ITO, New Delhi V. Asia Security (P) Ltd., New Delhi

ITA 2951/DEL/2012

• Counselvise Citation: 295120114 RSA 2012
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 21-08-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 13-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS ANUSHA KHURANADR
• Section: 142(1); 147; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI A BENC H BEFORE SHRI A.D. JAIN, JM & SHRI A.N. PAHUJA, AM ITA NO.2951/DEL/2012 ASSESSMENT YEAR:2003-04 INCOME-TAX OFFICER, WARD 2(2), ROOM NO.389A, C.R. BUILDING, I.P. ESTATE, NEW DELHI V/S . M/S ASIA SECURITY (P) LTD., 45, BASANT LOK, NEW DELHI-57 [PAN : NOT AVAILABLE] (APPELLANT) (RESPONDENT) ASSESSEE BY NONE REVENUE BY MRS. ANUSHA KHURANA,DR DATE OF HEARING 21-08-2012 DATE OF PRONOUNCEMENT 21-08-2012 O R D E R A.N.PAHUJA:- THIS APPEAL FILED ON 13.06.2012 BY THE REVENUE AGAI NST AN ORDER DATED 16.04.2012 OF THE LD. CIT(A)-V, NEW DELHI, RA ISES THE FOLLOWING GROUNDS:- 1) THE LD. (A) HAS ERRED ON FACTS AND IN DELETING THE ADDITION OF ` ` 10,00,000/- MADE BY THE AO ON ACCOUNT OF UNEXPLAINED INCOME. 2. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIGHT TO AMEND, MODIFY ALTER, ADD OR FOREGO ANY GRO UND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. AT THE OUTSET, NONE APPEARED BEFORE US ON BEHAL F OF THE ASSESSEE NOR SUBMITTED ANY REQUEST FOR ADJOURNMENT. CONSIDE RING THE NATURE OF ISSUE AND FINDINGS OF THE LD. CIT(A), THE BENCH PROCEEDED TO DISPOSE OF THE APPEAL AFTER HEARING THE LD. DR. ITA N O .2951/DEL./2012 2 3. FACTS, IN BRIEF, AS PER RELEVANT ORDERS ARE T HAT AN INFORMATION WAS RECEIVED BY THE ASSESSING OFFICER[AO IN SHORT] FROM DIT (INVEST IGATION), NEW DELHI THAT THE ASSESSEE WAS ONE OF THE BENEFICIARIES OF ACCOMMODAT ION ENTRY OF ` ` 10 LACS PROVIDED BY M/S SOBERS ASSOCIATES (P) LTD. ON 30.01 .2003. THE AO, ACCORDINGLY, RECORDED REASONS IN WRITING AND REOPE NED THE ASSESSMENT U/S 147 OF THE INCOME-TAX ACT, 1961, (HEREINAFTER REFERRED TO AS THE ACT) WITH THE ISSUE OF A NOTICE DATED 26.03.2010 U/S 148 OF THE ACT. IN R ESPONSE, THE ASSESSEE DID NOT FILE ANY RETURN. EVEN THE NOTICE DATED 16.9.2010 I SSUED U/S 142(1) OF THE ACT ALONG WITH A QUESTIONNAIRE AND SUBSEQUENT NOTICE D ATED 26.11.2010 ISSUED U/S 142(1) OF THE ACT, WENT ON RESPONDED . ACCORDINGLY , THE AO COMPLETED THE ASSESSMENT U/S 144 OF THE ACT ON THE BASIS OF INFOR MATION AVAILABLE ON RECORD AND ADDED THE AMOUNT OF ` `10 LACS RECEIVED BY WAY OF ACCOMMODATION ENTRY FROM M/S SOBER ASSOCIATES (P) LTD. ON 30.01.2003 . 4. ON APPEAL, THE LD. CIT(A) DELETED THE ADDITION, HOLDING AS UNDER: 4. THE ASSESSING OFFICER HAD INITIATED THE PROCEE DINGS U/S 147 ON THE BASIS OF INFORMATION RECEIVED FROM T HE INV. WING AS NOTED ABOVE. DURING THE APPEAL PROCEEDINGS THE APP ELLANT HAS STATED THAT IT HAD NEVER OPENED ANY BANK A/C IN ORI ENTAL BANK OF COMMERCE, SECTOR-27, NOIDA OR IN ANY OTHER BANK AND ALSO THAT IT HAD NEVER DONE ANY BUSINESS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER ISSUED LETTERS T O ORIENTAL BANK OF COMMERCE AND STATE BANK OF PATIALA REQUIRING THE M TO PROVIDE BANK STATEMENTS OF ASIA SECURITIES (P) LTD. AND SOB ERS ASSOCIATES (P) LTD. STATE BANK OF PATIALA SENT A BANK STATEME NT OF SOBERS ASSOCIATES (P) LTD., IT SHOWED A CHEQUE NO.74472 WA S CLEARED ON 30.1.2003. THE SAID BANK STATEMENT DID NOT SPECIFY THE NAME OF THE RECIPIENT. THE ASSESSING OFFICER HAD COMPLETED THE ASSESSMENT ON 3.12.2010 I.E. AFTER ONEMONTH OF THE RECEIPT OF THE LETTER DATED 4.11.2010 FROM STATE BANK OF PATIALA. THE ASSESSING OFFICER HAD NOT CONDUCTED ANY INQUIRY FURTHER ON RE CEIPT OF THIS LETTER, TO FIND OUT THE NAME OF THE RECIPIENT. FUR THER, ORIENTAL BANK OF COMMERCE HAS CONFIRMED THAT THERE WAS NO BANK A/ C IN THE NAME OF ASIA SECURITIES (P) LTD. IN THE BANK, AS IS EVIDENT FROM ITS LETTER DATED 8.3.2011 WHICH HAS BEEN STATED TO BE O BTAINED BY THE COMPANY FROM THE ORIENTAL BANK OF COMMERCE AND WHI CH IS ADDRESSED TO INCOME-TAX OFFICER, WARD 2(2), C.R. BU ILDING, NEW ITA N O .2951/DEL./2012 3 DELHI IN RESPONSE TO INCOME-TAX OFFICERS LETTER DA TED 20.10.2010. THE BANK HAD INFORMED THE INCOME-TAX OFFICER THAT T HERE WAS NO ACCOUNT IN THE NAME OF M/S ASIA SECURITIES (P) LTD. AND FURTHER THAT IF THE INCOME-TAX OFFICER REQUIRES ANY FURTHER INFO RMATION, IT SHOULD SEND A COPY OF CHEQUE ISSUED AND PASSED FROM THE OR IENTAL BANK OF COMMERCE. IT MAY ALSO BE MENTIONED THAT THE APP ELLANT HAS CATEGORICALLY STATED PARA 23 ABOVE IT HAD NEVER RECEIVED THE AMOUNT OF ` `10 LACS FROM SOBERS ASSOCIATES (P) LTD. IN VIEW O F THE AFORESAID THE ADDITION MADE BY THE AO IS DELETED. 5. THE REVENUE IS NOW IN APPEAL BEFORE US AGAINST THE AFORESAID FINDINGS OF THE LD.CIT(A).THE LD. DR SUPPORTED THE ORDER OF THE AO . 6. WE HAVE HEARD THE LEARNED DR AND GONE THROUGH T HE FACTS OF THE CASE. INDISPUTABLY, ASSESSMENT IN THIS CASE WAS CO MPLETED U/S 144 OF THE ACT, THE ASSESSEE HAVING NOT FILED ANY RETURN NOR EXPLAI NED SOURCE OF INVESTMENT FOR OBTAINING ACCOMMODATION OF ENTRY FROM M/S SOBERS AS SOCIATES (P) LTD. ON APPEAL, THE LD. CIT(A) FOUND THAT THE ORIENTAL BANK OF COMMERCE CONFIRMED THAT THERE WAS NO SUCH ACCOUNT IN THE NAME OF ASIA SECUR ITIES (P) LTD. IN THEIR BANK WHILE THE COPY OF BANK STATEMENT OF SOBERS ASSOCIA TES (P) LTD ., RECEIVED FROM STATE BANK OF PATIALA REFLECTED CHEQUE NO.74472 CLE ARED ON 30.01.2003. HOWEVER, THE SAID STATEMENT DID NOT REVEAL THE NAME OF THE ASSESSEE AS RECIPIENT . IN FACT, THE AO DID NOT MAKE ANY INQUI RIES ON RECEIPT BY LETTER DATED 4.11.2010 FROM THE STATE BANK OF PATIALA NOR BROUGH T ANY MATERIAL ON RECORD THAT THE ASSESSEE WAS RECIPIENT OF ACCOMMODATION ENTRY.. IN THE LIGHT OF AFORESAID FINDINGS OF THE LD. CIT(A) THAT THE ASSESSEE NEVER RECEIVED THE AMOUNT OF ` ` 10 LACS FROM M/S SOBERS ASSOCIATES (P) LTD. WHILE TH E REVENUE HAVE NOT PLACED BEFORE US ANY MATERIAL, CONTROVERTING THE AFORESAID FINDINGS OF FACTS RECORDED BY THE LD. CIT(A) SO AS TO ENABLE US TO TAKE A DIFFER ENT VIEW IN THE MATTER, WE ARE NOT INCLINED TO INTERFERE . THEREFORE, GROUND NO.1 IN THE APPEAL IS DISMISSED. 7. NO ADDITIONAL GROUND HAVING BEEN RAISED IN TERM S OF RESIDUARY GROUND NO.2 IN THE APPEAL, ACCORDINGLY, THIS GROUND IS ALSO DISMISSED. ITA N O .2951/DEL./2012 4 8. NO OTHER PLEA OR ARGUMENT WAS MADE BEF ORE US. 9. IN RESULT, APPEAL IS DISMISSED. SD/- SD/- (A.D. JAIN) (A.N. PAHUJA) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) NS COPY OF THE ORDER FORWARDED TO :- 1. ASSESSEE 2. INCOME-TAX OFFICER,WARD 2(2), ROOM NO.389A, C.R. BUILDING,I.P. ESTATE, NEW DELHI 3. CIT CONCERNED 4. CIT(A)-V, NEW DELHI 5. DR, ITAT,A BENCH, NEW DELHI 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, DELHI ORDER PRONOUNCED IN OPEN COURT