ITO, New Delhi V. Sh. Praveen Kumar Jain, Delhi

ITA 4803/DEL/2012

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0195 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 02-06-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 07-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SAHAY
• Assessee Lawyers: VED PRAKASH BANSAL
• Keywords: Unexplained investment; Rectification of order
• Section: 143(3); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F , NEW DELHI BEFORE SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI J.S UDHAKAR REDDY, ACCOUNTANT MEMBER I.T.A.NO 4803 /DEL/201 2 (A.Y. 200 7 - 08 ) ITO, WARD 34(3) ROOM NO.318 BLOCK D VIKAS BHAVAN, IP ESTATE NEW DELHI 110 002 VS. SH.PRAVEEN KUMAR JAIN I - 92, GALI NO.10, BRAHAMPURI DELHI 110 053 PAN: ACYPJ 6551 H (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. VED PRAKASH BANSAL, C.A. DEPARTMENT BY : SH. VIKRAM SAHAY, SR. DR ORDER PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGAINST THE ORDER DT. 8.6.2012 OF LD.CIT(A) - XXVII, NEW DELHI PERTAINING TO THE ASSESSMENT YEAR (AY) 200 7 - 0 8 , WHEREIN THE ASSESSMENT ORDER PASSED BY THE AO U/S 143(3) DT. 30.11.2009, AND A SUBSEQUENT RECTIFICATION ORDER PASSED BY THE AO U/S 154 OF THE ACT ON 12.4.2010, WAS HELD AS ILLEGAL. THE GROUNDS OF RE VENUE READ AS UNDER. 1. O N THE FACTS AND [IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAD ERRED IN DELETING THE ADDITION OF RS. 11,16,805 / - AS UNEXPLAINED PURCHASES OF NSCS AND KVPS MADE BY THE A. O . U /S 154 OF THE I.T. ACT. 2 .ON THE FACTS, AND IN THE 'CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAD ERRED IN PARA - 10 , PAGE ,6 OF HIS ORDER THAT THE APPELLANT MADE WITHDRAWAL IN CASH I N TOTALING TO RS . 13,67,798/ - FROM OBC AND RS. 1,47,0001 - FROM THE HDFC BANK FOR PURCHASE OF NSCS/KVPS AS THE STATEMENT FILED SHOW THAT WITHDRAWALS OF THE DATES SPECIFIED BY THE ITA NO. 4803 /DEL/201 2 AY 200 7 - 08 PRAVEEN KUMAR JAIN, DELHI 2 ASSESSEE HAVE BEEN MADE FOR OTHER THAN CASH ALSO SUCH AS FOR MAKING PAY ORDER / DRAFTS . 3. ON TH E FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAD ERRED IN NOT CORRELATING WITHDRAWALS MADE WITH THE PAYMENTS MADE TO THE PURCHASERS OF NSCS/KVPS. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY OR ALL THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF THE APPEAL.' 2. WE HAVE HEARD SHRI VED PRAKASH BANSAL, C.A. LD.COUNSEL FOR THE ASSESSEE AND SHRI VIKRAM SAHAY, LD.SR.D.R. ON BEHALF OF THE REVENUE. 3. THE LD.CIT(A) AT PARA 9 AND 10 OF HIS ORDER HELD AS FOLLOWS. 9. I HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE APPELLANT AND THE FACTS OF THE CASE. FIRSTLY, AS SUBMITTED BY THE APPELLANT THE ADDITION MADE BY THE A.O. AMOUNTING TO RS.15,16,805 / - REPRESENTING UNEXPLAINED INVESTMENT IN NSC/KVP CANNOT BE MADE U/S 154 OF THE ACT AS IT IS NOT A MISTAKE APPARENT FROM THE RECORD AS HELD IN VARIOUS JUDGMENTS RELIED UPON BY THE APPELLANT REFERRED TO ABOVE. MOREOVER, THE BANK ACCOUNTS OF THE APPELLANT HAD ALREADY BEEN EXAMINED U / S 143(3) OF THE ACT. ON THIS GROUND ALONE THE RECTIFICATION ORDER PASSED U / S 154 OF THE ACT BY THE A.O. DESERVES TO BE SET ASIDE. 10. ON MERITS ALSO IT IS SEEN THAT THE PRIMARY REASON WHY THE A.O. HAS MADE THIS ADDITION TO THE INCOME OF THE APPELLANT IS THAT THOUGH THERE WERE CASH DEPOSITS IN THE A PPELLANT'S BANK ACCOUNTS AMOUNTING TO RS. 15,34,420 / - , THERE WERE NO CORRESPONDING CASH WITHDRAWALS TO EXPLAIN THE SOURCE OF INVESTMENT IN THE PURCHASE OF NSC/KVPS AMOUNTING TO RS. 15,16,805/ - . ON PERUSAL OF THE BANK ACCOUNTS OF THE APPELLANT WITH OBC & HD FC BANKS, IT IS SEEN THAT THE APPELLANT HAD WITHDRAWN VARIOUS AMOUNTS IN CASH TOTALING RS.13,67,798 / - FROM THE OBC BANK AND RS. 1,47,0001 - FROM HIS HDFC BANK ACCOUNT. THE APPELLANT DURING THE COURSE OF THE CURRENT PROCEEDING HAD FILED A COPY OF THESE BANK ACCOUNTS PLACED AT PAGE NO. 203 TO 213 OF THE PAPER BOOK WHICH WERE FORWARDED TO THE A.O. FOR HIS COMMENTS. THE AO IN HIS COMMENTS ON THE SAME HAS NOT DRAWN ANY ADVERSE INFERENCE WITH REGARD TO THE CASH WITHDRAW A LS SHOWN BY THE APPELLANT FROM THESE ACCOUNT S. THUS, THE PRIMARY REASON FOR MAKING THE ADDITION ITSELF HAS BEEN FOUND TO BE FACTUALLY INCORRECT. THEREFORE, ON MERITS ALSO THE ADDITION DESERVES TO BE DELETED. THE A.O. IS DIRECTED ACCORDINGLY. ITA NO. 4803 /DEL/201 2 AY 200 7 - 08 PRAVEEN KUMAR JAIN, DELHI 3 4. WE FIND NO INFIRMITY IN THE SAME. THE AO IN THIS C ASE MADE HUGE ADDITIONS IN THE GUISE OF RECTIFICATION PROCEEDINGS U/S 154 OF THE ACT. SOURCES OF PURCHASE OF NSCS AND KVPS CANNOT BE A SUBJECT MATTER OF RECTIFICATION U/S 154 OF THE ACT. IT IS WELL SETTLED THAT ONLY MISTAKES APPARENT ON RECORD CAN BE REC TIFIED U/S 154 OF THE ACT. THUS, WE DISMISS THIS APPEAL FILED BY THE REVENUE. 5. IN THE RESULT THE REVENUE S APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH JUNE, 2015 . SD/ - SD/ - [ I.C.SUDHIR ] [ J. SUDHAKAR REDDY ] JUDICIAL MEMBER ACCOUNTANT MEMBER DT. T HE 11 TH JUNE, 2015 MANGA COPY FORWARDED TO: - 1 . APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES