M/s. Arora Jewellers Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 2138/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65846 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-11-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 04-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHIM SINGH
• Assessee Lawyers: DARPAN LAMBA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A : NEW DELHI BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER I.T.A.NO. 2138/DEL/2012 ASSESSMENT YEAR : 2007-08 ARORA JEWELLERS PVT. LTD., L-9, VIJAY CHOWK, LAXMI NAGAR, NEW DELHI. PAN : AAECA2119B VS. ACIT, CENTRAL CIRCLE-12, ARA CENTRE, JHANDEWALAN EXTN., NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DARPAN LAMBA RESPONDENT BY : SHRI BHIM SINGH, SR. DR O R D E R PER U.B.S. BEDI, JUDICIAL MEMBER:- THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER PASSED BY LD. CIT (A)-XXXI, NEW DELHI DATED 28/29.02.2012 REL EVANT TO A.Y. 2007-08 RAISING THE FOLLOWING GROUNDS:- 1. THE LOWER AUTHORITIES HAVE ERRED IN NOT APPRECI ATING THE FACTS AND CIRCUMSTANCES OF THE CASE AND FURTHER ERRED IN TREA TING THE APPLICATION MONEY OF RS.1,00,000/- RECEIVED FROM LATE SHRI DHEE RAJ ARORA, RESIDENT OF 127C, MAYUR VIHAR, POCKET II, DELHI WHO WAS BEING A SSESSED TO INCOME TAX AS PER PAN AGJPA6582G 2. THE LOWER AUTHORITIES HAVE ERRED IN TREATING THE SHARE APPLICATION MONEY OF RS.1,00,000/- FROM LATE SHRI DHEERAJ ARORA , WHICH HAD BEEN RECEIVED BY MEANS OF ACCOUNT PAYEE CHEQUE NO.049056 DATED 14 TH JUNE, 2006 DRAWN ON CANARA BANK, AS BEING THE ALLEGED UND ISCLOSED INCOME OF THE APPELLANT FOR THIS YEAR. ITA NO.2138/DEL/2012 2 3. THE LOWER AUTHORITIES HAVE ERRED IN NOT APPRECIA TING THAT LATE SHRI DHEERAJ ARORA PASSED AWAY IN THE PRIME AGE OF 25 YE ARS IN NOVEMBER, 2009. 4. THE ASSESSING OFFICER HAS ERRED IN TREATING THE SHARE APPLICATION MONEY OF RS.1,00,000/- AS BEING THE ALLEGED UNDISCL OSED INCOME OF THE APPELLANT FOR THIS YEAR VIDE HIS ORDER 24.12.2009, WHEN THE CONFIRMATION IN RESPECT OF THE SHARE APPLICATION MONEY COULD NOT BE FILED BY HIS WIFE ON ACCOUNT OF THE GREAT SHOCK SHE HAD SUFFERED ON ACCO UNT OF THE DEATH OF HER HUSBAND AT A YOUNG AGE. 5. THE ASSESSING OFFICER HAS ERRED IN NOT APPRECIAT ING THAT HE HAD ALLOWED THE INTEREST PAYMENT OF RS.27,000/- TO SHRI DHEERAJ ARORA IN THIS YEAR ON BROUGHT FORWARD LOAN OF RS.3,00,000/- FROM THE PRECEDING YEAR IN THE ASSESSMENT OF ARORA JEWELLERS (P) LTD. FOR THIS YEAR AND HAD ACCEPTED THE ISSUE OF TDS CERTIFICATE IN FORM NO.16A IN FAVO UR OF SHRI DHEERAJ ARORA. THE ASSESSMENT ORDER BEING ARBITRARY, ERRONEOUS AND ILLEGAL, THE SAME DESERVES TO BE MODIFIED. IT MAY PLEASE BE MOD IFIED. 2. THE FACTS INDICATE THAT THE ASSESSEE COMPANY IS ENGAGED IN THE MANUFACTURING, SALE AND PURCHASE OF GOLD AND SILVER ORNAMENTS. DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS ASKED BY THE ASSESSING OFFICER TO FURNISH THE DETAILS OF SHARE APPLICATION MONEY RECEIVED ALONG WITH CONFIRMATION. IN RESPONSE THERETO, THE ASSESS EE SUBMITTED THAT SHARE APPLICATION MONEY WAS OF ` 25,65,000/- AS ON 31.03.2007. THE ASSESSEE HAS RECEIVED SHARE APPLICATION MONEY OF ` 1 LAC BY ACCOUNT PAYEE CHEQUE FROM SHRI DHEERAJ ARORA DURING THE YEAR UNDER CONSI DERATION. THE CONFIRMATION HAS BEEN REQUESTED TO THE LEGAL HEIR O F SHRI DHEERAJ ARORA WHO WAS UNFORTUNATELY PASSED AWAY IN THE FIRST WEEK OF NOVEMBER, 2009. SHRI DHEERAJ ARORA WAS RESIDENT OF 127C, MAYUR VIHA R, POCKET II, DELHI AND WAS ASSESSED TO INCOME-TAX VIDE PAN AGJPA6582G. TH E ASSESSING OFFICER CONSIDERED THE PLEA OF THE ASSESSEE, BUT FO UND THE SAME AS UNSATISFACTORY AND SINCE THE ASSESSEE COMPANY HAS N OT BROUGHT OUT ANY DOCUMENTARY EVIDENCE IN SUPPORT OF ITS CLAIM, SO TH E SHARE APPLICATION ITA NO.2138/DEL/2012 3 MONEY RECEIVED DURING THE YEAR WAS UNVERIFIABLE AND AN ADDITION OF ` 1 LAC WAS MADE BY THE ASSESSING OFFICER TO THE INCOME OF THE ASSESSEE AS UNDISCLOSED INVESTMENT. 3. THE ASSESSEE TOOK UP THE MATTER IN APPEAL AND TH E LD. CIT (A), AFTER ADJOURNING THE HEARING FROM 15.02.2012 TO 22.02.201 2, HAS NOTED THAT NOBODY ATTENDED ON 22.02.2012 NOR ANY ADJOURNMENT H AS BEEN SOUGHT, SO, HE CONFIRMED THE ADDITION AGAINST WHICH THE ASSESSE E IS IN FURTHER APPEAL. 4. AFTER HEARING THE REPRESENTATIVE OF THE ASSESSEE AS WELL AS THE LD. DR, WE FIND THAT ON NON-APPEARANCE OF THE ASSESSEE ON THE ADJOURNED DATE, THE LD. CIT (A) HAS CONFIRMED THE ADDITION MA DE BY THE ASSESSING OFFICER WITHOUT PROPERLY DISCUSSING OR CONSIDERING THE ISSUE ON MERITS. THEREFORE, IN THE INTEREST OF JUSTICE AND IN ORDER TO HAVE A FAIR PLAY IN THE MATTER, WE ARE OF THE VIEW THAT IT WOULD MEET THE E NDS OF JUSTICE IF THE ORDER OF CIT (A) IS SET ASIDE AND THE MATTER IS RESTORED BACK TO THE FILE OF THE LD. CIT (A) FOR RE-CONSIDERATION OF THE APPEAL AFRESH AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE AS WELL AS TO THE ASSES SING OFFICER. WE HOLD AND DIRECT ACCORDINGLY. 5. AS A RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. 6. ORDER WAS PRONOUNCED SOON AFTER THE CONCLUSION O F HEARING ON 20 TH NOVEMBER, 2012. SD/- SD/- [B.C. MEENA] [U.B.S. BEDI] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 20.11.2012. ITA NO.2138/DEL/2012 4 DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR, ITAT, DELHI BENCHES