Ajay Kumar Goyal, Hapur V. ITO, Ward- 3(4), Hapur

ITA 557/DEL/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5696 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 24-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R MISHRA
• Keywords: Principle of natural justice
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC, NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER & SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.- 557/DEL/2018, (ASSESSMENT YEAR: 2011-12) SH. AJAY KUMAR GOYAL 1605, NEAR SHAKTI DIARY, SHIV PURI, RAILWAY ROAD, HAPUR. VS. INCOME - TAX OFFICER WARD-3(4), HAPUR. PAN NO: ARMPG1013G APPELLANT RESPONDENT ASSESSEE BY : SH. SANJAY MALIK (ADV .) REVENUE BY : SH. B.R. MISHRA (SR. DR) DATE OF HEARING : 14.06.2018. DATE OF PRONOUNCEMENT : 22/06/2018. ORDER PER: O.P. KANT, AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORD ER DATED 19/09/2017 PASSED BY THE LD. COMMISSIONER OF INCOME-TAX (APPEALS), AL IGARH [IN SHORT THE LD. CIT(A)] FOR ASSESSMENT YEAR 2011-12 RAISING FOLLOWING GROUNDS: 2 ITA NO-557/DEL/2018. SH. AJAY KUMAR GOYAL. 1. THAT ON FACTS AND IN LAW INITIATION OF PROCEEDI NGS U/S 147 OF I.T. ACT FOLLOWED BY THE NOTICE U/S 148 OF I.T. ACT WERE VOI D, ILLEGAL AND WITHOUT JURISDICTION. 2. THAT THE ASSESSING OFFICER HAS NOT RECORDED PROP ER SATISFACTION THUS PROCEEDINGS U/S 148 SHOULD BE ANNULLED. 3. THAT ON FACTS AND IN LAW THE CONSEQUENT ASSESSME NT FRAMED DESERVE TO BE QUASHED AND ANNULLED BEING VOID, ILLEGAL AND WITHOUT JURISDICTION. NATURAL JUSTICE WAS VIOLATED. 4. THAT ON FACTS AND IN LAW THERE WAS NO WARRANT TO MAKE AN ADDITION OF RS. 12,00,000/-. CONSEQUENTLY THE IMPUGNED ADDITIO N OF RS. 12,00,000/- DESERVES TO BE DELETED BEING VOID, ILLE GAL AND WITHOUT JURISDICTION. 5. THAT THERE WAS NO LEGAL WARRANT TO LEVY OF INTER EST U/S 234A, 23B, 234C OF I.T. ACT. LEVY OF INTEREST UNDER THESE PRO VISIONS DESERVES TO BE DELETED BEING VOID, ILLEGAL AND WITHOUT JURISDIC TION. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT ON THE BASIS OF THE INFORMATION RECEIVED BY THE DEPARTMENT, THAT THE ASSESSEE HAD ENTERED IN TO CONTRACT OF RS. 10 LACS OR MORE IN COMMODITY EXCHANGE AND HAD NOT FILED THE RETURN OF INCOME, THE ASSESSING OFFICER INITIATED PROCEEDINGS UNDER SECTION 147 OF THE INCO ME TAX ACT, 1961 (IN SHORT THE ACT) BY WAY OF ISSUE NOTICE UNDER SECTION 148 OF THE ACT ON 05/02/2014. THE ASSESSEE FILED RETURN OF INCOME ON 23/06/2014 SHOWING NET INCOME O F RS. 7,80,020/-. IN THE ASSESSMENT COMPLETED UNDER SECTION 147/143(3) OF TH E ACT ON 19/02/2015, THE ASSESSING OFFICER MADE FOLLOWING ADDITIONS: 1. THE UNEXPLAINED ADVANCES FROM 4 PARTIES AGGREGATING TO RS. 14,20,000/-. 2. DISALLOWANCE OF CERTAIN EXPENSES OF RS. 26,513/- 3. INSUFFICIENT HOUSEHOLD EXPENDITURE RS. 1,20,000/-. 3 ITA NO-557/DEL/2018. SH. AJAY KUMAR GOYAL. 3. THE LD. CIT(A) DELETED THE DISALLOWANCE OF EXPEN SES OF RS. 26,513/-AND INSUFFICIENT HOUSEHOLD EXPENDITURE OF RS. 1,20,000/ - HOWEVER HE SUSTAINED THE ADDITION OF RS. 14,20,000/-AS ADVANCES REMAIN UNEXPLAINED. 4. IN THE GROUNDS RAISED THE ASSESSEE CHALLENGED TH E JURISDICTION ASSUMED BY THE ASSESSING OFFICER IN REOPENING THE ASSESSMENT. 5. BEFORE US THE LD. COUNSEL OF THE ASSESSEE FILED A PAPER BOOK CONTAINING PAGES 1 TO 66 AND SUBMITTED THAT NO ADDITION HAS BEEN MADE ON THE ISSUE, ON WHICH THE ASSESSMENT WAS REOPENED. HE HAS DRAWN OUR ATTENTION TO THE COPY OF REASONS RECORDED AVAILABLE ON PAGE 3 OF THE PAPER BOOK. IN SUPPORT OF HIS CONTENTION, HE RELIED ON THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CAS E OF RANBAXY LABORATORIES LTD. VS. CIT REPORTED IN 334 ITR 341 [2011], WHEREIN IT IS HELD THAT IF THE ADDITION BASED ON THE REASONS RECORDED DOES NOT SURVIVE, THE PROCE EDINGS UNDER SECTION 147 CANNOT WITHSTAND. 6. ON THE CONTRARY, THE LD. DR RELIED ON THE ORDER OF THE LOWER AUTHORITIES. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IN THE CASE OF RANBAXY LABORATORIES LTD (S UPRA), THE HONBLE HIGH COURT CONCLUDED THAT THE ASSESSING OFFICER HAD THE JURISD ICTION TO REASSESS ISSUES OTHER THAN THE ISSUES IN RESPECT OF WHICH PROCEEDINGS ARE INIT IATED BUT HE WAS NOT SO JUSTIFIED WHEN THE REASONS FOR THE INITIATION OF THOSE PROCEEDINGS CEASED TO SURVIVE. IN THE INSTANT CASE ALSO NO ADDITION ON THE ISSUE OF INVESTMENT IN COMM ODITY EXCHANGE HAS BEEN MADE BY THE ASSESSING OFFICER AND ONLY ADDITION WHICH SURVI VED AFTER THE IMPUGNED ORDER OF THE 4 ITA NO-557/DEL/2018. SH. AJAY KUMAR GOYAL. LD. CIT(A) IS UNEXPLAINED ADVANCES OF RS. 14, 20,00 0/-. THUS RESPECTFULLY FOLLOWING ABOVE DECISION OF THE HONBLE DELHI HIGH COURT, THE ABOVE ADDITION MADE BY THE LD. ASSESSING OFFICER AND THE SUSTAINED BY THE LD. CIT( A), IS NOT JUSTIFIED. ACCORDINGLY, WE DIRECT TO DELETE THE SAME. THE GROUNDS OF THE APPEA L OF THE ASSESSEE ACCORDINGLY ALLOWED. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 22/6/2018. SD/- SD/- KULDIP SINGH O.P.KANT (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: 22.06.2018 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 5 ITA NO-557/DEL/2018. SH. AJAY KUMAR GOYAL. DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 6 ITA NO-557/DEL/2018. SH. AJAY KUMAR GOYAL.