ITO, Ward- 45(4), New Delhi V. Himanshi Arora, New Delhi

ITA 1992/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3632 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 22-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AGAINST DATED PASSED
• Section: 143(2); 13; 148

Judgement Text

1 ITA NO.1992/DEL/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE MS SUCHITRA KAMBLE, JUDICIAL ME MBER AND SH. PRASHANT MAHARISHI, ACCOUN TANT MEMBER I.T.A. NO. 1992/DEL/20 18 (A.Y 2007-08) (THROUGH VIDEO CON FERENCING) ITO ROOM NO. 1808, E-2 BLOCK, DR. S. P. MUKHERJEE CIVIC CENTRE, NEW DELHI (APPELLANT) VS HIMANSHI ARORA 17/197, 2 ND FLOOR, BACK SIDE SUBHASH NAGAR, NEW DELHI AGZPA8676M (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER DATED 29/12/2017 PASSED BY CIT(A)-15, FOR ASSESSMENT YEAR 2007-08. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. WHETHER ON FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION OF RS. 80,15,18,553/- ON ACCOUNT OF ACCOMMODATION ENTRY AMOUNTING TO RS 84,81,67,760/- ON PROTECTIVE BASIS IN THE HANDS OF THE ASSESSEE WHERE AS SUBSTANTIVE ADDI TION WERE MADE IN THE HANDS OF SH. VAIBHAV JAIN. APPELLANT BY MS. SUNITA SINGH, CIT DR RESPONDENT BY NONE DATE OF HEARING 07.10.2021 DATE OF PRONOUNCEMENT 13.10.2021 2 ITA NO.1992/DEL/2018 3. IN THIS CASE, INFORMATION WAS RECEIVED FROM ACI T CENTRAL CIRCLE-10, NEW DELHI STATING THAT THE ASSESSEE IS THE PROPRIETOR O F EIGHT FIRMS I.E. M/S DELHI STEEL, M/S BHAWANI TRADING, M/S OM SAI INTERNATIONA L, M/S OMAXE OVERSEAS, M/S RAJASTHAN METAL, M/S RAMJI TRADERS, M/S SHREE B ALAJI INTERNATIONAL AND M/S SHREE GANESH ENTERPRISES WHO HAD PROVIDED ACCOM MODATION ENTRIES OF RS.84,81,67,780/- THROUGH THESE EIGHT FIRMS. THESE FIRMS WERE CONTROLLED BY ONE SH. VAIBHAV JAIN AND THESE FIRMS WERE BEING OPE RATED BY THE ASSESSEE. THEREFORE, ON THE BASIS OF THIS INFORMATION NOTICE U/S 148 DATED 14.03.2014 WAS ISSUED. IN RESPONSE TO NOTICE U/S 148 DATED 14. 03.2014, THE AR OF THE ASSESSEE FILED RETURN OF INCOME VIDE LETTER DATED 2 5.03.2014 DECLARING TOTAL INCOME OF RS. 53,000/-. NOTICES U/S 143(2) & 14 2(1) WERE ALSO ISSUED AND IN RESPONSE THERETO, ADVOCATE & A.R. OF THE ASSESSEE A PPEARED AND FILED AN AFFIDAVIT STATING THEREIN THAT THE ASSESSEE HAD NOT MADE ANY TRANSACTIONS OR ANY BUSINESS ACTIVITIES IN THE FIRMS I.E. M/S DELHI STEEL, M/S BHAWANI TRADING, M/S OM SAI INTERNATIONAL, M/S OMAXE OVERSEAS, M/S R AJASTHAN METAL, M/S RAMJI TRADERS, M/S SHREE BALAJI INTERNATIONAL AND M /S SHREE GANESH ENTERPRISES. STATEMENT ON OATH OF THE ASSESSEE WAS RECORDED AND SHE CATEGORICALLY DEPOSED THAT DURING THE PERIOD RELEVA NT TO ASSESSMENT YEAR UNDER CONSIDERATION, SHE WAS ONLY AN INSTRUMENT OF SH. NA VNEET JAIN AND SH. VAIBHAV JAIN WHO HAD BEEN CONTROLLING THE ABOVE MEN TIONED FIRMS AND SHE DOES NOT KNOW WHAT BUSINESS HAD BEEN CARRIED OUT BY THESE FIRMS. AFTER GOING THROUGH THE DETAILS AND THE SUBMISSIONS OF THE ASSE SSEE, THE ASSESSING OFFICER ASSESSED THE INCOME OF RS.84,81,67,780/- OF THE ASS ESSEE ON PROTECTIVE BASIS. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. AT THE TIME OF HEARING, THE LD. DR SUBMITTED THA T THIS APPEAL IS WRONGLY FILED AS THE CIT(A) HAS CONFIRMED THE ADDITIONS AND , THEREFORE, THE APPEAL BECOMES INFRUCTUOUS. 3 ITA NO.1992/DEL/2018 6. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE GIVING NOTICE. THE NOTICE IS RETURNED BACK WITH THE REMARK THAT ALWAY S LOCKED. 7. WE HAVE HEARD LD. DR AND IT IS FOUND THAT THE DE PARTMENT HAS MISTAKENLY FILED THIS APPEAL WHEN THE CIT(A) HAS C ONFIRMED THE ASSESSMENT ORDER. THEREFORE, THE APPEAL BECOMES INFRUCTUOUS. H ENCE, THE APPEAL FILED BY THE REVENUE IS DISMISSED. 8. IN RESULT, THE APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 13TH DAY OF OCTOBER, 2021 SD/- SD/- (PRASHANT MAHARISHI) (SUCH ITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 13 /10/2021 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO.1992/DEL/2018