Sh. Rahul Seth, New Delhi V. ACIT, New Delhi

ITA 4501/DEL/2014

• Counselvise Citation: 450120114 RSA 2014
• Duration Of Justice: 1 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 03-11-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 14-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Section: 143(3); 142(1); 153A

Judgement Text

ITA NO. 4501/DEL/2014 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-2, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER I.T.A. NO . 4 5 01 /DEL/2014 A.Y. : 20 0 5 - 06 SHRI RAHUL SETH, 14, CHINAR DRIVE, DLF CHHATARPUR FARMS, NEW DELHI 110 074 (PAN: AASPS9459B) VS. ACIT, CENTRAL CIRCLE - 25, NEW DELHI (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) ASSESSEE BY : SH. SALIL AGGARWAL, ADV. DEPARTMENT BY : SH. R AVI JAIN, CIT(DR) DATE OF HEARING: DATE OF HEARING: DATE OF HEARING: DATE OF HEARING: 03 0303 03. .. .11 1111 11.2015 .2015 .2015 .2015 DATE OF ORDER : DATE OF ORDER : DATE OF ORDER : DATE OF ORDER : 06. 06. 06. 06.11 1111 11.2015 .2015 .2015 .2015 ORDER ORDER ORDER ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-XXV, NEW DELHI DATED 27.5.2014 PERTAINING TO ASSESSMENT YEAR 2005-06. 2. THE ASSESSEE HAS RAISED THE FOLLOWING ISSUES:- 1. THE WORTHY COMMISSIONER OF INCOME TAX (A) HAS CONF IRMED THE ADDITION MADE BY THE ACIT, CENTRAL CIRCLE-25, NEW DEL HI TO THE EXTENT OF RS. 3,14,000/-. ITA NO. 4501/DEL/2014 2 FURTHER, THE APPELLANT CRAVES FOR THE RIGHT TO RAIS E ADDITIONAL GROUNDS OF APPEAL DURING THE COURSE OF HEARING. DETAILED SUBMI SSIONS SHALL BE MADE DURING THE APPELALTE PROCEEDINGS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ORIGI NAL RETURN OF INCOME WAS FILED BY THE ASSESSEE IN 2005 DECLARING TOTAL INCOME OF RS. 2,42,500/- AND THE SAME WAS PROCESSED U/S. 143(1). A SEARCH OPERATION WAS COND UCTED ON 10.2.2010 IN SUDHIR GROUP OF CASES. SH. RAHUL SETH IS A PARTNER OF M/S SUDHIR ENGG. CO., M/S POWER CONCEPT AND ELECTRON ENERGY SYSTEMS WHICH ARE ENGAG ED IN ASSEBLING AND TRADING OF DG SET. THE GROUP IS HEADED BY SHRI SUDHIR SETH A ND IS IN THE AREA OF ASSEMBLY OF DG SETS SINCE MORE THAN A DECADE. THE GROUP HAS IN THE RECEIPT PERIOD VENTURED INTO REAL ESTATE SECTOR. NO SURRENDER OF UNDISCLOSE D INCOME WAS MADE IN THE GROUP EITHER DURING OR POST SEARCH PROCEEDINGS. NOTICE U/ S. 153A DATED 1.11.2010 WAS ISSUED WHICH WAS DULY SERVED ON THE ASSESSEE. IN R ESPONSE TO NOTICE U/S. 153A RETURN DECLARING INCOME OF RS. 2,78,500/- WAS FILED ON 17.2.2011 AS AGAINST ORIGINAL RETURN OF INCOME OF RS. 2,42,500/-. FIRST STATUTORY NOTICE U/S. 143(2) AND 142(1) ALONGWITH QUESTIONNAIRE WERE ISSUED ON 15.3.2 011 FOR HEARING ON 4.4.2011. IN RESPONSE THERETO ASSESSEES REPRESENTATIVE APPEARED AND FILED THE DETAILS. AFTER GOING THROUGH THE DETAILS AND DOCUMENTS, AO COMPLET ED THE ASSESSMENT U/S. 143(3) R.W.S. 153A OF THE INCOME TAX ACT, 1961 AND AS SESSED THE INCOME AT RS. 7,06,260/- BY MAKING THE ADDITIONS VIDE HIS ORDER D ATED 23.12.2011. 4. AGGRIEVED WITH THE AFORESAID ASSESSMENT ORDER, A SSESSEE APPEALED BEFORE THE LD. CIT(A), WHO VIDE IMPUGNED ORDER DATED 27.5.2 014 HAS PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. ITA NO. 4501/DEL/2014 3 5. AGAINST THE AFOREMENTIONED IMPUGNED ORDER DATE D 27.5.2014, ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. LD. COUNSEL OF THE ASSESSEE DURING THE COURSE OF HEARING HAS STATED THAT A SIMILAR ADDITION OF RS. 62,000/- OF IDENTICAL NATUR E WAS MADE IN THE ASSESSMENT YEAR 2010-11 THAT BEING YEAR OF SEARCH IN THE CASE OF THE ASSESSEE WHICH ADDITION WAS UPHELD BY THE LD. CIT(A) VIDE HIS ORDER DATED 27. 5.2014. THE ASSESSEE BEING AGGRIEVED BY THE SAID ORDER PREFERRED AN APPEAL BEF ORE THE TRIBUNAL AND THE TRIBUNAL WAS PLEASED TO EXAMINE THE SAID ISSUE AND R ELYING ITS DECISION IN THE CASE OF KRITIKA SETH VS. ACIT & ORS. DECIDED IN ITA NO. 628 4/DEL/2012 ETC. PASSED ON 14.8.2015. THE TRIBUNAL IN ASSESSEES OWN CASE DELETED THE ADDITION OF RS. 62,000/- AND IN VIEW OF THE AFORESAID, ASSESSEE STA TED THAT THE ISSUE IN QUESTION IS FULLY COVERED BY THE ORDER OF THE TRIBUNAL DATED 14. 8.2015, COPY OF WHICH HE FILED AT THE TIME OF HEARING WITH THE PAPER BOOK AND HE DRAW MY ATTENTION TOWARDS PARA NO. 19 AT PAGE NO. 11 AND REQUESTED THAT THE ADDITION IN D ISPUTE BEING SIMILAR AND IDENTICAL IN NATURE MAY BE DELETED. 6.1 ON THE CONTRARY, LD. DR RELIED UPON THE ORDER O F THE AUTHORITIES BELOW. 7. I HAVE HEARD THE RIVAL CONTENTIONS IN LIGHT OF TH E MATERIAL PRODUCED, ESPECIALLY THE ORDER OF THE REVENUE AUTHORITIES ALONGWITH THE ORDER DATED 14.8.2015 OF THE ITAT IN THE CASE OF KRITIKA SETH VS. ACIT & ORS. DECIDED IN ITA NO. 6284/DEL/2012 ETC.. THE RELEVANT PORTION OF THE AFORESAID ORDER OF THE T RIBUNAL IS REPRODUCED BELOW:- 19. IN ITA NO. 4505/DEL/2014 OF SHRI RAHUL SETH, THE A SSESSEE HAS TAKEN THE FOLLOWING GROUND: ITA NO. 4501/DEL/2014 4 THE WORTHY CIT(A) HAS CONFIRMED THE ADDITION MADE BY THE ACIT, CC-25, NEW DELHI TO THE EXTENT OF RS. 4,37,000/ - IN ITA NO. 6284/DEL/2012 OF KRITIKA SETH, WE HAVE DEAL T WITH THIS ISSUE OF UNEXPLAINED CASH FROM PARA 15 TO 16. CONSISTENT WITH THE VIEW TAKEN THEREIN, WE DELETE THIS ADDITI ON AND ALLOW THE APPEAL OF THE ASSESSEE. 8. AFTER PERUSING THE AFORESAID ORDER, I AM OF THE C ONSIDERED VIEW THAT THE ADDITION IN DISPUTE IS EXACTLY THE SIMILAR ADDITION MADE IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2010-11 WHICH HAS BEEN FINAL LY DELETED BY THE ITAT IN THE AFORESAID ORDER DATED 14.8.2015. RESPECTFULLY, FOLLO WING THE PRECEDENT AS AFORESAID, I DELETE THE ADDITION IN DISPUTE AND DE CIDE THE ISSUE IN FAVOUR OF THE ASSESSEE. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 06/11/2015. SD/- [H.S. SIDHU] [H.S. SIDHU] [H.S. SIDHU] [H.S. SIDHU] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATE 06/11/2015 SRBHATNGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ITA NO. 4501/DEL/2014 5 ASSISTANT REGISTRAR, ITAT, DELHI BENCHES