ITO, New Delhi V. Sh. Hari Prakash Shahrawat, Delhi

ITA 3675/DEL/2015

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9264 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 05-06-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHIMA BEG SENIOR
• Assessee Lawyers: JAYANT BOTHRA
• Keywords: Opportunity of being heard
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH B : NEW DELHI) BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO.3675/DEL./2015 (ASSESSMENT YEAR : 2011-12) ITO, WARD 37 (1), VS. SHRI HARI PRAKASH SHARAWAT, NEW DELHI. 589, MOHALLA BEGWAN, BAWANA, DELHI 110 039. (PAN : BIPPS0453P) (APPLICANT) (RESPONDENT) ASSESSEE BY : SHRI JAYANT BOTHRA, CA REVENUE BY : MS. ASHIMA BEG, SENIOR DR DATE OF HEARING : 11.12.2018 DATE OF ORDER : 21 .12.2018 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, INCOME-TAX OFFICER, WARD 37 (1), NEW DELHI (HEREINAFTER REFERRED TO AS THE REVENUE) BY FILI NG THE PRESENT APPEAL, SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATE D 23.03.2015 PASSED BY LD. CIT (APPEALS)-13, NEW DELHI QUA THE ASSESSMENT YEAR 2011-12 ON THE GROUNDS INTER ALIA THAT :- ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE, TH E LD. CIT (A) ERRED IN DELETING THE ADDITION OF RS.53,48,590/- AN D RS.7,18,804/- ON ACCOUNT OF INCOME FROM UNDISCLOSED SOURCE U/S 69 A OF THE IT ACT, 1961 AS THE ASSESSEE FAILED TO EXPLAIN SOURCE OF INCOME. ITA NO.3675/DEL./2015 2 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICAT ION OF THE CONTROVERSY AT HAND ARE : DURING SCRUTINY PROCEEDIN GS, ASSESSING OFFICER NOTICED THAT IN THE STATEMENT OF AFFAIRS (S OA) AS ON 31.03.2011, ASSESSEE HAS SHOWN AGRICULTURAL INCOME AT RS.3,25,000/- BUT HAS FAILED TO BRING ON RECORD ANY EVIDENCE AND AS SUCH, AGRICULTURAL INCOME SHOWN IN THE STATEMENT OF AFFAIRS BY THE ASSESSEE IS TREATED AS INCOME FROM OTHER SOURCES. 3. AO FROM THE COMPARISON OF CAPITAL ACCOUNT OF THE ASSESSEE AS SHOWN IN STATEMENT OF AFFAIRS AS ON 31.03.2011 A ND 31.03.2010 AS RS.55,98,590/- AND RS.2,50,000/- RESPECTIVELY, S HOWING NET INCREASE IN THE CAPITAL OVER THE LAST YEAR AMOUNTIN G TO RS.53,48,590/-. AO TABULATED THE STATEMENT OF AFFA IRS AS UNDER :- STATEMENT OF AFFAIRS AS ON 31 ST MARCH 2011 PARTICULARS AMOUNT PARTICULARS AMOUNT AGRICULTURAL INCOME 3,25,000 LOANS AND ADVANCES 33,39,000 INTEREST ON SAVING BANK A/C 26,079 INVESTRADE SECURITIES INDIA (P) LTD. 13,00,000 CAPITAL A/C 55,98,590 JEWELLERY AND ORNAMENTS 5,00,000 LESS HOUSEHOLD EXP. -3,58,519 CANARA BANK 2,52,983 CANARA BANK CAR LOAN 5,20,000 CASH IN HAND 1,25,295 MOTOR CAR 5,93,872 TOTAL 61,11,150 TOTAL 61,11,150 STATEMENT OF AFFAIRS AS ON 31 ST MARCH 2010 PARTICULARS AMOUNT PARTICULARS AMOUNT AGRICULTURAL LAND SALE 51,91,666 LOANS AND ADVANCES 45,39,000 AGRICULTURAL INCOME 3,0,000 JEWELLERY AND ORNAMENTS 3,00,000 INTEREST ON SAVING BANK A/C 31,924 CANARA BANK 5,87,395 CAPITAL B/F 2,50,000 CASH IN HAND 1,72,195 LESS HOUSEHOLD EXP. -1,75,000 TOTAL 55,98,590 TOTAL 55,98,590 ITA NO.3675/DEL./2015 3 4. ON FAILURE OF THE ASSESSEE TO BRING ON RECORD AN Y EVIDENCE, AMOUNT OF RS.53,48,590/- IS TREATED AS ASSESSEES I NCOME FROM UNDISCLOSED SOURCES BY THE AO AND THEREBY ASSESSED THE TOTAL INCOME AT RS.64,18,474/-. 5. ASSESSEE CARRIED THE MATTER BY WAY OF AN APPEAL BEFORE THE LD. CIT (A) WHO HAS PARTLY ALLOWED THE APPEAL. FEE LING AGGRIEVED, THE REVENUE HAS COME UP BEFORE THE TRIBUNAL BY WAY OF FILING THE PRESENT APPEAL. 6. 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. 7. THE LD. CIT (A) IN PARA 5.3 OF THE IMPUGNED ORDE R HAS RECORDED THAT THE ASSESSEE HAS RECEIVED AN AMOUNT O F RS.51,91,666/- FROM THE SALE OF AGRICULTURAL LAND A ND THE SAME WAS ADDED TO THE CAPITAL BROUGHT FORWARD OF RS.2,50,000 /- AND AS SUCH, THERE IS NO UNEXPLAINED INCREASE IN THE CAPITAL. H OWEVER, WE ARE OF THE CONSIDERED VIEW THAT NEITHER THE ASSESSEE HAS P LEADED THE SALE DEEDS IN HIS REPLY VIDE WHICH HE HAS RECEIVED SALE PROCEEDS OF RS.51,91,666/- NOR THE CIT (A) HAS DISCUSSED IN THE IMPUGNED ORDER ANY SUCH SALE DEEDS TO ARRIVE AT THE CONCLUSI ON THAT THERE IS NO UNEXPLAINED INCREASE IN THE CAPITAL OF THE ASSESSEE . SO, WE ARE OF ITA NO.3675/DEL./2015 4 THE CONSIDERED VIEW THAT THIS ISSUE IS REQUIRED TO BE SET ASIDE TO THE LD. CIT (A) TO DECIDE AFRESH BY BRINGING ON RECORD, IF ANY SUCH SALE DEEDS ARE THERE VIDE WHICH ASSESSEE ALLEGED TO HAVE RECEIVED THE SALE PROCEEDS OF RS.51,91,666/-, BY PROVIDING AN OP PORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. SIMILARLY, THE LD. CIT (A), WHILE DELETING THE A MOUNT OF RS.7,18,804/- ON ACCOUNT OF LOSS SUFFERED BY THE AS SESSEE IN HIS INVESTMENT OF RS.13,00,000/- WITH INVEST TRADE SECU RITIES INDIA P. LTD., HAS NOT CALLED ANY REMAND REPORT FROM THE AO TO VERIFY THE FACTS AND BOOKS OF ACCOUNT, NOR IT IS MENTIONED BY LD. CIT (A) IN THE BOOKS OF ACCOUNT THAT HE HIMSELF HAS PERUSED TH E BOOKS OF ACCOUNT MAINTAINED BY THE ASSESSEE. SO, THIS ISSUE IS ALSO REQUIRED TO BE SET ASIDE TO LD. CIT (A) TO DECIDE AFRESH AFT ER PROVIDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. RESULTANTLY, THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 21 ST DAY OF DECEMBER, 2018. SD/- SD/- (ANADEE NATH MISSHRA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 21 ST DAY OF DECEMBER, 2018 TS ITA NO.3675/DEL./2015 5 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT (A)-13, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.