Motherson Jones Limited, New Delhi V. ITO, New Delhi

ITA 3355/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3678 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 14-06-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 08-07-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K MONGA SENIOR
• Section: 143(3); 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E NEW DELHI) BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER I.T.A. NO.3355/DEL/2010 (ASSESSMENT YEAR : 2002-03) M/S. MOTHERSON JONES LIMITED, VS. INCOME TAX OFFI CER, G 237, PREET VIHAR, WARD 5 (4), NEW DELHI 110 092. NEW DELHI. (PAN NO.AAACM1219Q) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P.C. YADAV, ADVOCATE DEPARTMENT BY : SHRI A.K. MONGA, SENIOR DR O R D E R PER B.C. MEENA, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE CIT (APPEALS)-VIII, NEW DELHI DATED 23.06.2009. 2. THERE IS A DELAY IN FILING THE APPEAL. THE ASSE SSEE HAS SUBMITTED AN AFFIDAVIT EXPLAINING THE REASONS FOR DELAY IN FILIN G THE APPEAL. AFTER HEARING BOTH THE SIDES, WE CONDONE THE DELAY. 3. THE GROUNDS OF APPEAL READ AS UNDER :- 1. THAT THE ORDER OF THE LEARNED COMMISSIONER OF I NCOME- TAX (APPEALS) IS AGAINST FACTS AND LAW. 2. THAT THE LEARNED COMMISSIONER OF INCOME-TAX (APP EALS) IS NOT JUSTIFIED IN PASSING AN EX-PARTY ORDER. ITA NO.3355/DEL/2010 2 3. THAT THE LEARNED COMMISSIONER OF INCOME-TAX (APP EALS) IS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.8 ,96,837/- MADE BY THE ASSESSING OFFICER. 4. THAT THE FURTHER GROUNDS SHALL BE SUBMITTED AT T HE TIME OF HEARING. 4. THE ONLY ISSUE INVOLVED IN THE APPEAL IS ASSESSI NG THE INCOME AT RS.8,96,837/- WHICH WAS THE CASH DEPOSIT IN THE ASS ESSEE BANK ACCOUNT HELD WITH ABN AMRO BANK, 515, INDRA PRAKASH BUILDING, 21 , BARAKHAMBA ROAD, NEW DELHI. THE ASSESSEE IS A COMPANY ENGAGED IN TH E TRADING OF TISSUE PAPERS, FEEDING BOTTLES AND EAR BUDS. A SURVEY UND ER SECTION 133A WAS CARRIED OUT AT THE PREMISES OF THE ASSESSEE ON 19.0 3.2002 DURING THE RELEVANT FINANCIAL YEAR. DURING THE SURVEY, STATEMENT OF DI RECTOR OF THE COMPANY WAS RECORDED. IT WAS SUBMITTED THAT DURING THE SURVEY , THE ASSESSEE HAD DISCLOSED MORE THAN RS.30 LACS SPREADING IN VARIOUS YEARS INCLUDING THE YEAR UNDER CONSIDERATION. FOR THE YEAR, ASSESSEE MADE DI SCLOSURE OF RS.6,30,000/-. THE DETAILS ARE GIVEN AS UNDER :- DATE OF ORDER ASSESSMENT YEAR AMOUNT SURRENDER 31.12.2002 2001-2002 ASSESSED U/S 143(3) 7,65,310/- 31.12.2002 2000-01 ASSESSED U/S 143(3) 7,79,230/- 31.12.2002 1999-2000 ASSESSED U/S 143(3) 8,57,000/- 31.1.2005 2002-2003 (IMPUGNED YEAR) 6,30,000/- TOTAL 30,31,540/- ITA NO.3355/DEL/2010 3 ASSESSEE HAD ALSO PAID TAX ON THESE DISCLOSURES. F OR THE ASSESSMENT YEAR 1999-00, 2000-01 AND 2001-02, THE ORDER U/S 143(3) WERE PASSED BY TAKING INTO CONSIDERATION THE ADDITIONAL INCOME OFFERED DU RING THE SURVEY. THE ASSESSMENTS HAVE BEEN FINALIZED IN THESE YEAR U/S 1 43(3) ON THE SURRENDERED AMOUNT BY ACCEPTING THE SAME AND NO FURTHER ADDITIO N WAS MADE. ASSESSEE HAD DISCLOSED INCOME IN PAST YEARS AND ALSO IN YEAR UNDER CONSIDERATION WHICH HAD BEEN ACCEPTED AND ALSO HAD BUSINESS INCO ME, THEREFORE, THERE WAS SUFFICIENT CASH BALANCE AVAILABLE WITH THE ASSESSEE TO EXPLAIN THE CASH DEPOSIT OF RS.8,96,837/- IN THE ASSESSEES BANK ACC OUNT WITH ABN AMRO BANK. HE PLEADED THAT RS.6,30,000/- WAS DISCLOSED BY THE ASSESSEE IN THE ASSESSMENT YEAR UNDER CONSIDERATION AND BALANCE WAS FROM DISCLOSURE MADE IN PAST YEARS. HE ALSO RELIED ON THE FOLLOWING DEC ISIONS :- (I) PATEL SOMA BHAI VS. DCIT, 58 TTJ 206 (AHD.); AND (II) ARUN KALA VS. ACIT, 98 TTJ 1046 (JP) 5. ON THE OTHER HAND, THE LEARNED DR RELIED ON THE ORDER OF THE AUTHORITIES BELOW. 6. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE REC ORD CAREFULLY. SINCE THE ASSESSEE HAS ALREADY SURRENDERED RS.30 LACS IN THE FOUR ASSESSMENT YEARS, THREE OF WHICH ARE PRECEDING ASSESSMENT YEARS AND D URING RELEVANT ASSESSMENT YEAR, THE ASSESSEE HAS DISCLOSED RS.6,30 ,000/-. THE DISCLOSURE ITA NO.3355/DEL/2010 4 MADE BY ASSESSEE IN THE EARLIER YEAR HAS BEEN ACCEP TED IN TOTO. THUS, THERE WAS SUFFICIENT CASH AVAILABLE TO BE DEPOSITED IN TH E BANK. THE REVENUE HAS FAILED TO ESTABLISH THAT THE AMOUNT DISCLOSED IN TH E SURVEY WAS INVESTED/SPENT SOMEWHERE AND THE SAME WAS NOT AVAILABLE WITH THE A SSESSEE TO BE DEPOSITED IN THE BANK. SINCE THE ASSESSEE HAS ALREADY DISCLO SED MORE THAN RS.30 LACS WHICH IS SUFFICIENT TO EXPLAIN THE CASH DEPOSITED I N BANK, THEREFORE, WE FIND NO MERIT IN MAKING THE ADDITION. RS.6,30,000/- WH ICH HAS BEEN SURRENDERED BY THE ASSESSEE DURING THE SURVEY OPERATION ITSELF AND THE ASSESSMENT SHOULD RESTRICT TO THAT EXTENT ONLY. THE GROUND TAKEN IN THE ASSESSEES APPEAL IS PARTLY ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 24 TH DAY OF JUNE, 2011. SD/- SD/- (C.L. SETHI) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 24 TH DAY OF JUNE, 2011 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT (A)-VIII, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI. .