Smt. Priya Aggarwal, Delhi V. ITO, New Delhi

ITA 3235/DEL/2015

• Counselvise Citation: 323520114 RSA 2015
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 19-10-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 21-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K JAIN
• Assessee Lawyers: AJAY WADHWA F
• Keywords: Unexplained investment
• Section: 143(3); 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC - 2 , NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 3235 /DEL/201 5 AY: 20 0 6 - 07 SMT. PRIYA AGGARWAL VS. ITO, WARD 21(1) D 1, APASNA APARTMENT NEW DELHI BHAMASHA MARG OPP. KAROL BAGH DELHI 110 005 PAN: AFZPA 5177 L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AJAY WADHWA, F.C.A. RESPONDENT BY : SH. MK JAIN , SR.D.R. ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER DATED 18.3.2015 OF LD.CIT(A) - 13 , NEW DELHI PERTAINING TO THE ASSESSMENT YEAR (A.Y.) 200 6 - 07 . 2. FACTS IN BRIEF: - THE FACTS AS BROUGHT OUT BY THE LD.CIT(A), TO THE EXTENT RELEVAN T, ARE EXTRACTED FOR READY REFERENCE. THE ASSESSEE HAS SHOWN INCOME FROM SALE AND PURCHASE OF SHARES. THE RETURN OF INCOME FOR THE A.Y. 2006 - 07 WAS FILED ON 20.10.2006 DECLARING A TAXABLE INCOME OF RS.4,15,880/ - . THIS RETURN WAS PROCESSED INITIALLY U/S 143(1) AND SUBSEQUENTLY SELECTED FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED ON 26.12.2008 U/S 143(3) FO THE ACT AT AN INCOME OF RS.14,07,400/ - WHICH INTER - ALIA INCLUDES RS.9,91,520/ - U/S 69A AS UNACCOUNTED INVESTMENT. THE AO RECEIVED INFORMATION ABOUT I NVESTMENT OF RS.9,91,520/ - BY THE ASSESSEE WITH M/S ORBIS SECURITIES PVT.LTD. BEFORE THE AO, THE ASSESSEE SUBMITTED IGNORANCE ABOUT INVESTMENT MADE, HWOEVER, MENTIONED THAT THE ITA NO. 3235/DEL/2015 AY 2006 - 07 SMT.PRIYA AGGARWAL ~ 2 ~ ASSESSEE TRADED IN SHARES THROUGH M/S INDIA BULLS SECURITIES AND M/S ORBIS SECU RITIES PVT.LTD. IS A SUBSIDIARY OF INDIA BULLS SECURITIES. SINCE THE ASSESSEE DID NOT OFFER ANY OTHER EXPLANATION, THE AO CONSIDERED THE AMOUNT AS UNEXPLAINED INVESTMENT U/S 69A OF THE ACT AND ADDED TO TOTAL INCOME . 3. THE ASSESSEE CONTENDED THAT SHE HAS MADE NO INVESTMENT WHATSOEVER WITH M/S ORBIS SECURITIES P.LTD. AND THE INFORMATION OBTAINED BY THE A.O., WAS FACTUALLY INCORRECT . FURTHER, THE ASSESSEE MADE EVERY ATTEMPT TO COLLECT INFORMATION ON THE COMPANY CALLED M/S O RBIS SECURITIES P.LTD. BUT SHE FAILED TO GET ANY INFORMATION. THE A.O. MADE AN ADDITION U/S 69 OF THE INCOME TAX ACT, 1961 (THE ACT). THE FIRST APPELLATE AUTHORITY CONFIRMED THE SAME. AGGR IEVED THE ASSESSEE IS IN APPEAL BEFORE ME. 4. AFTER HEARING RIVAL CONTENTIONS, I FIND THAT THE A.O. HAS NOT DISCHARGED THE BURDEN THAT LAY ON HIM THAT THE INFORMATION OBTAINED BY HIM THAT THE ASSESSEE HAS MADE AN INVESTMENT IN M/S ORBIS SECURITIES P.LTD. IS FACTUALLY CORRECT . W HEN THE ASSESSEE DENIES THAT SHE HAS EVER INVESTED IN ORBIS S ECURIT IES P.LTD. THE QUESTION OF MAK ING AN ADDITION DOES NOT ARISE, UNLESS THE REVENUE CONFRONTS THE ASSESSEE WITH THE EVIDENCE OF THE INVESTMENT IN QUESTION. THE ASSESSEE FILED AFFIDAVIT DENYING THE INVESTMENTS IN QUESTION. UNDER SUCH CIRCUMSTANCES THE BURDE N IS ON THE REVENUE WHICH IT FAILED TO DISCHARGE. EVEN BEFORE ME, NO EVIDENCE IS PRODUCED BY THE REVENUE IN SUPPORT OF THIS ADDITION. THUS THE ADDITION IS DELETED AND THE APPEAL OF THE ASSESSEE IS ALLOWED. 5 . IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 0 6 T H NOVEMBER ,2015. S D / - (J.SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED: THE 0 6 T H NOVEMBER , 2015 *MANGA ITA NO. 3235/DEL/2015 AY 2006 - 07 SMT.PRIYA AGGARWAL ~ 3 ~ COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR