Mrs. Lakshmi Chadha, New Delhi V. ITO, New Delhi

ITA 2747/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7318 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 13-06-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 05-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N J SINGH
• Assessee Lawyers: SUMIT SETH
• Section: 154

Judgement Text

1 ITA NO. 2749/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-2 NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER ITA NS. 2747/DEL/2014 ASSTT. YR: 2007-08 LAKSHMI CHADHA VS. INCOME-TAX OFFICER, C-7/122, SAFDARJUNG DEVELOPMENT AREA, WARD 24(1), NEW DELHI. NEW DELHI-110018. PAN: AAGPC 8400 Q ( APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI SUMIT SETH CA RESPONDENT BY : SHRI N.J. SINGH SR. DR DATE OF HEARING : 13/06/2016. DATE OF ORDER : 14/06/2016. O R D E R THIS IS ASSESSEES APPEAL AGAINST THE ORDER DATE D 7.2.2014, PASSED BY THE LD. CIT(A)-XI, NEW DELHI IN APPEAL NO. 193/11-1 2/(142/13-14), RELATING TO AY 2007-08. 2. SOLE EFFECTIVE GROUND RAISED IS AS UNDER: ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LE ARNED CIT(A) HAS ERRED IN CONFIRMING ADDITION OF ACCRETIO N TO THE CAPITAL ACCOUNT OF RS. 9,13,723/-. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FI LED HER RETURN OF INCOME, DECLARING AN INCOME OF RS. 5,77,768/- IN RESPECT OF INCOME DERIVED FROM COMMISSION UNDER THE HEAD BUSINESS AND ALSO DERIV ED INCOME FROM CAPITAL GAINS AND INTEREST. THE AO HAS OBSERVED THAT ASSES SEE WAS REQUIRED TO FILE THE DETAILS OF SOURCE OF ADDITIONS TO THE PROPRIETO RS CAPITAL ACCOUNT, BUT THE 2 ITA NO. 2749/DEL/2014 SAME WERE NOT PROVIDED. HE, THEREFORE, MADE ADDITIO N OF RS. 9,13,723/- AS UNDER: BALANCE AS PER LAST YEAR 31/03/2006 DR. RS. 12,32, 372/-(-) PROFIT TRANSFERRED TO CAPITAL ACCOUNT CR. RS. 4,4 7,548/- BALANCE: DR. RS. 7,84,824/- BALANCE AS PER BALANCE SHEET CR. RS. 1,28,899/- ADDITION TO THE CAPITAL A/C DURING THE YEAR RS. 9,13,723 /- 4. THE ASSESSMENT WAS, ACCORDINGLY, COMPLETED, INTE R ALIA, BY MAKING ADDITION OF RS. 9,13,723/-. 5. BEFORE LD. CIT(A) THE ASSESSEE HAD FILED DETAILS OF ADDITIONS MADE TO CAPITAL A/C AND HAD POINTED OUT THAT THE ADDITION T O THE CAPITAL A/C WAS OF RS. 3,00,000/- ONLY. LD. CIT(A) HAS REPRODUCED DETAILS AT PAGE 19 OF HIS ORDER, BUT DID NOT ACCEPT THE SAME. AGGRIEVED, THE ASSESSE E IS IN APPEAL BEFORE THE TRIBUNAL. 6. LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT TH E AO HAS TAKEN THE BALANCE IN CAPITAL A/C AS ON 31.3.2007 AT RS. 1,28, 899/-, BUT DEBIT BALANCE IS RS. 4,85,824/-. IN THIS REGARD HE REFERRED TO PAGE 80 OF THE PB, WHEREIN THE BALANCE-SHEET AS ON 31.3.2007 IS CONTAINED, TO SUBS TANTIATE HIS CLAIM. 7. I FIND FROM THE BALANCE-SHEET THAT THE CLOSING B ALANCE IS DEBIT RS. 4,85,823.61. THEREFORE, APPARENTLY, THE AO HAS NOT TAKEN THE CORRECT CLOSING BALANCE OF THE CAPITAL A/C. FURTHER, LD. COUNSEL TO OK ME THROUGH THE BALANCE SHEET AS ON 31.3.2006 TO DEMONSTRATE THAT THE CLOSI NG BALANCE WAS DEBIT RS. 12,32,372.07 AND IN THE P&L A/C THERE WAS CREDIT BA LANCE OF RS. 4.47.548.46, WHICH WAS TRANSFERRED TO CAPITAL A/C. 8. LD. COUNSEL POINTED OUT THAT IF ALL THE ADJUSTME NTS ARE PROPERLY DONE THEN THE ADDITION TO THE CAPITAL WOULD BE ONLY RS. 2,99,000/- ONLY. HE POINTED OUT THAT A PETITION U/S 154 IS PENDING IN T HIS REGARD BEFORE AO. 3 ITA NO. 2749/DEL/2014 9. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PA RTIES AND FIND THAT THE ASSESSEES PLEAS HAVE NOT CORRECTLY BEEN APPRECIATE D BY BOTH THE LOWER REVENUE AUTHORITIES AND, THEREFORE, I RESTORE THIS MATTER TO THE FILE OF AO TO CONSIDER IN DETAIL THE SUBMISSIONS ADVANCED BY LD. COUNSEL FOR THE ASSESSEE AND THEN CORRECTLY FIND OUT THE ADDITIONS MADE TO T HE CAPITAL A/C AND THEN TO EXAMINE THE SOURCE OF THE SAME. THE AO IS DIRECTED TO DE NOVO CONSIDER THE ISSUE IN QUESTION IN ACCORDANCE WITH LAW. 10. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCEMENT IN OPEN COURT ON 14/06/2016. SD/- (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED:14/06/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.