Manoj Sharma, Muzaffarnagar V. ITO WARD - 1(3), Muzaffarnagar

ITA 427/DEL/2021

AI Insights

The case involves an appeal by Manoj Sharma against the revisional order of the Principal Commissioner of Income Tax, Dehradun, which was dated 09.03.2021. The revisional order challenged the assessment made by the Assessing Officer under Section 147 read with Section 143(3) of the Income Tax Act, 1961, concerning the Assessment Year 2010-11. The primary contention was regarding the jurisdictional authority under Section 263 of the Act, where the Pr. CIT had found the original assessment to be prejudicial to the interests of the revenue. The tribunal examined the submissions and the evidence presented, particularly focusing on the source of cash investments amounting to Rs. 3,56,000 towards share purchases, which the assessee claimed were from cash deposits in his bank account.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121623 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 27-08-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 11-04-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DEEPAK KUMAR GUPTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” DELHI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.427/DEL/2021 Assessment Year 2010-11 Manoj Sharma 501-Munim Colony New Mandi Muzaffarnagar Uttar Pradesh Vs. Principal Commissioner of Income Tax, Dehradun Uttar Pradesh TAN/PAN: BGCPS8514C (Appellant) (Respondent) Appellant by: Shri Deepak Kumar Gupta, Adv. Respondent by: Shri Subhra Jyoti Chakraborty, CIT-DR Date of hearing: 28 08 2023 Date of pronouncement: 05 09 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he c a pt i o ne d a p p e al h a s be en fi l e d a t th e i n s t a n c e o f t he a ss es se e a ga in st th e r ev i s io na l o r d e r o f t h e l d. P ri n c i p a l Co m m i s s i o n e r o f I nc o m e T a x , D e hr a d u n (‘ P r. C I T ’ in sh or t ) d a t e d 09 . 0 3. 2 0 2 1 w h e r e i n or de r pa sse d b y t he A ss e s si n g O ff i c e r ( A O ) un d e r S e c t i o n 1 47 r. w . S ec t i o n 14 3(3 ) o f t he I n c o me Ta x A c t, 1 96 1 (t h e A c t ) d a t e d 2 2 . 09. 2 0 17 c on c e rn i n g A Y 20 10 - 11 w as h e ld t o be e rr o n e o us in s o f a r a s p r ej u di c i a l t o t h e i nt e re st o f t h e r e ve nu e w it h i n th e me an i ng o f S e ct i o n 2 6 3 o f t he A c t. 2. A s pe r t h e g ro un d s o f a p p ea l , t he a ss e ss e e h a s cha l l e n ge d t he re v i s i o n a l j ur i s di ct i on u su rp ed b y t h e P r. C IT i n t er m s o f p ow e r s c on f e r r e d un de r S e c t i o n 26 3 o f t he A c t o n t h e gr o u nd t h a t t h e a ss es se e h a s fa i l e d t o fu r ni sh d o c u m en t ar y e vi de n c es t o p r ov e t he I.T.A. No.427/Del/2021 2 so u rc e o f c a s h i nv e st me n t o f R s. 3, 5 6, 0 0 0/ - t ow a rd s sha re pu r c h a s e s. 3. W e h a v e c a r e f ul l y c on s i d er ed t he ri va l su b m i s si on s o n t h e c ha ll e n g e t ow a rd s ass u mp t i o n o f j u ri sdi c t i o n u nd e r S e c t i o n 2 6 3 o f t he A ct . 4. I t i s t he ca se o f t h e a s se ss e e t h a t t h e s h a r e s we r e pu rc ha s e d ou t o f ca sh d e p o s i t s o f Rs . 3 , 5 6, 0 0 0 / - i n t he ba nk ac c ou n t . T h e A sse s si n g O f fi c e r ha s m a d e ap pr o p ri a t e in qu i r y i n thi s r e g a r d. T h e A sse s si n g O f fi c e r ha s n o t on l y di sa l l ow e d t h e s p e c ul a t i on b u si ne ss l os se s b u t h a s a l s o tr e a t e d th e so u rc e o f a pa r t o f c a s h d e po si t t o be un s at i s fa c to ry a n d t re at e d a s u m o f R s. 1, 50 , 00 0 / - to b e u ne xp l a i n e d t ow a r ds s o u r c e o f s uc h d e p o s i t. 5. U n de r th e c i r c u m st a n c e s w he re t h e A sse ss i n g O ffi c e r h a s a pp l i ed h is m i n d a n d r e ac he d t o a pl au si bl e c on c l usi on g iv in g be n e fi t o f so me c a s h in ha nd n or m a ll y a v a i l ab l e a t t h e d i s p o sa l o f a n a ss es se e a n d t re a t i ng a n e st i ma t e d s u m as a n un e x pla in e d , t he v i e w t ak en b y t h e A sse s si n g O f fi c e r c a n n o t b e su m ma r il y di sr e ga rd ed t o su b st i t ut e t h e o p i n i on o f t h e P r . C IT i n th i s re ga r d. T h e v i e w o f t he A sse s si n g O ff i c e r a pp e a rs pl a u si bl e an d re so n a t e s wi t h c o m mo n se n se a pp r oa c h a n d t h u s c a n no t b e sa i d t o b e er ro neou s pe r s e. T he re v i s i o n a l ac t i o n o f t h e P r . CIT , i f p er mi t t e d , ha s t h e po t en ti a l t o up s et a ny a nd e v e r y a ss es s m e n t or de r on s ha ll o w p ret e x t a nd t h u s c an no t b e c o un t e n a n ce d. We t h u s s e t a si de a n d q u a s h th e re vi s i o n a l or d e r p a s se d un d e r S e c ti o n 2 6 3 o f t h e A c t . 6. I n t h e re s ul t , th e a p p e a l o f th e a s se ss e e i s a l lo w ed . Order pronounced in the open court on 05/ 09/ 20 23 Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] VICE PRESIDENT ACCOUNTANT MEMBER DATED: /08/2023