ACIT, New Delhi V. Smt. Pushpa Chaudhary, New Delhi

ITA 2983/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7336 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 16-06-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 13-05-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N J SINGH
• Assessee Lawyers: VIPIN MEHRA
• Keywords: Unexplained investment
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-II : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.2983/DEL/2014 ASSESSMENT YEAR : 2007-08 ACIT, CIRCLE-33(1), NEW DELHI. VS. PUSHPA CHAUDHARY, 61/18, RAMJAS ROAD, KAROL BAGH, NEW DELHI. PAN: AOAPC3897B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VIPIN MEHRA, AR DEPARTMENT BY : SHRI N.J. SINGH, SR. DR DATE OF HEARING : 16.06.2016 DATE OF PRONOUNCEMENT : 16.06.2016 ORDER THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER PASSED BY THE CIT(A) ON 17.02.2014 IN RELATION TO T HE ASSESSMENT YEAR 2007-08. ITA NO.2983/DEL/2014 2 2. THE FIRST ISSUE RAISED IN THIS APPEAL IS AGAINST RESTRICTING THE ADDITION OF RS.38,20,800/- TO RS.10,17,601/- AND TH E SECOND ISSUE IS ABOUT DELETION OF ADDITION OF RS.3 LAC MADE BY THE AO ON ACCOUNT OF INCOME FROM OTHER SOURCES. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE AO NOTICED FROM AIR THAT THE ASSESSEE PURCHASED IMMOVABLE PROPERTY ON 10.5.2006 FOR A SUM OF RS.38,20,800/-. NOTICE WAS ISSUED SEEKING D ETAILS. THERE WAS NO RESPONSE FROM THE SIDE OF THE ASSESSEE. EVENTUALLY , THE ASSESSMENT ORDER WAS PASSED U/S 144 MAKING ADDITION U/S 69A TO THE T UNE OF RS.38,20,800/-. APART FROM THAT, THE AO ALSO ESTIM ATED INCOME FROM OTHER SOURCES AT RS.3 LAC. WHEN THE MATTER CAME U P BEFORE THE LD. CIT(A), THE ASSESSEE FURNISHED CERTAIN DETAILS. THE LD. CIT(A) RESTRICTED THE ADDITION TO RS.10,17,601/- BY COMPUTING LONG-TE RM CAPITAL GAIN. THE OTHER ADDITION OF RS.3 LAC WAS ALSO DELETED. THE R EVENUE IS AGGRIEVED AGAINST THE DELETION OF THESE ADDITIONS. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. IT IS SEEN THAT THE AO NOTICED FROM THE AIR ABOUT ITA NO.2983/DEL/2014 3 THE ASSESSEE PURCHASING IMMOVABLE PROPERTY FOR A SU M OF RS.38.20 LAC AND THE ASSESSMENT WAS, ACCORDINGLY, FRAMED TREATIN G THE SAID AMOUNT AS UNEXPLAINED INVESTMENT U/S 69A OF THE ACT. THE ASS ESSEE WAS ABSENT IN THE ASSESSMENT PROCEEDINGS. HOWEVER, DURING THE CO URSE OF FIRST APPELLATE PROCEEDINGS, THE ASSESSEE FILED CERTAIN A DDITIONAL EVIDENCE. THE LD. CIT(A) RESTRICTED THE ADDITION TO RS.10,17, 601/- BY COMPUTING THE LONG-TERM CAPITAL GAIN. THERE IS AN APPARENT C ONTRADICTION BETWEEN THE STAND OF THE AO AND THAT OF THE LD. CIT(A). WH EREAS THE AO MADE THE ADDITION ON THE BASIS OF AIR INFORMATION THAT T HE ASSESSEE PURCHASED THE PROPERTY, THE SOURCE OF WHICH WAS UNEXPLAINED, THE LD. CIT(A) TREATED THE TRANSACTION AS THAT OF SALE OF PROPERTY RESULTING INTO CAPITAL GAIN. THIS WAS DONE ON THE BASIS OF CERTAIN FRESH EVIDENCE ENTERTAINED BY THE LD. CIT(A) WHICH WAS OBJECTED TO BY THE AO. SINCE THE SUBJECT MATTER OF THE ADDITION GOT COMPLETELY CHANGED FROM PURCHASE OF PROPERTY TO SALE OF PROPERTY, I AM OF THE CONSIDERE D OPINION THAT THE ENDS OF JUSTICE WOULD MEET ADEQUATELY IF THE IMPUGNED OR DER IS SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF AO. I ORDER ACCORDINGLY AND DIRECT THE AO TO REFRAME THE ASSESSMENT DENOVO . THE LD. AR HAS UNDERTAKEN TO ITA NO.2983/DEL/2014 4 PROVIDE FULL COOPERATION TO THE AO DURING THE COURS E OF FRESH ASSESSMENT PROCEEDINGS. THE AO WILL ALSO DECIDE AFRESH ABOUT THE INCOME FROM OTHER SOURCES WHICH WAS ESTIMATED BY HIM AT RS.3 L AC WHICH GOT DELETED IN THE FIRST APPEAL. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 16.06.201 6. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 16 TH JUNE, 2016. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.