ITO, Rohtak V. Sh Sanjeev Kumar, Rohtak

ITA 3465/DEL/2010

• Counselvise Citation: 346520114 RSA 2010
• Duration Of Justice: 1 year(s) 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2011
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: G
• Next Hearing Date: 23-11-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 15-07-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S MOHANTY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G DELHI BEFORE SHRI RAJPAL YADAV AND SHRI K.G. BANSAL ITA NO. 3465(DEL)/2010 ASSESSMENT YEAR: 2006-07 INCOME-TAX OFFICER, SHR I SANJEEV KUMAR, WARD 2, ROHTAK. VS. 1274 /27, GANDHI NAGAR, ROHTAK. PAN: BBRPS8448D (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. S. MOHANTY, DR RESPONDENT BY : NONE DATE OF HEARIN G: 23.11.2011 DATE OF PRONOU NCEMENT: 09.12.2011. ORDER PER K.G. BANSAL : AM THE REVENUE HAS TAKEN UP FOLLOWING GROUNDS IN THE APPEAL:- (I) IN THE FACTS AND CIRCUMSTANCES OF THE CASE, LD . CIT(A) HAS ERRED IN ALLOWING RELIEF TO THE ASSESSEES WITHO UT ANY MATERIAL ON RECORD. (II) IN THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT(A) HAS ERRED IN ALLOWING RELIEF TO THE ASSESSEES WHEN THE A SSESSEE COULD NOT EXPLAIN THE ALLEGED EXPENSES CLAIMED. (III) IN THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT(A) HAS ERRED IN ALLOWING RELIEF TO THE ASSESSEES WHEN THE AS SESSEE HAS FAILED TO PROVE THAT ANY ALLEGED CONTRACT WORK WAS DONE BY HIM/HER. ITA NO. 3465(DEL)/2010 2 (IV) IN THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND FACTS, TO COMPUTE THE INCOME OF THE ASSESSEE BY APPLYING NET PROFIT RATE AT 8% ON THE GROSS RE CEIPTS. 2. THE FACTS OF THE CASE ARE THAT THE RETURN W AS FILED ON 31.07.2006 DECLARING TOTAL INCOME OF RS. 2,37,600/-. THE A SSESSEE HAD SHOWN CONTRACT WORK RECEIPT FROM PACL INDIA LTD. THE ASSESSEE COULD NOT FURNISH ANY EVIDENCE TO SHOW THAT THE CONTRACT WORK WAS ACTUA LLY UNDERTAKEN. FURTHER, IT WAS FOUND THAT 128 ASSESSEES OF ROHTAK HAD SHOWN CONTRACT RECEIPTS FROM THE AFORESAID PACL AMOUNTING TO RS. 3,64,74, 150/-. 64 PERSONS WERE IDENTIFIED ON THE BASIS OF RETURNS FILED IN ROHTAK . NONE OF THEM COULD PRODUCE ANY EVIDENCE WHATSOEVER IN RESPECT OF ANY WORK CARRIED OUT ON BEHALF OF PACL INDIA LTD. THE ASSESSEE HAD C REDITED A SUM OF RS. 29,40,000/- IN HIS BANK ACCOUNT. IN ABSENCE OF A NY EVIDENCE OF CARRYING OUT CONTRACT WORK, THIS AMOUNT WAS ASSESSED AS THE INCOME OF THE ASSESSEE ON PROTECTIVE BASIS UNDER THE HEAD INCOME FROM O THER SOURCES. 3. THE LD. CIT(APPEALS) COMPUTED THE PROFIT OF TH E ASSESSEE BY RESORTING TO THE PROVISION CONTAINED IN SECTION 44 AD AND THE APPEAL OF THE ASSESSEE WAS PARTLY ALLOWED. ITA NO. 3465(DEL)/2010 3 4. WHILE NONE ATTENDED ON BEHALF OF THE ASSESSE E BEFORE US, THE LD. SENIOR DR EXPLAINED THE FACTS OF THE CASE. IT IS SUBMITTED THAT THERE IS NO EVIDENCE ON RECORD REGARDING THE ACTUAL CONT RACT WORK CARRIED OUT BY THE ASSESSEE. THEREFORE, THERE IS NO QUESTION OF INCURRING OF ANY EXPENDITURE. ACCORDINGLY, IT IS ARGUED THAT THE AO WAS RIGHT IN COMPUTING THE INCOME ON THE BASIS OF CREDITS IN THE BANK A CCOUNT OF THE ASSESSEE. HOWEVER, HE FAIRLY SUBMITTED THAT TRIBUNAL HAS DECIDED VARIOUS APPEALS, WHEREIN THE ORDER OF THE LD. CIT(APPEALS) HAS B EEN UPHELD WITH THE REMARKS THAT ASSESSMENT OF ANY INCOME IN THE HAND S OF THE ASSESSEE WILL HAVE NO EFFECT WHATSOEVER ON THE ASSESSMENT OF PACL INDIA LTD. IN VIEW THEREOF, IT IS HELD THAT THE LD. CIT(APPEA LS) WAS RIGHT IN DETERMINING THE QUANTUM BY RESORTING TO THE PROV ISION CONTAINED IN SECTION 44AD, BUT IN ABSENCE OF ANY EVIDENCE OF ACTUA L CARRYING ON CONTRACT WORK, THIS DECISION WILL HAVE NO IMPACT WHATSO EVER IN THE ASSESSMENT OF PACL INDIA LTD. 5. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED AS DISCUSSED ABOVE. SD/- SD/- (RAJPAL YADAV) (K.G. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER SP SATIA COPY OF THE ORDER FORWARDED TO:- ITA NO. 3465(DEL)/2010 4 SHRI SANJEEV KUMAR, ROHTAK. ITO, WARD-2, ROHTAK.. CIT(A) CIT THE DR, ITAT, NEW DELHI. ASSISTANT REGISTRAR.