Jacarnda Capital Ltd., Delhi V. DCIT, Central Circle- 25, New Delhi

ITA 314/DEL/2019

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2305 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 24-04-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 16-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 15; 43; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No.314 /Del/2019 Assessment Year 2013-14 M/s. Jacaranda Capital Ltd. 412-C, Usha Kiran building Commercial Complex, Azadpur Delhi Vs. Dy. Commissioner of Income Tax Central Circle-25 New Delhi TAN/PAN: AACCJ1583G (Appellant) (Respondent) Applicant by: None Respondent by: Mr. Waseem Arshad, CIT (DR) Date of hearing: 25 04 2024 Date of pronouncement: 17 05 2024 O R D E R PER PRADIP KUMAR KEDIA - A.M.: T h e c a p t i on e d a p pe a l h a s be e n f i l e d b y t h e a s s e s s e e a ga i n s t t he or d e r o f th e C o m m i s s i on e r o f I n c om e T a x ( A pp e a l s ) - XX IX , N e w D e l hi (‘ C IT ( A ) ’ i n s h o r t ) da t e d 01 . 0 5. 2 0 18 a ri s in g f r o m the a s s e s s m e n t or d e r da t e d 29 . 12 . 2 01 7 p a s s e d b y t h e A s s e s s i n g O f f i c e r ( AO ) u n d e r Se c t i on 14 3 (3 ) r . w . S e c ti o n 1 53 C o f t he I nc o m e T a x A c t , 1 961 (t h e A c t ) c on c e rn i n g A Y 20 1 3 - 14 . 2. A s p e r t he c a p t i on e d a pp e a l , t h e a s s e s s e e ha s c ha l l e n ge d t h e f i r s t a pp e l l a te or d e r w h e re i n a d di t i on of R s . 6 l a k h w a s con f i r m e d t ow a rd s un e x pl a i ne d t r a ns f e r o f s uc h a m o un t b y t he a s s e s s e e t o M / s . G a u r a v H o l di n g P vt . Lt d . T he C I T ( A ) u p h e l d th e a d d it i o n s ma d e b y t he A O un d e r Se c t i o n 1 5 3C r . w . Se c t i on 1 43 (3 ) of t he A c t . 3. T h e a p pe a l f i l e d b y th e a s s e s s e e i s b e l a t e d a n d t h e a s s e s s e e s e e k s c on d on a t i o n o f d e l a y o f a b o u t 2 0 1 d a y s i n t e r m s of a pp l i c a t i o n d a t e d ITA No.314/Del/2019 2 16 . 0 1. 2 0 19 . O n p e r u s a l of t h e a pp l i c a t i o n , i t i s n ot i c e d th a t a c a s e h a s be e n m a de o ut o n b e ha l f o f th e a s s e s s e e t h a t t he f ir s t a p pe l l a t e o r de r w a s ha n d e d o ve r t o i t s c o u ns e l f or pr e p a r a t i on a nd f i l in g o f a p pe a l . H o w e ve r , t he ol d c ou n s e l f a i l e d t o f i l e t h e a p pe a l i n t i m e an d t h e d e l a y o c c ur r e d du e t o c ha n ge o f c ou n s e l . T he r e d oe s n o t a pp e a r t o b e a ny s e r i o u s pr e j ud i c e t o r e ve n ue b y s uc h de l a y. T he d e la y i s c ond o n e d a n d th e m a t t e r i s p ro c e e de d o n m e r i t s . 4. A s no ne h a s a p p e a r e d f or t he a s s e s s e e , t h e m a t t er i s p ro c e e de d e x - pa r t e i n t h e l i g ht o f m a t e ri a l a va i l a bl e o n r e c o r d a nd s ub m is s i on s m a de on b e ha l f of R e ve n u e . 5. O n p e r us a l o f t he f i rs t a pp e l l a te o r de r a n d a s s es s m e n t o r d e r , f e w f a c t s e m a n a te w hi c h a re r e le va nt . T h e a s s e s s e e b e f or e t h e l ow e r a ut h or i t i e s h a ve q ue s t i o ne d t he j ur i s d i c t i o n a s s u m ed u n d e r S e c t i on 15 3C on t h e g ro un d s o f a bs e n c e o f a n y i n c r i m i na t i n g m a ter i a l . C on s e q ue n t l y, t he a s s e s s e e s u bm i t s b e f o r e r e ve n ue a u t h o r i ti e s t hat ho w t h e t r a ns f e r o f m on e y f r o m t h e ba n k a c c ou n t t o a n ot h e r b a nk a c c o un t o f o t he r pa r t y re s ul t i n g i n re d u c t i o n of c a pi t a l c a n l e a d t o a dd i ti o n o n a c c o un t o f a l le ge d a c c o m m o da t i on e n t r y i n t h e na t u re o f un e xp la i ne d t ra n s f e r. N o c ro s s - e xa m i n a t i on o f t he ot h e r s i de ha s be e n a f f o rde d e i t he r f or a l l e ge d a c c om m o da t i o n e n t ri e s . 6. I t i s o b s e r ve d th a t a s e a r c h a n d s e i zu r e o p e ra t ion un d e r S e c t i o n 13 2 of t he A c t w a s c a rr i e d ou t o n Sa j a n K um a r J a i n a nd S h ri P ra d e e p K u m a r J i n da l G r ou p o f c a s e s o n 1 8. 1 1. 2 0 15 . W hi l e e xa m i n i n g t h e s e i z e d do c u m e n t of th e s e a r c h e d p e r s o n , t h e A O c a m e a c r os s c e r t a i n do c u m e n t s pe r t a i ni n g t o t he a s s e s s e e he r e i n a n d a c c o rd i n g l y pr oc e e d in gs un d e r Se c t i on 1 53 C w e re s e t i n m ot i o n. O n p e ru s a l o f t h e t e xt o f t h e s e i z e d do c u m e n t , i t i s n ot i c e d t h a t th e a s s e s s e e h a s t ra n sf e r r e d R s . 6 l a k h o n 10 . 0 7. 2 0 12 t o M / s . G a ur a v H ol d i n gs P vt . Lt d. Su c h tr a n s a c ti o n , b y i ts e l f , c a nn ot b e s a i d t o be o f i nc r i m i na t i n g n a t u r e a s i t is n o t a c a s e o f r e c e i pt of m o ne y bu t ra t h e r a t ra n s f e r o f m o ne y i t s e l f . B e si d e s , no w h e re i t i s a l le ge d b y t h e l o w e r a u th o ri t i e s t h a t s u c h t r a ns a c ti o n h a s n ot b e e n ITA No.314/Del/2019 3 re c o rd e d i n th e b o o k s . M e r e o c c ur re n c e o f t h e t r a n sa c t i o ns w i t h t he pe r s o n s e a rc h e d d o n o t i ps o f ac t o t ri g ge r p r o v i s i on s of S e c t i o n 1 5 3 C in t he a b s e n c e of ne c e s s a r y i n g re d i e nt s . D o c u m e n t s f o un d s h ou l d s h o w s o m e c l a n de s t in e t ra n s a c t i on s o f i n c ri m i n a t in g na t ure . S u c h f a c t i s n ot di s c e r n i b l e . M e r e t r a n s f e r of a m ou n t b y t h e a s s e s s ee t o ot h e r e n t i t y c a nn ot b e e qu a t e d w i t h a n y i nc r i m i na t i n g t ra n s a c t i on / d o c u m e n t p e r s e. T hi s g ro u nd a l o ne i s s u f f i c i e n t t o r e ve r s e t h e a c t io n of t he l ow e r a ut h or i t i e s . B ot h A O a s w e l l a s t h e C I T ( A ) h a ve f a il e d t o a p p re c i a t e s u c h di s c e r n i b l e f a c t . T h e s ou rc e o f s u c h t r a ns f e r na t u ra l l y c o m e s f ro m t he ba n k ba l a n c e s a s s u c h t r a ns a c t i o n h a s b e e n c a r ri e d t hr o u g h b a nk i n g c ha n ne l . T h e c r e di t a pp e a ri n g i n b a n k i s n o t i n q u es t i on . W e t h us s e e n o re a s o n a bl e g ro un d i n t he a c t i o n o f t h e lo w e r a ut h o ri t i e s . H e n c e , t h e or d e r of t he C I T ( A ) i s s e t a s i d e a nd A O i s di r e c t e d t o reve rs e t h e a dd i t i on s m a de o n t h i s s c o r e . 7. I n t h e r e s ul t , t h e a p p e a l of t he a s s e s s e e i s a l lo w e d e x - pa r t e. Order pronounced in the open Court on 17 May, 2024. Sd/- Sd/- [SUDHIR PAREEK] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: May, 2024 Prabhat