Jasneet Kaur Chattwal, Delhi V. ITO, New Delhi

ITA 215/DEL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2831 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 15-01-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Unexplained expenditure; Gift; Search and seizure; Document seized; Accommodation entries; Documents seized

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.215/DEL./2016 ASSESSMENT YEAR 2010-2011 MS. JASNEET KAUR CHATTWAL, DELHI 110026. PAN ARJPC8930D C/O. PK AGARWAL & CO. C.AS FLAT NO.50, AKSHARDHAM APTT., POCKET- 3, SECTOR-19, DWARKA, NEW DELHI 110 075. VS., THE INCOME TAX OFFICER, WARD-25(3), NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEE : -NONE- FOR REVENUE : SHRI S.L. ANURAGI, SR. D.R. DATE OF HEARING : 19.08.2019 DATE OF PRONOUNCEMENT : 02.09.2019 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-14, NEW DELHI, DATED 21.01.2015, FOR THE A.Y. 2010-2011. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE CASE OF ASSESSEE WAS REOPENED UNDER SECTION 147/148 OF THE I.T. 2 ITA.NO.215/DEL./2016 MS. JASNEET KAUR CHATTWAL, DELHI. ACT, 1961, FOR ASSESSMENT YEAR UNDER APPEAL ON THE BASIS OF INFORMATION RECEIVED FROM ACIT, CIRCLE-9, NEW DELHI , VIDE LETTER DATED 14.11.2011 THAT ASSESSEE HAD RECEIVED ACCOMMODATION ENTRY IN THE GARB OF GIFT FROM ENTRY PROVIDERS. IN FACT, SEARCH AND SEIZURE OPERATION WA S CONDUCTED ON 26.03.2010 IN THE CASE OF ASSEM KUMAR GUPTA AND GROUP AND OTHER BENEFICIARY GROUP OF CASE S WHEREIN SHRI ASEEM KUMAR GUPTA HAS ACCEPTED IN HIS STATEMENT THAT HE IS PROVIDING ACCOMMODATION ENTRIE S IN THE FORM OF SHARE CAPITAL, SHARE PREMIUM, BOGUS EXPENSE S ETC THROUGH VARIOUS COMPANIES AND ENTITIES CONTROLLED B Y HIM AND HIS ASSOCIATES. AS PER THE SEIZED DOCUMENTS, AS SESSEE HAD OBTAINED THE ACCOMMODATION ENTRIES OF THE IMPUG NED AMOUNT. THE ASSESSEE IS BENEFICIARY OF ACCOMMODATIO N ENTRIES RECEIVED FROM ENTRY PROVIDER M/S S.G.PORTFO LIO PVT. LTD. OF M/S JIWAN FLORA LTD., DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE SUBMITTED BEFO RE THE ASSESSING OFFICER THAT SHE RECEIVED THE AMOUNT OF RS.15,37,500/- ON ACCOUNT OF SALE OF SHARES OF M/S JIWAN FLORA LTD. FROM M/S S G PORTFOLIO PVT. LTD. THE ASS ESSEE ALSO 3 ITA.NO.215/DEL./2016 MS. JASNEET KAUR CHATTWAL, DELHI. SUBMITTED BEFORE THE ASSESSING OFFICER THAT SHE REC EIVED THE AFORESAID SHARES OF M/S JIWAN FLORA LTD. AS GIFT FR OM ONE PERSON NAMELY MR. MANOJ KUMAR ON 01.04.2009. HOWEVE R, DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AS SESSING OFFICER CONDUCTED ENQUIRIES AND NOTED THAT SH. MANO J KUMAR WAS NOT A GENUINE DONOR AND HAD NO CREDITWORTHINESS OF GIFTING SHARES WORTH OF RS.15,0 0,000/- TO THE ASSESSEE. THE ASSESSING OFFICER CONCLUDED TH AT THE ASSESSEE HAD OBTAINED ACCOMMODATION ENTRY IN THE GA RB OF SALE OF 1,50,000 SHARES OF M/S JIWAN FLORA LTD. THR OUGH M/S S G PORTFOLIO PVT. LTD. AND, THEREFORE, HE TREA TED THE AFORESAID AMOUNT OF RS.15,00,000/- AS THE UNACCOUNT ED INCOME OF THE ASSESSEE AND ADDED IT TO THE INCOME O F THE ASSESSEE. BESIDES, THE ASSESSING OFFICER ALSO ADDED 5% OF THE CHEQUE AMOUNT, AMOUNTING TO RS.75,000/- AS UNEXPLAINED EXPENDITURE INCURRED FOR OBTAINING THE ACCOMMODATION ENTRY. THE ASSESSING OFFICER COMPUTED THE TAXABLE INCOME OF THE ASSESSEE AT RS.17,68,390/- AG AINST THE DECLARED INCOME OF RS.1,93,390/- VIDE ORDER DAT ED 4 ITA.NO.215/DEL./2016 MS. JASNEET KAUR CHATTWAL, DELHI. 11.03.2013 U/S 143(3)/148 OF THE INCOME TAX ACT. TH E LD. CIT(A) DISMISSED THE APPEAL OF ASSESSEE. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING OF THE APPEAL. PRIOR TO THAT APPEAL WAS ADJOURNED MANY TIMES ON THE REQUEST OF COUNSEL FOR ASSESSEE AND ULTIMATELY, NONE APPEARED ON BEHALF OF THE ASSESSEE, DESPITE SERVICE OF THE NOTICE. 4. THE LD. D.R. ON THE OTHER HAND RELIED UPON THE ORDER OF THE A.O. 5. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. D. R. AND FACTS NOTED IN THE ORDERS OF THE AUTHORITIES BE LOW, IT IS CLEAR THAT A.O. RECEIVED SPECIFIC INFORMATION THAT ASSESSEE RECEIVED ACCOMMODATION ENTRIES THROUGH THE BOGUS EN TRY PROVIDERS. THE ASSESSEE FAILED TO PRODUCE THE DONOR AS WELL AS FAILED TO SUBSTANTIATE THE TRANSACTION OF GIFT. WHEN SUMMONS WERE ISSUED TO THE DONOR TO APPEAR BEFORE A .O, THE SUMMONS RETURNED UN-SERVED WITH THE REMARKS NO SUCH PERSON. THESE FACTS CLEARLY SUPPORTS THE FIND INGS OF THE AUTHORITIES BELOW AND THAT ON SPECIFIC INFORMAT ION CASE 5 ITA.NO.215/DEL./2016 MS. JASNEET KAUR CHATTWAL, DELHI. WAS REOPENED THAT ASSESSEE RECEIVED BOGUS GIFT THRO UGH ENTRY PROVIDERS. IN THE ABSENCE OF ANY REPRESENTATI ON FROM THE SIDE OF THE ASSESSEE AND ANY SPECIFIC MATERIAL ON RECORD TO EXPLAIN THE ABOVE ISSUE, I AM OF THE VIEW THAT N O INTERFERENCE IS CALLED FOR IN THE MATTER. I CONFIRM THE ORDERS OF THE AUTHORITIES BELOW AND DISMISS THE APPEAL OF ASSESSEE. 6. IN THE RESULT, APPEAL OF ASSESSEE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DELHI, DATED 2 ND SEPTEMBER, 2019 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH 6. GUARD FILE //BY ORDER// ASST. REGISTRAR : ITAT : DELHI BENCHES : DELHI. 6 ITA.NO.215/DEL./2016 MS. JASNEET KAUR CHATTWAL, DELHI. DATE OF DICTATION 19.08.2019 DATE ON WHICH THE TYPED DRAFT ORDER IS PLACED BEFOR E THE DICTATION MEMBER 20.08.2019 DATE ON WHICH THE APPROVAL DRAFT COMES TO THE SR. P S 02.09.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATION MEMBER FOR PRONOUNCEMENT 02.09.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S. 02.09.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 02.09.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 02. 09.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER.