Mohit Gupta, Faridabad V. ITO, New Delhi

ITA 5092/DEL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3115 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 15-09-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: DEVINA SHA RMA
• Keywords: Unexplained cash credit; Gift; Salary income
• Section: 28

Judgement Text

ITA 5092/DEL/14 A.Y.2010 - 11 SH. MOHIT GUPTA, FARIDABAD 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: F , NEW DELHI BEFORE SHRI R .K.PANDA , ACCOUNTANT MEMBER AND SMT. BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 5092 /DEL/201 4 A.Y. 201 0 - 11 SH. MOHIT GUPTA HOUSE NO.634 SECTOR 28 FARIDABAD 121 008 HARYANA VS . ITO, WARD 1(3) FARIDABAD (APPELLANT) (RESPONDENT) APPELLANT BY SHRI VED JAIN, ADV. & MS. DEVINA SHARMA, ADV. RESPONDENT BY SH. ATI Q AHMAD, SR.D.R DATE OF HEARING 12.02.2018 DATE OF PRONOUNCEMENT ............ ORDER PER BEENA PILLAI, JUDICIAL MEMBER P RESENT APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 30/07/14 PASSED BY LD. CIT (A) - 2, FARIDABAD FOR ASSESSMENT YEAR 2010 - 11 ON THE FOLLOWING GROUNDS OF APPEAL: ITA 5092/DEL/14 A.Y.2010 - 11 SH. MOHIT GUPTA, FARIDABAD 2 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] IS BAD BOTH IN T HE EYE OF LAW AND ON FACTS. 2.(I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ADDITION OF RS.99, 000/ - MADE BY THE AO ON ACCOUNT OF CASH DEPOSITS IN THE BANK ACCOUNT. (II). THAT THE SAID ADDITION HAS BEEN CONFIRMED REJECTING THE EXPLANATION OF THE ASSESSEE THAT THE DEPOSITS HAVE BEEN MADE OUT OF THE MONEY RECEIVED FROM FAMILY MEMBERS. 3(I). ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ADDITION OF RS.7,27,528/ - MADE BY THE AO ON ACCOUNT OF LOAN TO HIS WIFE SMT. DIMPLE GUPTA. (II) THAT THE ADDITION HAS BEEN CONFIRMED REJECTING THE EXPLANATION AND EVIDENCES SUBMITTED BY THE ASSESSEE. 4. THAT THE APPELLANT CRAVES LEA VE TO ADD, AMEND OR ALTER ANY OF THE GROUNDS OF APPEAL. 2. BRIEF FACTS OF THE CASE ARE AS UNDER: A SSESSEE FILED HIS RETURN OF INCOME ON 28/07/10 DECLARING TOTAL INCOME OF RS. 13,53,170/ - . THE CASE WAS SELECTED FOR SCRUTINY AND STATUTORY NOTICES WERE ISSUED TO ASSESSEE IN RESPONSE TO WHICH REPRESENTATIVE OF ASSESSEE APPEARED AND FILED VARIOUS DETAILS AS CALLED FOR. 2.1. LD. AO DURING THE ASSESSMENT PROCEEDINGS OBSERVED THAT ASSESSEE DERIVES INCOME FROM SALARY FROM D AMCO S OLUTIONS PVT. LTD. AMOUNTING RS.15,39, 000/ - , INCOME FROM O THER SOURCES AT RS.5,71, 597/ - , INCOME OF RS.4, 639/ - BY WAY OF CLUBBING OF MINOR S INCOME AND AGRICULTURAL INCOME AT RS.10,000/ - . A SSESSEE HAD ALSO CLAIMED LOSS OF RS.3,76,852/ - ON RENTED PROPERTY AT RS.1,50,000/ - ITA 5092/DEL/14 A.Y.2010 - 11 SH. MOHIT GUPTA, FARIDABAD 3 ON SELF OCCUP IED PROPERTY UNDER THE HEAD INCOME FROM HOUSE PROPERTY . LD.AO COMP LETED ASSESSMENT RS.1,82,41,870/ - . LD. AO MADE VARIOUS ADDITION IN THE HANDS OF ASSESSEE ON ACCOUNT OF CASH DEPOSITS CREDITED IN THE ACCOUNT OF ASSESSEE AT RS. 99,000 / - , LOAN GIVEN TO ASSES SEE S WIFE AMOUNTING TO RS. 10,53,527/ - AS UNEXPLAINED INCOME AT RS. 35 LAKHS, UNEXPLAINED CASH IN HAND AT RS.15,500 / - UNEXPLAINED ASSET AT RS.12 , 19,581/ - AND INCOME EARNED FROM UNDISCLOSED SOUR CES AMOUNTING TO RS.1,47,07, 380/ - . 2.2. AGGRIEVED BY THE ORDER OF LD. AO, ASSESSEE PREFERRED APPEAL BEFORE LD. CIT (A) . LD.CIT (A) DELETED MAJORITY OF ADDITIONS MADE BY LD. AO HOWEVER CONFIRMED THE ADDITION ON ACCOUNT OF UNEXPLAINED CASH CREDIT AMOUNTING TO RS. 99,000/ - AND LOAN GIVEN TO ASSESSEE S WIFE AMOUNTING TO RS.7 ,58,527/ - . 2.3. AGGRIEVED BY THE ORDER OF LD. CIT (A) ASSESSEE IS IN APPEAL BEFORE US NOW. 3. GROUND NO. 1 RAISED BY THE ASSESSEE IS GENERAL IN NATURE AND THEREFORE DOES NOT REQUIRE A DJUDI CATION . 4. GROUND NO. 2 HAS BEEN RAISED BY ASSESSEE AGAINST THE CONFIRMATION OF ADDITION OF UNEXPLAIN ED CASH CREDIT AMOUNTING TO RS. 99,000 / - MADE BY LD.AO. AT THE OUTSET LD. A R EXPRESSED HIS INTENTION OF NOT PRESSING THIS GROUND DUE TO SMALLNESS OF THE AMOUNT INVOLVED. ACCORDINGLY THIS GROUND RAISED BY ASSESSEE STANDS DISMISSED AS NOT PRESSED. 5. GROUND NO. 3 HAS BEEN RAISED BY THE ASSESSEE AGAINST THE ADDITION CONFIRMED ON ACCOUNT OF LOAN GIVEN TO ASSESSEE S WIFE. ITA 5092/DEL/14 A.Y.2010 - 11 SH. MOHIT GUPTA, FARIDABAD 4 5.1. LD. AR SUBMITTED THAT ASSESSEE HAD G AVE LOAN OF RS.10,53,527/ - TO SMT. D IMPLE GUPTA ( WIFE OF ASSESSEE). FURTHER IT WAS OBSERVED THAT DURING THE PERIOD 01/04/09 TO 31/03/10 BEING THE SUBSEQUENT FINANCIAL YEAR FURTHER LOAN OF RS. 7 LAKHS WAS GIVEN TO ASSESSEE S WIFE RESULTING IN TO TAL LOAN AMOUNT GOING UP TO RS. 17,53,527/ - . HE SUBMITTED THAT DURING THE FIN ANCIAL YEAR RELEVANT TO ASSESSMEN T YEAR UNDER CONSIDERATION SMT.D IMPLE GUPTA (WIFE OF ASSESSEE) REPAID LOAN AMOUNTING TO RS. 7 LAKHS AND THU S LD. AO , ARRIVED AT A FIGURE OF RS.7, 58,527/ - REPRESENTING LOAN TO ASSESSEE S WIFE AS ON 31/03/10. IT WAS SUBMITTED THAT AS THE SAID AMOUNT DID NOT APPEAR ON THE BALANCE SHEET FILED BY ASSESSEE, IT WAS ADDED IN THE HANDS OF ASSESSEE AS INCOME BEING FROM UNDISCLOSED SOURCES. 5.2. LD.AR SUBMITTED THAT THE OMISSION OF THE SAID AMOUNT FROM THE BALANCE SHEET WAS A CLERICAL MISTAKE WHICH WAS RECTIFIED SUBSEQUENTLY . LD. AR THE SUBMITTED THAT THERE HAS BEEN NO WILLFUL OMISSION ON THE PART OF ASSESSEE AND THEREFORE A LENIENT VIEW SHOULD BE TAKEN IN THIS RESPECT. 5.3. ON THE CONTRARY LD. CIT (A) SUBMITTED THAT ASSESSEE HAS CONTRADICTED ITS OWN SUBMISSION BEFORE BOTH THE AUTHORITIES BELOW. 5.4. HE SUBMITTED THAT B EFORE LD. CIT (A) ASSESSEE HAS SUBMITTED THAT AMOUNT OF RS.10,53,5 2 7 DEBITED IN THE ACCOUNT OF SH. MOHIT GUPTA AS ON 31/03/09 BY DEMKO S OLUTIONS PVT. LTD. , WAS CREDITED IN THE ACCOUNT OF MRS D IMPLE GUPTA AS GIFT FROM ASSESSEE. WHEREAS BEFORE LD. AO ASSESSEE HAS SUBMITTED THAT THESE WERE LOANS GIVEN TO HIS WIFE. ASSESSEE HAS FAILED TO SUBSTANTIATE WITH ANY ITA 5092/DEL/14 A.Y.2010 - 11 SH. MOHIT GUPTA, FARIDABAD 5 DOCUMENTARY EVIDENCE IN RESPEC T OF THE SAID AMOUNT BEING LOAN OR GIFT TO ASSESSEE S WIFE AND THEREFORE THE ADDITION SHOULD BE CONFIRMED. 6. WE HAVE PERUSED THE SUBMISSIONS ADVANCED BY BOTH THE SI DES IN THE LIGHT OF THE RECORDS PLACED BEFORE US. 6.1. IT IS OBSERVED THAT ASSESSEE HAS P ROVIDED VARIOUS EXPLANATION S IN RESPECT OF THE ALLEGED LOAN TRANSACTION WITH HIS WIFE. IT IS EVEN MORE SURPRISING TO KNOW THAT ASSESSEE S BALANCE SHEET AS WELL AS HIS WIFE S BALANCE SHEET DOES NOT REFLECT THE SAID AMOUNT EITHER IN THE NATURE OF GIFT RECEI VED BY THE ASSESSEE S WIFE OR IN THE NATURE OF LOAN. ASSESSEE HAS THEREFORE FAILED TO ESTABLISH THE SOURCE OF THE SAID FUNDS, AS WELL AS THE NATURE OF MONEY ADVANCED TO HIS WIFE. THEREFORE WE DO NOT FIND ANY REASON TO DELETE THE ADDITION MADE BY THE AUTHOR ITIES BELOW. ACCORDINGLY GROUND NO. 3 RAISED BY ASSESSEE STANDS DISMISSED. 7. IN THE RESULT APPEAL FILED BY ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 8 . 0 2 . 2 0 1 8 . S D / - S D / - (R. K.PANDA ) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 2 8 T H FEB., 201 8 . MV ITA 5092/DEL/14 A.Y.2010 - 11 SH. MOHIT GUPTA, FARIDABAD 6 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASST. REGISTRAR ITAT, DELHI BENCHES, NEW DELHI