Sh. Sanjay Chugh, Gurgaon V. ITO, Gurgaon

ITA 3763/DEL/2015

• Counselvise Citation: 376320114 RSA 2015
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 17-08-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 09-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI
• Assessee Lawyers: SANDEEP KUMAR
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC-I : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.3763/DEL/2015 ASSESSMENT YEAR : 2010-11 SANJAY CHUGH, H.NO.4/150, SHIVAJI NAGAR, GURGAON. PAN : ASFPK5340L VS. ITO, WARD-1(3), GURGAON. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANDEEP KUMAR, CA RESPONDENT BY: SHRI R.S. NEGI, SR.DR DATE OF HEARING : 25.08.2015 DATE OF PRONOUNCEMENT: 26.08.2015 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 22.4.2015 IN RELATION TO THE ASSESSMENT Y EAR 2010-11. 2. THE ONLY EFFECTIVE GROUND IS AGAINST THE CONFIRM ATION OF DISALLOWANCE OF RS.7 LAC. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE DEPOSITED CASH IN HIS BANK ACCOUNT ON CERTAIN DATES. ON BEING CAL LED UPON TO EXPLAIN THE ITA NO.3763/DEL/2015 2 SOURCE OF SUCH CASH DEPOSITS, THE ASSESSEE FURNISHE D CASH FLOW STATEMENT. THE AO OBSERVED THAT IN THIS CASH FLOW STATEMENT, T HE ASSESSEE HAD SHOWN WITHDRAWALS AMOUNTING TO RS.2.40,000 ONLY AT THE EN D OF THE YEAR. HE OPINED THAT CASH WITHDRAWALS ON MONTH TO MONTH BASI S AT THE RATE OF RS.20,000 PER MONTH OUGHT TO HAVE BEEN CONSIDERED. HE NOTICED THAT IF THE CASH WITHDRAWALS WERE TAKEN AT RS.20,000/- PER MONT H AND FITTED IN THE CASH FLOW STATEMENT, THE BALANCE CASH IN HAND BECOMES NE GATIVE ON 20.4.2009. HE, THEREFORE, TREATED CASH DEPOSITS OF RS.5 LAC AN D RS.2 LAC ON 9.4.2009 AND 20.4.2009, RESPECTIVELY, AS UNEXPLAINED. THE LD. C IT(A) CONFIRMED THE ADDITION. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. IT IS NOTICED THAT THE LD. CIT(A) HAS C ATEGORICALLY RECORDED IN PARA 4.2 OF THE IMPUGNED ORDER THAT THE ASSESSEE SU BMITTED TO HAVE MADE CASH DEPOSITS SOURCED FROM HIS CASH BOOK AS PER WH ICH THE APPELLANT HAD SUFFICIENT AMOUNT OF CASH IN HIS CASH BOOK ON 9.4.2 009 AND 20.4.2009 WHEN THESE CASH DEPOSITS WERE MADE. THEN, HE RECOR DED THE EXPLANATION OF THE ASSESSEE: THAT CASH WAS WITHDRAWN REGULARLY DU RING THE COURSE OF THE YEAR FOR UTILIZATION OF THE SAME IN BUSINESS. THE LD. AR CONTENDED THAT THE ITA NO.3763/DEL/2015 3 ENTIRE FINDING OF THE LD. CIT(A) IN CONFIRMING THE ADDITION IS VITIATED BECAUSE THE SAME IS BASED ON THE ABOVE RECORDINGS W HICH ARE TOTALLY UNTRUE AS NO SUCH SUBMISSIONS WERE ADVANCED DURING THE COU RSE OF THE FIRST APPELLATE PROCEEDINGS. THE ASSESSEE DENIED TO HAVE MAINTAINED ANY CASH BOOK OR FOR THAT MATTER, CARRIED OUT ANY BUSINESS D URING THE YEAR. IN VIEW OF THE CONFLICT BETWEEN THE FINDINGS RECORDED BY THE L D. CIT(A) IN THE OPERATIVE PART OF HIS ORDER AND THE ASSERTIONS MADE BY THE LD. AR, I CONSIDER IT EXPEDIENT TO SET ASIDE THE IMPUGNED ORDER AND RE MIT THE MATTER TO THE FILE OF THE LD. FIRST APPELLATE AUTHORITY FOR RECONCILIN G THE SAME AND THEN DECIDING THIS ISSUE AFRESH AS PER LAW, AFTER ALLOWING A REAS ONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR S TATISTICAL PURPOSES. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 2 6 TH AUGUST, 2015. SD/- (R.S. SYAL) ACCOUNTANT MEMBER DATED: 26 TH AUGUST, 2015. DK ITA NO.3763/DEL/2015 4 COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR DY. REGISTRAR, ITAT, NEW DELHI