ITO, New Delhi V. Sh. Sant Meet Singh, New Delhi

ITA 2261/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90843 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 08-04-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 17-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R R KUMAR
• Section: 69C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : G : NEW DELHI BEFORE SHRI R.S. SYAL, AM AND SHRI C.M. GARG, JM ITA NO.2261/DEL/2013 ASSESSMENT YEAR : 2008-09 ITO, WARD 27(4), NEW DELHI. VS. SANT MEET SINGH, B-2/25, JANAK PURI, NEW DELHI. PAN: AAAPS9205M (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.S. ANAND, ADVOCATE DEPARTMENT BY : SHRI B.R.R. KUMAR, SR. DR DATE OF HEARING : 08.04.2015 DATE OF PRONOUNCEMENT : 09.04.2015 ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 20.2.2013 IN RELATION TO THE ASSESSME NT YEAR 2008-09. ITA NO.2261/DEL/2013 2 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST RESTRICTING THE ADDITION AMOUNTING TO RS.21,89,574/- MADE BY THE AO U/S 69C OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED THE ACT) TO RS.1 LAC. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IS AN INSURANCE AGENT. AS PER THE AIR, A SUM OF RS.21,89 ,574/- WAS DEPOSITED IN THE ASSESSEES BANK ACCOUNT. ON BEING CALLED UP ON TO EXPLAIN THE SOURCE OF THIS AMOUNT, IT WAS STATED THAT THE CREDI T CARD STATEMENTS WERE ISSUED IN THE NAME OF THE ASSESSEE, BUT, THE ACCOUN T WAS ACTUALLY USED BY ONE SHRI LIYAKAT ALI, PROPRIETOR OF M/S SAJID AUTOM OBILES, ENGAGED IN THE BUSINESS OF TWO-WHEELERS AND SPARE PARTS. THE A SSESSEE CONTENDED THAT HE ALLOWED LIYAKAT ALI TO USE HIS BANK ACCOUNT IN THE HOPE OF GETTING INSURANCE COVERS FOR TWO-WHEELERS PURCHASED TRANSACTED BY HIM. NOT CONVINCED WITH THE ASSESSEES SUBMISSIONS, THE AO MADE AN ADDITION FOR A SUM OF RS.21.89 LAC. THE LD. CIT(A) RESTRICTED THE ADDITION TO RS.1.00 LAC, AFTER CONSIDERING THE REM AND REPORT FROM THE AO. ITA NO.2261/DEL/2013 3 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS AN UNDISPUTED FACT THAT THE ASSESSEE IS AN INSURANCE AGENT DOING INSURANCE OF TWO-WHEELERS, TH REE-WHEELERS, ETC. A SUM OF RS.21.89 LAC WAS ROUTED THROUGH HIS BANK ACC OUNT AND THE TRANSACTIONS WERE ACTUALLY DONE BY SHRI LIYAKAT ALI , PROPRIETOR OF M/S SAJID AUTOMOBILES. THE ASSESSEE ALSO DEMONSTRATED THAT THE PAYMENTS AGAINST THE CREDIT CARDS WERE MADE BY SHRI LIYAKAT ALI FOR TWO-WHEELERS PURCHASED BY HIM FROM M/S DIWAN AUTO, M/S RAJPOOT M OTORS AND M/S AMAZING ENTERPRISES. EVEN CONFIRMATION FROM M/S RA JPOOT MOTORS WAS ALSO SUBMITTED TO THE EFFECT THAT THE PAYMENT FOR S PARE PARTS PURCHASED FROM THEM BY LIYAKAT ALI, WAS MADE THROUGH THE ASSE SSEES BANK ACCOUNT. THE ASSESSEE WAS GETTING A SUM OF RS.2,00 0/- PER VEHICLE IN LIEU OF ALLOWING THE USER OF HIS BANK ACCOUNT, WHIC H POSITION HAS BEEN ADMITTED BY THE AO IN HIS ORDER FOR THE AY 2009-10. THE RELEVANT DISCUSSION ON THIS ISSUE HAS BEEN MADE IN PARAS 4.1 AND 4.2 OF THE IMPUGNED ORDER. IN OUR CONSIDERED OPINION, THE LD. CIT(A) WAS JUSTIFIED IN RELYING ON THE VIEW TAKEN BY THE AO FOR THE AY 2 009-10 IN RESTRICTING THE ADDITION FROM RS.21.89 LAC TO RS.1 LAC, BY ROU NDING OFF THE INCOME ITA NO.2261/DEL/2013 4 @ RS.2,000/- PER VEHICLE IN RESPECT OF 38 VEHICLES TRANSACTED DURING THE YEAR. WE, THEREFORE, UPHOLD THE IMPUGNED ORDER. 5. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 09.04.201 5. SD/- SD/- [C.M. GARG] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 09 TH APRIL, 2015. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.