Sh. Surjit Singh, New Delhi V. ITO, New Delhi

ITA 360/DEL/2014

• Counselvise Citation: 36020114 RSA 2014
• Duration Of Justice: 1 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 18-08-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 20-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K JAISWAL
• Assessee Lawyers: GIRISH K SHUKLA
• Keywords: Gift; Opportunity of being heard; Additional evidence; Reasonable cause; Reason to believe
• Section: 148

Judgement Text

1 ITA NO. 360/ DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SH.N.K.SAINI, ACCOUNTANT MEMBER I.T.A .NO.-360/DEL/2014 (ASSESSMENT YEAR- 2004-05) SURJIT SINGH C/O, S. G TIMBER ENTERPRISES, B-115, WHS KIRTI NAGAR NEW DELHI AAZPS5617 PIN: 110015 (APPELLANT) VS ITO WARD-17 (2) NEW DELHI (RESPONDENT) APPELLANT BY SH. GIRISH K. SHUKLA, ADV RESPONDENT BY SH. K. K. JAISWAL, SR. DR ORDER PER N. K. SAINI, AM THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 1/11/2013 OF CIT(A) XXIV, NEW DELHI FOLLOWING GROUNDS HAS BEEN R AISED IN THIS APPEAL. 1. THAT THE ASSESSMENT CONFIRMED BY THE LD. CIT(A) IS BAD IN LAW AND ON FACTS. 2. THAT THE LD. AO HAS ERRED IN LAW AND ON FACTS IN CONTINUING WITH THE ASSESSMENT AND COMPLETING IT EVEN AFTER IT WAS BROU GHT TO HIS NOTICE THAT THE APPELLANT IN HIS INDIVIDUAL CAPACITY WAS NOT TH E DONEE IN THE SUSPECTED GIFT. 3. THAT THE ORDER OF ASSESSMENT AS CONFIRMED BY THE LD. CIT(A) IS FOUND ON SUSPICION CONJECTURE AND SURMISE AND HAS NO COGENT MATERIAL BASIS. 2. FACTS OF THE CASE IN BRIEF ARE THAT THIS CASE WA S REOPENED U/S 148 OF THE I.T ACT 1961(HEREINAFTER REFERRED TO THE ACT) ON THE BASIS OF INFORMATION ABOUT THE ENTRY OPERATORS AND BENEFICIARIES OF DELHI, THE AO OBSERV ED THAT HE HAS SUFFICIENT REASON TO BELIEVE THAT AN AMOUNT OF RS.15 LAKH ESCAPED INCOME FOR THE YEAR UNDER CONSIDERATION. ACCORDINGLY A NOTICE U/S 148 OF THE ACT WAS ISSUED. SINCE THE ASSESSEE DATE OF HEARING 18.08.2015 DATE OF PRONOUNCEMENT 21.08.2015 2 ITA NO. 360/ DEL/2014 DID NOT REPLY THE SAID NOTICE, AO FRAMED THE ASSESS MENT AT AN INCOME OF RS.6,50,000/- 3. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO SUSTAINED THE ADDITION MADE BY THE AO BY OBSERVING THAT THE ASSESSEE FAILED TO PROVE THE GENUINENESS, IDENTITY AND CREDITWORTHINESS OF T HE DONOR. NOW, THE ASSESEE IS IN APPEAL. 4. LD. COUNSEL FOR THE ASSESSEE FURNISHED THE APPL ICATION FOR ADMISSION OF THE ADDITIONAL EVIDENCES IN THE SHAPE OF A CERTIFICATE FROM PUNJAB AND SINDH BANK AND SUBMITTED THAT THE SAID CERTIFICATE GO TO THE ROOT OF THE MATTER AND THE ASSESSEE WAS PREVENTED BY REASONS BEYOND HIS CONTROL FROM PLACIN G THIS CERTIFICATE BEFORE THE LD. CIT (A) AND REQUESTED TO ADMIT THE ADDITIONAL EVIDENCES . DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE CONTENT S OF THE APPLICATION FOR ADMISSION OF THE ADDITIONAL EVIDENCE AND REQUESTED THAT THE ADDI TIONAL EVIDENCE MAY BE ADMITTED. IN HIS RIVAL SUBMISSIONS, THE LD. DR OPPOSED THE AD MISSION OF THE ADDITIONAL EVIDENCE AND SUPPORTED THE IMPUGNED ORDER. 5. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PA RTIES AND THE MATERIAL ON RECORD IN THE PRESENT CASE IT APPEARS THAT THE ASSE SSEE WAS PREVENTED BY THE REASONABLE CAUSE IN PRODUCING THE CERTIFICATE OBTAI NED FROM PUNJAB AND SINDH BANK, EITHER BEFORE THE AO OR BEFORE THE LD. CIT (A) AND THIS CERTIFICATE IS RELEVANT TO DECIDED THE PRESENT CONTROVERSY, THEREFORE, THE SAME IS ADM ITTED. AS THE SAID CERTIFICATE WAS NOT AVAILABLE TO THE AUTHORITIES BELOW FOR THEIR CO NSIDERATION, I DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER AND REMAND THE CASE BA CK TO THE FILE OF THE AO TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PRO VIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND BY C ONSIDERING THE NEW EVIDENCES PRODUCED BY THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 21 ST OF AUGUST 2015. SD/- (N.K.SAINI) ACCOUNTANT MEMBER 3 ITA NO. 360/ DEL/2014 DATED: 21/08/2015 *R. NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT R EGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 19/8/2015 PS 2. DRAFT PLACED BEFORE AUTHOR 19/08/2015 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 2 1 .08 .2015 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK .08 .2015 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.