ITO, Kashipur V. Sh. Anil Kumar Mittal, Kashipur

ITA 4623/DEL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2777 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 31-05-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 22-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVIKANT GUPTA
• Keywords: Unexplained cash credit; Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DLEHI BEFORE SHRI G.D. AGRAWAL, HONBLE PRESIDENT AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER I.T.A. NO.4623/DEL/2014 ASSESSMENT YEAR: 2009-10 INCOME-TAX OFFICER-1, VS SHRI ANIL KUMAR MI TTAL, STATION ROAD, KASHIPUR. S/O SHRI VIRENDRA KUMAR MI TTAL, RAMNAGAR ROAD, KASHIPUR. (PAN: AHBPM9100D) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI RAVI KANT GUPTA, SR . DR RESPONDENT BY: SHRI TARANDEEP SINGH DATE OF HEARING: 20.03.2018 DATE OF PRONOUNCEMENT: 22.03.2018 ORDER PER NARASIMHA K. CHARY, JM CHALLENGING THE ORDER DATED 5.6.2014 IN APPEAL NO. 03/CIT(A)-II/2013-14 PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)-II, DEHRADUN (FOR SHORT LD. CIT(A)), REVENUE PREFERRED THIS APPEAL . 2. RECORD REVEALS THAT AMONGST A NUMBER OF CASH DEP OSITS, LEARNED AO MADE AN ADDITION OF RS.25 LACS AND RS.10,07,823/- STATIN G THAT THESE TWO ARE ALSO REMAINED UNEXPLAINED CASH CREDITS. WHEN THE MATTER WAS CARRIED IN APPEAL, LD. CIT(A) BY ORDER DATED 19.11.2012 CONFIRMED THIS ADDI TION. HOWEVER, WHEN THE MATTER REACHED THE TRIBUNAL, BY ORDER DATED 27.8.201 3, IT WAS REMANDED BACK TO THE FILE OF THE LD. CIT(A) FOR DISPOSAL AFTER GIVIN G OPPORTUNITY TO THE ASSESSEE. SUBSEQUENTLY, THE ASSESSEE PRODUCED CERTAIN DOCUMENT S IN SUPPORT OF HIS CASE AND AFTER CONSIDERING ALL THOSE DOCUMENTS, LEARNED CIT(A) ALLOWED THE APPEAL IN PART. HOWEVER, REVENUE PREFERRED THIS APPEAL ONLY C HALLENGING THE DELETION OF RS.25 LACS AND RS.10,07,823/- ON THE GROUND THAT TH E LEARNED CIT(A) SHOULD NOT HAVE DELETED THE SAME, WHICH IS STATED TO HAVE BEEN RECEIVED FROM M/S APEX MARKETING AND BY WAY OF ENCASHMENT OF FDRS RESPECTIV ELY WITHOUT SATISFYING HIMSELF THAT IT IS NOT A REVENUE RECEIPT. 3. PER CONTRA, IT IS THE ARGUMENT OF THE LEARNED AR THAT HAVING CONSIDERED THE DOCUMENTS PRODUCED BY THE ASSESSEE AND SATISFYING HI MSELF THAT THE ENTRIES RELATING TO THESE TWO AMOUNTS ARE PROPERLY EXPLAINED AND ACCORDINGLY, THE ADDITION CANNOT BE SUSTAINED, LEARNED CIT(A) RIGHTL Y DELETED THE SAME, HENCE, NO INTERFERENCE IS REQUIRED AT THE END OF THE TRIBUNAL . 4. WE HAVE GONE THROUGH THE RECORD. IN SO FAR AS T HE OBSERVATION OF THE LEARNED CIT(A) THAT CERTAIN DOCUMENTS WERE PRODUCED BEFORE THE LEARNED CIT(A), THE SAME WERE SENT TO THE LEARNED AO SEEKING HIS RE PORT AND THE LEARNED AO SUBMITTED A REPORT IS CONCERNED, ABSOLUTELY THERE IS NO DISPUTE. AS A MATTER OF FACT, LEARNED CIT(A) EXTRACTED THE REPORT OF THE LE ARNED AO IN HIS ORDER. VIDE PARAGRAPH NO. (C) AND (F) OF THE REMAND REPORT, LEA RNED AO SUBMITTED AS FOLLOWS: (C) THE SUM OF RS. 25 LACS AS EXPLAINED BY THE ASSESSEE HAS BEEN CREDITED TO THE SAVING BANK ACCOUNT OF THE ASSESSEE AS TRANSFER THROUGH RTGS FROM M/S APEX MARKETING. THE ASSESSEE HAS FURN ISHED THE COPY BALANCE SHEET OF M/S APEX MARKETING FOR THE FINANCI AL YEAR 2007-08 CONFIRMING BALANCE AGAINST THE ASSESSEE AND THE OF CERTIFICATE ISSUED FROM THE ORIENTAL BANK OF COMMERCE, THE BANKER OF M/S AP EX MARKETING, IN CONFIRMATION OF THE SUM OF RS. 25 LACS HAS BEEN TRA NSFERRED THROUGH RTGS TO THE SAVING BANK ACCOUNT OF THE ASSESSEE ON 08-05 -2008 WHICH IS AVAILABLE ON RECORD. HENCE, THIS SUM IS NOT THE BUSINESS RECEIPT OF THE ASSESSEE THE SUM OF RS. 2 LACS IS THE UNSECURED LOAN RECEIVED BY THE ASSESSEE FROM SMT MEERA. XXX XXX XXX XXX (F) THE EXPLANATION OF THE ASSESSEE WITH REGAR D TO THE ENCASHMENT OF FDRS WORTH RS. 10,07,823/- IS SELF EXPLANATORY AS TH IS SUM HAS BEEN CREDITED TO THE SAVING BANK ACCOUNT OF THE ASSESSEE WITH THE REMARK DEPOSIT TRANSFER BY STDR ON 04-06-2008. AS SUCH, THIS SUM SHOULD NOT HAVE BEEN TREATED AS THE BUSINESS RECEIPT OF THE AS SESSEE. 5. TODAY LEARNED AR PRODUCED BEFORE US THE LEDGER AC COUNT RELATING TO M/S APEX MARKETING AND ALSO THE LETTER DATED 5.2.2014 ISSUED BY THE ORIENT BANK OF COMMERCE AND BALANCE SHEET OF M/S APEX MARKETING PROPRIETOR HARDIT SINGH. THESE DOCUMENTS CLEARLY JUSTIFY THE REPORT OF THE LEARNED AO VIDE PAR AGRAPH (C). IN VIEW OF THE REMAND REPORT AND THE DOCUMENTS PRODUCED BEFORE US, WE DO NOT SEE ANY ILLEGALITY OR IRREGULARITY IN THE ORDER OF THE LEARNED CIT(A) AND THERE IS NOTHING FOR US TO CORRECT BY WAY OF INTERFERENCE. WE, THEREFORE, UPHOLD THE IMPU GNED ORDER AND FIND THE GROUNDS OF APPEAL AS DEVOID OF MERITS. APPEAL OF THE REVENU E IS ACCORDINGLY DISMISSED. 6. IN THE RESULT, APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND MARCH, 2018. SD/- SD/- (G.D. AGARWAL) (K. NARASIMHA CHARY ) PRESIDENT JUDICIAL MEMBER DATED: 22 ND MARCH, 2018 VJ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) BY ORDER 5. DR, ITAT ASSTT. REGISTRA R, ITAT