Abdul Majid, Delhi V. ITO, New Delhi

ITA 5097/DEL/2013

• Counselvise Citation: 509720114 RSA 2013
• Duration Of Justice: 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-07-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 04-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVINDER PAL
• Assessee Lawyers: Y KAKKAR
• Section: 143(3); 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : A N EW DELHI BEFORE SHRI G.D. AGARWAL , HONBLE VICE PRESIDENT AND SHRI H.S. SIDHU , JUDICIAL MEMBER ITA NO. 5097 / DEL / 201 3 ASSESSMENT YEAR 200 8 - 200 9 ABDUL MAJID VS. ITO, WARD - 19(3), A - 14/109 - B, DDA FLATS, NEW DELHI. INDERLOK, DELHI - 110035 (PAN AOJPM 6170 L ) (APPELLANT) (RESPONDENT) APPELLANT BY : MS. Y. KAKKAR, D.R. RESPONDENT BY : S HRI DEVINDER PAL, ADVOCATE ORDER PER H.S. SIDHU , J . M : 1. THE ASSESSEE HAS FILED PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 2 5 .0 2 .201 3 PASSED BY THE LD. CIT(A) - XX II , NEW DELHI FOR A.Y. 2008 - 09 . 2. THE FACTS RELATED BY THE AUTHORITIES ARE NOT DISPUTED BY BOTH THE PARTIES, BUT FOR THE SAKE OF CONVENIE NCE THE FACTS RELATING TO THE ISSUE IN DISPUTE ARE THAT THE ASSESSEE FILED HIS RETURN OF INCOME ON 27.06.2008 , DECLARING TOTAL INCOME AT RS.1,20,310/ - . THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINA FTER REFERRED TO AS THE ACT) ON 27.12.2010 AT AN INCOME OF RS.18,65,610/ - AFTER MAKING ADDITION OF RS. 17,45,300/ - ITA NO. 5097 /DEL/ 201 3 2 AS UNEXPLAINED DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSEE AT STANDARD CHARTERED BANK. 3. AGGRIEVED BY THE ASSESSMENT ORDER DATED 27.12.20 10 , THE ASSESSEE FILED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY , WHO VIDE ORDER DATED 25.02.2013 DISMISSED THE APPEAL OF THE ASSESSEE. NOW, THE ASSESSEE IS AGGRIEVED AGAINST THE IMPUGNED ORDER HAS FILED THE PRESENT APPEAL. 4. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSESSEE FILED A SMALL PAPER BOOK , WHICH INCLUDES WRITTEN SUBMISSION S AND SOME DOCUMENTARY EVIDENCE INCLUDING THE CASE LAWS IN SUPPORT TO THE CASE OF ASSESSEE. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSESSEE SHRI DEVINDER PAL SING H, ADVOCATE STATED THAT DUE TO NEGLIGENCE OF COUNSEL APPEARED BEFORE THE LOWER REVENUE AUTHORITY THE ASSESSEE COULD NOT FILE DOCUMENTARY EVIDENCE FOR SUPPORTING THE CLAIM OF ASSESSEE AND HE REQUESTED THAT SOME MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE FOR SUBSTANTIATING HIS CLAIM BEFORE THE ASSESSING OFFICER AND THE ISSUE S IN DISPUTE MAY BE SET ASIDE TO THE ASSESSING OFFICER T O DECIDE THE SAME FRESH UNDER THE LAW AFTER GIVING AN OPPORTUNITY TO THE ASSESSEE. 5. LD. D.R. RELIED UPON THE ORDER PASSED BY T HE LD. FIRST APPELLATE AUTHORITY AND OPPOSE THE REQUEST OF LD. COUNSEL FOR THE ASSESSEE. 6. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE RELEVANT RECORDS BEFORE US AND ESPECIALLY THE ORDER PASSED BY THE REVENUE ALONG WITH DOCUMENTARY EVIDENCE FILED BY THE LD. COUNSEL FOR THE ASSESSEE IN SUPPORT OF THE CLAIM OF ASSESSEE. ITA NO. 5097 /DEL/ 201 3 3 7. AS PER THE ORDER OF THE ASSESSING OFFICER, WE WANT TO REPRODUCE THE OBSERVATION S OF THE ASSESSING OFFICER , WHICH THE LD. FIRST APPELLATE AUTHORITY HAS ALSO REPRODUCED IN PARA 6, PAGES 3&4 OF THE IMPUGNED ORDER , WHICH IS REPRODUCED AS UNDER: - OBSERVATIONS OF THE ASSESSING OFFICER THE ASSESSING OFFICER HAS OBSERVED AS UNDER IN THE ASSESSMENT ORDER U/S 143(3) DATED 27.12.2010: - IN THIS CASE THE RETURN OF INCOME WAS FILED ON 27.06.2008 DEC LARING TOTAL INCOME AT RS.1,20,310/ - WHICH WAS PROCESSED U/S 143(1). THE CASE WAS SELECTED FOR SCRUTINY THROUGH CASS. STATUTORY NOTICES U/S 143(2) & 142(1) ISSUED. IN RESPONSE THERETO, SHRI AMOD AGRAWAL, CA ATTENDED AND HE WAS SERVED COPY OF AIR AND DIRECT ED TO EXPLAIN THE SOURCE OF CASH DEPOSITS IN THE STANDARD CHARTERED BANK AMOUNTING TO RS.17,45,300/ - ON 31.3.08 & RS.18,01,401/ - ON 31.3.08. MR. AGARWAL STATED THAT THE ASSESSEE HAS NOT DEPOSITED RS.18,01,400/ - . MR. AGARWAL WAS DIRECTED TO EXPLAIN THE BALA NCE CASH DEPOSITS OF RS.17,45,300/ - BY THE ASSESSEE IN THE STANDARD CHARTERED BANK. HE DID EXPLAINED THE SOURCE OF DEPOSIT OF CASH OF RS.17,45,300/ - BY THE ASSESSEE IN THE STANDARD CHARTERED BANK. HE GOT ADJOURNMENT OF CASE ON 7.12.10 FOR 14.12.10. NONE AT TENDED ON 14.12.10. AGAIN SHOW CASE NOTICE DT. 21.12.10 WAS SERVED ON THE ASSESSEE ON 23.12.10 TO EXPLAIN THE SOURCES OF CASH DEPOSITS OF RS.17,45,300/ - FIXING THE CASE FOR 24.12.10. ON 14.12.10 NONE ATTENDED. THIS ATTITUDE OF THE ASSESSEE SHOWS THAT HE HA S NO DOCUMENTARY EVIDENCE OF SOURCES OF DEPOSIT OF CASH OF RS.17,45,300/ - IN THE STANDARD CHARTERED BANK. THEREFORE THESE CASH DEPOSITS OF RS.17,45,300/ - IS TREATED AS INCOME OF THE ASSESSEE FROM UNDISCLOSED SOURCES. 8. WE HAVE THOROUGHLY GOING THROUGH THE AFORESAID OBSERVATIONS OF THE ASSESSING OFFICER AND WE ARE OF THE VIEW THAT THE ASSESSING OFFICER HAS HIMSELF ADMITTED THAT THE ASSESSEE DID EXPLAIN THE SOURCE OF DEPOSIT OF CASH OF RS.17,45,300/ - DEPOSITED IN THE STANDARD CHARTERED BANK , BUT IN THE LA ST THE ASSESSING OFFICER HAS MADE THE ADDITION OF THE SOME AMOUNT AS INCOME OF THE ITA NO. 5097 /DEL/ 201 3 4 ASSESSEE FROM UNDISCLOSED AND COMPLETED THE ASSESSMENT ON 27.12.2010 UNDER SECTION 143(3) OF THE ACT. LD. FIRST APPELLATE AUTHORITY HAS ALSO OVERLOOK ED THIS OBSERVATION OF T HE ASSESSING OFFICER WRONGLY UPHELD THE ASSESSMENT ORDER. WITHOUT GOING THROUGH THE MATTER OF THE CASE AND DISCUSSING/APPRECIATING THE EVIDENCE PRODUCED BY THE ASSESSEE, WE ARE OF THE VIEW THAT THE REQUEST OF THE LD. COUNSEL FOR THE ASSESSEE FOR SETTING AS IDE THE ISSUE IN DISPUTE TO THE ASSESSING OFFICER SHOULD BE ACCEPTED AND WE ACCEPT THE REQUEST OF THE ASSESSEE BY DIRECTING THE ASSESSING OFFICER T O DECIDE THE ISSUE S IN DISPUTE AFRESH UNDER THE LAW AND PROVIDES SUFFICIENT OPPORTUNITY TO THE ASSESSEE FOR S UBSTANTIATING HIS CLAIM BEFORE THE ASSESSING OFFICER AND DECIDE THE CASE OF ASSESSEE AS PER LAW. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 01 .0 8 .2014 SD/ - SD/ - ( G.D. AGARWAL ) ( H.S. SIDHU ) VICE PRESIDENT JUDICIAL MEMBER DATED 01 .0 8 .2014 A KS* COPY OF THE ORDER FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3 . CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, ASSISTANT REGISTRAR