ITO, Sonepat V. Shri Pawan Kumar, Meham

ITA 4125/DEL/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2226 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2006-2007
• Appeal Filed On: 15-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDER K CHAND
• Assessee Lawyers: VINOD AGGARWAL
• Keywords: Unexplained investment
• Section: 144

Judgement Text

ITA NO. 4125/DEL/2009 A.Y. 2006-07 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE THE HON'BLE PRESIDENT, SHRI VIMAL GANDHI AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 4125/DEL/2009 A.Y. 2006-07 INCOME TAX OFFICER, WARD-4, , VS. SHRI PAWA N KUMAR, S/O SH. JAI SINGH, SONEPAT, HQ. AT ROHATAK, AAYAKAR V&PO : KISHANGAR H, TEHSIL MEHAM BHAWAN, ROHTAK (HARYANA) ROHTAK. (PAN : BENPK5894J) (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. VINOD AGGARWAL, CA DEPARTMENT BY : SH. NARENDER K. CHAND, DR ORDER PER SHAMIM YAHYA: AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX(A) DATED 13.8.2009 FOR THE ASSESSMENT YEAR 2006-07. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCOM E TAX(A) ERRED IN DELETING THE ADDITION OF RS. 16 LACS MADE BY THE A SSESSING OFFICER. 3. IN THIS CASE, IN THE ASSESSMENT ORDER WAS PASSED UNDER SECTION 144 OF THE ACT. THE ASSESSING OFFICER HAS NOTED THA T THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 38(1), NEW DELHI V IDE LETTER F.NO. ITA NO. 4125/DEL/2009 A.Y. 2006-07 2 ACIT/CIR38(1)/2008-09/24 DATED 9.4.2008 INFORMED THA T SHRI PAWAN KUMAR THE ASSESSEE HAS ADVANCED A LOAN OF RS. 16,00,0 00/- TO M/S BHARDWAJ BROTHERS OF NEW DELHI. 3.1 NOTICES WERE ISSUED TO THE ASSESSEE IN THIS REGAR D. AO NOTED THAT DESPITE SUFFICIENT OPPORTUNITY THE ASSESSEE DID NOT EXPLAIN THE SOURCE OF LOAN ADVANCE TO M/S BHARDWAJ BROS.. HENCE, AO ADDED THE SAME AS ASSESSEES UNEXPLAINED INVESTMENT. 4. UPON ASSESSEES APPEAL THE COMMISSIONER OF INCOME TAX (APPEALS) CONSIDERED THE MATERIAL BROUGHT BEFORE HIM A ND REMANDED THE SUBMISSIONS AND MATERIAL BEFORE HIM TO THE AO A ND ASKED HIM TO FILE A REPORT AFTER CONDUCTING THE NECESSARY ENQUIRI ES. CONSIDERING AOS REPORT IN THE APPELLATE ORDER LD. CIT(A) OBSERV ED AS UNDER:- IT HAS BEEN SEEN FROM THE REPORT OF THE AO THAT THE APPELLANT HAD RECEIVED RS. 22,11,906/- AS ADVANCE F OR SALE OF ITS LAND TO M/S UDDAR GAGAN PROPERTIES LTD. AND THA T M/S UDDAR GAGAN PROPERTIES LTD. HAD GIVEN TWO CHEQUES F OR RS. 7,11,906/- AND RS. 15,00,000/- DATED 1.7.2005 OF HD FC WHICH WERE DEPOSITED IN THE BANK ACCOUNT OF THE APP ELLANT WITH SBOP MEHAM; FROM THIS BANK ACCOUNT THE APPELLAN T HAD GIVEN RS. 16,00,000/- TO M/S BHARDWAJ BROS., NE W DELHI. THE AO HAS REPORTED THAT THE APPELLANT WAS HAVING S UFFICIENT FUNDS AT ITS DISPOSAL FOR MAKING THE ADVANCE DUE TO WHICH THE FINANCIAL CAPABILITY CANT BE DOUBTED AND THAT THE TRANSACTION APPEARS TO BE GENUINE. IN THE VIEW OF THE ITA NO. 4125/DEL/2009 A.Y. 2006-07 3 AFORESAID THE ADDITION MADE BY THE AO IS DELETED AND THE APPEAL IS ALLOWED. 5. AGAINST THIS ORDER THE REVENUE IS IN APPEAL BEFOR E US. 6. WE HAVE HEARD BOTH THE COUNSELS AND PERUSED THE R ECORDS. AS IT IS APPARENT FROM THE LD. CIT(A)S ORDER ABOVE, THE AO HAS HIMSELF EXAMINED AND REPORTED THAT ASSESSEE HAD SUFFICIENT F UNDS AT HIS DISPOSAL TO MAKE THE ADVANCES. UNDER SUCH CIRCUMSTAN CES, IN OUR CONSIDERED OPINION REVENUE CANNOT HAVE ANY GRIEVANCE. ACCORDINGLY, WE UPHOLD THE ORDER OF THE LD. CIT(A) AND DECIDE THE ISSUE AGAINST THE REVENUE. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15/12/2009 UPON CONCLUSION OF THE HEARING. SD/- SD/- [VIMAL GANDHI] [SHAMIM YAHYA] PRESIDENT ACCOUNTANT MEMBER DATED: 15/12/2009 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DR, ITAT, DELHI BENCHES