Vikram Singh, New Delhi V. DCIT, New Delhi

ITA 2325/DEL/2013

• Counselvise Citation: 232520114 RSA 2013
• Duration Of Justice: 2 year(s) 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Next Hearing Date: 04-08-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 18-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J P CHANDREKAR
• Assessee Lawyers: SEKHOM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : H , NEW DELHI BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER I.T.A.NO S . 2331 & 2325 /DEL/20 13 A.Y. 20 0 8 - 09 AND 2004 - 05 SH. VIKRAM SINGH C 18 - 19, QUTAB INSTITUTIONAL AREA NEW DELHI 110 016 PIN: AAMPS 8704 R VS. DCIT, CENTRAL CIRCLE 20 NEW DELHI (APPELLANT) (RESPONDENT) A PPELLANT BY : SH. M.S.SEKHOM, C.A. RESPONDENT BY : SH. J.P.CHANDREKAR, SR. DR ORDER PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER BOTH THESE APPEALS ARE FILED BY THE ASSESSEE AND ARE DIRECTED AGAINST SEPARATE ORDERS OF THE LD.CIT(A) - X XXI , NEW DELHI DATED 04.02.2013 FOR THE A.Y. 2008 - 09 AND 200 4 - 05. 2. WE FIRST TAKE UP THE APPEAL FOR THE A.Y. 2004 - 05. 3. THE A.O. HAS MADE AN ADDITION OF RS.1 LAKH ON ACCOUNT OF UNEXPLAINED SOURCE OF EXPENDITURE ON TRAVEL. THE ASSESSEE ADMITTED THAT HE HAS UNDE R TAKEN LONG JOURNEYS WITHIN INDIA , IN THE COMPANY OF SHRI CHANDRASWAMI . A S T HE ASSESSEE FAILED TO GIVE DETAILS, THE AO MADE AN ADHOC ADDITION OF RS.1 LAKH. THE CLAIM OF THE ASSESSEE IS THAT THE EXPENDITURE WAS BORNE BY THE DISCIPLES OF SHRI CHANDRASW AMI. AS NO DETAILS WERE GIVEN THE ORDER OF THE AO WAS UPHELD BY THE FIRST APPELLATE AUTHORITY. 2 4. THIS IS AN ADHOC ADDITION. AFTER HEARING RIVAL CONTENTIONS, IN OUR VIEW THE ENDS OF JUSTICE WOULD BE MET IF THE ADDITION IS RESTRICTED TO RS.50,000/ - . THU S THE ASSESSEE GETS RELIEF OF RS.50,000/ - . 5. IN THE RESULT THIS APPEAL IS ALLOWED IN PART. 6. WE NOW TAKE UP THE APPEAL FOR THE A.Y. 2008 - 09. 7. THE ADDITIONS IN DISPUTE IN THIS YEAR ARE (I) RECEIPTS ON ACCOUNT OF ALLEGED CONSULTANCY RECEIPTS ESTIMATED AT RS.5,52,700/ - ; (II) UNEXPLAINED AGRICULTURAL INCOME OF AT RS.1,42,100/ - . AS IN THE EARLIER YEARS , TH ESE ADHOC ADDITIONS HAVE BEEN MADE, AS NO EVIDENCE WAS PRODUCED BY THE ASSESSEE. THE ASSESSEE CLAIMED THAT IT EARNED RS.5,52,700/ - FROM CONSULTANCY BU SINESS AND INCURRED RS.2,73,744/ - AS EXPENDITURE IN CONNECTION WITH EARNING INCOME FROM CONSULTANCY . IN OUR VIEW DISALLOWANCE OF THE ENTIRE EXPENDITURE CLAIMED WOULD BE UNREASONABLE. THUS WE ESTIMATE THE EXPENDITURE AT RS.1,50,000/ - AND RESTRICT THE DISA LLOWANCE TO THE BALANCE FIGURE I.E. RS. 1,23,744/ - . AS REGARDS THE CLAIM OF AGRICULTURAL INCOME, AS THE ASSESSEE HAS NOT FILED ANY EVIDENCE, THIS ADDITION IS CONFIRMED. 8. NO OTHER ISSUE IS AGITATED BEFORE US AND HENCE THE OTHER GROUNDS ARE DISMISSED. 9. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH AUGUST , 2015. S D/ - SD/ - [ G.C.GUPTA ] [J. SUDHAKAR REDDY] VICE PRESIDENT ACCOUNTANT MEMBER DT. THE 14 TH AU GUST, 2015 MANGA 3 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES