Mr. Sunil Kant Sharma, Gurgaon V. JCIT, New Delhi

ITA 2467/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1074 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 25-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SARAS KUMAR
• Assessee Lawyers: VIKRAM GERA
• Keywords: Unexplained cash credit
• Section: 201; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES G, NEW DELHI BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 2467/DEL/2017 : ASSTT. YEAR : 201 3-14 MR. SUNIL KANT SHARMA, 110A, ARALIAS, DLF, GOLF LINK, GURGAON, HARYANA-122009 VS JOINT COMMISSIONER OF INCOME TAX, RANGE-71, NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AAVPS6983R ASSESSEE BY : SH. VIKRAM GERA, ADV. REVENUE BY : SH. SARAS KUMAR, SR. DR DATE OF HEARING: 09.01.2020 DATE OF PRONOUNCEMENT: 20.04.2020 ORDER PER DR. B.R.R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER OF LD. CIT (A)-21, NEW DELHI DATED 09.02. 2017. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE: 1. THE LD. CIT (A) HAS ERRED, BOTH ON FACTS AND CIRCUMSTANCES OF THE CASE BY UPHOLDING THE ADDITION S MADE BY THE ASSESSING OFFICER FOR RS.6,10,760/-. 2. THE ADDITIONS WERE MADE ON ACCOUNT OF UNEXPLAINED CREDIT ENTRIES IN THE ASSESSEES HDFC BANK ACCOUNT, DISREGARDING THE MATERIAL EVIDENCES PRODUCED BEFORE THE ASSESSING OFFICER & CIT(A). ADDITION ON ACCOUNT OF UNEXPLAINED CREDIT AMOUNTING RS.6,10,760/-: 3. DURING THE ASSESSMENT PROCEEDINGS, FROM THE BANK ACCOUNT, THE AO NOTICED THAT THERE WERE CREDIT ENTR IES OF RS.3,32,760/- ON 26/07/2012 AND RS.2,78,000/- ON ITA NO. 2467/DEL/2017 SUNIL KANT SHARMA 2 22/11/2012 WHICH THE ASSESSEE WAS ASKED TO EXPLAIN THE NATURE & SOURCE THEREOF ALONG WITH SUPPORTING EVIDE NCE. IN RESPONSE, IT WAS STATED THAT A SUM OF RS.3,32,760/- WAS RECEIVED BY THE ASSESSEE FROM HIS MOTHER SMT. BALA SHARMA AGAINST MEDICAL & HOUSEHOLD EXPENSES AND A SUM OF RS.2,78,000/- WAS RECEIVED FROM HER MOTHER AGAINST TAXES PAID ONLINE FOR HER. ON BEING ASKED TO FURNISH THE CONFI RMATION FROM HIS MOTHER IN SUPPORT OF ABOVE CONTENTION, THE ASSE SSEE HAS STATED THAT HIS MOTHER DIED IN MARCH, 2015 AND THAT THE TRANSACTIONS DATED 24 & 25 JULY, 2015 REPRESENTED T AXES PAID FOR HER AMOUNTING TO RS.3,34,900/-. 4. NOT SATISFIED WITH THE EXPLANATION OF THE ASSESS EE, THE AO MADE AN ADDITION OF RS.6,10,760/- ON ACCOUNT OF UNE XPLAINED CREDIT IN THE BANK ACCOUNT OF THE ASSESSEE. 5. THE RELEVANT PARA 16 OF THE ASSESSMENT ORDER IS AS UNDER: SINCE IT WAS THE DUTY OF THE ASSESSEE TO PROVE THE SOURCES OF CREDIT ENTRIES IN THE BANK ACCOUNT WITH SUPPORTING DOCUMENTARY EVIDENCE BUT THE ASSES SEE HAS FAILED TO DISCHARGE HIS ONUS TO PROVIDE THE SAM E. HENCE IT IS CLEAR THAT A SUM OF RS.6,10,760/- WAS ASSESSEES OWN MONEY EARNED THROUGH UNDISCLOSED SOURCES AND, THEREFORE, I TREAT THIS AMOUNT AS ASSESSEE'S OWN INCOME DURING THE YEAR AND THE SAME IS ADDED TO HIS TOTAL INCOME AS INCOME FROM OTHER SOURCES U/S 68 OF THE I. T. ACT, 1961.' 6. THE LD. CIT (A) WHILE CONFIRMING THE ADDITION HE LD THAT THE ASSESSEE WAS GIVEN SUFFICIENT OPPORTUNITY TO ESTABL ISH THE NATURE AND SOURCE OF IMPUGNED CREDIT ENTRIES AND TH E ASSESSEE HAS FAILED TO COMPLY IN DISCHARGING HIS ONUS AS PER THE PROVISIONS OF SECTION 68 OF THE INCOME TAX ACT, 196 1. ITA NO. 2467/DEL/2017 SUNIL KANT SHARMA 3 7. HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERU SED THE MATERIAL AVAILABLE ON RECORD. 8. WE FIND THAT FROM THE BANK CERTIFICATE ISSUED BY HDFC BANK MAINTAINING THE A/C NO. 12021930005546 THAT AN AMOUNT OF RS.2,78,000/- HAS BEEN DRAWN ON HDFC BANK BY CHE QUE NO. 476749 DATED 22.11.2011 AND DEBITED IN THE NAME OF SMT. BALA SHARMA. SIMILARLY, AN AMOUNT OF RS.3,32,760/- HAS BEEN DRAWN BY CHEQUE NO. 183420, ALLAHABAD BANK ON 26.07 .2012, THE DEBIT PARTY BEING SMT. BALA SHARMA. SINCE, THE SOURCES HAVE BEEN PROVED AND CORRESPONDING TO THE ADDITION MADE, WE HEREBY HOLD THAT THE ADDITION MADE BY THE AO IS LIA BLE TO BE DELETED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20/04/2020. SD/- SD/- (SUSHMA CHOWLA) (DR. B.R.R. KUMAR) VICE PRESIDENT ACCOUNTANT MEM BER DATED: 20/04/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR