ITO, New Delhi V. Shri Prabhjot Singh Dhillor, Gurgaon

ITA 2055/DEL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52568 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 17-08-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 04-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK
• Keywords: Additional evidence; Corroborative evidences
• Section: 68; 69; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER & SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO. 2055/DEL/2010 ASSESSMENT YEAR: 2006-07 ITO, VS. PRABHJOT SINGH DHILLOR, WARD 48(3), ROOM NO. 424, 401, BLOCK-366, HERITAGE CITY, MAYUR BHAWAN, M.G. ROAD, GURGAON. CONNAUGHT PLACE, AFFPD6140L NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. PRATIMA KAUSHIK, SR. DR RESPONDENT BY : HIREN MEHTA, CA ORDER PER C.L. SETHI, J.M. THE REVENUE IS IN APPEAL AGAINST THE ORDER DATED 26.2.2010 PASSED BY LD. CIT(A) IN THE MATTER OF AN ASSESSMENT MADE BY THE ASSESSING OFFICER U/S 144 OF THE INCOME TAX ACT, 1961, FOR THE A.Y. 20066-07. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE AS UNDER: - ITA NO. 2055/D/2010 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN: - 1. WHETHER THE CIT(A) COULD ADMIT ADDITIONAL EVIDENCE EVEN WHEN THERE WAS OBVIOUS VIOLATION OF RULE 46A? 2. WHETHER THE CIT(A) WITHOUT BRINING IN RECORD EVIDENCE IN SUPPORT OF ASSESSEES INVESTMENTS FROM REGULAR BANKS, ONLY ON THE BASIS OF HER SUBJECTIVE OPINION AND IN TERM OF A NON-SPEAKING ORDER, DECIDE THE MERITS OF IMPUGNED ADDITIONS ENFORCED U/S 69 OF THE ACT? 3. IN THIS CASE, AN ADDITION OF RS. 39 LAKH WAS MAD E BY THE AO ON ACCOUNT OF INVESTMENT IN MUTUAL FUNDS ON VARI OUS DATES. THE AO MADE THE ADDITION IN ABSENCE OF ANY EVIDENCES BEING FILED BY THE ASSESSEE. ON AN APPEA L, THE ASSESSEE FURNISHED EVIDENCES BEFORE THE LD. CIT(A) WHICH WERE ADMITTED FOR CONSIDERATION. THE LD. CIT(A) AD MITTED THE ADDITIONAL EVIDENCES AFTER CALLING A REMAND REPORT FROM THE AO. THE LD. CIT(A) EXAMINED THE EVIDENCES AND FOUN D THAT THE INVESTMENT OF RS. 39 LAKH TOWARDS MUTUAL FUNDS STOOD EXPLAINED. THE LD. CIT(A) THEREFORE, DELETED THE A DDITION. ITA NO. 2055/D/2010 3 4. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. 5. IN THIS CASE, THE AO COMPLETED THE ASSESSMENT ON 29.12.2008 AS HE WAS CONSTRAINED TO PASS ASSESSMENT ORDER, AS IT WAS BEING BARRED BY LIMITATION. THE AO HAD T AKEN EFFECTIVE HEARING ONLY IN THE LAST PART OF NOVEMBER , 2008 FIXING THE CASE IN THE FIRST WEEK OF DECEMBER, 2008. IT I S, THUS, CLEAR THAT NO SUFFICIENT OPPORTUNITY WAS GIVEN TO THE ASS ESSEE. THE LD. CIT(A) THEREFORE, WAS JUSTIFIED IN ADMITTING TH E ADDITIONAL EVIDENCES. THE LD. CIT(A) SENT THE ADDITIONAL EVID ENCES TO THE AO FOR HIS SCRUTINY AND COMMENT. THE LD. AO SUBMIT TED HIS REMAND REPORT WHICH WAS RECEIVED BY LD. CIT(A) ON 2 3.2.2010. THE LD. CIT(A) IN THE LIGHT OF THE EVIDENCES WITH R EGARD TO THE SOURCE OF INVESTMENT IN MUTUAL FUNDS, DELETED THE A DDITION. THE SOURCE OF INVESTMENTS OF RS. 39 LAKH HAS BEEN E XPLAINED BY THE ASSESSEE AS UNDER: - S.NO. SOURCE AMOUNT REMARKS/EVIDENCE 1. OPENING BALANCE IN SAVING BANK A/C NO. 531-1- 019370-3 OF THE ASSESSEE WITH STANDARD CHARTERED BANK 14,70,162 COPY OF BANK STATEMENT ENCLOSED 2. MATURITY PROCEEDS OF FDR DT. 9.3.05 WITH STANDARD 21,50,000 CERTIFICATE FROM STANDARD CHARTERED BANK ENCLOSED. ITA NO. 2055/D/2010 4 CHARTERED BANK, CREDITED IN BANK A/C ON 9.6.05 3. INTEREST ON THE ABOVE FDR CREDITED IN THE SAME ACCOUNT ON SAME DATE. 26,765 COPY OF BANK STATEMENT 4. REDEMPTION OF MUTUAL FUNDS DURING THE YEAR 5. DIVIDEND RECEIVED FROM VARIOUS MUTUAL FUNDS ON DIFFERENT DATES (AS DECLARED IN THE T AX RETURN) 3,87,553 LESS CLOSING BALANCE WITH THE ABOVE MENTIONED BANK -79324 NET BALANCE AVAILABLE WITH ASSESSEE FOR INVESTMENTS IN MUTUAL FUNDS. 39,55,156 6. IN THE COURSE OF HEARING OF THIS APPEAL, NO DISC REPANCY HAS BEEN POINTED OUT WITH REGARD TO THE DETAILS OF SOURCES OF INVESTMENT SUBMITTED BY THE ASSESSEE. THE LD. CIT( A) CONCLUDING PART OF THE LD. CIT(A)S ORDER IS AS UND ER: - 5. I HAVE CONSIDERED THE SUBMISSIONS MADE BY THE APPELLANT AS WELL AS THE REMAND REPORT OF THE AO. HOWEVER, IT HAS BEEN EXPLAINED BEFORE ME THAT THE APPELLANT HAD TRIED HIS BEST TO REPRESENT HIS CASE BEFORE THE AO BUT COULD NOT SUCCEED DUE TO REASONS BEYOND HIS CONTROL. I HAVE THEREFORE, DECIDED TO ADMIT THE ADDITIONAL EVIDENCES AND DECIDE ITA NO. 2055/D/2010 5 THE APPEAL ON MERITS. THE ASSESSEE HAS EXPLAINED BEFORE ME THE SOURCE OF INVESTMENT IN MUTUAL FUNDS AND HIS EXPLANATION IS BACKED BY NECESSARY AND SUFFICIENT EVIDENCE. THE INVESTMENT OF RS. 39,00,000/- STANDS EXPLAINED THEREFORE, I DELETE THE ADDITION OF RS. 39 LAKH MADE BY THE AO U/S 68 OF THE I.T. ACT. 7. IN THE LIGHT OF THE EXPLANATION GIVEN BY THE ASS ESSEE ALONG WITH THE SUPPORTING EVIDENCES FILED BEFORE TH E LD. CIT(A), WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A) IN DELETING THE ADDITION OF RS. 39 LAKH ON ACCOUNT OF INVESTMENT IN MUTUAL FUNDS. THE ORDER OF LD. CIT(A) IS THUS, UPHELD. 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 9. THIS DECISION IS PRONOUNCED IN THE OPEN COURT ON 19 TH AUGUST, 2011. SD/- SD/- (SHAMIM YAHYA) (C.L. SETH I) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19.8.11 *KAVITA ITA NO. 2055/D/2010 6 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR