M/s SPG Finvest Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 2453/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4886 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 24-04-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: ASHISH CHADHA
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.2453/DEL/2017 ASSESSMENT YEAR : 2011-12 SPG FINVEST PVT. LTD., 711, 7 TH FLOOR, NEW DELHI HOUSE, 27, BARAKHAMBA ROAD, NEW DELHI. PAN: AABCS3934P ] VS. ACIT, CENTRAL CIRCLE-9, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ASHISH CHADHA, CA DEPARTMENT BY : SHRI T. VASANTHAN, SR. DR DATE OF HEARING : 30.08.2017 DATE OF PRONOUNCEMENT : 30.08.2017 ORDER THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF TH E ORDER PASSED BY THE CIT(A) ON 27.03.2017 IN RELATION TO THE ASSESSM ENT YEAR 2011-12. ITA NO.2453/DEL/2017 2 2. THE FIRST ISSUE IS AGAINST THE CONFIRMATION OF A DDITION OF RS.3,64,500/- ON ACCOUNT OF BANK DEPOSITS. 3. BRIEFLY STATED, THE FACTS OF THIS GROUND ARE THA T THE ASSESSING OFFICER FOUND CERTAIN CASH DEPOSITS MADE BY THE ASS ESSEE IN ITS BANK ACCOUNT. ON BEING CALLED UPON TO EXPLAIN THE NATUR E AND SOURCE OF SUCH DEPOSITS, THE ASSESSEE FILED DETAILS AND BACKGROUND SHOWING THAT THE CASH WAS RECEIVED FROM SOME INDIVIDUALS ON SALE OF SHARE S WHICH WAS DEPOSITED IN THE BANK ACCOUNT. NOT CONVINCED, THE ASSESSING OFFICER MADE ADDITION FOR CASH DEPOSITED IN BANK ACCOUNT TO THE TUNE OF RS.24,30,000/-. THE LD. CIT(A) ACCEPTED THE ASSESE ES CONTENTION THAT THE DEPOSITS IN BANK ACCOUNT WERE MADE OUT OF CASH AVAILABLE IN THE CASH BOOK. HE, HOWEVER, RESTRICTED THE ADDITION TO 15% OF SUCH DEPOSITS. THIS LED TO THE CONFIRMATION OF ADDITION TO THE EXTENT O F RS.3,64,500/-, AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE ASSESSE E IS A PRIVATE LIMITED COMPANY. IT HAS MAINTAINED PROPER BOOKS OF ACCOUNT . COPY OF AUDITED ITA NO.2453/DEL/2017 3 PROFIT & LOSS ACCOUNT AND BALANCE SHEET ALONG WITH NECESSARY AUDIT REPORT HAS BEEN PLACED ON RECORD. THE LD. CIT(A) H AS ADMITTED THAT THE CASH WAS DEPOSITED IN THE BANK EMANATED FROM THE BO OKS OF ACCOUNT. THIS VIEW POINT OF THE LD. CIT(A) HAS NOT BEEN CONT ROVERTED BY THE LD. DR WITH ANY CONTRARY EVIDENCE. WHEN CASH IS DEPOSI TED IN THE BANK OUT OF CASH AVAILABLE AS PER THE BOOKS OF ACCOUNT, THER E CAN BE NO QUESTION OF TREATING SUCH CASH DEPOSIT AS UNEXPLAINED. I, THERE FORE, ORDER FOR THE DELETION OF THE ENTIRE ADDITION. THIS GROUND IS AL LOWED. 5. THE OTHER GROUND IS AGAINST THE CONFIRMATION OF ADDITION OF RS.60,297/- AT THE RATE OF 20% OF EXPENSES. THE AS SESSING OFFICER NOTICED THAT THE ASSESSEE DID NOT CARRY OUT ANY ACT IVE BUSINESS. HE, THEREFORE, MADE ADDITION @ 20% OF TOTAL EXPENSES. THE LD. CIT(A) REDUCED SUCH ADDITION TO 15%. 6. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, IT IS NOTICED THAT THE ASSESSEE INCURRED AD MINISTRATION EXPENSES OF RS.3,21,717/- APART FROM MISCELLANEOUS EXPENSES TO THE TUNE OF RS.4.40 LAC. TOTAL EXPENSES BOOKED BY THE ASSESSEE IN ITS P ROFIT & LOSS ACCOUNT ITA NO.2453/DEL/2017 4 STAND AT RS.7,16,717/-. IN THE COMPUTATION OF INCO ME, THE ASSESSEE VOLUNTARILY OFFERED FOR DISALLOWANCE A SUM OF RS.2, 09,953/-, BEING LOSS ON SALE OF INVESTMENT WHICH IS INCLUDED IN SUCH EXP ENSES. IN VIEW OF THIS SUO MOTU DISALLOWANCE MADE BY THE ASSESSEE AT RS.2.09 LAC, THE OTHER SMALLER ADDITION SUSTAINED IN THE FIRST APPEAL, CAN NOT BE UPHELD. I, THEREFORE, ORDER FOR THE DELETION OF THE ADDITION. 7. THE LAST GROUND IS AGAINST THE CONFIRMATION OF A DDITION OF RS.7 LAC ON ACCOUNT OF UNSECURED LOAN FROM SHRI SOHAN SINGH. THE ASSESSEE CLAIMED TO HAVE RECEIVED A SUM OF RS.7 LAC FROM SHR I SOHAN SINGH. IN THE ABSENCE OF ANY CONFIRMATION FILED BY THE ASSESS EE, THE ASSESSING OFFICER TREATED THIS AMOUNT AS UNEXPLAINED. THE LD . CIT(A) ECHOED THE ASSESSMENT ORDER ON THIS POINT. 8. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE ASSESSEE DID NOT AD DUCE ANY EVIDENCE ABOUT THE GENUINENESS OF LOAN. THE LD. AR REQUESTE D FOR GIVING ONE MORE OPPORTUNITY TO FURNISH EVIDENCE IN SUPPORT OF THE GENUINENESS OF THE LOAN. IT WAS SUBMITTED THAT SUCH EVIDENCE COUL D NOT BE FILED FOR THE ITA NO.2453/DEL/2017 5 REASONS BEYOND THE ASSESSEES CONTROL. AGREEING WIT H THE CONTENTION PUT FORTH, I SET ASIDE THE IMPUGNED ORDER AND REMIT THE MATTER TO THE FILE OF ASSESSING OFFICER FOR DECIDING THIS ISSUE AFRESH AF TER GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THE DECISION PRONOUNCED IN THE OPEN COURT ON 30 TH AUGUST, 2017. SD/- [R.S. SYAL] VICE PRESIDENT DATED, 30 TH AUGUST, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.