M/s. Sunil Kumar Bhatia, Delhi V. ITO, New Delhi

ITA 4592/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91200 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 23-06-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 05-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY CHHADHA
• Assessee Lawyers: K R MANJANI
• Keywords: Corroborative evidences
• Section: 153A; 68; 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G : NEW DELHI) BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER ITA NO.4592/DEL./2013 (ASSESSMENT YEAR : 2003-04) SHRI SUNIL KUMAR BHATIA, VS. ITO, WARD 20 (1), F 50, KOLHAPUR ROAD, NEW DELHI. NEAR KAMLA NAGAR, DELHI 110 007. (PAN : AAFPB5064J) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI K.R. MANJANI, ADVOCATE REVENUE BY : SHRI VIJAY CHHADHA, CIT DR DATE OF HEARING : 23.06.2015 DATE OF PRONOUNCEMENT : 24.06.2015 O R D E R PER GEORGE GEORGE K., JUDICIAL MEMBER : THIS APPEAL, AT THE INSTANCE OF THE ASSESSEE, IS DI RECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I V, NEW DELHI DATED 14.06.2013. THE RELEVANT ASSESSMENT YEAR IS 2003-04 . 2. THE SOLITARY EFFECTIVE GROUND RAISED BY THE ASSE SSEE READS AS UNDER: THE LEARNED CIT (A) HAS ERRED ON FACTS AS WELL AS IN LAW IN SUSTAINING THE ADDITION OF RS.9,00,000/- IN RESP ECT OF LOANS FROM TWO PARTIES EVEN THOUGH CONFIRMATIONS WE RE FILED, LOANS ARE THROUGH BANKING CHANNEL AND THEY A RE REGULAR INCOME TAX ASSESSEESS. THEREFORE, THE APPE LLANT HAS ITA NO.4592/DEL./2013 2 DISCHARGED ONUS AND DEPARTMENT HAS NOTHING AGAINST THESE FACTS. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE AS FOL LOWS. A SEARCH WAS CONDUCTED ON THE ASSESSEE ON 13.12.200 5. THE NOTICE U/S 153A OF THE INCOME-TAX ACT, 1961 WAS ISSUED ON 09.07.2007. IN RESPONSE TO THE NOTICE, THE ASSESSEE SUBMITTED THAT ORIGINAL RETURN FILED U/S 139 DECLARING INCOME OF RS.1,63,733/- BE TREATED AS RETURN FILED U/S 153A. ACCORDINGLY, NOTICES U/S 142 (1) AND 143 (2) ALONG WITH QUESTIONNAIRE WERE ISSUED ON 31.10.2007. IN RESPONSE TO THE NOTICES, THE ASSESSEE SUBMITTED VIDE REPLY DATED 19.11.2007 THAT THE ASSESSEE RECEI VED TWO LOANS OF RS.9 LACS FROM VIJESH KUMAR GUPTA AND SHYAM & SONS. THE ASSESSING OFFICER OBSERVED THAT INSPITE OF SPECIFIC REQUIREMENTS, ASS ESSEE FAILED TO FILE ANY CONFIRMATIONS AND CREDITWORTHINESS OF THE PARTIES, HENCE, THE AMOUNT OF LOAN ADDED AS INCOME U/S 68 OF THE ACT. FURTHER, TH E ASSESSEE SUBMITTED THAT HE HAD RECEIVED AN AMOUNT OF RS.1,68,000/- AS LIC MATURITY AND THE SAME WAS CREDITED DIRECTLY TO ASSESSEES CAPITAL AC COUNT. THE ASSESSING OFFICER OBSERVED THAT NO CONFIRMATION HAD BEEN FILE D IN THIS REGARD. THEREFORE, THIS AMOUNT WAS TREATED AS UNDISCLOSED I NCOME. ACCORDINGLY, THE ASSESSMENT WAS COMPLETED U/S 153A OF THE ACT MA KING ADDITION ON ACCOUNT OF UNEXPLAINED LOAN OF RS.9 LACS AND AN AMO UNT OF RS.1,68,000/- RECEIVED FROM LIC. ITA NO.4592/DEL./2013 3 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL TO T HE FIRST APPELLATE AUTHORITY. THE CIT (A) HAD DELETED THE ADDITION OF RS.1,68,000/- RECEIVED FROM LIC. THE CIT (A) UPHELD THE ADDITION OF RS.9 LACS BY OBSERVING THAT THE ASSESSEE HAD FAILED TO PROVE THE IDENTITY OF TH E CREDITOR; CREDITWORTHINESS OF THE CREDITOR; THE GENUINENESS O F THE TRANSACTION; NO CONFIRMATION LETTERS FROM THE CREDITORS FILED BEFOR E THE ASSESSING OFFICER; EVEN DURING THE APPELLATE PROCEEDINGS, NO CONFIRMAT IONS WERE FILED EXCEPT THE XEROX COPY OF THE CERTIFICATE PREPARED BY THE A SSESSEE WHICH WAS PURPORTED TO HAVE BEEN SIGNED BY THE CREDITOR AND A LSO THERE WERE NO SUPPORTING EVIDENCES LIKE BANK STATEMENT AND INCOME TAX RETURNS. 4. THE REVENUE, BEING AGGRIEVED, IS IN APPEAL BEFOR E US. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. BEFORE US, THE LD. COUNSEL FO R THE ASSESSEE SUBMITTED A PAPER BOOK CONSISTING OF THE FOLLOWING DOCUMENTS : 1. CONFIRMATION FROM SHRI YOJESH GARG (HUF) 2. PAYING SLIPS FOR DEPOSITING OF CHEQUES OF CREDI TORS OF RS.5,00,000/- AND RS.4,00,000/- IN BANK ACCOUNT OF SHRI SUNIL KUMAR BHATIA 3. CONFIRMATION FOR RETURN OF LOAN OF SHRI YOJESH G ARG HUF 4. CONFIRMATION OF SHYAM GOPAL AND SONS 5. PHOTOCOPY OF CHEQUE ISSUED BY SHYAM GOPAL AND SONS ITA NO.4592/DEL./2013 4 6. BALANCE SHEET AND INCOME EXP. OF SHYAM GOPAL AND SONS 7. BANK A/C. OF SHRI SUNIL KUMAR BHATIA SHOWING DEPOSIT AND RETURN OF THESE CHEQUES. 8. PHOTOCOPY OF LETTERS DT. 04.10.2008, 16.02.2010 AND 20.01.2013 WRITTEN TO CIT(A)-IV 9. BANK A/C. OF YAJESH KUMAR GARG WE FIND FROM THE PAPER BOOK SUBMITTED BY THE ASSESS EE THAT THESE DOCUMENTS REQUIRE TO BE CONSIDERED AND VERIFIED AT THE LEVEL OF THE ASSESSING OFFICER. IN VIEW OF THE ABOVE, WE ARE O F THE OPINION THAT IN THE INTEREST OF JUSTICE AND EQUITY, THE MATTER BE RESTO RED TO THE FILE OF THE ASSESSING OFFICER TO DECIDE AFRESH AFTER GOING THRO UGH THE AFORESAID DOCUMENTS AND OF COURSE, AFTER PROVIDING AN OPPORTU NITY OF BEING HEARD TO THE ASSESSEE. IT IS ORDERED ACCORDINGLY. 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 24 TH DAY OF JUNE, 2015. SD/- SD/- (N.K. SAINI) (GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 24 TH DAY OF JUNE, 2015 TS ITA NO.4592/DEL./2013 5 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-IV, NEW DELHI 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.