ITO, New Delhi V. Shri Rohit Kharbanda, New Delhi

ITA 1904/DEL/2012

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 8920 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 12-03-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 25-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SAHAY
• Assessee Lawyers: ROHIT KHARBANDA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : F : NEW DELHI BEFORE SHRI R.S. SYAL, AM AND SHRI A.T. VARKEY, JM ITA NO.1904/DEL/2012 ASSESSMENT YEAR : 2008-09 ITO, WARD 29(3), NEW DELHI. VS. ROHIT KHARBANDA, PROP. M/S SATGURU ELECTRICALS, 17-A, GROUND FLOOR, KAMAL NAGAR, NEW DELHI. PAN: AQRPK3666H (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ROHIT KHARBANDA, ASSESSEE DEPARTMENT BY : SHRI VIKRAM SAHAY, SR. DR DATE OF HEARING : 12.03.2015 DATE OF PRONOUNCEMENT : 12 .03.2015 ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 29.2.2012 IN RELATION TO THE ASSESSMENT Y EAR 2008-09. ITA NO.1904/DEL/2013 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DELETION OF ADDITION OF RS.13,80,515/- OUT OF TOTAL ADDITION OF RS.15,30,515/- MADE BY THE AO ON ACCOUNT OF TRANSACTIONS RECORDED IN TH E UNDISCLOSED BANK ACCOUNT. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE AO GOT INFORMATION ABOUT THE ASSESSEE DEPOSITING CASH TO THE TUNE OF R S.14,84,000/- IN HIS UNDISCLOSED BANK ACCOUNT MAINTAINED WITH CANARA BAN K , SHAKTI NAGAR, DELHI. A SUM OF RS.46,415/- WAS ALSO CREDITED ON AC COUNT OF OTHER CLEARING/INTEREST. A COPY OF THE BANK STATEMENT WAS HANDED OVER TO THE ASSESSEE FOR TENDERING EXPLANATION. THE AO OBSERVE D THAT THE ASSESSEE HAD SHOWN GROSS RECEIPTS OF RS.4,10,000/- AND, AFTE R CLAIMING EXPENSES OF RS.2,33,800/-, NET PROFIT OF RS.1,76,200/- WAS D ECLARED IN THE RETURN OF INCOME, SUBJECT TO DEDUCTION U/S 80C. ON AN ANALYS IS OF THE BANK STATEMENT, IT WAS NOTICED THAT THERE WERE NO WITHDR AWALS TOWARDS BUSINESS PURPOSE. THE AO, THEREFORE, REFUSED TO AC CEPT THE ASSESSEES CONTENTION THAT THE CASH AND OTHER DEPOSITS IN THE BANK WERE FROM DECLARED BUSINESS ACTIVITIES. IT WAS ALSO OBSERVED THAT THE GROSS RECEIPTS ITA NO.1904/DEL/2013 3 SHOWN BY THE ASSESSEE AT RS.4,10,000/- DID NOT JUST IFY TOTAL DEPOSIT OF RS.15.30 LAC IN THE BANK ACCOUNT. HE, THEREFORE, M ADE AN ADDITION FOR THE SAID SUM OF RS.15,30,515/-. THE LD. CIT(A) RED UCED THE ADDITION TO RS.1,50,000/- BY TREATING THE AMOUNT DEPOSITED IN T HE BANK AS PART OF UNDISCLOSED BUSINESS ACTIVITY. THAT IS HOW THE REV ENUE HAS COME UP IN APPEAL BEFORE US AGAINST THE DELETION OF ADDITION T O THE TUNE OF RS.13,80,515/-. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED FROM THE IMPUGNE D ORDER THAT SOME OF THE PAYMENTS MADE OUT OF THE SAID BANK WERE TO VARI OUS PARTIES LIKE M/S GOYAL CABLES, M/S MARINE IMPACTS, M/S M.S. PLASTIC, M/S R.K. TRADING AND M/S AMBEY ENTERPRISES, ETC. TOTAL OF PAYMENTS TO SUCH PARTIES AMOUNTS TO RS.11,27,589/-. THESE FACTS ABUNDANTLY SHOW THAT THE ASSESSEE UTILIZED THIS BANK ACCOUNT FOR THE RECORDI NG ITS BUSINESS TRANSACTIONS BUT OUTSIDE THE REGULAR BOOKS OF ACCOU NT. SINCE THERE ARE BOTH DEPOSITS AND WITHDRAWALS, THE ADDITION CANNOT BE MADE FOR THE TOTAL AMOUNTS DEPOSITED IN THE BANK BY COMPLETELY IGNORIN G THE WITHDRAWALS. ITA NO.1904/DEL/2013 4 IN OUR CONSIDERED OPINION, THE LD. CIT(A) WAS JUSTI FIED IN TREATING THE ENTIRE DEPOSITS OF RS.15.30 LAC IN THE ASSESSEES B ANK ACCOUNT AS PART OF THE UNDISCLOSED BUSINESS ACTIVITY AND THEREAFTER A PPLYING PROFIT RATE OF 10% FOR SUSTAINING ADDITION TO THE TUNE OF RS.1,50, 000/-. WE, THEREFORE, UPHOLD THE VIEW TAKEN BY THE LD.CIT(A) ON THIS ISSU E. 5. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 12.03.201 5. SD/- SD/- [A.T. VARKEY] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 12 TH MARCH, 2015. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.