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

ITA 4504/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6869 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 18-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 14-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Gift
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F : NEW DELHI) BEFORE SHRI J.S. REDDY, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.4504/DEL./2014 (ASSESSMENT YEAR : 2009-10) SHRI RAHUL SETH, VS. ACIT, 14, CHINAR DRIVE, CENTRAL CIRCLE 25, DLF CHHATARPUR FAMRS, NEW DELHI. NEW DELHI 110 074. (PAN : AASPS9459B) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SALIL AGGARWAL, ADVOCATE REVENUE BY : SMT. MEENAKSHI SINGH, CIT DR DATE OF HEARING : 18.07.2016 DATE OF ORDER : 20.07.2016 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : THE APPELLANT, SHRI RAHUL SETH, BY FILING THE PRESE NT APPEAL, SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 27.05. 2014 PASSED BY LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XXV, NEW D ELHI QUA THE ASSESSMENT YEAR 2009-10 ON THE GROUNDS INTER AL IA THAT :- 1. THE WORTHY COMMISSIONER OF INCOME TAX (APPEALS) HAS CONFIRMED THE ADDITION MADE BY THE AC IT, CENTRAL CIRCLE 23, NEW DELHI TO THE EXTENT OF RS.49,000/-. ITA NO.4504/DEL./2014 2 FURTHER, THE APPELLANT CRAVES FOR THE RIGHT TO RAIS E ADDITIONAL GROUNDS OF APPEAL DURING THE COURSE OF HEARING. DETAILED SUBMISSIONS SHALL BE MADE DURING THE APPELLATE PROCEEDINGS. 2. BRIEFLY STATED THE FACTS OF THIS CASE ARE : ON T HE BASIS OF SEARCH OPERATION CONDUCTED IN SUDHIR GROUP OF CASES ON 10.02.2010, NOTICE UNDER SECTION 153A OF THE INCOME -TAX ACT, 1961 (FOR SHORT THE ACT) DATED 01.11.2010 WAS SERVED U PON SHRI RAHUL SETH, ASSESSEE, ONE OF THE PARTNERS OF M/S. SUDHIR ENGG. CO., M/S. POWER CONCEPT AND ELECTRON ENERGY SYSTEMS, ENGAGED IN ASSEMBLING AND TRADING IN DG SET. PURSUANT TO THE NOTICE U/S 153A, ASSESSEE FILED RETURN DECLARING INCOME AT RS.30,57, 687/- ON 17.02.2011 AND ON THE BASIS OF SCRUTINY, IT HAS COM E ON RECORD THAT A SUM OF RS.49,000/- AS CASH DEPOSIT AND RS.2,00,00 0/- BY WAY OF CHEQUE HAS BEEN CREDITED IN THE BANK ACCOUNT OF AVY AN SETH (MINOR) MAINTAINED WITH SYNDICATE BANK. ON FAILURE OF THE ASSESSEE TO EXPLAIN THE SOURCE OF CREDITS, THE AMOU NT OF RS.2,49,000/- HAS BEEN ADDED TO THE INCOME OF THE A SSESSEE AS UNEXPLAINED CASH CREDIT. 3. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT ( A) BY CHALLENGING THE ASSESSMENT ORDER WHO HAS PARTLY ALL OWED THE APPEAL ITA NO.4504/DEL./2014 3 BY DELETING THE ADDITION OF RS.2,00,000/-. FEELING AGGRIEVED, THE ASSESSEE HAS COME UP BEFORE THE TRIBUNAL BY WAY OF FILING THE PRESENT APPEAL. 4. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. LD. AR FOR THE ASSESSEE CHALLENGING THE IMPUGNED ORDER RELIED UPON ASSESSMENT ORDER FOR AY 2005-06 IN ASSE SSEES OWN CASE, ORDER PASSED BY CIT (A) FOR AY 2005-06 IN ASS ESSEES OWN CASE,, ORDER PASSED BY ITAT FOR AY 2005-06 IN ASSES SEES OWN CASE AND ITAT ORDER FOR AY 2010-11 IN ASSESSEES OW N CASE, AVAILABLE AT PAGES 1 TO 27 OF THE PAPER BOOK PLACED ON RECORD BY THE ASSESSEE. HOWEVER, ON THE OTHER HAND, LD. DR RELIE D UPON THE ORDER PASSED BY THE LD. CIT (A). 6. UNDISPUTEDLY, AO HAS MADE AN ADDITION OF RS.2,49 ,000/- (RS.2,00,000/- CREDITED BY WAY OF CHEQUE AND RS.49, 000/- CREDITED BY WAY OF CASH) IN THE BANK ACCOUNT OF AVYAN SETH B EING UNEXPLAINED CREDITS, OUT OF WHICH CIT (A) VIDE IMPU GNED ORDER DELETED ADDITION OF RS.2,00,000/- BY SATISFYING HIM SELF THAT THE AMOUNT OF RS.2,00,000/- WAS CREDITED BY WAY OF CHEQ UE BEING THE ITA NO.4504/DEL./2014 4 GIFT MADE BY RAKESH BATRA, MATERNAL GRANDFATHER OF AVYAN SETH BUT HAS AFFIRMED THE ADDITION OF RS.49,000/-. 7. LD. AR OF THE ASSESSEE CONTENTED THAT THE AMOUNT OF RS.49,000/- DEPOSITED IN THE ACCOUNT OF AVYAN SETH AS CASH WAS GIFTED TO THE MINOR CHILD ON VARIOUS OCCASIONS FOR THE PAST SEVERAL YEARS. 8. NO DOUBT, THE ASSESSEE HAS NOT BROUGHT ON RECORD ANY EVIDENCE TO PROVE THIS FACT BUT WE ARE OF THE CONSI DERED VIEW THAT IN THE TOTALITY OF THE CIRCUMSTANCES WHEREIN MATERNAL GRANDFATHER OF CHILD HAS JUST LIKE GIFTED THE AMOUNT OF RS.2,00,00 0/- BY WAY OF CHEQUE WHICH HAS BEEN ACCEPTED BY THE LD. CIT (A) W HILE DELETING THE ADDITION OF RS.2,00,000/-, THE PALTRY AMOUNT OF RS.49,000/- CLAIMED TO HAVE BEEN RECEIVED BY AVYAN SETHI, MINOR , CANNOT BE DISPUTED FOR THE LACK OF EVIDENCE THAT ON WHAT OCCA SION AND BY WHOM SUCH AMOUNT WAS GIVEN TO THE MINOR CHILD AS GI FT. BECAUSE IN TRADITIONAL SOCIETY, THERE ARE NUMEROUS OCCASION ON WHICH NEAR AND DEAR ONE OF A MINOR CHILD USE TO GIVE THE GIFT IN THE SHAPE OF CASH AND IT IS HUMANLY NOT POSSIBLE TO PREPARE INVE NTORY THEREOF. 9. MORE SO, WHEN IT IS CATEGORICALLY PLEADED BY THE ASSESSEE THAT THIS AMOUNT HAS BEEN RECEIVED CONTINUOUSLY ON VARIO US OCCASIONS FOR THE PAST SEVERAL YEARS BY THE MINOR CHILD AS CA SH GIFT, THE SAME CANNOT BE TREATED AS UNEXPLAINED CASH. SO, IN THE GIVEN ITA NO.4504/DEL./2014 5 CIRCUMSTANCES, WE HEREBY DELETE THE ADDITION MADE B Y THE AO AND AFFIRMED BY THE LD. CIT (A) IN THE IMPUGNED ORDER. 10. IN VIEW OF WHAT HAS BEEN DISCUSSED ABOVE, WE HE REBY ALLOW THE PRESENT APPEAL FILED BY THE ASSESSEE. ORDER PRONOUNCED IN OPEN COURT ON THIS 20 TH DAY OF JULY, 2016. SD/- SD/- (J.S. REDDY) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 20 TH DAY OF JULY, 2016 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXV, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.