DCIT, New Delhi V. Tushar Kumar, New Delhi

ITA 3796/DEL/2010

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4787 (ITAT-DELHI)
• Duration Of Justice: 10 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 04-07-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 09-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income; Documents seized
• Section: 153A; 13; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO. 3796/DEL/2010 : ASSTT. YEAR : 2006-07 DCIT, CENTRAL CIRCLE-12, NEW DELHI VS TUSHAR KUMAR, G-5, GTM HOUSE, PUSHKAR ENCLAVE, OUTER RING ROAD, PACHIM VIHAR, NEW DELHI-110063 (APPELLANT) (RESPONDENT) PAN NO. A BMPT5448C ASSESSEE BY : SH. K. SAMPATH, ADV. REVENUE BY : MS. SUNITA SINGH, CIT DR DATE OF HEARING: 12.01.2021 DATE OF PRONOUNCEMENT : 10.02.2021 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE A GAINST THE ORDER OF LD. CIT(A)-1, NEW DELHI DATED 28.05.2010. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENU E: 1. THE ORDER OF THE LD. CIT (A) IS NOT CORRECT IN LAW AND FACTS. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 56,90,039/- TOWARDS UNEXPLAINED BANK CREDIT ENTRIES NOT EXPLAINED BEFOR E, AO, WHILE ADMITTING ADDITION EVIDENCE IN THE FORM O F CONFIRMATIONS, IN VIOLATION OF PROVISIONS OF RULE - 46A(3) OF INCOME TAX RULES, 1962. ITA NO.3796/DEL/2010 TUSHAR KUMAR 2 3. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 56,90,039/- TOWARDS UNEXPLAINED BANK CREDIT ENTRIES WITHOUT EXAMINING T HE CHARGEABILITY OF THE SOURCE OF SUCH ENTRIES TO INCO ME TAX AND WITHOUT GIVING OPPORTUNITY TO AO TO EXAMINE THE SAME. 4. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 1,92,00,000/- ON PROTECTIVE BASIS, TOWARDS UNDISCLOSED INCOME ON SAL E OF FLATS AS RECORDED IN DOCUMENTS SEIZED DURING SEA RCH IN GTM GROUP AND IMPOUNDED DURING SURVEY UNDER SECTION 133A, SHOWING PAYMENTS TO THE ASSESSEE WHIL E IGNORING THE PROVISIONS OF SECTION 132(4A) AND 292- C OF INCOME TAX ACT 1961. LEARNED CIT(A) HAS ALSO DELETED THE ADDITION OF SUBSTANTIVE BASIS IN THE CA SE OF M/S GTM BUILDERS AND PROMOTERS PRIVATE LIMITED. CREDIT ENTRIES IN THE BANK ACCOUNT: GROUND NOS.2 & 3 3. THE ASSESSING OFFICER ON PERUSAL OF THE BANK ACCOUN T NO.01321000057551 IN THE NAME OF TUSHAR KUMAR WITH HDFC BANK, PALAM VIHAR, NEW DELHI FOUND THAT THERE WERE SOME DEBIT AND CREDIT ENTRIES. THE AO HELD THAT THE ASSESSEE H AS NOT EXPLAINED THE NARRATION FOR DEBITED ENTRIES, AS WEL L AS SOME OF CREDIT ENTRIES. FURTHER, IT WAS HELD THAT A CREDIT ENTRY OF RS.25,00,000/- ON 11.08.2005, FOR WHICH THE ASSESSE E HAS NOT GIVEN ANY NARRATION. ON 08.08.2005, BEFORE THIS CRE DIT ENTRY THE ASSESSEE WAS HAVING A BALANCE OF RS.4085/-. IT WAS HELD THAT ON 12.08.2005, THE ASSESSEE HAS TRANSFERRED RS.24,50,0 00/- IN GTM BUILDER & PROMOTERS PVT. LTD. AS INTRODUCTION SHARE CAPITAL. ITA NO.3796/DEL/2010 TUSHAR KUMAR 3 SINCE, THE ASSESSEE HAS FAILED TO EXPLAIN THE BANK ENTRIES APPEARING IN THE BANK STATEMENTS, THE CREDIT ENTRIE S WHICH HAVE NO EXPLANATIONS WERE TREATED AS UNEXPLAINED INCOME AND ADDED TO THE INCOME OF THE ASSESSEE. THE TOTAL OF THESE ENTR IES WORK OUT BY THE AO ARE TO THE TUNE OF RS.76,90,039/-. HOWEVER, AS A SUM OF RS.20,00,000/- DECLARED BY THE ASSESSEE AS INCOME F ROM VARIOUS MISCELLANEOUS WORKS OF CIVIL NATURE FOR DIFFERENT P ARTIES, THE ADDITION OF RS.56,90,039/-(RS.76,90,039/- - RS.20,0 0,000/-) WAS MADE TO THE INCOME OF THE ASSESSEE AS UNEXPLAINED I NCOME. 4. AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE THE L D. CIT (A). 5. THE LD. CIT (A) DELETED THE ADDITION ON THE GROU NDS THAT THE ENTRIES HAVE BEEN DULY EXPLAINED. 6. AGGRIEVED WITH THE ORDER OF THE LD. CIT (A), THE REVENUE FILED APPEAL BEFORE US. 7. HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERU SED THE MATERIAL AVAILABLE ON RECORD. 8. WE HAVE PERUSED THE DOCUMENTS AND THE EXPLANATIO N, THE DETAILS OF THE BANK ENTRIES ARE AS UNDER: S.NO . DATE PARTICULARS CH. NO. RECEIPTS AMOUNT 1 01.04.2005 TUSHAR MALIK RS. 98/- 2 07.04.2005 DIRECTOR REMUNERATION RS. 20,000/- 3 07.05.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 196868 RS. 18,000/ - 4 16.05.2005 CASH DEPOSITED RS. 20,000/- 5 30.05.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 205963 RS. 18,000/ - 6 30.05.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 205964 RS. 100,000/ - ITA NO.3796/DEL/2010 TUSHAR KUMAR 4 7 23.06.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 205909 RS. 2,00,000/ - 8 25.06.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 205912 RS. 32,400/ - 9 30.06.2005 TUSHAR MALIK RS. 9/- 10 11.07.2005 TUSHAR MALIK 205944 RS. 20,000/- 11 16.07.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 217781 RS. 32,400/ - 12 02.08.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 217800 RS. 17,400/ - 13 11.08.2005 ANSAL PROPERTIES LTD. 771068 RS. 25,00,000/- 14 31.08.2005 TUSHAR MALIK 217944 RS. 11,400/- 15 14.09.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 217959 RS. 32,400/ - 16 16.09.2005 TUSHAR MALIK RS. 2,800/- 17 26.09.2005 1 TUSHAR MALIK 217995 RS. 73,200/ - 18 28.09.2005 TUSHAR MALIK 217998 RS. 17,000/ - 19 30.09.2005 TUSHAR MALIK RS. 31/- 20 10.10.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 227427 RS. 34,650/ - 21 18.10.2005 THE SETH VIHAR CGHS LTD. 404000 RS. 3,00,000/ - 22 19.10.2005 TUSHAR MALIK 113008 RS. 6,00,000/- 23 31.10.2005 TUSHAR MALIK 228401 RS. 23,830/- 24 03.11.2005 GAUTAM KUMAR 751416 RS. 8,00,000/- 25 03.11.2005 TUSHAR MALIK 228404 RS. 6,000/- 26 05.11.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 228417 RS. 8,00,000/ - 27 10.11.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 228424 RS. 34,650/ - 28 07.12.2005 TUSHAR MALIK 228487 RS. 50,167/- 29 31.12.2005 TUSHAR MALIK RS. 188/ - 30 05.01.2006 GTM BUILDERS & PROMOTERS PVT. LTD. 228574 RS. 2,00,000/ - 31 12.01.2006 GTM BUILDERS & PROMOTERS PVT. LTD. 228588 RS. 43,330/ - 32 14.02.2006 GTM BUILDERS & PROMOTERS PVT. LTD. 240335 RS. 33,330/ - 33 15.02.2006 TUSHAR MALIK 240357 RS. 36,152/- 34 28.02.2006 GTM BUILDERS & PROMOTERS PVT. LTD. 240388 RS. 33,330/ - 35 06.03.2006 CASH DEPOSITED RS. 100/- 36 13.03.2006 TUSHAR MALIK 240230 RS. 10,735/- 37 23.03.2006 TUSHAR MALIK 240256 RS. 37,839/ - ITA NO.3796/DEL/2010 TUSHAR KUMAR 5 38 27.03.2006 OTHER INCOME 817026 RS. 2,25,100/- TOTAL(A) RS. 63,84,539/- ENTRIES CONSIDERED BY THE ASSESSING OFFICER IN CRED IT ENTRIES WHICH ARE ACTUALLY REVERSAL ENTRIES FOR CHEQUES RETURNED S. NO. DATE PARTICULARS CH. NO . RECEIPTS AMOUNT 1 05.11.2005 CHEQUE RETURNED 398932 RS. 6,00,000/ - 2 05.11.2005 CHEQUE RETURNED 398933 RS. 2,00,000/- 3 06.01.2006 CHEQUE RETURNED 398944 RS. 5,00,000/ - 4 06.03.2006 CHEQUE RETURNED 400137 RS. 5,000/- 5 13.08.2005 CHEQUE RETURNED 246775 RS. 500/- TOTAL(B) RS. 13,05,500/- GROSS TOTAL(A+B) RS. 76,90,039/- 9. IT WAS ARGUED THAT THE ASSESSING OFFICER HAS WRO NGLY WORKED OUT THE CREDIT ENTRIES AT RS. 76,90,039/- IN THE BA NK STATEMENT INSTEAD OF ACTUAL CREDIT ENTRIES RS. 63,84,539/- AN D ACCORDING TO THE ASSESSING OFFICER THE ADDITION SHOULD HAVE BEEN (RS. 63,84,539/- - RS. 20,00,000/- = RS. 43,84,539/-). W HEREAS, THE LD. ASSESSING OFFICER HAS MADE THE ADDITION OF RS. 56,90,039/- WITHOUT LOOKING THE FACTS RELATING TO THE CREDIT EN TRIES IN THE BANK STATEMENT. 10. IT WAS SUBMITTED THAT ACTUAL CREDIT ENTRIES AMO UNTING TO RS.63,84,530/- CONSISTS OF THE FOLLOWING CREDITS: DATE CHEQUE NO RECEIVED FROM AMOUNT 30.05.2005 205964 GTM BUILDERS & PROMOTERS 1,00,000 23.06.2005 205909 - DO - 2,00,000 11.08.2005 246775 ANSAL PROPERTIES LTD 25,00,000 18.10.2005 404000 THE SETH VIHAR CGHS LTD 3,00,000 19.10.2005 113008 GTM BUILDERS & PROMOTERS 6,00,000 03.11.2005 751416 GAUTAM KUMAR 8,00,000 05.11.2005 228417 GTM BUILDERS & PROMOTERS 8,00,000 05.01.2006 228574 GTM BUILDERS & PROMOTERS 2,00.000 55,00,000 ITA NO.3796/DEL/2010 TUSHAR KUMAR 6 11. THE REST OF THE CREDITS ARE SMALL RECEIPTS FROM GTM BUILDERS & PROMOTERS AND RS. 2,25,100/- REPRESENTING OTHER I NCOME. CONFIRMATION IN RESPECT OF GTM BUILDERS & PROMOTERS , ANSAL PROPERTIES, THE SETH VIHAR CGHS LTD. GAUTAM KUMAR W ERE FILED. 12. HAVING EXAMINED THE OBSERVATIONS OF THE ASSESSI NG OFFICER AND THE SUBMISSIONS MADE BY THE ASSESSEE, THE TOTAL CREDIT ENTRIES AFTER TAKING OUT THE CHEQUES REVERSED WORKS OUT TO RS.63,84,539/- AS UNDER: S. NO. DATE PARTICULARS CH. NO. RECEIPTS A MOUNT 1 01.04.2005 TUSHAR MALIK RS. 98/ - 2 07.04.2005 DIRECTOR REMUNERATION RS. 20,000/ - 3 07.05.2005 GTM BUILDERS PROMOTERS PVT. LTD. & 196868 RS. 18,000/ - 4 16.05.2005 CASH DEPOSITED RS. 20,000/ - 5 30.05.2005 GTM BUILDERS PROMOTERS PVT. LTD. & 205963 RS. 18,000/ - 6 30.05.2005 GTM BUILDERS PROMOTERS PVT. LTD. & 205964 RS. 100,000/ - 7 23.06.2005 GTM BUILDERS PROMOTERS PVT. LTD. & 205909 RS. 2,00,000/ - 8 25.06.2005 GTM BUILDERS PROMOTERS PVT. LTD. & 205912 RS. 32,400/ - 9 30.06.2005 TUSHAR MALIK RS. 9/ - 10 11.07.2005 TUSHAR MALIK 205944 RS. 20,000/ - 11 16.07.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 217781 1RS. 32,400/ - 12 02.08.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 217800 RS. 17,400/ - 13 11.08.2005 ANSAL PROPERTIES LTD. 771068 RS. 25,00,000/ - 14 31.08.2005 TUSHAR MALIK 217944 RS. 11,400/ - 15 14.09.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 217959 RS. 32,400/ - 16 16.09.2005 TUSHAR MALIK RS. 2,800/ - 17 26.09.2005 TUSHAR MALIK 217995 RS. 73,200/ - 18 28.09.2005 TUSHAR MALIK 217998 RS. 17,000/ - 19 30.09.2005 TUSHAR MALIK RS. 31/ - 20 10.10.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 227427 RS. 34,650/ - ITA NO.3796/DEL/2010 TUSHAR KUMAR 7 21 18.10.2005 THE SETH VIHAR CGHS LTD. 404000 RS. 3,00,000/ - 22 19.10.2005 TUSHAR MALIK 113008 RS. 6,00,000/ - 23 31.10.2005 TUSHAR MALIK 228401 RS. 23,830/ - 24 03.11.2005 GAUTAM KUMAR 751416 RS. 8,00,000/ - 25 03.11.2005 TUSHAR MALIK 228404 RS. 6,000/ - 26 05.11.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 228417 RS. 8,00,000/ - 27 10.11.2005 GTM BUILDERS & PROMOTERS PVT. LTD. 228424 RS. 34,650/ - 28 07.. 12.2005 TUSHAR MALIK 228487 RS. 50,167/ - 29 31.12.2005 TUSHAR MALIK IRS. 188/ - 30 05.01.2006 GTM BUILDERS & PROMOTERS PVT. LTD. 228574 RS. 2,00,000/ - 31 12.01.2006 GTM BUILDERS & PROMOTERS PVT. LTD. 228588 RS. 43,330/ - 32 14.02.2006 GTM BUILDERS & PROMOTERS PVT. LTD. 240335 RS. 33,330/ - 33 15.02.2006 TUSHAR MALIK 240357 RS. 36,152/ - 34 28.02.2006 GTM BUILDERS & PROMOTERS PVT. LTD. 240388 RS. 33,330/ - 35 06.03.2006 CASH DEPOSITED RS. 100/ - 36 13.03.2006 TUSHAR MALIK 240230 RS. 10,735/ - 37 23.03.2006 TUSHAR MALIK 240256 RS. 37,839/ - 38 27.03.2006 OTHER INCOME 817026 RS. 2,25,100/ - TOTAL(A) RS. 63,84,539/ - ENTRIES CONSIDERED BY THE ASSESSING OFFICER IN CREDIT ENTRI ES WHICH ARE ACTUALLY REVERSAL ENTRIES 13. THE DETAILS OF THE CHEQUE RETURNED IS AS UNDER: FOR CHEQUES RETURNED SO NO. DATE PARTICULARS CH. NO. RECEIPTS AMOUNT 1 05.11.2005 CHEQUE RETURNED 398932 RS. 6,00,000/- 2 05.11.2005 CHEQUE RETURNED 398933 RS. 2,00,000/- 3 06.01.2006 CHEQUE RETURNED 398944 RS. 5,00,000/ - 4 06.03.2006 CHEQUE RETURNED 400137 RS. 5,000/- 5 13.08.2005 CHEQUE RETURNED 246775 RS. 500/- TOTALFB) RS. 13,05,500/- GROSS TOTAL(A+B) RS. 76,90,039/ - ITA NO.3796/DEL/2010 TUSHAR KUMAR 8 14. THUS, THE MAJOR CREDIT ENTRIES WERE OF RS.55,00 ,000/- AS SHOWN IN THE TABLE ABOVE AT PARA. 15. THE ENTRIES CONSIDERED BY THE ASSESSING OFFICER INCLUDES BANK REVERSAL ENTRIES TOO. THE EXPLANATION OF THE C REDIT ENTRIES HAS BEEN EXAMINED WHICH ARE RECEIVED FROM ANSAL PRO PERTIES LTD., THE SETH VIHAR, CGHS LTD. AND THE REMAINING FROM FL AGSHIP COMPANY OF THE ASSESSEE. THERE HAS BEEN AN UNRECONC ILED DIFFERENCE OF RS.8,84,500/- WHICH HAS BEEN ALREADY DECLARED AS BUSINESS INCOME OF RS.20,00,000/- IN THE RETURN FIL ED IN RESPONSE TO THE NOTICE U/S 153A OF THE INCOME TAX ACT, 1961. SINCE, THE BALANCE AMOUNT STANDS OFFERED TO TAX AND THE OTHER CREDIT ENTRIES HAVE BEEN DULY EXPLAINED. WE DECLINE TO INTERFERE W ITH THE ORDER OF THE LD. CIT (A) ON THIS ISSUE. 16. GROUND NO. 4 DEALS WITH UNDISCLOSED INCOME ASSE SSED IN THE HANDS OF THE ASSESSEE ON PROTECTIVE BASIS. THE AMOU NTS WERE HELD TO BE RECEIVED FROM SALE OF FLATS. THE MATTER HAS A LREADY BEEN DEALT IN THE CASE OF GTM BUILDERS & PROMOTERS PVT. LTD. IN ITA NO. 3797/DEL/2010 A.Y. 2006-07 UNDER THE HEAD UNACCOUNT ED INCOME FROM SALE OF FLATS IN COOPERATIVE SOCIETIES VIDE PA RA NO. 30 TO 32 WHEREIN IT WAS HELD THAT THE ADDITION WAS UNWARRANT ED. 17. HENCE, THE APPEAL OF THE REVENUE ON THIS GROUND IS LIABLE TO BE DISMISSED. ITA NO.3796/DEL/2010 TUSHAR KUMAR 9 18. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10/02/2021. SD/- SD/- (AMIT SHUKLA) ( DR. B. R. R. KUMAR) JUDICIAL MEMBER ACC OUNTANT MEMBER DATED: 10/02/2021 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR