Dr. Neeraj Kamboj, Meerut V. ACIT, Meerut

ITA 3293/DEL/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2140 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 09-12-2009
• Assessment Year: 2005-2006
• Appeal Filed On: 22-07-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MONA MOHANTY
• Keywords: Document seized; Documents seized

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F : NEW DELHI BEFORE SHRI C.L.SETHI, JM AND SHRI A.K.GARODIA, AM ITA NOS.3293/DEL/2009 & 3294/DEL/2009 ASSESSMENT YEARS : 2005-06 & 2006-07 DR. NEERAJ KAMBOJ, B-213, SHASTRI NAGAR, MEERUT, U.P. PAN NO.AAXPK9598A. VS. ASSTT.COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, MEERUT. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VINOD KUMAR GOEL, AR. RESPONDENT BY : SMT.MONA MOHANTY, SR.DR. ORDER PER A.K.GARODIA, AM : BOTH THESE APPEALS ARE FILED BY THE ASSESSEE WHICH ARE DIRECTED AGAINST TWO SEPARATE ORDERS OF LEARNED CIT(A), MEERUT BOTH DATE D 1.5.2009 FOR AY 2005-06 & 2006-07. SINCE IDENTICAL ISSUE IS INVOLVED, BOTH T HESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE GROUND OF APPEAL RAISED BY THE ASSESSEE IS I DENTICAL IN BOTH THE YEARS EXCEPT DIFFERENCE IN AMOUNT AND HENCE WE REPRODUCE THE GROUND OF APPEAL FROM ITA NO.3293/DEL/2009 RELATING TO AY 2005-06:- ON THE FACT AND IN LAW ADDITION OF RS.18000/- MADE BY AO AND SUSTAINED BY LD.CIT(A) ON ACCOUNT OF RENTAL INCOME BELONGS TO MINOR SON OF THE APPELLANT MR.NAMAN KAMBOJ IS TOTALLY WRO NG & UNJUSTIFIED. RENT RECEIVED FROM IDEA MOBILE COMMUN ICATION LTD. ONLY BELONG TO MAJOR SON OF THE APPELLANT MR.MANAN KAMBOJ AND THE SAME HAS BEEN DULY OFFERED FOR TAXATION AND ASSESSE D BY AO IN THE HAND OF MR.MANAN KAMBOJ. THEREFORE BASIS TAKEN AND METHOD ADOPTED FOR TREATING 50% OF RENTAL INCOME IN THE HA ND OF MINOR SON NAMAN KAMBOJ IS TOTALLY WRONG UNJUSTIFIED AND UNWAR RANTED AND ADDITION OF RS.18000/- DESERVES TO BE DELETED IN FU LL. ITA-3293 & 3294/D/2009 2 3. IN THE NEXT YEAR I.E. AY 2006-07, THE AMOUNT INV OLVED IS RS.54,000/- AS AGAINST RS.18,000/- IN AY 2005-06. BRIEF FACTS ARE THAT A SEARCH WAS CARRIED OUT IN THE CASE OF THE ASSESSEE ON 27.10.2005. IT IS NOTE D BY THE AO ON PAGE 3 OF THE ASSESSMENT ORDER FOR AY 2005-06 THAT AS PER SEIZED DOCUMENTS IN ANNEXURE A-10 PAGES 101 & 102, THE PROPERTY AT 119, PURVA SHEIKH LAL IS IN THE JOINT NAMES OF MANAN KAMBOJ, DATE OF BIRTH 12.9.1985 AND NAMAN KAM BOJ, DATE OF BIRTH 7.9.1990, BOTH SONS OF DR.NEERAJ KAMBOJ I.E. THE PR ESENT ASSESSEE. IT IS NOTED BY THE AO THAT SHRI MANAN KAMBOJ ATTAINED MATURITY ON 12.9.2003. IT IS ALSO NOTED THAT SHRI MANAN KAMBOJ ENTERED INTO AN AGREEMENT AS PER LICENSE DEED DATED 30.11.2004 WITH M/S IDEA MOBILE COMMUNICATIONS LTD. TO GIVE THE AFOREMENTIONED PREMISES ON LEASE TO THE COMPANY AT A MONTHLY RENT OF RS.9,000/-. MASTER NAMAN KAMBOJ IS ENTITLED TO 50% OF THE INCOM E FROM THE SAID PROPERTY. ON PERUSAL OF THE RETURN OF THE ASSESSEE, IT IS NOT ED BY THE AO THAT THE INCOME OF MASTER NAMAN KAMBOJ HAS NOT BEEN DECLARED AS PER PR OVISIONS OF SECTION 64(1A) OF THE IT ACT. THE AO MADE ADDITION OF RS.18,000/- IN AY 2005-06 BEING 50% OF THE RENTAL INCOME FOR FOUR MONTHS AT THE RATE OF RS .9,000/- PER MONTH. IN THE NEXT YEAR I.E. AY 2006-07, THE AO MADE ADDITION OF RS.54 ,000/- ON THIS COUNT. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEA L BEFORE THE CIT(A) IN BOTH THE YEARS BUT WITHOUT SUCCESS AND NOW, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. IT IS SUBMITTED BY THE LEARNED AR OF THE ASSESSE E THAT THE RENT AGREEMENT WAS EXECUTED BY THE MAJOR SON SHRI MANAN KAMBOJ AND ONLY HIS PORTION OF THE PROPERTY WAS LET OUT AND HENCE, ENTIRE RENT IS ASSE SSABLE IN HIS HANDS ONLY AND NO PART OF THIS RENT IS ASSESSABLE IN THE HANDS OF THE YOUNGER MINOR SON MASTER NAMAN KAMBOJ AND HENCE, THE ADDITION MADE BY THE AO IS NO T JUSTIFIED. IT WAS ENQUIRED BY THE BENCH REGARDING THE COPY OF RENT AGREEMENT T O FIND OUT AS TO WHETHER THE ENTIRE PROPERTY WAS LET OUT OR ONLY HALF PORTION WA S LET OUT BUT THE ASSESSEE COULD NOT FILE THE RENT AGREEMENT. IT WAS ALSO ENQUIRED BY THE BENCH AS TO WHETHER THE PROPERTY WAS DIVIDED BETWEEN THESE TWO SONS OF THE ASSESSEE BY METES AND BOUNDS. ITA-3293 & 3294/D/2009 3 IN REPLY, THE AR OF THE ASSESSEE COULD NOT POINT OU T ANY SUCH DIVISION OF PROPERTY BETWEEN THESE TWO CO-OWNERS. LEARNED DR FOR THE RE VENUE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. REGAR DING THIS CONTENTION OF LEARNED AR OF THE ASSESSEE THAT THE RENT AGREEMENT WAS EXECUTED BY SHRI MANAN KAMBOJ I.E. THE ELDER SON ONLY AND ONLY HIS PORTION WAS LET OUT, WE ARE NOT SATISFIED ON THIS ASPECT BECAUSE NEITHER THE ASSESSEE COULD S HOW THAT THE PROPERTY IN QUESTION WAS DIVIDED BETWEEN THESE TWO CO-OWNERS BY METES AND BOUNDS AND NOR THIS WAS SHOWN TO US THAT ONLY HALF PORTION OF THE PROPERTY BELONGING TO THE ELDER SON WAS LET OUT AND THE HALF PORTION BELONGING TO M INOR SON WAS NOT LET OUT. IT IS UNDISPUTED FACT THAT THE PROPERTY IS JOINTLY OWNED BY THE TWO SONS OF THE ASSESSEE ONE OF WHOM IS A MINOR AND HENCE ANY INCOME OF THE MINOR SON IS TO BE INCLUDED IN THE INCOME OF THE ASSESSEE. LEARNED CIT(A) HAS GIVEN A CLEAR FINDING THAT THE PROPERTY WHICH HAS BEEN GIVEN ON RENT TO IDEA MOBIL E COMMUNICATION LTD. BELONGS TO MANAN KAMBOJ AND NAMAN KAMBOJ AND THE LA TER BEING MINOR SON OF THE ASSESSEE, HIS SHARE OF INCOME SHOULD HAVE BEEN SHOWN BY THE ASSESSEE IN HIS HANDS. THIS FINDING OF LEARNED CIT(A) COULD NOT BE CONTROVERTED BY THE LEARNED AR OF THE ASSESSEE BY SHOWING US THAT ONLY HALF POR TION OF THE PROPERTY WAS LET OUT AND NO PORTION OF THE MINOR SON WAS LET OUT AND HEN CE, CONSIDERING ALL THESE FACTS, WE FIND NO REASON TO INTERFERE IN THE ORDER OF CIT( A) ON THIS ISSUE IN BOTH THE YEARS. WE, THEREFORE, CONFIRM THE SAME. 6. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 17 TH DECEMBER, 2009. SD/- SD/- (C.L.SETHI) (A.K.GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 17.12.2009. VK. ITA-3293 & 3294/D/2009 4 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR