M/s. Sherawali Yarns Pvt. Ltd., New Delhi V. ACIT, Meerut

ITA 2997/DEL/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3423 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 14-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAUSHLENDRA TIWARI
• Assessee Lawyers: SU VINAY DASH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE SH. G.D.AGARWAL, PRESIDEN T AND SH. KUL BHARAT, JUDICIAL M EMBER ITA NO. 2997/DEL./2015 : A SSTT. YEAR : 2011-12 SHERAWALI YARNS PVT. LTD. 14D, 14 TH FLOOR, HANSALAYA, 15, BARAKHAMBA ROAD NEW DELHI PAN : AAICS3421L VS ACIT CENTRAL CIRCLE, BHAINSALI ROAD MEERUT (APPELLANT) (RESPONDENT) APPELLANT BY : SH. SU VINAY DASH, ADV. RESPONDENT BY : SH. KAUSHLENDRA TIW ARI, SR. DR DATE OF HEARING : 22.02.2018 DATE OF PRONOUNCEMENT : 23.02.2018 ORDER PER KULBHARAT, J.M. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) MEERUT, DA TED 11.03.2015 PERTAINING TO ASSESSMENT YEAR 2011-12. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APP EAL :- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), MEERUT, ERRED IN LAW AS WELL AS ON FACTS IN CONFIRMING THE ADDITION OF RS. 34,500/- MADE BY ITA NO.2997/DEL/2015 2 THE A.O., BEING THE AMOUNT OF CASH FOUND DURING THE COURSE OF SEARCH, 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), MEERUT, ERRED IN LAW AS WELL AS ON FACT IN CONFIRMING THE ACTION OF THE A.O . WITHOUT CONSIDERING THE FACT THE AMOUNT WAS DULY RECORDED I N THE BOOKS OF ACCOUNTS OF THE ASSESSEE. 3. BRIEFLY STATED THE FACTS ARE THAT A SEARCH OPER ATION WAS CARRIED OUT AT BANK ACCOUNTS OF THE ASSESSEE HELD IN THE ORIENTAL BANK OF COMMERCE, MALAYANA BRANCH, MEERUT THE INVESTMENT IN FDR AND C ASH OF RS. 34,500/- WAS FOUND, A NOTICE WAS ISSUED TO THE ASSESSEE U/S 142 (1) OF THE INCOME TAX ACT, 1961(HEREINAFTER REFERRED TO AS THE ACT). IN RESP ONSE THERETO THE ASSESSEE FILED RETURN OF INCOME AT RS. 54,82,323/-. THE ASSESSING OFFICER ISSUED A NOTICE U/S 143(2) AND FRAMED ASSESSMENT U/S 143(3) OF THE ACT VIDE ORDER DATED 28.3.2013 THEREBY THE ASSESSING OFFICER MADE ADDITION OF RS. 34,500/-, AN ACCOUNT OF UNEXPLAINED CASH. AGAINST THIS, THE ASSESSEE PREFER RED IN APPEAL BEFORE THE CIT(A) WHO DISMISSED THE APPEAL ON THE GROUND THAT THE ASSESSEE FAILED TO DEPOSIT THE REQUISITE TAX ON THE INCOME OF DECLARED IN THE RETURN INCOME. NOW THE ASSESSEE IS IN APPEAL AGAINST THIS ORDER BEFORE THIS TRIBUNAL. ONLY EFFECTIVE GROUND IS AGAINST DISMISSAL OF APPEAL AND CONFIRMAT ION OF ADDITION. 4. LD. COUNSEL FOR THE ASSESSEE DURING THE COURSE O F HEARING PRODUCE THE EVIDENCE OF THE TAX PAID BY THE ASSESSEE ON THE INC OME DECLARED. LD. COUNSEL SUBMITTED THAT THE ASSESSEE HAS DECLARED INCOME OF RS. 54,82,323/-, THE AMOUNT WAS CASH ON HAND. HE SUBMITTED UNDER THE FACTS OF T HE PRESENT CASE, THE ASSESSING OFFICER IS NOT JUSTIFIED TO MAKE ADDITION OF THIS AMOUNT. ON THE CONTRARY, LD. DEPARTMENTAL REPRESENTATIVES SUPPORTE D THE ASSESSMENT ORDER. 5. WE HAVE HEARD THE RIVAL CONTENSIONS PERUSED THE MATERIAL AVAILABLE ON RECORD, WE FIND THAT THE APPEAL OF THE ASSESSEE WAS DISMISSED ON ACCOUNT OF NON- ITA NO.2997/DEL/2015 3 PAYMENT OF TAX. NOW THE ASSESSEE HAS FURNISHED EVI DENCE OF PAYMENT OF TAX. AFTER CONSIDERING THE TOTALITY OF THE FACTS, WE ARE OF THE VIEW THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN MAKING ADDITION OF RS. 34,500/-. WE, THEREFORE, DIRECT THE ASSESSING OFFICER TO DELETE THE SAME. 6. IN THE RESULT, THE GROUND RAISED IN THIS APPEAL ARE ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 23/0 2/2018). SD/- SD/- (G.D.AGARWAL) (KUL BHARAT) PRESIDENT JUDICIAL MEMBER DATED: 23 / 02/2018 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR DATE INITIAL 1. DRAFT DICTATED ON 22.02.2018 2. DRAFT PLACED BEFORE AUTHOR 22.02.2018 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 5. APPROVED DRAFT COMES TO THE SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON 23.02.2018 7. FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.