Smt. Ashima Arora, New Delhi V. ITO, New Delhi

ITA 5099/DEL/2014

• Counselvise Citation: 509920114 RSA 2014
• Duration Of Justice: 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC 2
• Next Hearing Date: 10-08-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 15-09-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRS RAKHI VIMAL
• Assessee Lawyers: S KRISHNAN
• Keywords: Gift; Income from undisclosed sources
• Section: 143(3); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-2 NEW DELHI BEFORE SHRI J.SUDHAKAR REDDY ACCOUNTANT MEMBER ITA NO: 5099/DEL/2014 ASSTT. YEAR : - 2005-06 SMT. ASHIMA ARORA VS. ITO 9A, NORTH WEST AVENUE, PUNJABI BAGH WARD-25(3) NEW DELHI 110026 NEW DELHI (PAN ADRPA0415D) (APPELLANT) ( RESPONDENT) APPELLANT BY : SHRI S. KRISHNAN, ADVOCATE RESPONDENT BY :MRS. RAKHI VIMAL, JCIT DATE OF HEARING :11.8.2015 DATE OF PRONOUNCEMENT : 11 .9.2015 O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE D IRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), XXIV, NEW DEL HI DATED 23.6.2014 FOR THE ASSESSMENT YEAR 2005-06 ON THE FOLLOWING GROUNDS :- 1. INITIATING PROCEEDINGS U/S 148 OF THE ACT WITHOUT THERE BEING ANY VALID REASON FOR REASSESSMENT 2. PASSING AN ORDER U/S 143(3) /148 OF THE ACT WITHOUT EITHER PROVIDING THE REASONS RECORDED FOR INITIATION OF PROCEEDINGS U/S 147 OF THE ACT DISPOSING OF THE OBJECTIONS 3. MAKING AN ADDITION IN A SUM OF RS. 10 LACS AFTER TR EATING THE AMOUNT OF GENUINE GIFTS RECEIVED AS THE UNACCOUNTED INCOME OF THE ASSESSEE 4. MAKING AN ADDITION OF RS. 50,000/- AS ALLEGED COMMI SSION PAID ON THE GIFT AS RECORDED ITA NO. 5099/DEL/2014 SMT. ASHIMA ARO RA VS. ITO 2 2. AFTER HEARING RIVAL CONTENTIONS, I HOLD AS FOLLOWS. ON THE ISSUE OF REOPENING, I AM UNABLE TO UPHOLD THE CONTENTIONS OF THE ASSESSEE THAT THE ISSUE HAS TO BE SENT BACK TO THE FILE OF THE AO WITH A DIRECTION TO PROV IDE REASONS FOR REOPENING AND THEREAFTER CONSIDERING THE OBJECTIONS OF THE ASSESS EE AND THEREAFTER COMPLETING THE ASSESSMENT. ON A QUERY FROM THE BENCH, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT HE FILED A LETTER DATED 8.2.2012 BEFORE THE AO WHEREIN HE SOUGHT THE REASONS FOR REOPENING. A PERUSAL OF THIS LETTER DEMONSTRATE S THAT THE ASSESEE HAS NOT SOUGHT THE REASONS FOR REOPENING. THE LETTER READS AS FOLL OWS : PLEASE LET US KNOW THE PURPOSE OF INQUIRY SO THAT WE CAN PROVIDE FURTHER INFORMATION 3. IN MY VIEW THE FIRST APPELLATE AUTHORITY H AS CORRECTLY ADJUDICATED THE CASE BY APPLYING THE DECISION OF SPECIAL BENCH OF THE TRIBU NAL IN THE CASE OF KUBER TOBACCO PRODUCTS (P) LTD. VS. DCIT, IT(SS)A NO. 261/DEL/200 1 DATED JANUARY 14, 2009. IN OUR VIEW THE FIRST APPELLATE AUTHORITY HAS COMPREHE NSIVELY DEALT WITH THE ISSUE OF REOPENING FROM PARA 5.1 TO 5.4 OF HIS ORDER. THIS D OES NOT CALL FOR ANY INTERFERENCE. ON MERITS, I HAVE TO CONFIRM THE ORDER OF THE FIRST APPELLATE AUTHORITY, BASED ON THE ELABORATE REASONS GIVEN BY HIM AT PARA 5.5 OF HIS O RDER, WHICH THE LD. COUNSEL FOR THE ASSESSEE COULD NOT CONTROVERT. EVEN PRIMARY DOC UMENTS COULD NOT BE FURNISHED BY THE ASSESSEE. A PERUSAL OF THE BALANCE SHEET AS WELL AS THE RETURN OF INCOME OF THE EARLIER YEARS DEMONSTRATES THAT THE DONORS DID NOT HAVE CREDITWORTHINESS. AS I HAVE FOUND NO REASON TO INTERFERE IN THE WELL REASO NED ORDER OF THE LD. CIT(A) FOR THE SAKE OF BREVITY I DO NOT REPEAT THESE FINDINGS. UNDER THESE CIRCUMSTANCES I ITA NO. 5099/DEL/2014 SMT. ASHIMA ARO RA VS. ITO 3 UPHOLD THE FINDING OF THE FIRST APPELLATE AUTHORITY AND DISMISS THIS APPEAL OF THE ASSESSEE. 4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH SEPTEMBER, 2015. SD/- (J. SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED: THE 11 TH SEPTEMBER, 2015 VEENA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER DY. REGISTRAR SL. NO. DESCRIPTION DATE 1. DATE OF DICTATION BY THE AUTHOR 11.8.2015 2. DRAFT PLACED BEFORE THE DICTATING MEMBER 13.8.2 015 3. DRAFT PLACED BEFORE THE SECOND MEMBER 4. DRAFT APPROVED BY THE SECOND MEMBER 5. DATE OF APPROVED ORDER COMES TO THE SR. PS 6. DATE OF PRONOUNCEMENT OF ORDER 7. DATE OF FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER