ACIT, New Delhi V. Shri Ashok Yogi, Delhi

ITA 3334/DEL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3299 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 10-07-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 30-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT JAIN SENIOR
• Assessee Lawyers: VK SABHARWAL
• Keywords: Unexplained cash credit
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH A : NEW DELHI) BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.3334/DEL./2014 (ASSESSMENT YEAR : 2007-08) ACIT, CIRCLE 36 (1), VS. SHRI ASHOK YOGI, NEW DELHI. PROP. M/S. MARSHNEIL OVERSEAS CORPORA TION, R 109/1, RAMESH PARK, LAXMI NAGAR, DELHI 110 092. (PAN : AAMPY2604A) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V.K. SABHARWAL, ADVOCATE REVENUE BY : SHRI AMIT JAIN, SENIOR DR DATE OF HEARING : 20.02.2018 DATE OF ORDER : 06.03.2018 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, ASSISTANT COMMISSIONER OF INCOME-TAX , CIRCLE 36 (1), NEW DELHI (HEREINAFTER REFERRED TO A S THE REVENUE) BY FILING THE PRESENT APPEAL, SOUGHT TO SET ASIDE T HE IMPUGNED ORDER DATED 24.02.2014 PASSED BY LD. CIT(APPEALS)-XXX, NE W DELHI QUA THE ASSESSMENT YEAR 2007-08 ON THE GROUNDS INTE R ALIA THAT :- ITA NO.3334/DEL./2014 2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE ORDER OF THE LD. CIT (A) IS BAD IN LAW AND NOT IN CONSONANCE WITH FACTS OF THE CASE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT (A) HAD ERRED IN DELETING ADDITIONS MADE BY THE AO WITHOUT CONSIDERING THAT SOME AMOUNTS REMAINED UNCONFIRMED. 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICA TION OF THE CONTROVERSY AT HAND ARE : AFTER COMPLETING ASSESSME NT UNDER SECTIONS 143(3)/144 OF THE INCOME-TAX ACT, 1961 (FO R SHORT THE ACT), ASSESSING OFFICER MADE ADDITION OF RS.93,42, 786/- ON ACCOUNT OF UNEXPLAINED CREDIT ENTRIES IN THE BANK A CCOUNT; MADE ADDITION OF RS.5,00,000/- ON ACCOUNT OF UNEXPLAINED CAPITAL INTRODUCED IN THE BALANCE SHEET; MADE ADDITION OF R S.1,62,948/- BEING 20% OF THE EXPENDITURE OF RS.4,08,111/- ON AC COUNT OF EXCHANGE FLUCTUATION; AND MADE ADDITION OF RS.4,08, 111/- BEING 20% OF THE EXPENDITURE DISALLOWED ON ACCOUNT OF EMB ROIDERY, FABRICATION AND PRINTING EXPENDITURE. 3. ASSESSEE CARRIED THE MATTER BY WAY OF FILING APP EAL BEFORE THE LD. CIT (A) WHO HAS DELETED THE AFORESAID ADDIT IONS MADE BY THE AO BY ALLOWING THE APPEAL. FEELING AGGRIEVED, THE REVENUE HAS COME UP BEFORE THE TRIBUNAL BY WAY OF FILING TH E PRESENT APPEAL. ITA NO.3334/DEL./2014 3 4. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. FIRST OF ALL, DURING THE COURSE OF HEARING, THE BENCH HAS NOTICED THAT THE REVENUE HAS COME UP WITH VERY VAGU E AND AMBIGUOUS GROUNDS OF APPEAL FROM WHICH IT IS DIFFIC ULT TO GATHER AS TO HOW AND UNDER WHAT CIRCUMSTANCES WHICH OF THE DE LETIONS MADE BY THE CIT (A) HAVE BEEN CHALLENGED AND ON WHAT GRO UND. HOWEVER, WITH THE ASSISTANCE OF THE LD. SENIOR DR F OR THE REVENUE, WE ARE PROCEEDING TO DECIDE THE APPEAL FILED BY THE REVENUE BY EXAMINING ALL THE DELETIONS OF ADDITIONS MADE BY TH E LD. CIT (A). 6. SO FAR AS ADDITION OF RS.93,42,786/- MADE BY THE AO IS CONCERNED, DURING THE APPELLATE PROCEEDINGS, THE AS SESSEE HAS BROUGHT ON RECORD COPY OF ACCOUNT OF M/S. AL ZOPRHA NI, CASH BOOK, VERIFICATION FROM THE ACCOUNT OF THE PARTIES, BANK STATEMENT ISSUED BY ICICI BANK, BANK OF BARODA, VERIFICATION MADE B Y M/S. GVL LTD., M/S. LEONITY AND M/S. MURAD ATAYEBA, VERIFIED ALL THE ENTRIES FROM THE BANK CONCERNED, PERUSED COPY OF EMBROIDERY ACCOUNT, FABRICATION ACCOUNT, PRINTING ACCOUNT, COPY OF EXCH ANGE FLUCTUATION ACCOUNT, WHICH HAVE BEEN DULY VERIFIED BY AO DURING THE REMAND PROCEEDINGS AND HAS SUBMITTED DETAILED REMAND REPOR T DATED ITA NO.3334/DEL./2014 4 12.04.2012 DULY EXTRACTED IN PARA 4 OF THE IMPUGNE D ORDER PASSED BY LD. CIT (A). 7. LD. CIT (A) HAS DISCUSSED ALL THE ADDITIONS ONE BY ONE AND ON THE BASIS OF REMAND REPORT, DELETED THE ADDITION OF RS.93,42,786/-. LD. CIT (A) ALSO NOTICED THAT AO H AS ADDED THE AMOUNT OF RS.3,00,000/- TWICE, ONCE IT WAS TAKEN AS A CREDIT ENTRY IN THE BANK AND THEREAFTER THIS AMOUNT WAS ALSO INC LUDED IN RS.5,00,000/- WHICH WAS ADDED AS CAPITAL INTRODUCTI ON. THESE FACTS ARE ALSO APPARENT FROM THE REMAND REPORT. 8. LD. CIT (A) ALSO RIGHTLY HELD THAT AMOUNT OF RS. 1,00,000/- WAS RECEIVED FROM ASHISH DUBE THROUGH CHEQUE BY THE ASSESSEE WHO HAS SINCE DIED AND AS SUCH, THE ASSESSEE COULD NOT PROCURE THE CONFIRMATION LETTER. ON THE BASIS OF ACCOUNT BOOKS , COPY OF FOREIGN EXCHANGE FLUCTUATION, COPY OF EMBROIDERY ACCOUNT, F ABRICATION AND PRINTING CHARGES DULY VERIFIED ALONG WITH BILLS AND VOUCHERS BY THE AO, THE LD. CIT (A) HAS RIGHTLY DELETED THE ADDITIO N. 9. THE LD. CIT (A) HAS DULY EXPLAINED THE EXCHANGE FLUCTUATION IN PARA 6.2. WHEN NO DISCREPANCY HAS BEEN FOUND BY THE AO DURING THE REMAND PROCEEDINGS IN THE FLUCTUATION RA TE CLAIMED BY THE ASSESSEE, NO ADDITION CAN BE MADE ON ACCOUNT OF EXCHANGE FLUCTUATION. IT APPEARS THAT THE ENTIRE ADDITION H AS BEEN MADE BY ITA NO.3334/DEL./2014 5 THE AO BECAUSE OF THE FACT THAT THE ASSESSMENT ORDE R WAS FRAMED U/S 144 OF THE ACT. 10. IN VIEW OF WHAT HAS BEEN DISCUSSED ABOVE, FINDI NG NO ILLEGALITY OR PERVERSITY IN THE IMPUGNED ORDER, PRE SENT APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 6 TH DAY OF MARCH, 2018. SD/- SD/- (B.P. JAIN) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 6 TH DAY OF MARCH, 2018 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-IV, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.