ITO, New Delhi V. M/s United Wings Pvt. Ltd., New Delhi

ITA 2070/DEL/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5859 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 18-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N O N E
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: BENCH C NEW DELHI BEFORE SRI R.S.SYAL, VICE PRESIDENT AND SMT. BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 2070 /DEL/201 6 A.Y. 200 6 - 07 ITO, WARD 27(1) VS. UNITED WINGS P.LTD. NEW DELHI B 128, OKHLA INDUSTRIAL AREA PHASE II, NEW DELHI 110 048 PAN: AACU 4902 G (APPELLANT ) (RESPONDENT) APPELLANT BY: SH. ARUN KUMAR YADAV, SR. D.R. RESPONDENT BY: NON E DATE OF HEARING: 28.05.2018 DATE OF PRONOUNCEMENT : 30.05. 2018 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY REVENUE AGAINST ORDER DATED 07/01/ 2016 PASSED BY LD.CIT(A) - IX, NEW DELHI FOR A.Y. 2006 - 07 ON THE FOLLOWING GROUNDS OF APPEAL. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE ORDER PASSED BY LD.CIT(A) IS ERRONEOUS AND THE LD.CIT(A) HAS ERRED IN DELETING PENALTY OF RS.12 ,00,000/ - LEVIED BY A.O. BY INVOKING PROVISIONS OF SEC.271D OF THE ACT WITHOUT CONSIDERING THE ADVERSE FINDINGS IN THE TAX AUDIT REPORT. 2. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEAR ING OF THE APPEAL. 2. BRIEF FACTS OF THE CASE ARE AS UNDER. ORIGINAL ASSESSMENT ORDER WAS PASSED U/S 143(3) ON 15.12.2008 DETERMINING TOTAL INCOME AT RS.3,39,310/ - AS AGAINST RETURNED INCOME OF RS.3,37,990/ - . THE CASE WAS REOPENED ON 21 /03/ 2013 SINCE AS SESSEE ACCEPTED LOAN FROM SHRI IND E R P AL SINGH OF RS.42,00,000/ - AND A SUM OF RS.40,00,000/ - WAS REPAID TO SHRI INDER P AL SINGH OTHERWISE THAN ACCOUNT ITA 2070/DEL/2016 A.Y.:2006 - 07 ITO VS. UNITED WINGS P LTD. 2 PAYEE CHEQUE OR BANK DRAFT , WHICH WAS IN VIOLATION OF S.269 SS OF THE INCOME TAX ACT, 1961 (THE ACT) . A CCORDINGLY PENALTY PROCEEDINGS U/S 271 D W AS INITIATED. DURING PENALTY PROCEEDINGS BEFORE LD.AO LOAN ACCOUNT OF SHRI INDER P AL SINGH APPEARING IN THE BOOKS OF ASSESSEE WAS PRODUCED FOR THE PERIOD 1.4.2005 TO 31.3.2006, WHICH IS AS UNDER: 2.1 . FROM THE TABLE LD.AO OBSERVED THAT LOANS DATED 26 MAY, 2005 AMOUNTING TO RS. 1,00,000/ - ; 4 OCTOBER, 2005 AMOUNTING TO RS.6,00,000/ - 11 YNDI - 435 24 .01.2 006 CHQ.ISSUED TO I.P.SINGH CHQ#238553 100000 SYNDICATE BANK U EXIM A/CIT(A)#042 TOTAL AMOUNT 4000000 4200000 ITA 2070/DEL/2016 A.Y.:2006 - 07 ITO VS. UNITED WINGS P LTD. 3 AND 10 NOVEMBER, 2005 AMOUNTING TO RS.5,00,000/ - WAS RECEIVED FROM M/S UNITED EXIM PVT.LTD. ON BEHALF OF SHRI INDER P AL SING H, DIRECTOR OF ASSESSEE, THOUGH NO BUSINESS TRANSACTION TOOK PLACE BETWEEN THEM. SINCE THERE WAS NO BUSINESS DEALING BETWEEN ASSESSEE AND M/S UNITED EXIM P.LTD., LOAN RECEIVED FROM UNITED EXIM P.LTD. WAS NOT CONSIDERED BY LD.A.O. AS HAVING RECEIVED FROM S HRI INDER P AL SINGH THROUGH CHEQUE OR DRAFT. LD.AO THUS LEVIED PENALTY OF RS.12,00,000/ - U/S 271 D OF THE ACT. 2.2 . AGGRIEVED BY THE ORDER OF LD.AO ASSESSEE PREFERRED APPEAL BEFORE LD.CIT(A) . LD.CIT(A) DELETED THE PENALTY. 3. AGGRIEVED BY THE ORDER OF LD.CIT(A) REVENUE PREFERRED APPEAL BEFORE THIS TRIBUNAL. 3.1. LD.SR.D.R. ARGUED THAT THE SAID SUM WAS PAID BY M/S UNITED EXIM P.LTD. (M/S UEPL FOR SHORT) TO ASSESSEE WITHOUT THERE BEING ANY BUSINESS TRANSACTION AND, THEREFORE, A.O. WAS CORRECT IN TREATING IT TO BE NOT FOR THE PURPOSES OF BUSINESS AND IN HOLDING THAT THERE WAS A VIOLATION OF S.269 SS OF THE ACT. 3.2 . LD.A.R. SUBMITTED THAT THE ENTIRE LOAN AMOUNT OF RS.42,00,000/ - HAS BEEN RECEIVED BY ASSESSEE DIRECTLY FROM SHRI INDER P AL SINGH OR ON HIS BE HALF FROM M/S UEPL BY WAY OF ACCOUNT PAYEE CHEQUE. AN AFFIDAVIT TO THIS EFFECT WAS ALSO SUBMITTED BEFORE FIRST A PPELLATE PROCEEDINGS , WHEREIN IT WAS STATED THAT ENTIRE PAYMENT WAS MADE BY ACCOUNT PAYEE CHEQUE AND THERE WAS NO CASH TRANSACTION THAT TOOK PLACE BETWEEN ASSESSEE AND SHRI INDER P AL SINGH. HE SUBMITTED THAT THE SAID AFFIDAVIT WAS ALSO FILED BEFORE LD.AO WHICH HAS NOT BEEN CONSIDERED DURING ASSESSMENT PROCEEDINGS. 3.3. LD.AR FURTHER SUBMITTED THAT BEFORE THE AUTHORITIES BELOW ASSESSEE PROVIDED BANK STATEMENT OF SHRI INDER P AL SINGH AS WELL AS M/S UEPL TO PROVE MONEY BEING TRANSFERRED THROUGH PROPER BANKING CHANNELS. HE ITA 2070/DEL/2016 A.Y.:2006 - 07 ITO VS. UNITED WINGS P LTD. 4 SUBMITTED THAT LOAN HAS BEEN PROVIDED TO ASSESSEE THROUGH BANK ACCOUNTS AND, THEREFORE, THERE WAS NO VIOLATION OF S. 269 SS OF THE ACT. 4. WE HAVE PERUSED THE SUBMISSIONS ADVANCED BY BOTH THE SIDES IN THE LIGHT OF RECORDS PLACED BEFORE US. ON PERUSAL OF THE ORDER OF LD.CIT(A) IT IS OBSERVED THAT IT IS NOT THE CASE OF REVENUE THAT THERE HAS BEEN ADVANCEMENT OF LOAN TO A SSESSEE IN CASH OF A SUM MORE THAN RS.20,000/ - . IN FACT IT IS OBSERVED THAT ENTIRE LOAN WAS ADVANCED TO ASSESSEE BY ACCOUNT PAYEE CHEQUES THROUGH BANKING CHANNELS. IT IS ALSO NOBODY S CASE THAT UNACCOUNTED MON EY OF SHRI INDER P AL SINGH HAS BEEN ADVAN CED TO ASSESSEE. REVENUE HAS NOT BROUGHT ANYTHING CONTRARY ON RECORD TO ESTABLISH THAT RS.12 LAKHS ADVANCED TO ASSESSEE BY M/S UEPL ON BEHALF OF SHRI INDER P AL SINGH WAS UNACCOUNTED DEPOSITS. IN OUR CONSIDERED OPINION REVENUE HAS NOT BEEN SUCCESSFUL IN PROVING VIOLATION OF ANY OF THE PROVISIONS OF SEC.269SS OF THE ACT. 5. UNDER SUCH CIRCUMSTANCES WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD.CIT(A) IN DELETING PENALTY LEVIED U/S 271 D OF THE ACT. ACCORDINGLY THE GROUNDS RAISED BY REVENUE STAND DISMI SSED. 6 . IN THE RESULT, APPEAL FILED BY REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 0 T H MAY , 2018. S D / - S D / - (R.S.SYAL) (BEENA A PILLAI) VICE PRESIDENT JUDICIAL MEMBER DT. 3 0 T H MAY, 2018 *MV ITA 2070/DEL/2016 A.Y.:2006 - 07 ITO VS. UNITED WINGS P LTD. 5 COPY FORWARDED TO: - 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR ITAT DELHI BENCHES