Anil Kumar Singh, New Delhi V. ACIT, New Delhi

ITA 2927/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66003 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 13-12-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 12-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHIM SINGH
• Keywords: Opportunity of being heard
• Section: 40A(3)

Judgement Text

ITA NO. 2927/DEL/2012 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 2927/DEL/2012 A.Y. : 2008-09 SH. ANIL KUMAR SINGH, PROP. M/S. THE DESIGNER CONSORTIUM, J-256, BASEMENT, SAKET, NEW DELHI (PAN : AATPS6896B) VS. ACIT, CIRCLE 38(1), NEW DELHI (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSESSEE BY : SH. VED JAIN, CA & SMT. RANO JAIN, CA DEPARTMENT BY : SH. BHIM SINGH, D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-XXVIII, NEW DELHI DATED 26.3.2012 PERTAINING TO ASSESSMENT YEAR 2008-09. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCO ME TAX (A) ERRED IN UPHOLDING THE DISALLOWANCE OF AN AMOUNT OF ` 12, 24,291/- INVOKING THE PROVISIONS OF SECTION 40A(3) OF THE ACT. 3. THE ASSESSEE IN THIS CASE IS AN INDIVIDUAL AND C IVIL ENGINEER BY PROFESSION. DURING THE COURSE OF ASSESSMENT FRO M VERIFICATION OF BOOKS, BILLS AND VOUCHERS OF THE ASSESSEE, ASSESSI NG OFFICER OBSERVED THAT THE ASSESSEE HAS MADE CASH PURCHASES DURING THE PERIOD. ITA NO. 2927/DEL/2012 2 ASSESSEE WAS ASKED TO SUBSTANTIATE THE CASH PURCH ASES IN LIGHT OF THE PROVISION OF SECTION 40A(3) OF THE I.T. ACT. ASSES SING OFFICER WAS NOT SATISFIED WITH THE ASSESSEES EXPLANATION IN THIS R EGARD. HE FOUND THAT THE ASSESSEE HAS MADE PAYMENTS IN CONTRAVENTION OF SECTION 40A(3) OF THE I.T. ACT AND HIS CASE DOES NOT FALL U NDER ANY SPECIFIC SITUATION/CIRCUMSTANCE MENTIONED UNDER RULE 6D. TH EREFORE, THESE EXPENSES WERE DISALLOWED IN TOTO AND ADDED BACK TO THE INCOME OF THE ASSESSEE. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (A) CONFIRMED THE ADDITION. 5. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPEA L BEFORE US. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORDS. AT THE OUTSET, LD. COUNSEL OF THE ASSESSEE SUBMITTED TH AT THE LOWER AUTHORITIES HAVE BEEN FACTUALLY WRONG IN THIS REGAR D. HE CLAIMED THAT THOUGH THE EXPENDITURE IN THE CASH BOOK APPEARED TO BE ` 20,000/- OR MORE IN A DAY, BUT THAT PAYMENT COMPRISED SEVERAL SMA LL PAYMENTS, WHICH WERE OF AMOUNT LOWER THAN ` 20,000/-. HENCE, HE PRAYED THAT THE MATTER MAY BE REMITTED TO THE FILE OF THE ASSESS ING OFFICER TO EXAMINE THE CONTENTION OF THE ASSESSEE. LD. DEPARTME NTAL REPRESENTATIVE DID NOT HAVE ANY SERIOUS OBJECTION T O THIS PROPOSITION. ACCORDINGLY, IN THE INTEREST OF JUSTICE, WE REMIT TH IS ISSUE TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER IS DI RECTED TO EXAMINE WHETHER THE CASH PAYMENTS ARE IN VIOLATION OF PROVI SION OF SECTION ITA NO. 2927/DEL/2012 3 40A(3), IN LIGHT OF THE ASSESSEES SUBMISSIONS THAT SINGLE PAYMENT MENTIONED IN THE CASH BOOK COMPRISED OF SMALL-SMALL PA YMENTS OF AMOUNT LESS THAN ` 20,000/-. NEEDLESS TO ADD THAT T HE ASSESSEE SHOULD BE GIVEN ADEQUATE OPPORTUNITY OF BEING HEARD. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19/12/2012. SD/- SD/- [ [[ [RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 19/12/2012 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES