ITO, New Delhi V. Shri Ajay Kumar Bamba, New Delhi

ITA 2402/DEL/2011

• Counselvise Citation: 240220114 RSA 2011
• Duration Of Justice: 1 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-09-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 11-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PIRTHI LAL
• Keywords: Peak credit; Additional evidence
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: A NEW DELHI BEFORE SHRI AD JAIN, JM AND SHRI J.SUDHAKAR REDDY, A.M. ITA NO: 2402/DEL/2011 ASSESSMENT YEAR : - 2006-07 ITO, WARD 6(1) VS. SHRI AJAY KUMAR BAMBA NEW DELHI D 696, SARASWATI VIHAR, PITAMPURA NEW DELHI 110 034 PAN: : AAKPB4523B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PIRTHILAL, SR.D.R. RESPONDENT BY : NONE O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGA INST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-IX, NEW DE LHI DT. 5.1.2011 PERTAINING TO THE ASSESSMENT YEAR 2006-07. NONE APP EARED ON BEHALF OF THE ASSESSEE DESPITE THE ISSUE OF NOTICE. ONE MR.A NIL MALHOTRA, ADVOCATE FILED HIS VAKALATH. NO PETITION FOR ADJOURNMENT HA D BEEN MADE. UNDER THE CIRCUMSTANCES WE DISPOSE OF THIS CASE EX PARTE ON MERITS QUA THE ASSESSEE AFTER HEARING THE LD.SR.D.R. MR.PIRTHI LAL . 2. FACTS IN BRIEF:- THE ASSESSEE IS AN INDIVIDUAL AND FILED HIS RETURN OF INCOME ON 20.3.2007 DECLARING AN INCOME OF RS.98 ,241/-. FROM AIR INFORMATION AS PER ITD NET WORK, THE A.O. FOUND THA T THE ASSESSEE HAS 2 DEPOSITED RS.15,37,340/- IN THE CENTURIAN BANK OF P UNJAB LTD. EARLIER THE ASSESSEE AND HIS AUTHORISED REPRESENTATIVES FIL ED A LETTER DT. 11.8.2008, STATING THAT THEY WERE MAINTAINING ONLY ONE BANK ACCOUNT AT HDFC BANK, PUNJABI BAGH. AS THE ASSESSEE HAS NOT FURNISHED ANY DETAILS, THE ASSESSING OFFICER PASSED BEST JUDGEME NT ASSESSMENT UNDER SECTION 144 OF THE INCOME TAX ACT, 1961, MAKING AN ADDITION UNDER SECTION 69A OF THE INCOME TAX ACT, 1961. ON APPEAL THE FIRST APPELALTE AUTHORITY IN PRINCIPLE CONFIRMED THE ADDITION TO RE DUCE THE QUANTUM OF ADDITION, BY APPLYING PEAK CREDIT BALANCE. AGGRIEV ED THE REVENUE IS IN APPEAL BEFORE US. 3. AFTER HEARING LD.SR.D.R. MR PIRTHI LAL, WE ARE OF THE CONSIDERED OPINION THAT THE ORDER OF THE FIRST APPELLATE AUTHO RITY HAS TO BE UPHELD. THE FIRST APPELLATE AUTHORITY NOTED THAT THE ASSESS EE WAS PREVENTED FROM A SUFFICIENT CAUSE IN FURNISHING DETAILS TO THE A.O . HE ADMITTED ADDITIONAL EVIDENCE AND CALLED FOR THE REMAND REPOR T. THE ASSESSING OFFICER SUBMITTED HIS REMAND REPORT WITHOUT GIVING THE ASSESSEE AN OPPORTUNITY. THE COMMISSIONER OF INCOME TAX (APPEA LS) IN PRINCIPLE UP HELD THE ADDITION UNDER SECTION 69A OF THE INCOME T AX ACT, 1961. ON QUANTIFICATION HE HELD THAT THE ASSESSING OFFICER WAS REQUIRED TO CALCULATE THE PEAK BALANCE, INSTEAD OF RESORTING TO ADDING THE CUMULATIVE TOTAL OF THE DEPOSITS. HE RECORDED A FINDING OF FA CT THAT THERE WERE FREQUENT DEPOSITS AND WITHDRAWALS OF CASH FROM THE BANK ACCOUNT AND ON MOST OF THE OCCASIONS THE CASH DEPOSITED WAS WITHDR AWN EITHER THE SAME 3 DAY OR ON THE NEXT DAY. THESE FACTUAL FINDINGS ARE NOT CONTROVERTED BY THE REVENUE. THUS WE UPHOLD THE ORDER OF THE LD.CI T(A) AND DISMISS THIS APPEAL OF THE REVENUE. 4. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH SEPTEMBER,2012. SD/- SD/- (A.D. JAIN) (J.SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: THE 17 TH SEPTEMBER, 2012 *MANGA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT (A); 5.DR; 6.GUARD FILE BY ORDER DY. REGISTRAR 4 1. DATE OF DICTATION: 2. DRAFT PLACED BEFORE THE AUTHOR ON: 3. DRAFT PROPOSED AND PLACED BEFORE SECOND MEMBER ON: 4. DRAFT DISCUSSED/APPROVED BY THE SECOND MEMBER ON: /09 5. APPROVED DRAFT CAME TO SR.P.S. ON: /09 6. DATE OF PRONOUNCEMENT : /09 7. FILE SENT TO BENCH CLERK ON : 8. DATE ON WHICH FILE GIVEN TO HEAD CLERK ON: 9. DATE OF DISPATCHING THE ORDER ON :