Poonam Aggarwal, Delhi V. ITO, New Delhi

ITA 2450/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7462 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 30-05-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 26-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NANDITA KANCHAN
• Keywords: Unexplained cash credit; Gift
• Section: 143(3); 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO S SS S . .. . 2449/DEL/2013 & 2450/DEL/2013 2449/DEL/2013 & 2450/DEL/2013 2449/DEL/2013 & 2450/DEL/2013 2449/DEL/2013 & 2450/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2006 2006 2006 2006 - -- - 07 & 2005 07 & 2005 07 & 2005 07 & 2005 - -- - 06 0606 06 SMT. POONAM AGGARWAL, SMT. POONAM AGGARWAL, SMT. POONAM AGGARWAL, SMT. POONAM AGGARWAL, H HH H- -- -3/11 3/11 3/11 3/11- -- -A, KRISHNA NAGAR, A, KRISHNA NAGAR, A, KRISHNA NAGAR, A, KRISHNA NAGAR, DELHI DELHI DELHI DELHI 110 051. 110 051. 110 051. 110 051. PAN : AAMPA6866E. PAN : AAMPA6866E. PAN : AAMPA6866E. PAN : AAMPA6866E. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -35(3), 35(3), 35(3), 35(3), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI C.S. ANAND, ADVOCATE. RESPONDENT BY : MS. NANDITA KANCHAN, CIT - DR. DATE OF HEARING : 30.05.2016 30.05.2016 30.05.2016 30.05.2016 DATE OF PRONOUNCEMENT : 10.06.2016 10.06.2016 10.06.2016 10.06.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THESE APPEALS BY THE ASSESSEE FOR THE ASSESSMENT Y EARS 2005- 06 AND 2006-07 ARE DIRECTED AGAINST THE ORDER OF LE ARNED CIT(A)-XXVII, NEW DELHI DATED 19 TH FEBRUARY, 2013. 2. BOTH THE PARTIES ADMITTED THAT GROUND NOS.1, 2 & 3 IN BOTH THE YEARS ARE COMMON, WHICH READ AS UNDER:- 1. THAT THE NOTICE U/S 153A OF THE I.T. ACT 1961 D T. 28.02.2011 (ISSUED BY THE LD. I.T.O. WARD-35(3) NEW DELHI/THE PROCEEDINGS INITIATED ARE ILLEGAL, WITHOU T JURISDICTION AND BARRED BY LIMITATION. 2. THAT THE NOTICE U/S 153A OF THE I.T. ACT 1961 DT.28.02.2011 ISSUED BY THE LD. I.T.O. WARD-35(3) N EW DELHI AND THE ASSESSMENT ORDER DATED 30.12.2011 PAS SED BY HIM UNDER SECTION 143(3) R.W.S. 153(C) OF THE I. T. ACT 1961 DESERVE TO BE QUASHED, ON VARIOUS FACTUAL AND LEGAL GROUNDS. ITA-2449 & 2450/D/2013 2 3. THAT THE ASSESSMENT FRAMED IS AGAINST THE SPIRIT OF SECTION 153C OF THE I.T. ACT 1961, IN AS MUCH AS LD . A.O. HAD NOT CONFINED HIMSELF TO THE INFORMATION/MATERIA LS PROVIDED BY THE LD. A.C.I.T. CENTRAL CIRCLE-13, NEW DELHI. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D HAVE PERUSED THE MATERIAL PLACED BEFORE US. THE ASSESSI NG OFFICER INITIATED PROCEEDINGS U/S 153C IN THE CASE OF THE ASSESSEE WI TH THE FOLLOWING FINDING IN THE ASSESSMENT ORDER:- A SEARCH & SEIZURE OPERATION U/S 132 OF THE INCOME TAX ACT 1961 WAS CARRIED OUT IN THE SWASTIK GROUP OF CO NCERNS ON 28.08.2008. AS SOME INCRIMINATING DOCUMENTS WER E FOUND AT THOSE PREMISES WHICH BELONGS TO THE ASSESS EE, AND THUS NOTICE U/S 153-A DT. 28.02.2011 WAS ISSUED AND SERVED. 4. FROM THE ABOVE, IT IS EVIDENT THAT THE ASSESSING OFFICER HAS SIMPLY MENTIONED TO HAVE ISSUED NOTICE U/S 153A BEC AUSE SOME INCRIMINATING DOCUMENTS WERE FOUND AT THE PREMISES OF SWASTIK GROUP OF CONCERNS. FROM THIS FINDING, IT IS EVIDENT THAT NO SATISFACTION HAS BEEN RECORDED U/S 153C BY THE ASSESSING OFFICER OF THE PERSON SEARCHED. WHICH ARE THE DOCUMENTS BELONGING TO THE ASSESSEE HAS NOT BEEN SPECIFIED AND HOW THOSE DOCUMENTS INDICATED AN Y UNDISCLOSED INCOME OF THE ASSESSEE HAS ALSO NOT BEEN SPECIFIED. FROM A PERUSAL OF THE ASSESSMENT ORDER, WE DO NOT FIND ANY REFERENCE TO ANY SEIZED DOCUMENT WHILE MAKING THE ADDITION. THE ASSESSING OFFICER ASKED THE ASSESSEE TO PRODUCE STATEMENT OF AFFAIRS AND, ON TH E BASIS OF SUCH STATEMENT OF AFFAIRS, HE MADE THE ADDITION FOR SMAL L AMOUNT OF CASH GIFT AS WELL AS UNEXPLAINED CASH CREDIT. IN VIEW O F THE ABOVE, RESPECTFULLY FOLLOWING THE DECISION OF HON'BLE JURI SDICTIONAL HIGH COURT IN THE CASE OF CIT VS. RRJ SECURITIES LTD. [2015] 62 TAXMANN.COM 391 (DELHI), WE HOLD THAT THE INITIATION OF PROCEEDINGS U/S 153C IS NOT VALID. THE SAME IS QUASHED AND CONSEQUENTLY, THE ASSESSMEN T COMPLETED U/S 143(3)/153C IS ALSO QUASHED. ITA-2449 & 2450/D/2013 3 5. ONCE THE ASSESSMENT ORDER ITSELF HAS BEEN QUASHE D, THE OTHER GROUNDS RAISED BY THE ASSESSEE IN BOTH THE APPEALS AGAINST THE ADDITIONS MADE BY THE ASSESSING OFFICER DO NOT SURV IVE FOR ADJUDICATION. 6. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 10.06.2016 . SD/- SD/- (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : SMT. POONAM AGGARWAL, SMT. POONAM AGGARWAL, SMT. POONAM AGGARWAL, SMT. POONAM AGGARWAL, H HH H- -- -3/11 3/11 3/11 3/11- -- -A, KRISHNA NAGAR, DELHI A, KRISHNA NAGAR, DELHI A, KRISHNA NAGAR, DELHI A, KRISHNA NAGAR, DELHI 110 051. 110 051. 110 051. 110 051. 2. RESPONDENT : INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD- -- -35(3), NEW DELHI. 35(3), NEW DELHI. 35(3), NEW DELHI. 35(3), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR