ACIT, New Delhi V. Sh. Rajeev Kumar Gupta, New Delhi

ITA 1762/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2990 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 04-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVRAJ SINGH
• Keywords: Unexplained cash credit; Unexplained expenditure
• Section: 68; 69

Judgement Text

1 ITA NO. 1762/DEL/2016 IN THE INCOME TAX APPELLA TE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT ME MBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A .NO. 1762/DEL/2 016 (A.Y 2011-12) ACIT CIRCLE -41(1), ROOM NO. 1704, E-2, CIVIC CENTRE, MINTO ROAD NEW DELHI (APPELLANT) VS RAJEEV KUMAR GUPTA 28/75, PUNJABI BAGH NEW DELHI AAHPG9419N (RESPONDENT) APPELLANT BY SH. SHIV RAJ SINGH, SR. DR RESPONDENT BY NONE ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER DATED 08/1/2016 PASSED BY CIT(A)-14, NEW DELHI ASSESSMENT YEAR 2011-12. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW CIT(A) HAS ERRED IN:- 1. NOT AFFORDING THE OPPORTUNITY TO THE A.O TO PRESENT HIS CASE BEFORE ADMITTING THE EXPLANATION OF THE ASSESSEE REGARDING SOURCE OF CASH DEPOSITS, WITHOUT VERIFYING THE SUPPORTING DOCUMENT S RELATED TO IT AND NOT APPRECIATING THE FACT THAT THE ASSESSEE DID NOT FILE ANY DATE OF HEARING 21.11.2017 DATE OF PRONOUNCEMENT 07.12.2017 2 ITA NO. 1762/DEL/2016 SUPPORTING DOCUMENTS BEFORE THE A.O DURING THE ASSE SSMENT PROCEEDINGS. 2. DELETING THE ADDITION OF RS.48,23,640/- MADE BY THE A.O ON ACCOUNT F UNEXPLAINED CASH DEPOSITS. 3. THE ASSESSEE E-FILED HIS RETURN OF INCOME FOR TH E ASSESSMENT YEAR 2011- 12 DECLARING THE TOTAL INCOME OF RS.40,21,752/- ON 26/9/2011. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY UNDER CASS A ND THE ASSESSING OFFICER MADE ADDITION U/S 68 & 69 C OF THE INCOME TAX ACT, 1961 FOR AN AMOUNT OF RS.48,23,640/- FOR UNEXPLAINED CASH DEPOSITS AND RS .6,68,594/- FOR UNEXPLAINED EXPENDITURE ON THE GROUND THAT NO DOCU MENTARY EVIDENCE WAS PRODUCED BY THE ASSESSEE. 4. THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). TH E CIT(A) PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. THE CIT(A) HELD AS UNDER:- I HAVE CONSIDERED THE SUBMISSIONS OF THE APPELLANT AS WELL AS THE FINDINGS OF THE LD. AO, HIGHER APPELLATE AUTHORITIES AND THE HO NBLE COURTS. I INCLINE TO AGREE WITH THE CONTENTION OF THE APPELLANT THAT THE LD/- AO IS NOT JUSTIFIED IN MAKING THE ADDITION AMOUNTING TO RS. 48,23,640/- U/ S 68 OF ACT ON ACCOUNT OF UNEXPLAINED CASH CREDITS. THE SAID CASH DEPOSITS TO THE SYNDICATE BANK ACCOUNT NO. 88932200031596 WERE EITHER OUT OF THE E ARNED CASH INCOME OR OUT OF THE CASH WITHDRAWALS FROM THE BANK ACCOUNT I N VIEW OF THE FOLLOWING FACTS AND CIRCUMSTANCES OF THE APPELLANTS CASE:- (I) IT IS EVIDENT FROM THE ABOVE CHART THAT THERE ARE DOCUMENTARY EVIDENCES SHOWING THE DETAILED CASH BOOK OF THE ASSESSEE WHER EIN THE NARRATION AND EXPLANATION FOR EACH ENTRY HAS BEEN INCULCATED. (II) THE LD. AR HAS SUBMITTED THE COPIES OF ITR-V, COMP UTATION FOR AY 2011-12, FORM 26AS, FORM 16. (III) THE LD. AR HAS ALSO FILED A TABULAR REPRESENTATION FOR THE VARIOUS 3 ITA NO. 1762/DEL/2016 SOURCES OF CASH DEPOSITS ALONG WITH THEIR NATURE AN D SOURCE. IN THE ABOVE CHART THE SOURCE OF EACH CASH DEPOSIT HAS BEE N EXPLAINED AND NONE OF THE CASH DEPOSIT IN THE YEAR IS UNEXPLAINED . IN VIEW OF THE ABOVE DISCUSSION THE ADDITION AMOUNT ING TO RS. 48,23,640/- U/S 68 OF ACT ON ACCOUNT OF UNEXPLAINED CASH CREDIT S DESERVES TO BE DELETED. I ORDERED ACCORDINGLY, THE GROUND OF APPEAL IS ALLOWE D. 5. THE LD. DR RELIED UPON THE ORDER OF THE ASSESSIN G OFFICER AND SUBMITTED THAT THE REVENUE IS IN APPEAL RELATING TO ADDITION OF RS.48,23,640/- U/S 68 OF THE ACT ON ACCOUNT OF UNEXPLAINED CASH CREDITS. TH E CIT(A) WITHOUT LOOKING INTO THE DIRECT NEXUS BETWEEN THE CASH DEPOSITS IN THE BANK HAS DELETED THE ADDITION. IN-FACT, THE CIT(A) HAS NOT GIVEN THE OP PORTUNITY TO THE ASSESSING OFFICER FOR GIVING HIS REMAND REPORT. 6. WE HAVE HEARD THE LD. DR AND PERUSED ALL THE REC ORDS SINCE THE ASSESSEE WAS NOT PRESENT DESPITE GIVING NOTICE, WE HEREBY TA KE UP THE SUBMISSIONS OF THE ASSESSEE MADE BEFORE THE CIT(A) AS THE ARGUMENT S ON BEHALF OF THE ASSESSEE. THE SAME HAS BEEN REPRODUCE IN CIT(A)S ORDER. THE ASSESSEE HAS GIVEN ALL THE DETAILS OF CASH DEPOSITS AND EXPLAINE D THAT CERTAIN AMOUNT OF THE ASSESSEE WAS FILED IN ORIGINAL RETURNS OF INCOME WH ICH WAS BEFORE THE ASSESSING OFFICER. NO NEW DOCUMENTS WERE FILED BY THE ASSESSE E BEFORE THE CIT(A). IN- FACT, THE BALANCE-SHEET WAS BEFORE THE ASSESSING OF FICER IN RESPECT OF GIVING THE CASH DEPOSITS AND THE SAME WAS ALSO VERIFIED BY THE ASSESSING OFFICER AT THE TIME OF ASSESSMENT PROCEEDINGS. THE ASSESSING OFFI CER AT NO POINT OF TIME HAS ISSUED SUMMONS TO THOSE PARTIES. THUS, THE OBSERVA TION OF THE ASSESSING OFFICER THAT THE ASSESSEE FAILED TO PROVIDE ANY DOC UMENTARY EVIDENCE/DETAILS WAS PROPERLY DEALT BY THE CIT(A). IN FACTS, THE CIT (A) HAS GIVEN THE DETAILED CHART OF THE ASSESSEES TRANSACTIONS WHEREIN ALL TH E CASH DEPOSIT WERE EXPLAINED BY THE ASSESSEE. THE CIT(A) HAS RIGHTLY DELETED THE SAID ADDITION AFTER TAKING 4 ITA NO. 1762/DEL/2016 INTO ACCOUNT THAT ALL THE DETAILS WHICH WERE FIELD BEFORE THE ASSESSING OFFICER EXPLAINING THE CASH DEPOSITS/CASH CREDITS. THERE I S NO NEED TO INTERFERE WITH THE ORDER OF CIT(A). 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07TH DECEMBER , 2017 . SD/- SD/- (N. K. SAINI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 07/12/2017 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 5 ITA NO. 1762/DEL/2016 DATE 1. DRAFT DICTATED ON 21/11/2017 PS 2. DRAFT PLACED BEFORE AUTHOR 27/11/2017 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .2017 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 07.12.2017 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 08.12.2017 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 6 ITA NO. 1762/DEL/2016