Anita Mehra, Jhajjar V. ITO WARD -05 (Now Ward 1), Rohtak

ITA 3152/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8635 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 11-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

1 , . . , IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH S.M.C, NEW DELHI , ' BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER $ / ITA NO.3152/DEL/2019 % % / ASSESSMENT YEAR 2014-15 ANITA MEHRA, PROP. SALASAR OIL STATION, V.CHHUCHAKWAS, JHAJJAR, HARYANA-124106. PAN-ANCPM9028N .......... &' /APPELLANT VS THE ITO, WARD-05 (NOW WARD-1), ROHTAK. . ()&' / RESPONDENT &'*+ / APPELLANT BY : MS. RANO JAIN, ADV. & MS. MANSI JAIN, CA ()&'*+ / RESPONDENT BY : SH. PRADEEP SINGH GAUTAM, SR.DR *,- / DATE OF HEARING : 14.01.2020 ./ *,- / DATE OF PRONOUNCEMENT: 17 .01.2020 0 / ORDER PER SUSHMA CHOWLA, JM THE PRESENT APPEAL FILED BY ASSESSEE IS AGAINST ORD ER OF CIT(A), ROHTAK DATED 26.02.2019 RELATING TO ASSESSMENT YEAR 2014-15 AGAINST ORDER PASSED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT). ITA NO.3152/DEL/2019 ASSESSMENT YEAR 2014-15 2. THE GROUND NO.1 RAISED IN THIS APPEAL IS GENERAL IN NATURE AND DOES NOT REQUIRE ANY ADJUDICATION. HENCE, GROUND NO.1 R AISED BY THE ASSESSEE IS DISMISSED. 3. THE GROUND NO.2 RAISED BY THE ASSESSEE IN THIS A PPEAL IS AGAINST ADDITION OF RS.3,00,000/-. 4. THE LD. DR POINTED OUT THAT IT WAS AN AGREED ADD ITION MADE BY THE ASSESSEE DURING THE ASSESSMENT PROCEEDINGS ITSELF A ND HENCE, THERE IS NO MERIT IN THE SAID GROUND OF APPEAL RAISED BY THE AS SESSEE. 5. THE LD.AR FOR THE ASSESSEE POINTED OUT THAT BEFO RE THE CIT(A), SHE HAD RAISED THIS ISSUE ALSO. 6. ON THE PERUSAL OF RECORD AND AFTER HEARING BOTH THE AUTHORIZED REPRESENTATIVES, I FIND THAT WHILE SHOW-CAUSING THE ASSESSEE IN RESPECT OF FALL IN G.P. RATE, THE ASSESSING OFFICER VIDE PARA 4 ASKED THE ASSESSEE TO EXPLAIN THE SAID LOSS. HOWEVER, THE EXPLANATION OF THE ASSESSEE WAS NOT ACCEPTED BY THE ASSESSING OFFICER INTOTO AND AFTER DISCUSSION WITH THE COUNSEL OF THE ASSESSEE, THE ASSESSING OFFICER OBSE RVES THAT THE ASSESSEE AGREED FOR AN ADDITION OF RS.3,00,000/- COVER LOW G P/NP AND ANY FURTHER LEAKAGE IN PROFIT, SUBJECT TO NO PENAL ACTION. SO ADDITION OF RS.3,00,000/-IS MADE TO THE RETURNED INCOME OF THE ASSESSEE. 7. THE PERUSAL OF ASSESSMENT ORDER REFLECTS THE ASS ESSEE NOT ONLY TO HAVE AGREED TO THE AFORESAID ADDITION OF RS.3,00,00 0/- IN ORDER TO PLUG FURTHER LEAKAGE IN PROFIT AND ALSO TO COVER LOW GRO SS PROFIT/NET PROFIT, WHICH WAS SUBJECTED TO NO PENAL ACTION. IN SUCH FACTS AN D CIRCUMSTANCES, THERE ITA NO.3152/DEL/2019 ASSESSMENT YEAR 2014-15 IS NO MERIT IN GROUND NO.2 RAISED BY THE ASSESSEE A ND THE SAME IS DISMISSED. 8. THE SECOND ISSUE RAISED VIDE GROUND NO.3 IS AGAI NST THE ADDITION OF RS.3,91,310/- MADE ON ACCOUNT OF CORPUS FUND PAYABL E TO HPCL. 9. THE FACTS RELATING TO THE ISSUE ARE THAT THE ASS ESSEE COULD NOT FILE THE CONFIRMATION OF THE SAID PARTY BEFORE THE AUTHORITI ES BELOW. NO SUCH CONFIRMATION HAS BEEN FILED BEFORE ME. THE LIMITED ISSUE WHICH HAS BEEN RAISED BY THE LD.AR FOR THE ASSESSEE IS THAT THERE IS NO MERIT IN MAKING ANY ADDITION ON ACCOUNT OF OPENING BALANCE IN THE S AID ACCOUNT. THE LD.AR DREW MY ATTENTION TO PARA 7.1 OF THE APPELLAT E ORDER IN THIS REGARD. THE ASSESSEE HAD PLEADED THAT OPENING BALANCE IN TH E ACCOUNT WAS RS.1,14,534.82 AND THE BALANCE AMOUNT WAS AVAILED D URING THE YEAR. THE ASSESSEE HAS NOT FILED ANY CONFIRMATION IN THIS REG ARD. ACCORDINGLY, THE ASSESSEE IS DIRECTED TO FILE CONFIRMATION BEFORE TH E ASSESSING OFFICER, WHO IN TURN IS DIRECTED TO RESTRICT THE ADDITION TO THE EXTENT OF AMOUNT RECEIVED DURING THE YEAR. HENCE, GROUND NO.3 RAISED BY THE ASSESSEE IS ALLOWED. 10. IN THE RESULT, THIS APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH JANUARY 2020. SD/- (SUSHMA CHOWLA) /JUDICIAL MEMBER / DATED : 17 TH JANUARY, 2020 . * AMIT KUMAR * ITA NO.3152/DEL/2019 ASSESSMENT YEAR 2014-15 0*(,1232,4 COPY OF THE ORDER IS FORWARDED TO : 1. &' / THE APPELLANT 2. ()&' / THE RESPONDENT 3. 5, 6 7 / THE CIT(A) 4. 8 5, / THE PR. CIT 5. 6. 29:(, ; ; / DR, ITAT, DELHI :<%=4 GUARD FILE. 0 / BY ORDER , )2,(, // TRUE COPY // > ?@ A , ; ASSISTANT REGISTRAR, ITAT, DELHI