DCIT, New Delhi V. Vidya Sagar, Gurgaon

ITA 3665/DEL/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5473 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2005-2006
• Appeal Filed On: 07-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMEER SHARMA
• Keywords: Unexplained expenditure
• Section: 69; 144

Judgement Text

ITA NO. 3664-3665/DEL/2013 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H, NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 3664 & 3665/DEL/2013 A.Y. : 2005-06 DCIT, CIRCLE-37(1), ROOM NO. 2005, E-2, DR. SP MUKERJEE CIVIC CENTRE, JAWAHAR LAL NEHRU MARG, NEW DELHI 110 002 VS. VIDYA SAGAR, C/O REMFRY & SAGAR, REMFRY HOUSE AT MILLENIUM PLAZA, SECTOR-27, GURGAON- 122009, HARYANA (PAN:AASPS1051K) (APPEL (APPEL (APPEL (APPEL LANT) LANT) LANT) LANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) ASSESSEE BY : SH. KVSR KRISHNAN, CA DEPARTMENT BY : SH. SAMEER SHARMA, SR. DR ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THESE APPEALS BY THE REVENUE ARE DIRECTED AGAINST THE ORDERS OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) WH EREBY THE LD. CIT(A) HAS DELETED THE ADDITION OF RS. 11,80,288/- AND ALSO DELETED THE PENALTY LEVIED IN THIS REGARD. 2. IN THIS CASE THE ASSESSMENT WAS FRAMED U/S 147/1 44 OF THE IT ACT. AO NOTED THAT DESPITE SEVERAL OPPORTUNITIES ASSESSEE HAS NOT BEEN RESPONDED. AO HAD INFORMATION THAT ASSESSEE H AS INCURRED EXPENDITURE THROUGH THE CREDIT CARD AMOUNTING TO R S. 10,30,288/-. AO HELD THAT IN THE ABSENCE OF ANY EVIDENCE IN THI S REGARD, THIS EXPENDITURE IS NOTHING BUT UNEXPLAINED EXPENDITURE , AS PER THE PROVISIONS OF SECTION 69C. HENCE, HE ADDED THE SAME TO THE INCOME ITA NO. 3664-3665/DEL/2013 2 OF THE ASSESSEE. FURTHERMORE, THE AO HELD THAT IN THE ABSENCE OF ANY EVIDENCE IN THIS REGARD, HE ESTIMATED THAT THER E MUST HAVE BEEN HOUSEHOLD EXPENSE AMOUNTING TO RS. 1,50,000/- WHICH ARE ALSO ASSESSED UNDER SECTION 69 OF THE ACT. ACCORDINGLY, AO MADE THE ADDITION OF RS. 11,80,288/-. PENALTY U/S. 271(1)(C ) AMOUNTING TO RS. 3,68,112/- WAS ALSO IMPOSED ON THE ABOVE. 3. ASSESSEE APPEALED BEFORE THE LD. CIT(A) IN THIS REGARD. LD. CIT(A) GAVE A FINDING THAT ASSESSEES ASSESSMENT FO R THIS ASSESSMENT YEAR HAD BEEN COMPLETED ON 31.5.2007 AT A FIGURE OF RS. 3,58,24,410/-. SINCE THE ORIGINAL AO HAD MADE AN ASSESSMENT AT A HIGH FIGURE OF RS. 3,58,24,410/-. LD. CIT(A) HEL D THAT THIS ASSESSMENT WAS MADE BY THE DAO AT AN ESTIMATED OF R S. 11,80,288/- TO THE BEST OF HIS JUDGMENT U/S. 144 OF THE I.T. ACT IS VOID, AB INITIO, ILLEGAL AND BAD IN LAW. LD. CIT(A ) FURTHER NOTED THAT AO HAS SERVED NOTICE AT THE WRONG ADDRESS. ACCORDI NGLY, LD. CIT(A) HELD THAT SINCE THE ASSESSMENT WAS VOID INITIO AND BAD IN LAW, BOTH THE PROCEEDINGS ARE QUASHED AND THE DEMANDS ARE DEL ETED. 4. AGAINST THE ABOVE ORDER THE REVENUE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. WE FIND THAT IN THIS CASE THAT ASSESSMENT HAS BEEN FRA MED ON THE ASSESSEE AT A FIGURE OF RS. 3,58,24,410/-. ASSESSE E IS A LAWYER ASSESSED IN LAWYERS CIRCLE IN DELHI AT ACIT, CIRCL E 37(1). HENCE, WE AGREE WITH THE LD. CIT(A) THAT THIS IMPUGNED ASSES SMENT WAS MADE BY THE DAO AT AN ESTIMATED FIGURE OF RS. 11,80,288/ - IS VOID AB INITIO. FURTHERMORE, LD. CIT(A) HAS GIVEN A FINDING THAT AO SERVED NOTICE ON THE WRONG ADDRESS WHICH WAS NOT RECEIVED BY THE ASS ESSEE. IN THESE CIRCUMSTANCES, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A). ACCORDINGLY, WE UPHOLD THE SAME. ITA NO. 3664-3665/DEL/2013 3 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/1/2014, UP ON CONCLUSION OF HEARING. SD/- SD/- [ [[ [RAJPAL RAJPAL RAJPAL RAJPAL YADAV YADAV YADAV YADAV] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 30/1/2014 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES ITA NO. 3664-3665/DEL/2013 4