Lalit Kumar Modi, New Delhi V. DCIT Circle-11(1), New Delhi

ITA 398/DEL/2021

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8019 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 13-03-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 07-04-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Unexplained expenditure; Initiation of penalty proceedings; Condonation of delay
• Section: 68; 69C

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No. 398/Del/2021 Asstt. Year: 2011-12 Mr. Lalit Kumar Modi, A-1, Maharani Bagh, New Delhi-110 014. PAN AAPPM4175M Vs. DCIT, Circle 11(1), New Delhi. (Appellant) (Respondent) O R D E R PER ASTHA CHANDRA, JM The appeal filed by the assessee is directed against the order dated 22.10.2019 of the Ld. Commissioner of Income Tax (Appeals)- 42, New Delhi (“CIT(A)”) pertaining to the Assessment Year (“AY”) 2011-12. 2. The assessee has raised the following grounds of appeal:- “1. That the order passed by the learned CIT(A) suffers from jurisdictional error as bringing in new source of income, when such source has not been considered and dealt with by the Assessing Officer is beyond the scope of his jurisdiction. (a) That the learned CIT(A) failed to appreciate that the Assessing Officer made addition under section 68 of the Income Tax Act in respect of loans and also on account of credit card expense but to confirmed the addition under different provision of law ie u/s 56(2)(vii)(a) of the Income Tax Act 1961. Assessee by: Shri Sachit Jolly. Adv. Ms. Disha Jham & Shri Devansh Jain, Advocate Department by: Shri Vizay B. Vasanta, CIT-DR Date of Hearing: 14.03.2024 Date of pronouncement: 03.04.2024 ITA No. 398/Del/2021 2 (b) That the learned CIT(A) failed to appreciate that transaction with M/s Indo Euro Investment Co Ltd amounting to Rs 2,10,45,478/- and M/s K.K.Modi Investment and Financial Services Ltd amounting to Rs 8,74,22,091/- were in the nature loans on which interest was paid. 2. That the order of the CIT(A) suffers from the vice of denial of natural justice as no opportunity was provided while bringing new source of income. 3. Without prejudice to the above, the learned CIT(A) failed to appreciate that the provisions of Section 56(2)(vii)(a) are not attracted on the facts of the case. 4. That the learned CIT(A) erred in confirming the addition u/s 69C on account of unexplained expenditure. (a) The learned CIT(A) failed to appreciate that statement of third party recorded during the survey at their premises has no evidentiary value. (b) The findings recorded by the assessing officer are not based on any material evidence on record but are based on surmises and conjectures. (c) The learned CIT(A) failed to appreciate that assessee was never supplied copy of the alleged statement nor any opportunity was provided to cross examine the party. 5. The learned CIT(A) erred in confirming addition of Rs. 80,63,691/ on account of unexplained credit card expenses ignoring the evidence on record. (a) The learned CIT(A) committed an error in confirming addition made by the Assessing Officer u/s 69C of the Income Tax Act 1961 on account of unexplained expenditure on credit card as perquisite u/s 17(2) of the Act; this is beyond the scope of his jurisdiction. (b) The learned CIT(A) erred in confirming addition on credit card expenses made by the Assessing officer u/s 69C as well as income u/s 56(2)(vii)(a) of the Income Tax Act 1961.” 3. The appeal is filed late by 475 days. The assessee has submitted application for condonation of delay in filing appeal. 4. After hearing the Ld. Representative of the parties, the delay is hereby condoned and the appeal is taken up for hearing. 5. At the very outset, the Ld. AR submitted that the date of last hearing of the assessee’s appeal before the Ld. CIT(A) was 22.07.2015 and the appellate order has been passed by the Ld. CIT(A) on 22.10.2019. In between this ITA No. 398/Del/2021 3 period, there was no communication/contact between the assessee and the Ld. CIT(A). The impugned order has been passed by a different Ld. CIT(A) and the hearing had taken place before another Ld. CIT(A). The assessee came to know about the impugned order of the Ld. CIT(A) when he received notice for initiation of penalty proceedings. The Ld. AR, therefore, urged that the matter be restored back to the file of the Ld. CIT(A) for fresh hearing and disposal. He did not argue the appeal on merits. 6. The Ld. CIT-DR had no objection therefor. He conceded to the request of the Ld. AR. 7. On the facts and in the circumstances narrated by the Ld. AR, we deem it fit to remit the case back to the file of the Ld. CIT(A) with a direction to him to decide the matter afresh on merits after affording reasonable opportunity of hearing to the parties. This, in our view, shall meet the ends of justice. We order accordingly. 8. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 3 rd April, 2024. sd/- sd/- (G.S. PANNU) (ASTHA CHANDRA) VICE PRESIDENT JUDICIAL MEMBER Dated: 03/04/2024 Veena Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi ITA No. 398/Del/2021 4 Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order