Sanjay Bansal, New Delhi V. ACIT, New Delhi

ITA 1836/DEL/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6606 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 16-02-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 28-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Assessee Lawyers: PREETI GOYAL
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE SH. N. K. SAINI, ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER I.T.A. NO. 1836/DEL/2014 (ASSESSMENT YEAR 2008-09) APPELLANT BY : SMT. PREETI GOYAL, ADV. RESPONDENT BY : SH. A. K. SHARMA, SR.DR DATE OF HEARING : 16.02.2017 DATE OF PRONOUNCEMENT: 22.02.2017 ORDER PER BEENA A. PILLAI, JM: 1. THE PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAIN ST ORDER DATED 13.01.2014 PASSED BY LD. CIT(A) IS MEAN T FOR ASSESSMENT YEAR 2008-09 ON THE FOLLOWING GROUNDS OF APPEAL: THIS APPEAL IS PREFERRED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (A)XXIII NEW DELHI ('HEREINAFTER REFERRED TO AS 'THE LEARNED CIT(A)') UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961, (ACT) 1. THE LEARNED CIT(A) HAS GROSSLY ERRED IN THE FACT S AND CIRCUMSTANCES OF THE CASE AND IN LAW IN DISALLOWING THE LOSS OF RS. 4,45,865.00 FROM INCOME UNDER THE HEAD 'PROFITS AND GAINS OF BUSINESS AND PROFESSION' SANJAY BANSAL M-148, GREATER KAILASH-II NEW DELHI GIR/PAN: AFAPB8655H VS. A CIT, CENTRAL CIRCLE-23(1), NEW DELHI (APPELLANT) (RESPONDENT) ITA NO1836/DEL/2014 (AY2008-09) PAGE 2 OF 5 2. THE LEARNED CIT( A) HAS GROSSLY ERRED IN THE FA CTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, IN DISALLOWING THE LOSS OF RS. 80,625.00 FROM SURENDRA K BANSAL & CO., 3. THE LEARNED CIT(A) HAS GROSSLY ERRED IN THE FAC TS AND CIRCUMSTANCES OF THE CASE AND IN LAW IN HOLDING THAT SOURCE OF RECEIPTS OF RS. 56,500.00 WERE NOT PROVIDED DURING APPELLATE PROCEEDINGS AND THAT FUEL EXPENSES WERE NOT CLAIMED BY THE APPELLANT. 4. THE LEARNED CIT(A) HAS GROSSLY ERRED IN THE FAC TS AND CIRCUMSTANCES OF THE CASE IN CHARGING INTEREST U/S 234A, 234B, 234C AND PENALTY U/S 271(1) OF THE ACT . 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, OMIT O R SUBSTITUTE ANY OR ALL OF THE ABOVE GROUNDS OF APPEA L, AT ANY TIME BEFORE OR AT THE TIME OF HEARING OF THE AP PEAL. 2. THE BRIEF FACTS OF THE CASE ARE AS UNDER: ASSESSEE FILED HIS RETURN OF INCOME ON 26.05.2009 DECLARING A TOTAL INCOME OF RS.2,63,81,674/-. ASSES SING OFFICER OBSERVED THAT ASSESSEE DERIVED HIS INCOME F ROM SALARY, HOUSE PROPERTY, SHORT TERM CAPITAL GAINS, O THER SOURCES AND PROFESSION DURING THE YEAR UNDER CONSID ERATION. THE RETURN OF INCOME WAS PROCESSED UNDER SECTION 14 3(1) OF THE ACT. IT WAS OBSERVED BY LD. AO THAT, IN THE COM PUTATION OF INCOME FILED ALONGWITH RETURN, ASSESSEE CLAIMED LOS S OF RS.4,45,865/-, UNDER THE HEAD PROFIT AND GAINS OF B USINESS AND PROFESSION. IT WAS SUBMITTED BY ASSESSEE THAT T HE SAME PERTAINS TO CONSULTANCY ACTIVITY CARRIED ON BY ASSE SSEE UNDER NAME AND STYLE SANJAY BANSAL RESEARCH CONSULTANCY . LD. AO ITA NO1836/DEL/2014 (AY2008-09) PAGE 3 OF 5 OBSERVED THAT ASSESSEE HAD DEBITED EXPENSES LIKE ESTABLISHMENT, LIC, TELEPHONE, HOSPITALITY, MEMBER SUBSCRIPTION, INSURANCE, CREDIT CARD EXPENSES AND DEPRECIATION IN THE PROFIT AND LOSS ACCOUNT AMOUNTI NG TO RS.80,620/-. LD. AO DISALLOWED LOSS ON ACCOUNT OF B USINESS EXPENDITURE INCURRED, ON THE GROUND THAT NO DETAILS OF EXPENSES HAVE BEEN FILED AND EXPENSES INCURRED COUL D NOT BE ATTRIBUTED TO THE BUSINESS ACTIVITY CARRIED ON BY A SSESSEE. 3. AGGRIEVED BY ADDITION SO MADE, ASSESSEE PREFERRED APPEAL BEFORE LD. CIT(A) WHO UPHELD THE ADDITIONS M ADE BY LD. AO. 4. AGGRIEVED BY ORDER OF LD. CIT (A), ASSESSEE IS IN APPEAL BEFORE US NOW. 5. LD. AR SUBMITTED THAT ASSESSING OFFICER HAS DISALL OWED THE LOSS AMOUNTING TO RS.4,45,865/- AND RS.80,625/- ON MERE SURMISES AND CONJUNCTURES. 6. ON THE CONTRARY, LD. DR RELIED UPON THE FINDINGS O F LD. CIT(A) IN SUPPORT OF HIS ARGUMENTS. 7. WE HAVE PERUSED THE SUBMISSIONS ADVANCED BY BOTH T HE SIDES IN THE LIGHT OF THE RECORDS PLACED BEFORE US. 8. IT IS OBSERVED FROM THE ASSESSMENT ORDER PASSED TH AT THE ASSESSING OFFICER HAS DISALLOWED LOSS CLAIMED BY AS SESSEE AMOUNTING TO RS.4,45,864/-, DETAILS OF WHICH HAVE N OT BEEN SUBMITTED BEFORE THE AUTHORITIES BELOW. IT IS OBSER VED THAT THE ITA NO1836/DEL/2014 (AY2008-09) PAGE 4 OF 5 ASSESSEE HAS SHOWN AN INCOME OF RS.56,500/-TOWARDS INCOME FROM CONSULTANCY AGAINST WHICH AN EXPENSES AMOUNTING TO RS.80,625/- HAS BEEN CLAIMED. IT IS AL SO OBSERVED THAT ASSESSING OFFICER HAS NEITHER BIFURCA TED THE EXPENSES THAT IS ATTRIBUTABLE TO THE CONSULTANCY BU SINESS HAS CALLED FOR ANY FURTHER INFORMATION IN ORDER TO BRIN G ON RECORD THE CORRECT FACTS. 9. UNDER SUCH CIRCUMSTANCES WE ARE LEFT WITH NO CHOIC E BUT TO RESTORE THE MATTER BACK TO THE FILES OF LD. AO FOR DE- NOVO VERIFICATION OF FACTS AS PER LAW. ASSESSING OFFICE R IS DIRECTED TO ISSUE NOTICE TO THE ASSESSEE AND THE AS SESSEE IS DIRECTED TO COOPERATE WITH THE ASSESSMENT PROCEEDIN GS BY FILING ALL NECESSARY AND RELEVANT INFORMATION THAT ARE CALLED FOR, BY LD. AO, IN ORDER TO COMPLETE THE ASSESSMENT . ACCORDINGLY THE GROUND RAISED BY ASSESSEE STANDS AL LOWED FOR STATISTICAL PURPOSES. IN THE RESULT APPEAL FILED BY THE ASSESSEE STANDS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND FEBRUARY, 2017. SD/- SD/- (N. K. SAINI) (BEENA A. PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 22.02.2017 @M!T