Kiran Kaur Kohli, New Delhi V. DCIT, New Delhi

ITA 2128/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3565 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 03-10-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 19-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAUSHLENDRA TIWARI
• Keywords: Opportunity of being heard; Deemed dividend; Commercial expediency

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.2128/DEL./2016 ASSESSMENT YEAR 2010-2011 MS. KIRAN KAUR KOHLI, 47, JOR BAGH, NEW DELHI. PAN AAIPK8725G VS. THE DCIT, CIRCLE-31(1) NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI SATYAJEET GOEL, C.A. FOR REVENUE : SHRI KAUSHLENDRA TIWARI, SR. D.R. DATE OF HEARING : 22.01.2018 DATE OF PRONOUNCEMENT : .02.2018 ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-XXI, NEW DELHI, DATED 8 TH SEPTEMBER, 2014, FOR THE A.Y. 2010-2011, CHALLENGING THE ADDITION OF RS.3 LAKHS ON ACCOUNT OF DEEMED DIVIDEND UNDER SECTION 2(22)(E) O F THE I.T. ACT, 1961. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE BAL ANCE SHEET OF THE ASSESSEE REVEALS THAT ASSESSEE HAS SHOWN AN AMO UNT OF RS.3 LAKHS AS PAYABLE BY HER TO M/S. ENKAY INTERNATIONAL PVT. LTD., UNDER THE GROUP SUNDRY CREDITORS. THE ASSESSEE HAS HELD 26.88% SHARES OF M/S. ENKAY INTERNATIONAL PVT. LTD., AND ACCORDIN GLY, HAVING 2 ITA.NO.2128/DEL./2016 MS. KIRAN KAUR KOHLI, NEW DELHI. SUBSTANTIAL INTEREST IN SHAREHOLDING. A COPY OF THE ACCOUNT OF M/S. ENKAY INTERNATIONAL PVT. LTD., IN THE BOOKS OF ACCO UNT OF THE ASSESSEE REVEALS THE TRANSACTION. ON THE FIRST DAY OF THE YE AR, ASSESSEE HAS TO RECEIVE AN AMOUNT OF RS.8 LAKHS FROM THE COMPANY WH ICH SHE HAS RECEIVED BACK ON 29 TH DECEMBER. SHE HAS FURTHER RECEIVED A SUM OF RS.3 LAKHS ON 16 TH JANUARY, 2010 FROM THE COMPANY WHICH IS IN THE NATURE OF LOAN. THE ASSESSEE DID NOT FILE ANY SUBMI SSION BEFORE A.O. ON THIS ISSUE. THE ASSESSEE MERELY CONTENDED THAT I T IS NOT IN THE NATURE OF LOANS/ADVANCES. BUT NO EVIDENCE IN SUPPOR T OF THE CLAIM WAS FILED. THE ASSESSEE SUBMITTED BEFORE LD. CIT(A) THAT CREDIT BALANCE APPEARED IN THE NORMAL COURSE OF BUSINESS A ND OUT OF COMMERCIAL EXPEDIENCY WHICH IS NOT A LOAN. THE LD. CIT(A), HOWEVER, DID NOT ACCEPT THE CONTENTION OF ASSESSEE AND DISMI SSED THE APPEAL OF ASSESSEE. 3. AFTER CONSIDERING THE RIVAL CONTENTIONS, I AM O F THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT THE LEV EL OF THE A.O. LEARNED COUNSEL FOR THE ASSESSEE REFERRED TO COPY O F THE LEDGER ACCOUNT IN THE PAPER BOOK TO SHOW THAT ASSESSEE HAS GIVEN THE AMOUNT TO THE COMPANY, THEREFORE, IT WAS AN IMPREST ACCOUNT. HE HAS 3 ITA.NO.2128/DEL./2016 MS. KIRAN KAUR KOHLI, NEW DELHI. ALSO RELIED UPON THE ORDER OF ITAT, CHANDIGARH BENC H IN THE CASE OF A.K. AHUJA VS. ACIT, ITA.NO.224/CHD./2012 DATED 30 TH JUNE, 2016, IN WHICH THE TRIBUNAL OBSERVED THAT ASSESSEE HAS A CURRENT/RUNNING ACCOUNT WITH THE COMPANY, THE PROVISION OF SECTION 2(22)(E) ARE NOT ATTRACTED. LEARNED A.R. ALSO SUBMITTED THAT ASSESSE E HAS NOT FURNISHED ANY EVIDENCE IN SUPPORT OF THE CONTENTION BEFORE A.O, THEREFORE, SUBMITTED THAT ASSESSEE IS WILLING TO PR ODUCE THE EVIDENCE BEFORE A.O. IN SUPPORT OF THE CONTENTION THAT THE A MOUNT OF RS.3 LAKHS WAS RECEIVED ON ACCOUNT OF IMPREST ACCOUNT. T HE LD. D.R. RELIED UPON ORDERS OF AUTHORITIES BELOW. 4. CONSIDERING THE RIVAL CONTENTIONS IN THE LIGHT OF SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE THAT ASSESSEE IS WILING TO EXPLAIN ISSUE WITH SUPPORTING DOCUMENT S THAT AMOUNT IN QUESTION WAS RECEIVED IN IMPREST ACCOUNT, I AM OF T HE VIEW THAT INTEREST OF JUSTICE REQUIRES THAT ONE MORE OPPORTUN ITY MAY BE GIVEN TO THE ASSESSEE TO EXPLAIN THE ISSUE BEFORE A.O. I, ACCORDINGLY, SET ASIDE THE ORDER OF THE AUTHORITIES BELOW AND RESTOR E THIS ISSUE TO THE FILE OF A.O. WITH A DIRECTION TO RE-DECIDE THE ISSU E IN ACCORDANCE WITH LAW BY GIVING REASONABLE, SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE 4 ITA.NO.2128/DEL./2016 MS. KIRAN KAUR KOHLI, NEW DELHI. ASSESSEE. ASSESSEE IS DIRECTED TO PRODUCE SUFFICIEN T EVIDENCE BEFORE A.O. IN SUPPORT OF THE CONTENTION THAT IT WAS A COM MERCIAL TRANSACTION ROUTED THROUGH THE IMPREST ACCOUNT. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DELHI, DATED 01 ST FEBRUARY, 2018 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASST. REGISTRAR : ITAT DELHI BENCHES : DELHI.