Sh. Ganesh Arora, New Delhi V. ACIT, New Delhi

ITA 4890/DEL/2015

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8732 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2008-2009
• Appeal Filed On: 28-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Section: 142(1); 32; 69; 132

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G., NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER I.T.A. NO. 4890/DEL/2015 A.Y. : 2008-09 SH. GANESH ARORA, C-7/3, 3 RD FLOOR, VASNAT VIHAR, NEW DELHI (PAN: AAFPA9283H) VS. ACIT, CC-14, NEW DELHI (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. VED JAIN, ADV. & SH. RISHABH JAIN, CA DEPARTMENT BY : SH. S.S. RANA, CIT(DR) ORDER PER H.S. SIDHU : JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-30, NEW DELHI DATED 17.3.2015 PERTAINING TO ASSESSMENT YEAR 2008-09 O N THE FOLLOWING GROUNDS:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER PASSED BY THE LD. CIT(A) IS BAD BOTH IN THE EYE OF L AW AND ON FACTS. 2(I) ON THE FACTS AND CIRCUMSTANCES, THE LD. CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ADD ITION 2 OF AN AMOUNT OF RS. 10,68,950/- MADE BY THE AO ON ACCOUNT OF EXPENDITURE INCURRED ON MARRIAGE CEREMON Y OF THE ASSESSEES DAUGHTER. (II) THAT THE ABOVE ADDITION HAS BEEN CONFIRMED BY ARBITRARILY REJECTING THE EXPLANATIONS AND EVIDENCES SUBMITTED BY THE ASSESSEE. 2. THAT THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALT ER ANY OF THE GROUNDS OF APPEAL. 2. BRIEF FACTS OF THE CASE ARE THAT A SEARCH AND SEI ZURE OPERATION U/S 132 OF THE INCOME TAX ACT 1961 WAS CARRIED OUT AT VARIOUS PREMISES OF 'ARORA GROUP' ON 18.01.2008. THIS GROUP IS STOCK BROKER FOR EQUITY AND COMMODITIES ALSO, SOME OF THE GROUP CO MPANIES ARE DOING TRADING OF TIMBER. THE GROUP IS MANAGED BY SH. GAURAV ARORA AND SH. GANESH ARORA, WHO ARE BROTHERS. BOTH DO BUSI NESS INDEPENDENTLY, WHILE SH. GAURAV ARORA DOES STOCK/COM MODITY BROKERAGE BUSINESS THROUGH TWO OF HIS FLAGSHIP COMPAN IES I.E. M/S JAYPEE CAPITAL SERVICES (P) LTD. AND MIS JAYPEE COMM ODITIES (P) LTD. SH. GANESH ARORA IS IN TIMBER BUSINESS. SEARCH O PERATION WAS ALSO CARRIED OUT AT RESIDENTIAL PREMISES AT C-7/3, VASA NT VIHAR, NEW DELHI OF SH. GANESH ARORA. THEREAFTER, THE CASE WAS CENTRALIZED U/S 127(2) OF THE ACT. SINCE A SEARCH WAS INITIATED U/S 1 32 OF THE ACT 3 AFTER THE 31ST DAY OF MAY, 2003, A NOTICE U/S 142 (I) OR THE INCOME TAX ACT, 1961 WAS ISSUED ON 30.03.2009, WHEREIN THE A SSESSEE WAS REQUIRED TO FILE A RETURN IN THE PRESCRIBED FORM FOR TH E ASSESSMENT YEAR 2008-09. THE ASSESSEE FILED RETURN ON 25.05.200 9 DECLARING TOTAL INCOME OF RS. 1,41,540/-. NOTICE U/S 143(2) WA S ISSUED ON 25.08.2009, WHICH WAS SERVED UPON ASSESSEE ON 25.08 .2009. NOTICE U/S 142(1) DATED 25.08.2009, WAS SERVED UPON ASSESSE E THROUGH C.A/A.R ON 25.08.2009. DETAILED QUESTIONNAIRE ALONG WITH NOTICE U/S 142(1) OF THE INCOME TAX ACT, 1961 WAS ISSUED ON 18 .09.2009 AND DULY SERVED UPON THE ASSESSEE ON 22.09.2009. FURTHER NOTICES U/S 142(1) DATED 23.10.2009 ALONGWITH SHOW CAUSE NOTICE U/S 271(1)(B) OF 1. T. ACT WERE ISSUED AND DULY SERVED. IN COMPLIANCE THERETO. THE AR. OF ASSESSEE ATTENDED THE PROCEEDING S FROM TIME TO TIME AND FILED NECESSARY DETAILS/INFORMATION/DOCUMENTS , ETC. AS REQUIRED. ASSESSEE DERIVES INCOME FROM HOUSE PROPE RTY AND INCOME FROM OTHER SOURCES DURING THE FINANCIAL YEAR UNDER C ONSIDERATION. THE REQUISITE HAVE BEEN ASKED AND PROVIDED BY THE AS SESSEE. THE AO OBSERVED THAT AS THERE WAS TWO FUNCTIONS DURING THE YEAR REGARDING ENGAGEMENT AND MARRIAGE CEREMONY OF ASSES SEES DAUGHTER CERTAIN BRIDES GARMENTS (I.E. LANGHA, SAREE, SUITS, AND OTHER GENERAL VALUABLE ITEMS WERE CERTAINLY PURCHASED . THE ASSESSEE VIDE SHOW CAUSE NOTICE DATED 4.12.2009, ASK ED TO CLARIFY 4 THE DETAILS OF BILLS WITH NECESSARY EVIDENCES AND AS SESSEE IN HIS REPLY SUBMITTED THAT THE BILLS/VOUCHERS RELATED TO ASSESSEE AND INCURRED ON VARIOUS MARRIAGE RELATED ITEMS. DRAWING S ARE REFLECTED IN STATEMENT OF AFFAIRS (RS. 9,08,249/- IN ASSESSEE CA SE RS. 1,71,870/- IN HIS WIFE CASE). THEREAFTER, THE AO OBSERVED THAT IT IS CLEAR THAT THE ASSESSEE HAS PURCHASED ITEMS WORTH RS. 10,68,950/- AND THESE EXPENSES ARE NOT PROPERLY BOOKED, EXPENSES INCURRED OUT OF UNEXPLAINED MONEY, BY TREATING THE EXPENSES SHOWN BY ASSESSEE UNDER HOUSE HOLD EXPENSES ARE INCURRED FOR THAT PURP OSE IN ACCORDANCE TO HIS SOCIAL STATUS. THUS THESE UNEXPL AINED INVESTMENTS U/S. 69 OF THE ACT AMOUNTING TO RS. 10,68 ,950/- WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE AND ALSO MADE OTHER ADDITIONS VIDE ORDER DATED 30.12.2009 PASSED U/S. 1 43(3) OF THE ACT. AGAINST THE ASSESSMENT ORDER ASSESSEE APPEALED BEFORE THE LD. CIT(A), WHO VIDE HIS IMPUGNED ORDER DATED 17.3. 2015 HAS PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. AGGRIEVED WITH THE IMPUGNED ORDER THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSES SEE STATED THAT THE ORDER PASSED BY THE REVENUE AUTHORITIES IS AGAINST THE LAW AND FACTS ON FILE AND IS NOT SUSTAINABLE IN THE EYE S OF LAW. HE FURTHER SUBMITTED THAT THE ADDITION OF RS. 10,68,950/- WA S MADE BY THE AO ON ACCOUNT OF EXPENDITURE INCURRED ON MARRIAGE CEREMONY OF 5 THE ASSESSEES DAUGHTER IS NOT TENABLE, KEEPING IN VI EW OF THE EVIDENCES PRODUCED BY THE ASSESSEE BEFORE THE REVENU E AUTHORITIES, AS WELL AS IN VIEW OF THE STATUS OF THE ASSESSEES FAMI LY. IN SUPPORT OF HIS CONTENTION, HE FILED THE PAPER BOOK CONTAINING PAGES 1-61 IN WHICH HE HAS ATTACHED THE VARIOUS DOCUMENTARY EVIDENC ES TO SUPPORT HIS CONTENTION. HE REQUESTED THAT KEEPING IN VIEW OF THE STATUS OF THE FAMILY OF THE ASSESSEE AND THE EVIDENCES PRODUCED BY THE ASSESSEE IN SUPPORT OF HIS ARGUMENTS, THE ADDITION IN DISPUTE MAY BE DELETED. 4. ON THE CONTRARY, LD. DR RELIED UPON THE ORDER PASSE D BY THE REVENUE AUTHORITIES. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE REC ORDS AND ALSO GONE THROUGH THE DOCUMENTARY EVIDENCES FILED BY THE ASSESSEE IN THE SHAPE OF PAPER BOOK CONTAINING PAGES 1-61 IN W HICH HE HAS ATTACHED THE COPY OF ACKNOWLEDGEMENT OF RETURN AND COMP UTATION OF INCOME; COPY OF STATEMENT OF AFFAIRS OF THE ASSESSEE AS ON 31.3.22008; COPY OF STATEMENT OF AFFAIRS OF THE ASSES SEE AS ON 31.3.2008; COPIES OF PANCHNAMAS DRAWN AT C-7/3, VAS ANT VIHAR, 18.1.2008; COPIES OF SEIZED MATERIALS; COPY OF DETAI LS OF CASH, BANK ACCOUNT AND COPY OF BANK STATEMENT OF THE ASSESSEE; COPY OF STATEMENT OF AFFAIRS OF RITU ARORA; WRITTEN SUBMISSION FILED BEFORE 6 CIT(A); COPY OF CIT(A) ORDER PASSED IN THE CASE OF S MT. RITU ARORA OF AY 2008-09 AND COPY OF AOS ORDER PASSED IN THE CASE OF SMT. RITU ARORA OF AY 2008-09, WHICH SHOWS THAT THE ASSES SEE HAD SUFFICIENT DRAWINGS FROM HIS BANK ACCOUNT FROM WHICH EXPENDITURE HAS BEEN INCURRED ON THE MARRIAGE OF HIS DAUGHTER. KEEPING IN VIEW OF THE STATUS AND EVIDENCES FILED BY THE ASSESSE E, THE ADDITION MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A) IS WI THOUT ANY COGENT EVIDENCES AND VALID REASONS, HENCE, THE ADD ITION IN DISPUTE IS DELETED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED ON 12/07/2019. SD/- SD/- [B.R.R. KUMAR] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 12/07/2019 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES