORE THE CIT(A) IN WHICH IT WAS CLAIMED BY THE ASSESSEE THAT THE INCOME SURRENDERED BY THE ASSESSE E DURING THE COURSE OF SURVEY AT `1,34,96,000/- WAS INCLUSIVE OF `9,60,351/- WHICH WAS WRONGLY DISCLOSED. THE DETAIL OF `9,60,351/- I S GIVEN IN PARAGRAPH 2 OF THE CIT(A)S ORDER IN WHICH HE ALSO ADMITTED T HE ADDITIONAL GROUND RAISED BY THE ASSESSEE. FOR READY REFERENCE, WE RE PRODUCE HEREIN BELOW:- 2. IN REGARD TO THE ABOVE APPEAL, IT IS SUBMITTED THAT IN SURVEY CONDUCTED ON 25.1.2006, SHRI GURINDER SIN GH, APPELLANT, WAS PURSUED TO SURRENDER RS.1,34,96,000/ - WHICH IS INCLUSIVE OF RS.9,60,351/-, (WRONGLY WRITT EN AS ITA-1572/DEL/2012 3 RS.10,06,000 IN APPEAL) WHICH IS PART OF RS.30,06,0 00/- IN RESPECT OF THE FOLLOWING: A) RS.6,00,100/- RECEIVED AS GIFT BY MS. HARPREET F ROM HER GRAND MOTHER, WHO IS A REGULAR ASSESSEE AND ABO UT WHICH THERE IS NO DOUBT AND DISCREPANCY. B) RS.3,57,500 WHICH IS SALE PROCEEDS OF SHARES BY MS. HARPREET TO HER BROTHER ABOUT WHICH ALSO THERE IS NO DOUBT AND THESE SHARES IN HER CASE ARE COMING FROM EARLIER YEARS. C) RS.2751/- IS THE OPENING BALANCE OF BANK ACCOUNT OF MS. HARPREET. COPY ATTACHED. SINCE TAKING THE ABOVE AMOUNT AS INCOME IS NOT PERMISSIBLE UNDER ANY PROVISION OF INCOME TAX ACT, IT IS PRAYED THAT ADDITION OF RS.9,60,351/- MAY KINDLY BE DELETED AND INTEREST U/S 234D BE DELETED. 5. THE ASSESSEE ALSO FILED ADDITIONAL EVIDENCE BEFO RE THE CIT(A) IN WHICH HE PRODUCED THE EVIDENCE IN RESPECT OF RECEIP T OF GIFT BY HARPREET KAUR FROM HER GRANDMOTHER AND ALSO THE SAL E OF SHARES BY HARPREET KAUR TO HER BROTHER. THE CIT(A) ADMITTED THE ADDITIONAL EVIDENCE BUT AFTER CONSIDERING THE REMAND REPORT SU STAINED THE ADDITION ON MERITS. 6. AT THE TIME OF HEARING BEFORE US, THE LEARNED CO UNSEL STATED THAT AFTER ADMITTING THE ADDITIONAL GROUND AS WELL AS AD DITIONAL EVIDENCE, THE CIT(A) SUMMARILY REJECTED THE ASSESSEES GROUND OF APPEAL WITHOUT CONSIDERING THE EVIDENCE PRODUCED BY THE ASSESSEE B EFORE HIM SIMPLY ON THE BASIS OF REMAND REPORT. THERE IS NO FINDING OF THE CIT(A) HIMSELF ON ANY OF THE EVIDENCES PRODUCED BY THE ASSESSEE IN SUPPORT OF THE GIFT RECEIVED BY THE ASSESSEES DAUGHTER FROM HER G RANDMOTHER AND ALSO THE SALE OF SHARES BY THE ASSESSEES DAUGHTER TO HER BROTHER. HE, THEREFORE, SUBMITTED THAT THE MATTER MAY BE SET ASI DE TO THE FILE OF EITHER THE CIT(A) OR THE ASSESSING OFFICER FOR PROP ERLY CONSIDERING THE ADDITIONAL EVIDENCE AND GIVE A FINDING THEREON. ITA-1572/DEL/2012 4 7. LEARNED DR, ON THE OTHER HAND, RELIED UPON THE O RDERS OF AUTHORITIES BELOW AND HE STATED THAT THE ORDER OF T HE CIT(A) IS FULLY JUSTIFIED. THE SAME SHOULD BE SUSTAINED. HOWEVER, HE ALTERNATIVELY SUBMITTED THAT IF AT ALL THE ASSESSEES REQUEST IS ACCEPTED, THEN THE MATTER SHOULD BE SET ASIDE TO THE FILE OF THE ASSES SING OFFICER INSTEAD OF THE CIT(A) SO THAT THE ASSESSING OFFICER MAY EXAMIN E ALL THE EVIDENCES IN DETAIL BECAUSE NO EVIDENCES WERE PRODUCED BEFORE THE ASSESSING OFFICER DURING ASSESSMENT PROCEEDINGS. 8. LEARNED COUNSEL HAS NO OBJECTION FOR SETTING ASI DE THE MATTER TO THE FILE OF THE ASSESSING OFFICER ON THIS POINT. 9. AFTER CONSIDERING THE FACTS OF THE CASE AND ARGU MENTS OF BOTH THE SIDES, IN OUR OPINION, IT WOULD MEET THE ENDS OF JU STICE IF THE ISSUE RAISED BY THE ASSESSEE IN THE GROUND OF APPEAL BEFO RE US IS SET ASIDE TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATION ON MERITS AFTER CONSIDERING ALL THE EVIDENCES AND EXPLANATION OF TH E ASSESSEE. WE ALSO DIRECT THE ASSESSEE TO PRODUCE ALL THE EVIDENC ES WHICH WERE FILED BEFORE THE LEARNED CIT(A) AS ADDITIONAL EVIDENCE. NEEDLESS TO MENTION THAT THE ASSESSING OFFICER WILL ALLOW ADEQUATE OPPO RTUNITY OF BEING HEARD TO THE ASSESSEE AND THEREAFTER PASS ORDER IN ACCORDANCE WITH LAW CONSIDERING ALL THE DOCUMENTARY EVIDENCES AND E XPLANATION AS MAY BE FURNISHED BY THE ASSESSEE BEFORE HIM. 10. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DE EMED TO BE ALLOWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 31 ST OCTOBER, 2014. SD/- SD/- ( (( ( CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG ) )) ) (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 31.10.2014 VK. ITA-1572/DEL/2012 5 COPY FORWARDED TO: - 1. APPELLANT : SHRI GURINDER SINGH SIKKA, SHRI GURINDER SINGH SIKKA, SHRI GURINDER SINGH SIKKA, SHRI GURINDER SINGH SIKKA, C CC C- -- -23, PREET VIHAR, DELHI. 23, PREET VIHAR, DELHI. 23, PREET VIHAR, DELHI. 23, PREET VIHAR, DELHI. 2. RESPONDENT : ASSISTANT ASSISTANT ASSISTANT ASSISTANT COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -38(1), NEW DELHI. 38(1), NEW DELHI. 38(1), NEW DELHI. 38(1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR