ITO, New Delhi V. Sh. Inder Pal Singh Bindra, Delhi

ITA 4353/DEL/2009

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5727 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 30-03-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 13-11-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P K GUPTA
• Assessee Lawyers: N O N E
• Keywords: Unexplained expenditure; Opportunity of being heard; Principle of natural justice; Additional evidence
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH C DELHI ] BEFORE SHRI R. P. TOLANI, JM & SHRI K. D. RANJAN, AM I. T. APPEAL NO. 4353 (DEL) OF 2009. ASSESSMENT YEAR : 2006-07. THE INCOME-TAX OFFICER, SHRI INDER PAL SIN GH BINDRA, W A R D : 21 (1), VS. 62/1, SECTOR : 22, N E W D E L H I. ROHINI, D E L H I 110 085. P A N / G I R NO. AIF PB 0766 P. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY : N O N E; DEPARTMENT BY : SHRI P. K. GUPTA, SR. D. R.; O R D E R. PER K. D. RANJAN, AM : THIS APPEAL BY THE ASSESSEE FOR ASSESSMENT YEAR 200 6-07 ARISES OUT OF THE ORDER OF THE LD. CIT (APPEALS)-XXII, NEW DELHI. 2. THE ONLY ISSUE FOR CONSIDERATION RELATES TO DELE TING THE ADDITION OF RS.11,30,223/- MADE UNDER SECTION 69 OF THE I. T. ACT, 1961. THE FACTS OF THE CASE STATED IN BRIEF ARE THAT THE ASSESSING OFFICER RECEIVED INFORMATION UNDER AIR THAT THE ASS ESSEE HAD MADE PAYMENTS AGAINST CREDIT CARD BILLS OF STATE BANK OF INDIA AMOUNTING TO RS.4,95,6 11/- AND HDFC BANK AMOUNTING TO 2 I. T. APPEAL NO. 4353 (DEL) OF 2009. RS.6.34,612/-. THE ASSESSEE WAS ASKED TO EXPLAIN T HE CREDIT CARD PAYMENTS. ON THE DATE FIXED FOR HEARING, NONE ATTENDED ON BEHALF OF THE ASSESSEE. THE ASSESSING OFFICER, THEREFORE, CONCLUDED THAT THE ASSESSEE HAS NOTHING TO SAY IN THE MATTER. HE ACCORDINGLY TREATED THE AMOUNT OF RS.11,30,223/- AS UNEXPLAINED EXPENDITURE AND ADDED THE SAME UNDER SECTION 69-C OF THE ACT. 3. 3. ON APPEAL BEFORE CIT(A) IT WAS EXPLAINED THAT TH E ASSESSEE WAS A PETTY RETAILER AND HAD BEEN MAKING PURCHASES FROM THE DIRECT SALE AGENTS O F ACQUA GUARD PURIFIERS, MANUFACTURED BY M/S. EUREKA FORBES WHEN DISCOUNT SCHEME WAS LAUNCHE D FOR DOOR TO DOOR BOOKING AGAINST WHICH THE PAYMENT WAS DIRECTLY MADE TO THE COMPANY THROUG H CREDIT CARDS. THE ASSESSEE AVAILED OFF CREDIT CARD FACILITIES OF FEW DAYS FROM THE BANK AN D WHEN THE ACQUA GUARD WAS SOLD OUT THE PAYMENT WAS DEPOSITED. IN THIS WAY THE ASSESSEE EA RNED SOME MARGIN AND ALSO GOT BENEFIT PROVIDING REPAIRS, MAINTENANCE, SERVICES TO SUPPLEM ENT HIS INCOME. THE LD. CIT (A) ON THE BASIS OF THESE FACTS OBSERVED THAT THE ASSESSEE WAS NOT G IVEN REASONABLE TIME TO EXPLAIN THE TRANSACTIONS AND THE ASSESSMENT ORDER WAS PASSED IN A HURRY. THE ADDITION MADE WAS AGAINST THE PRINCIPLE OF NATURAL JUSTICE. THE LD. CIT (A) ON M ERITS ALSO FOUND THE CONTENTION OF THE ASSESSEE AS CORRECT. HE ACCORDINGLY DELETED THE ADDITION. 4. BEFORE US NONE ATTENDED ON BEHALF OF THE ASSESSE E, NOR WAS ANY APPLICATION FOR ADJOURNMENT FILED. THE LD. SR. DR, HOWEVER, SUBMIT TED THAT THE LD. CIT (A) HAS ACCEPTED ADDITIONAL EVIDENCE WITHOUT AFFORDING ANY OPPORTUNI TY TO THE AO UNDER RULE 46-A(3) OF THE INCOME-TAX RULES, 1962. THEREFORE, THE DELETION MA DE BY THE LD. CIT (A) IS NOT JUSTIFED. 4. WE HAVE HEARD THE LD. SR. DR AND PERUSED THE ORD ER PASSED BY THE LD. CIT (A). IT IS A FACT THAT DURING THE COURSE OF APPELLATE PROCEEDINGS THE ASSESSEE HAS FURNISHED CERTAIN INFORMATION, THE SAME WAS NOT CONFRONTED TO THE AO. THEREFORE, THE LD. CIT (A) HAD ACCEPTED THE ADDITIONAL EVIDENCE WITHOUT GIVING PROPER OPPORTUNITY TO THE A O. THEREFORE, WE ARE OF THE CONSIDERED OPINION THAT THE MATTER REQUIRES VERIFICATION OF TH E INFORMATION FILED BEFORE CIT(A). WE, THEREFORE, SET ASIDE THE MATTER TO THE FILE OF THE AO WITH THE DIRECTION TO VERIFY THE CONTENTION OF 3 I. T. APPEAL NO. 4353 (DEL) OF 2009. THE ASSESSEE THAT THE AMOUNT PAID THROUGH CREDIT CA RD WAS ON ACCOUNT OF PURCHASES MADE THROUGH SALES AGENTS OF EUREKA FORBES AND DEPOSITS IN THE B ANK ACCOUNT REPRESENT THE SALE PROCEEDS REALIZED BY THE ASSESSEE IN RESPECT OF AQUA GUARDS. THE AO WILL DECIDE THE ISSUE ON MERITS AFTER AFFORDING NECESSARY OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED, FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON : 30TH MARCH, 2010. SD/- SD/- [ R. P. TOLANI ] [ K. D. R ANJAN ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 30 TH MARCH, 2010. *MEHTA * COPY OF THE ORDER FORWARDED TO : - 1. APPELLANT. 2. RESPONDENT. 3. CIT, 4. CIT (APPEALS), 5. DR, ITAT, NEW DELHI. TRUE COPY. BY ORDER. ASSISTANT REGISTRAR, ITAT. 4 I. T. APPEAL NO. 4353 (DEL) OF 2009. 5 I. T. APPEAL NO. 4353 (DEL) OF 2009.