Smt. Prerna Abrol, Haryana V. ACIT, Haryana

ITA 2105/DEL/2015

• Counselvise Citation: 210520114 RSA 2015
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 19-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 10-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K JAIN
• Keywords: Opportunity of being heard; Deemed dividend
• Section: 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC - 2 , NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 2105 /DEL/201 5 AY: 20 08 - 09 SMT. PRERNA ABROL VS. ACIT, CIRCLE II H.NO. 804, SECTOR 15 FARIDABAD FARIDABAD, HARYANA PAN: ANXPA 8740 M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SOMIL AGARWAL, , ADV. RESPONDENT BY : SH. MK JAIN , SR.D.R. ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER DATED 05.02.2015 OF LD.CIT(A), FARIDABAD PERTAINING TO THE ASSESSMENT YEAR (A.Y.) 20 08 - 09, ON THE FOLLOWING GROUNDS. 1. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE, LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN UPHOLDING THE ACTION OF THE LD.A.O. IN MAKING ADDITION OF RS.4,50,000/ - AS DEEMED DIVIDEND U/S 2(2 2)(E) OF THE ACT. 2. THAT IN ANY CASE AND IN ANY VIEW OF THE MATTER, ACTION OF LD.CIT(A) IN CONFIRMING THE ADDITION OF RS.4.50,000/ - IS BAD IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE, LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF LD.AO IN PASSING THE IMPUGNED ORDER WITHOUT GIVING ADEQUATE OPPORTUNITY OF BEING HEARD. 2. AFTER HEARING RIVAL CONTENTIONS I FIND THAT THE ADDITION MADE U/S 2(22)(E) OF THE AC T IS BAD IN LAW FOR THE REASON THAT, NO AMOUNT WAS ADVANCED TO THE ASSESSEE. THE REPLY OF THE ASSESSEE IS BROUGHT OUT AT PARA 5.2 OF THE ORDER OF THE LD.CIT(A) WHICH IS EXTRACTED FOR READY REFERENCE. ITA NO. 2105/DEL/2015 A.Y. 2008 - 09 SMT. PRERNA ABROL 2 THE REPLY OF THE ASSESSEE IS BASED ON THE ARGUMENT THA T AS PER THE ASSESSEE, THIS AMOUNT WAS ADVANCED BY M/S INDIAN ARMOUR SYSTEMS P.LTD. FOR THE PURPOSE OF BOOKING A FLAT FROM A BUILDER I.E. M/S OMAXE LTD. AS PER THE ASSESSEE, THE BUILDER HAD REFUSED TO BOOK A FLAT IN THE NAME OF THE COMPANY AND THUS THE BO OKING WAS MADE THROUGH, AND IN THE NAME OF THE ASSESSEE AND THUS THIS PAYMENT OF RS.4,50,000/ - WAS MADE TO THE ASSESSEE FOR THIS PURPOSE. IN ITS SUPPORT THE ASSESSEE HAS FURNISHED THE BALANCE SHEET OF M/S INDIAN ARMOUR SYSTEMS P.LTD. WHEREIN IN THE BALAN CE SHEET, THE FLAT PAYMENT APPEARS AS AN INVESTMENT. SECONDLY, THE ASSESSEE HAS FURNISHED A COPY OF THE BOARD RESOLUTION OF M/S INDIAN ARMOUS SYSTEMS P.LTD. DT. 17.3.2008. BOTH THESE EVIDENCES HAD ALSO BEEN FURNISHED BEFORE THE AO DURING THE COURSE OF AS SESSMENT PROCEEDINGS, AS IS EVIDENT FROM PARA 3.1 OF THE ASSESSMENT ORDER. THUS, IN THE SENSE THE ASSESSEE HAS FAILED TO BRING OUT ANY FRESH EVIDENCE TO SUPPORT HIS CONTENTION. 2.1. THE COMPANY M/S INDIAN ARMOUR SYSTEMS P.LTD. HAD ADVANCED THE AMOUNT I N QUESTION TO THE BUILDER M/S OMAXE LTD. FOR PURCHASE OF PROPERTY. THE ADVANCE/INVESTMENTS WAS REFLECTED BY THE COMPANY M/S INDIA N ARMOUR SYSTEMS P.LTD. IN ITS BOOKS OF ACCOUNTS AND BALANCE SHEET. UNDER THESE CIRCUMSTANCES THE ADDITION MADE U/S 2 ( 22 ( (E) OF THE ACT AS CONFIRMED BY THE LD.CIT(A) IS HEREBY DELETED AND THE APPEAL OF THE ASSESSEE IS ALLOWED. 3. IN THE RESULT ASSESSEE S APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH NOVEMBER ,2015. SD/ - (J.SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED: THE 06 TH NOV. , 2015 *MANGA ITA NO. 2105/DEL/2015 A.Y. 2008 - 09 SMT. PRERNA ABROL 3 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR