Shri Brij Gopal Chauhan, New Delhi V. ITO, New Delhi

ITA 4706/DEL/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3444 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 02-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 80C; 143(3); 143(1); 143(2); 139(1); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A, NEW DELHI BEFORE SHRI G.S. PANNU, HONBLE VICE PRESIDENT AND SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 4706/DEL/2016 AYR. : 2009-10 SHRI BRIJ GOPAL CHAUHAN, C/O SHRI K.R. MANJANI, K-98, FIRST FLOOR, LAJPAT NAGAR-II, NEW DELHI 110 024 (PAN: AHFPC5855M) VS. INCOME TAX OFFICER, WARD 60(4), NEW DELHI (APPELLANT) (RESPONDENT) ORDER PER H.S. SIDHU, JM: ASSESSEE HAS FILED THIS APPEAL AGAINST THE IMP UGNED ORDER DATED 03.6.2016 PASSED BY THE LD. CIT(A)-19, NEW DELH I FOR THE ASSESSMENT YEAR 2009-10 ON THE FOLLOWING GROUNDS:- THE LD. CIT(A) HAS ERRED ON FACTS AS WELL AS IN LAW IN NOT ALLOWING DEDUCTION U/S. 80C IN RESPECT OF INSURANCE PREMIUM PAID BY WRONGLY STATING THAT RECEIPTS WERE NOT FIELD BEFORE HIM. ASSESSEE BY SHRI K.R. MANJANI, ADV. DEPARTMENT BY SHRI SANJOG KAPOOR, SR. DR. 2 IT IS THEREFORE PRAYED THAT ABOVE DEDUCTION U/S. 80C AS CLAIMED MAY KINDLY BE ORDERED TO BE ALLOWED. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E WAS ENGAGED IN TRADING OF PAINTS AND HARDWARE AND HIS BUSINESS W AS ON SMALL SCALE. HE FILED HIS RETURN OF INCOME U/S. 139(1) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT) ON 15.6.2009 DECLARING A N INCOME OF RS. 1,74,630/-. THE AO PROCESSED HIS RETURN OF INCOME U /S. 143(1) OF THE ACT ON 02.4.2010 AT THE DECLARED RETURNED INCOME. LATER ON THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2010- 11 DECLARING INCOME OF RS. 4,62,460/- WAS SELECTED FOR SCRUTINY AS SESSMENT, AS THERE WAS STEEP DECLINE IN PROFIT RATE AND TO VERIFY SO URCES OF CAPITAL AMOUNTING TO RS. 3.33 CRORES, TO VERIFY GENUINENESS O F UNSECURED LOAN OF RS. 1.89 CRORES, TO VERIFY SUNDRY DEBTORS OF RS. 25,60,342/-, SUNDRY CREDITORS OF RS. 7,95,143/- AND FIXED ASSETS OF RS. 34,95,591/-. AO ISSUED NOTICE U/S. 143(2)/142(1) O F THE ACT AND QUESTIONNAIRE/ SHOW CAUSE WERE ALSO ISSUED BY THE AO ALLOWING THE ASSESSEE OPPORTUNITY OF BEING HEARD AND TO FURNISH T HE DETAILS/DOCUMENTS CALLED FOR. IN RESPONSE TO THE SAME , THE AR OF THE ASSESSEE APPEARED AND FILED THEIR NECESSARY DOCUM ENTS, BUT WITHOUT AUDIT REPORT U/S. 44AB OF THE ACT. SINCE THE AS SESSEE DID NOT FURNISH THE DESIRED DETAILS/ DOCUMENTS CALLED FOR BY THE AO VIDE SHOW CAUSE NOTICE DATED 26.02.2013 AND 07.03.2013. THE AO ALLOWED VARIOUS OPPORTUNITIES TO THE ASSESSEE FOR PROV IDING THE COMPLETE DETAILS / DOCUMENTS AS REQUIRED BY HIM. ASSESSEE FAILED TO COMPLY WITH THE DIRECTIONS OF THE AO AND THE AO WAS BOUND TO COMPLETE THE ASSESSMENT. AFTER GOING THROUGH THE INCOM PLETE DETAILS / DOCUMENTS FURNISHED BY THE ASSESSEE, THE A O AFTER ADOPTING THE PRESCRIBED PROCEDURE UNDER THE LAW, R EOPENED THE ASSESSMENT OF THE ASSESSEE FOR THE ASSESSMENT 2009-10 BY ISSUING THE NOTICE AND RECORDING THE REASONS AS PER LAW AND I SSUED NOTICE 3 U/S. 148 OF THE I.T. ACT FOR THE YEAR UNDER CONSID ERATION. IN RESPONSE TO THE SAME, THE AR OF THE ASSESSEE APPEARED AND FILED OBJECTIONS AGAINST THE REOPENING WHICH WERE DISPOSED OFF BY THE AO BY PASSING A SPEAKING ORDER DATED 31.12.2014. AFT ER DISPOSING OFF THE OBJECTIONS OF THE ASSESEE, A NOTICE U/S. 143(2) OF THE ACT ALONGWITH QUESTIONNAIRE WAS ISSUED TO THE ASSESSEE WH ICH WAS SERVED UPON THE ASSESSEE SEEKING ASSESSEES PRESENC E ON 07.1.2015. HOWEVER, NOBODY APPEARED ON THIS DATE, BU T THE SAME WAS ALSO RETURNED BACK WITH POSTAL REMARKS INCOMPLETE ADDRESS. BUT ON 15.1.2015, SH. TARUN ASWANI, ADVOCATE APPEARE D WHO WAS PROVIDED WITH THE COPY OF ORDER PASSED DISPOSING OFF THE OBJECTIONS RAISED BY THE ASSESSEE AGAINST THE REOPENING OF THE CASE DATED 31.12.2014 AND COPY OF QUESTIONNAIRE DATED 7.1.2015 WAS ISSUED WITH THE DIRECTIONS TO FILE THE REPLY ON 22.2.2015. 2.1 LD. COUNSEL FOR THE ASSESSEE HAS NOT FILED ANY D OCUMENTARY EVIDENCE IN RESPONSE TO THE QUESTIONNAIRE AND IN ORD ER TO VERIFY THE CORRECTNESS OF INCOME/ EXPENDITURE CLAIMED BY THE ASS ESSEE AND ITEMS APPEARING IN THE BALANCE SHEET, NECESSARY DETAILS /DOCUMENTS WERE CALLED FOR AND EXAMINED. AO AFTER EXAMINATION THEREOF, THE AO MADE VARIOUS ADDITIONS MENTIONED IN THE ASSESSMENT OR DER INCLUDING THE ADDITION IN DISPUTE I.E. DISALLOWANCE OF UNVERIFI ABLE DEDUCTION CLAIMED U/S. 80C AMOUNTING TO RS. 1 LAKH ON ACCOUNT O F NON-FILING OF THE EVIDENCES SUPPORTING THIS CLAIM AND COMPLETED THE ASSESSMENT U/S. 143(3) OF THE ACT VIDE ORDER DATED 11.3.2015 BY ASSESSING THE INCOME AT RS. 2,02,18,200/-. AGGRIEVED BY THE ASSE SSMENT ORDER, ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A), WHO VI DE HIS IMPUGNED ORDER DATED 03.6.2016 HAS PARTLY ALLOWED THE APPEAL FILED BY THE ASSESSEE AND UPHELD THE ADDITION OF RS. 1 LAC MADE BY THE AO ON ACCOUNT UNVERIFIED CLAIM OF DEDUCTION U/S. 80C OF THE I.T. ACT. AGAINST THE IMPUGNED ORDER OF THE LD. CIT(A), ASSESSEE IS AGGRIEVED AND FILED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 4 3. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSESSE E STATED THAT ASSESSEE HAS FILED ALL THE NECESSARY DOCUMENTARY EVIDENCES FOR SUBSTANTIATING THE DEDUCTION U/S. 80C OF THE ACT IN R ESPECT OF THE PREMIUM PAID BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION. HE FURTHER STATED THAT AO AS WELL AS L D. CIT(A) HAS NOT APPRECIATED THE EVIDENCES AND WRONGLY MADE THE A DDITION IN DISPUTE. HE HAS ALSO FILED THE COPY OF LIC RECEIPTS D ATED 24.6.2008; 28.11.2008; 21.5.2008 22.9.2008; 2.3.2009 & 18.9.2 008. HE REQUESTED THAT KEEPING IN VIEW OF THE EVIDENCES FILED BY THE ASSESSEE BEFORE THE AUTHORITIES BELOW AS WELL AS BEFO RE THE TRIBUNAL THE DEDUCTION CLAIMED BY THE ASSESSEE U/S. 80C IN RES PECT OF INSURANCE PREMIUM PAID BY THE ASESSEE MAY BE ALLOWE D. IN THE ALTERNATIVE LD. COUNSEL FOR THE ASSESSEE ALSO AGRE ED THAT THE EVIDENCES SUPPORTING THE CLAIM OF THE ASSESSEE MAY BE SENT TO THE AO FOR VERIFICATION AND ALLOW THE CLAIM AS PER LAW. 4. LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIE S BELOW AND AGREED THAT THE PAYMENT IN RESPECT OF INSURANCE PREMIU M PAID BY THE ASSESSEE CLAIMING DEDUCTION U/S. 80C OF THE ACT MAY BE SET ASIDE TO THE FILE OF THE AO TO DECIDE THE SAME AFRESH , AFTER CONSIDERING THE DOCUMENTS/EVIDENCES. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE OR DERS PASSED BY THE REVENUE AUTHORITIES AS WELL AS THE EVIDENCES FI LED BY THE LD. COUNSEL FOR THE ASSESSEE ABOUT WHICH HE HAS STATED THA T HE HAS FILED THE SAME BEFORE THE AUTHORITIES BELOW. WE ARE OF THE VIEW THAT AS AGREED BY BOTH THE PARTIES, THE EVIDENCES FOR CLAIMING DEDUCTION U/S. 80C IN RESPECT OF INSURANCE PREMIUM PAID BY T HE ASSESSEE FOR THE ASSESSMENT YEAR IN DISPUTE IS REQUIRED TO BE THOR OUGHLY INVESTIGATED AT THE LEVEL OF THE AO. THEREFORE, IN THE INTEREST OF JUSTICE, WE ARE SETTING ASIDE THE ISSUES IN DISPUTE TO THE FILE OF THE AO WITH THE DIRECTIONS TO VERIFY THE PAYMENT MADE BY THE ASSESSEE AND THEN DECIDE THE CLAIM IN DISPUTE OF THE ASSESSEE , IN ACCORDANCE 5 WITH LAW, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING H EARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STAN DS ALLOWED FOR STATISTICAL PURPOSES. THIS DECISION IS PRONOUNCED ON 27.11.2019. SD/- SD/- (G.S. PANNU) (H.S. SIDHU) VICE PRESIDENT JUDICIAL MEMBER DATED: 27.11.2019 SRB COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI