Gopal Sharma, Gurgaon V. ITO WARD - 13(1), New Delhi

ITA 4451/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2322 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 15-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: BHAWANA GARG
• Keywords: Unexplained cash credit; Gift; Principle of natural justice; Additional evidence
• Section: 15

Judgement Text

1 ITA NO. 4451/DEL/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: I(2) + SMC 1 NEW DELHI BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEMBER, AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 4451/DEL/2019 ( A.Y 2010-11) GOPAL SHARMA 803, CHANDRA CGHS, PLOT NO. 64, GOLF COURSE, SECTOR-55, GURGAON, HARYANA AAZPS6693J (APPELLANT) VS ITO WARD-13(1) ROOM NO. 306, C. R. BUILDING, I. P. ESTATE, NEW DELHI (RESPONDENT) APPELLANT BY MS. BHAWANA GARG, ADV RESPONDENT BY SH. PRADEEP SINGH GAUTAM, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 25.2.2019 PASSED BY CIT(A)- 36, NEW DELHI FOR ASSESSMENT YE AR 2010-11. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT IN THE ABOVE SAID CASE THE APPLICANT RECEI VED THE FINAL ASSESSMENT ORDER DATED 26.10.2017 AS ON 28.10.2017 WHEREBY THE TOTAL INCOME BY THE ITO FOR THE AY 2010 TO 2011 WAS ASSESSED AT RS. 9,2 2,500. 2. THAT SINCE THE ASSESSMENT ORDER WAS SILENT AS R EGARD NECESSARY PARTICULARS PERTAINING TO SANCTION REQUISITE UNDER THE LAW THE APPELLANT THROUGH RTI APPLICATION DATED 26.12.2017 APPLIED FO R THE COPIES OF ENTIRE NOTE- SHEETS AND SANCTION ORDER ACCORDED UNDER SECTION 15 1 OF THE INCOME TAX ACT DATE OF HEARING 04.03.2020 DATE OF PRONOUNCEMENT 20.03.2020 2 ITA NO. 4451/DEL/2019 ALONG WITH OTHER DOCUMENTS. FILE NO. ITO WARD-13 (1 ) 145. 3. THAT VIDE LETTER DATED 08.02.2018 INCOME TAX OF FICER DISPOSED OFF THE SAID APPLICATION OF UNDER RTI ACT BY CALLING UPON THE AS SESSEE TO COLLECT THE REQUISITE DOCUMENTS WHICH WAS SUPPLIED ON 08.02.201 8. 4. THAT SINCE SOME MORE INFORMATION WAS REQUISITE T HE ASSESSEE APPLIED FOR INSPECTION OF THE FILE ON 27.02.2018 WHICH IS SHALL PENDING. HOWEVER, SUBJECT TO SUBMITTING THE SAME DURING HEAR ING THE APPEAL WAS FILED ON 5/3/2018. 5. THAT THE DELAY WAS NOT INTENTIONAL BUT BONAFIDE ON ACCOUNT OF REASONS CITED ABOVE. IT IS THEREFORE PRAYED THAT THE DELAY OF 98 DAYS IN FILING THE APPEAL MAY KINDLY BE CONDONED IN THE INTEREST OF JU STICE AND THE APPEAL BE HEARD ON MERIT. 3. THE CASE OF THE ASSESSEE WAS OPENED ON THE BASI S OF INFORMATION AVAILABLE ON SYSTEM UNDER NMS. DURING THE FINANCIA L YEAR 2009-10, RELEVANT TO ASSESSMENT YEAR 2010-11, THE ASSESSEE HAS A TRAN SACTION IN MUTUAL FUNDS AGGREGATING TO 12,00,000/- AND HAS ALSO AN INCOME F ROM HOUSE PROPERTY AGGREGATING TO RS.3,96,34/-. BEFORE THE ASSESSING OFFICER, THE ASSESSEE HAS NOT FURNISHED ITS RETURN OF INCOME FOR THE PRESENT ASSE SSMENT YEAR. THE ASSESSING OFFICER MADE ADDITION OF RS. 3,52,500/- U/S 68 IN R ESPECT OF UNEXPLAINED CASH CREDIT. THE ASSESSING OFFICER ALSO MADE ADDITION O N ACCOUNT OF UNCONFIRMED LOANS AMOUNTING TO RS. 4, 00,000/-. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. THE LD. AR SUBMITTED THAT THE ASSESSING OFFICER AS WELL THE CIT(A) HAS NOT TAKEN COGNIZANCE OF THE EVIDENCE PLACED BEFORE THE REVENUE AUTHORITIES AND SIMPLY MADE ADDITION ON ACCOUNT OF UNEXPLAINED CASH CREDIT. IN-FACT, THE ASSESSEE SUBMITTED THE CONFIRMATIONS FROM THE DONOR S WHO HAVE GIFTED THE 3 ITA NO. 4451/DEL/2019 AMOUNT TO ASSESSEES DAUGHTER ON HER BIRTHDAY AND T HEY ARE ALL FAMILY MEMBERS AND RELATIVES. AS REGARDS ADDITION ON ACCOU NT OF UNSECURED LOANS, THE LD. AR SUBMITTED THAT THE ASSESSING OFFICER AS WELL AS THE CIT(A) DID NOT GIVE SUFFICIENT OPPORTUNITY TO THE ASSESSEE TO PRODUCE T HE ADDITIONAL EVIDENCE BEFORE THEM. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. THE ASSESSING OFFICER AS WELL AS THE CIT(A ) HAS NOT TAKEN THE COGNIZANCE OF THE EVIDENCES RELATING TO CONFIRMATI ONS FROM THE DONORS. BESIDES THAT AS RELATES TO ADDITION ON ACCOUNT OF UNSECURED LOAN, THE ASSESSEE HAS FURNISHED THE CONFIRMATION OF THE LENDERS WHICH WAS NOT PROPERLY CONSIDERED AND ONLY WAS MENTIONED IN THE ASSESSMENT ORDER. THE RE IS NO SUBSTANTIAL REASONING GIVEN WHILE MAKING BOTH THE ADDITIONS BY THE ASSESSING OFFICER AS WELL AS BY THE CIT(A). THEREFORE, IT WILL BE APPROP RIATE TO REMAND BACK BOTH THE ISSUES TO THE FILE OF THE ASSESSING OFFICER FOR FRE SH ADJUDICATION. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPORTUNITY OF HEARING B Y FOLLOWING PRINCIPLES OF NATURAL JUSTICE. THUS, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH MARCH, 2020. SD/- SD/- (PRASHANT MAHARISHI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 20/03/2020 R. NAHEED COPY FORWARDED TO: 4 ITA NO. 4451/DEL/2019 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 05.03.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 06.03.2020 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 19.03.2020 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 19.03.2020 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 19.03.2020 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