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ITA 2543/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74306 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 04-03-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 30-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY BHAGWANI
• Assessee Lawyers: SAMEER SHARMA
• Section: 37(1)

Judgement Text

ITA NO. 2543/DEL/2013 ASSTT. YEAR: 2009-10 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH `H NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER I.T.A.NO.2543/DEL/2013 ASSESSMENT YEAR : 2009-10 ASSTT.COMMISSIONER OF INCOME TAX, VS VIRTUAL BU ILDERS (P) LTD., CENTRAL CIRCLE-23, ROOM NO. 359, M-11, MIDDLE CIRCLE, E-2, ARA CENTRE, CONNAUGHT PLACE, JHANDEWALAN EXTN., NEW DELHI-110001 NEW DELHI. (PAN:AABCV8989M) (APPELLANT) (RESPOND ENT) APPELLANT BY: SHRI AJAY BHAGWANI RESPONDENT BY : SHRI SAMEER SHARMA, SR.DR O R D E R PER CHANDRAMOHAN GARG, J.M. THIS APPEAL HAS BEEN PREFERRED BY THE REVENUE AGAI NST THE ORDER OF COMMISSIONER OF INCOME TAX(A)-XXXIII, NEW DELHI DA TED 22.01.2013 IN APPEAL NO. 290/11-12/975 FOR AY 2009-10. 2. GROUND NO. 2 & 3 OF THE REVENUE ARE GENERAL IN NATURE WHICH NEED NO ADJUDICATION. SOLE REMAINING GROUND OF THE REVENUE READS AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.55,00,000/- MADE BY THE ASSESSING OFFICER IN VIE W OF THE PROVISIONS OF SECTION 37(1) OF THE INCOME TAX A CT, 1961 ON ACCOUNT OF ADDITIONAL PAYMENT IN VIOLATION OF STAMP DUTY ACT. ITA NO. 2543/DEL/2013 ASSTT. YEAR: 2009-10 2 3. WE HAVE HEARD RIVAL ARGUMENTS OF BOTH THE PARTIE S AND CAREFULLY PERUSED THE RECORD, INTER ALIA, PAPER BOOK FILED BY THE ASSESSEE CONSISTING OF 35 PAGES AND WRITTEN SYNOPSIS/SUBMISSIONS OF THE AS SESSEE FILED DURING THE ARGUMENTS BEFORE US. THE WRITTEN SUBMISSIONS OF TH E ASSESSEE READ AS UNDER:- 1. THE ONLY GROUND IS AGAINST DISALLOWANCE OF RS.55,00,000/- ON ACCOUNT OF ADDITIONAL PAYMENT MAD E TO MR. BALBIR SINGH AND MR. LAKHMI CHAND IN RESPECT OF PURCHASE OF LAND. 2. VIDE LETTER DATED 18.12.2012 (COPY AT PAGES 1 T O 2), IT WAS SUBMITTED BEFORE THE CIT(A) THAT THE SAI D ADDITION HAS ERRONEOUSLY BEEN MADE IN THE HANDS OF THE ASSESSEE. THE LAND WAS PURCHASED ACTUALLY BY SHALIM AR TOWN PLANNER PVT. LTD AND THIS ADDITIONAL PAYMENT W AS DULY CONSIDERED IN THE HANDS OF SHALIMAR TOWN PLANN ER PVT. LTD IN THEIR ASSESSMENT. COPY OF THE ASSESSMEN T ORDER IS FILED WHICH IS AT PAGES 3 TO 22. A DISALLO WANCE OF RS.55,00,000/- WAS MADE IN THAT CASE (WHICH IS INCL UDED IN THE TOTAL DISALLOWANCE OF RS.58,78,500/-) (REFER PAGE NO. 14 OF PAPER BOOK, WHICH CONTAINS DETAILS OF ADDITIONAL PAYMENT.). 3. THE CIT(A) DIRECTED IN PARA 5.3.7 AS UNDER:- 'FURTHER, DURING APPELLATE PROCEEDINGS, LD. AR HAS MADE WRITTEN SUBMISSION THAT ADDITIONAL PAYMENT IN QUEST ION HAS ALSO BEEN ADDED IN THE HANDS OF ANOTHER COMPANY OF BPTP GROUP NAMELY M/S SHALIMAR TOWN PLANNER PVT. LTD. FOR AY 2009-10. ASSESSING OFFICER IS REQUESTED TO ASCERTAIN THE FACTS IN WHOSE HAND THE LAND HAS BEEN PURCHASED, DISALLOWANCE ON ACCOUNT OF ADDITIONAL PAYMENT ON THE BASIS OF ABOVE DECISION IS UPHELD IN THE RESPECTIVE CASE. IN OTHER HANDS, THE ADDITION SHOUL D BE DELETED ENTIRELY. ' ITA NO. 2543/DEL/2013 ASSTT. YEAR: 2009-10 3 4. A LETTER WAS FILED BEFORE THE AO ON 12.04.2013 (COPY AT PAGE 36 TO 37) ENCLOSING COPY OF THE SALE DEED A ND RECEIPTS BY SHALIMAR TOWN PLANNER PVT. LTD. BEING SATISFIED, THE AO DELETED THE ADDITION WHILE GIVING EFFECT TO ORDER OF APPEAL IN APPEAL NO. 290/11-12/975 DATE D 22.01.2013. A COPY OF HIS ORDER U/S 250/143(3) DATE D 30.04.2013 IS AT PAGE 38. 5. IN VIEW OF ABOVE, THE DEPARTMENT'S APPEAL, IT I S SUBMITTED, BECOMES INFRUCTUOUS, AND MAY KINDLY BE DISMISSED. 4. LD. DR FAIRLY ACCEPTED THAT ON VERIFICATION FROM THE DEPARTMENTAL RECORD, IT HAS BEEN FOUND THAT AS PER PARA 5.3.7 OF CIT(A) IN THE IMPUGNED ORDER, THE AMOUNT OF ADDITIONAL PAYMENT IN QUESTION IN THIS APPEAL HAS ALSO BEEN ADDED IN THE HANDS OF ANOTHER COMPANY OF BPTP GROUP NAMELY M/S SHALIMAR TOWN PLANNER PVT. LTD. FOR AY 2009-10. TH E DR FURTHER EXPLAINED THAT THE DEPARTMENT HAS NO SERIOUS OBJECT ION TO THE OBSERVATIONS AND FINDINGS OF THE COMMISSIONER OF INCOME TAX(A) I N THE IMPUGNED ORDER AFTER VERIFICATION OF ABOVE FACTS FROM THE ASSESSME NT ORDER OF M/S SHALIMAR TOWN PLANNER PVT. LTD. FOR AY 2009-10 (AVAILABLE ON PAPER BOOK OF THE ASSESSEE FROM PAGE 3 TO 22). 5. IN VIEW OF ABOVE, WE HOLD THAT THE COMMISSIONER OF INCOME TAX(A) RIGHTLY DELETED THE ADDITION IN VIEW OF ADDITION MA DE IN THE HANDS OF ANOTHER COMPANY OF BPTP GROUP I.E. M/S SHALIMAR TOWN PLANNE R PVT. LTD. FOR AY 2009-10. FROM PAGE NO. 38 OF THE PAPER BOOK, WE AL SO OBSERVE THAT BEING ITA NO. 2543/DEL/2013 ASSTT. YEAR: 2009-10 4 SATISFIED BY THE ABOVE ASSESSMENT ORDER OF M/S SHAL IMAR TOWN PLANNER PVT. LTD., THE ASSESSING OFFICER DELETED THE ADDITION IN THE HANDS OF ASSESSEE WHILE GIVING EFFECT TO THE IMPUGNED ORDER OF THE CO MMISSIONER OF INCOME TAX(A). ACCORDINGLY, WE HOLD THAT SOLE GROUND OF T HE REVENUE IN THIS APPEAL IS DEVOID OF MERITS AND DESERVES TO BE DISMISSED AN D WE DISMISS THE SAME. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14.3.2014. SD/- SD/- (G.D. AGRAWAL) (CHANDRA MOHAN GARG) VICE PRESIDENT JUDICIAL MEMBER DT. 14TH MARCH 2014 GS COPY FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSTT. REGISTRAR