Shri Chandra Swami, New Delhi V. DCIT, New Delhi

ITA 313/DEL/2015

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0234 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 16-07-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 15-01-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANOJ KR CHOPRA
• Assessee Lawyers: SEKHON
• Keywords: Unexplained expenditure; Source of fund
• Section: 69C; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH SMC-2, NEW DELHI) BEFORE SHRI J. S. REDDY, ACCOUNTANT MEMBER I.T.A. NO.313 /DEL/2015 ASSESSMENT YEAR : 2010-11 CHANDRA SWAMI, VS. DCIT, CC-20, C-18-19, NEW DELHI QUTAB INDUSTRIAL AREA, NEW DELHI GIR / PAN:ABJPS5374H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.S.SEKHON, CA RESPONDENT BY : SHRI MANOJ KR. CHOPRA, SR. DR DATE OF HEARING : 16.07.2015 DATE OF PRONOUNCEMENT : 21.07.2015 ORDER THIS IS AN APPEAL FILED BY ASSESSEE DIRECTED AGAIN ST THE ORDER OF LD. CIT(A)-XXXI, NEW DELHI, DATED 31.10.2014 FOR THE AS SESSMENT YEAR 2010- 11 ON THE FOLLOWING GROUND: 1. THAT THE LD. CIT(A) XXXI, DELHI, HAS ERRED IN CO NFIRMING AN ADDITION OF RS.4 LACS OUT OF AN ADDITION OF RS.6 LA CS MADE BY THE A.O. ON ESTIMATED BASIS WHICH MADE UNDER SECTION 69C OF THE ACT ON ACCOUNT OF UNEXPLAINED EXPENDITURE. 2. THE BRIEF FACTS OF THE CASE ARE THAT, THE ASSESS EE FILED A E-RETURN OF INCOME ON 31.03.2011, DECLARING NIL INCOME. THE ORDER U/S 143(3) WAS PASSED BY THE A.O. DETERMINING THE TOTAL INCOME AT RS.6 LACS. THE GROUND FOR ADDITION IS THAT THE ASSESSEE HAS NOT DECLARED INCOME AND HAS ALSO NOT FURNISHED SPECIFIC DETAILS OF EXPENSES INCURRED FOR HIS LIVELIHOOD. THE ASSESSEE SUBMITTED THAT HE HAS VERY SPARE MEANS AND DID NOT INCUR ANY EXPENSES FOR HIS LIVELIHOOD SINCE THESE ARE TAKEN C ARE OF BY HIS DEVOTEES. ITA NO.313/DEL/2015 2 THE FIRST APPELLATE AUTHORITY RESTRICTED THE ADDITI ON TO RS.4 LACS. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 3. LD. COUNSEL FOR THE ASSESSEE MR. M. S. SEKHON, C A SUBMITTED THAT THE ADDITION HAS BEEN MADE AS PER PROVISIONS OF SECTION 69C OF THE I. T. ACT, 1961. HE SUBMITTED THAT THE ASSESSEE LIVES SINGLE AND HAS VERY SPARE NEEDS AND DOES NOT HAVE TO INCUR ANY EXPENDITURE AND THAT ALL HIS NEEDS ARE TAKEN CARE OF BY HIS VAST FOLLOWERS AND DEVOTEES. IT WAS FURTHER SUBMITTED THAT WHEN HE TRAVELS, IT IS ON THE INVITATION OF HIS FOL LOWER AND THAT THE FOLLOWERS INCUR ALL THE EXPENDITURE AND THAT HE STAYS IN THE ASHRAM AND HIS FOOD IS PROVIDED BY THE ASHRAM KITCHEN. HE ARGUED THAT THE ASSESSEE IS A SWAMYJI AND DOES NOT HAVE ANY PERSONAL EXPENSES AND THAT HE LIVES A LIFE OF A HERMIT. HE VEHEMENTLY CONTENDED THAT ESTIMATING INCOME, WIT HOUT GIVING THE BREAK UP OR THE BASIS FOR ESTIMATING HIS INCOME, SHOULD N OT BE SUSTAINED. HE CONTENDED THAT THIS IS GUESS WORK AND DETERMINATION WAS BASED ON THE WHIMS AND FANCIES OF THE OFFICERS. HE PRAYED FOR RELIEF. 4. LD. D.R. ON THE OTHER HAND SUBMITTED THAT THE AS SESSEE IS LIVING A VERY LUXURIOUS LIFE AND IS REQUIRED TO INCUR EXPENSES ON HIS LIVING, FOOD, TRAVEL AND OTHER SOCIAL OBLIGATIONS. HE ALSO SUBMITTED THAT T HE ASSESSEE HAS NOT GIVEN ANY PARTICULARS OF EXPENSE INCURRED AND THE DETAILS OF DEVOTEES WHO HAVE PROVIDED FACILITIES THOUGH REQUIRED AND HE ARGUED T HAT THE ORDER OF FIRST APPELLATE AUTHORITY SHOULD BE UPHELD. 5. AFTER HEARING RIVAL CONTENTIONS, WE FIND THAT TH E FIRST APPELLATE AUTHORITY HAS RECORDED THAT THE ADDITION IN QUESTIO N HAS BEEN MADE ON ESTIMATE BASIS. HE HAS ALSO RECORDED THAT NO CONCR ETE MATERIAL HAS BEEN BROUGHT ON RECORD BY THE A.O. HE SUSTAINED THE ADD ITION FOR THE SOLE REASON THAT THE ASSESSEE HAS NOT FURNISHED ANY DETAILS ABO UT THE SOURCES OF INCOME ITA NO.313/DEL/2015 3 FOR INCURRING OF EXPENSE FOR HIS LIVELIHOOD. IT IS NOT DISPUTED THAT THE ASSESSEE IS A HERMIT. THERE IS NO MATERIAL TO SHOW THAT HE SWAMY IS LEADING A LUXURIOUS LIFE. UNDER THESE CIRCUMSTANCES, KEEPIN G IN VIEW THE FACTS AND CIRCUMSTANCES OF THE CASE, AND AS THE ASSESSEE LIVE S ALONE AS A HERMIT, IN A ROOM IN THE ASHRAM AND THE FACT THAT HIS FOOD COMES FROM THE ASHRAM KITCHEN OR FROM THE DEVOTEES, THE ESTIMATION OF EXP ENSES IS ON THE HIGHER SIDE. AS THE ASSESSEE HAS NOT GIVEN ANY DETAILS, I AM FORCED TO MADE AN ESTIMATE OF EXPENSES. I AM OF THE OPINION THAT IN THE INTEREST OF JUSTICE, LIMIT OF MONTHLY EXPENDITURE IS ESTIMATED AT RS.10,000/-. ACCORDINGLY, WE RESTRICT THE ADDITION TO RS.1.20 LACS FOR THE WHOLE YEAR. T HE BALANCE ADDITION AS CONFIRMED BY THE FIRST APPELLATE AUTHORITY IS HEREB Y DELETED. 6. IN THE RESULT, APPEAL FILED BY ASSESSEE IS ALLOW ED IN PART. 7. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST JULY, 2015. SD./- (J. S. REDDY) ACCOUNTANT MEMBER DATE:21 ST JULY, 2015 SP COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER (ITAT, NEW DELHI). ITA NO.313/DEL/2015 4 S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 16/7 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 20,21 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS 21/7 SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 21/7 SR. PS/PS 7 FILE SENT TO BENCH CLERK 21/7 SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER