Sh. Ravinder SInghal, New Delhi V. DCIT, New Delhi

ITA 5747/DEL/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7101 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 19-12-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 28-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Keywords: Principle of natural justice; Peak credit
• Section: 143(3); 234B; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A. NOS. 5747 TO 5749/DEL/2013 ASSESSMENT YEARS: 2004-05 TO 2006-07 SH. RAVINDER SINGHAL, VS. DCIT, CIRCLE 8(1), Y-8, GREEN PARK, NEW DELHI NEW DELHI 110 016 (PAN: AAQPS7920R) (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. SANDEEP SAPRA, ADV. REVENUE BY : SH. F.R. MEENA, SR. DR ORDER PER H.S. SIDHU, JM THESE THREE APPEALS ARE FILED BY THE ASSESSEE AGAIN ST THE SEPARATE ORDERS ALL DATED 29.1.2013 PASSED BY THE L D. CIT(A)-XI, NEW DELHI RELATING TO ASSESSMENT YEAR 2004-05 TO 2006-0 7. SINCE THE ISSUES INVOLVED IN THESE APPEALS ARE COMMON AND IDE NTICAL, HENCE, THE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE CONVENIENCE, BY DEALING W ITH ITA NO. 5947/DEL/2013 (AY 2004-05). 2. THE GROUNDS RAISED IN 5747/DEL/2013 (AY 2004-05) READ AS UNDER:- 2 1. THAT THE IMPUGNED ASSESSMENT ORDER DATED 12/12/2011 AS PASSED U/S 144/147 READ WITH SECTION 143(3) OF I.T. ACT IS ARBITRARY AND ILLEGAL ON VARI OUS FACTUAL AND LEGAL GROUNDS. THE ID. CIT(A) WAS NOT JUSTIFIED IN UPHOLDING THE A CTION TAKEN BY THE AO U/S 147 OF THE I.T. ACT. THE IMPUGN ED ASSESSMENT ORDER DESERVES TO BE CANCELLED/ANNULLED. 2. THAT THE ACTION OF THE ID. CIT(A) IN RELYING UPO N THE DOCUMENTS COLLECTED FROM STANDARD CHARTERED BANK AS MADE BY HER PART OF THE APPELLATE ORDER AS ANNEXURE A (RUNNING IN 28 PAGES) WITHOUT CONFRONTING THEM TO T HE APPELLANT IN THE COURSE OF APPELLATE PROCEEDINGS VI TIATED THE IMPUGNED APPELLATE ORDER AND CONSEQUENTLY, THE SAME DESERVES TO BE CANCELLED/ANNULLED. 3. THAT WITHOUT PREJUDICE TO THE ABOVE GROUNDS, THE ADDITION OF RS.12,07,926/- ON ACCOUNT OF THE ALLEGE D DEPOSIT IN STANDARD CHARTERED BANK GK BRANCH, NEW DELHI AS ENHANCED BY THE LD. CIT(A) TO RS.12,51,766/- IS ARB ITRARY AND WHOLLY ILLEGAL PARTICULARLY WHEN THE APPELLANT HAD DENIED TO HAVE ANY ACCOUNT WITH STANDARD CHARTERED BANK. VARIOUS OBSERVATIONS MADE BY THE AUTHORITIES BELOW IN THEIR RESPECTIVE ORDERS ARE EITHER INCORRECT OR ARE UNTEN ABLE. 4. 'THAT WITHOUT PREJUDICE TO ABOVE GROUNDS, THE AD DITION IF AT ALL COULD BE OF PEAK CREDIT ONLY, WHICH WILL BE FAR LESS THAN THE ADDITION MADE BY THE LD. CIT(A). 5. THAT THE TOTAL INCOME ASSESSED BY GIVING EFFECT TO CIT(A) ORDER AND THE INCOME TAX DEMAND CREATED THER EON ARE 3 ARBITRARY, UNJUST AND AT ANY RATE WITHOUT PREJUDICE , VERY EXCESSIVE. 6. THAT THE LEVY OF INTEREST U/S 234B AND 234C OF T HE I.T. ACT IS ILLEGAL AND AT ANY RATE, WITHOUT PREJUDICE, VERY EXCESSIVE. 7. THAT THE APPELLANT RESERVES HIS RIGHT TO ADD, AMEND/MODIFY THE GROUNDS OF APPEAL. 3. THE GROUNDS RAISED IN 5748/DEL/2013 (AY 2005-06 ) READ AS UNDER:- 1. THAT THE IMPUGNED ASSESSMENT ORDER DATED 12/12/2011 AS PASSED U/S 144/147 READ WITH SECTION 143(3) OF I.T. ACT IS ARBITRARY AND ILLEGAL ON VARI OUS FACTUAL AND LEGAL GROUNDS. THE ID. CIT(A) WAS NOT JUSTIFIED IN UPHOLDING THE A CTION TAKEN BY THE AO U/S 147 OF THE I.T. ACT. THE IMPUGN ED ASSESSMENT ORDER DESERVES TO BE CANCELLED/ANNULLED. 2. THAT THE ACTION OF THE ID. CIT(A) IN RELYING UPO N THE DOCUMENTS COLLECTED FROM STANDARD CHARTERED BANK AS MADE BY HER PART OF THE APPELLATE ORDER AS ANNEXURE A (RUNNING IN 28 PAGES) WITHOUT CONFRONTING THEM TO T HE APPELLANT IN THE COURSE OF APPELLATE PROCEEDINGS VI TIATED THE IMPUGNED APPELLATE ORDER AND CONSEQUENTLY, THE SAME DESERVES TO BE CANCELLED/ANNULLED. 3. THAT WITHOUT PREJUDICE TO THE ABOVE GROUNDS, THE ADDITION OF RS.12,57,931/- ON ACCOUNT OF THE ALLEG ED DEPOSIT IN STANDARD CHARTERED BANK GK BRANCH, NEW DELHI AS ENHANCED BY THE LD. CIT(A) TO RS.13,43,542/- IS ARB ITRARY 4 AND WHOLLY ILLEGAL PARTICULARLY WHEN THE APPELLANT HAD DENIED TO HAVE ANY ACCOUNT WITH STANDARD CHARTERED BANK. VARIOUS OBSERVATIONS MADE BY THE AUTHORITIES BELOW IN THEIR RESPECTIVE ORDERS ARE EITHER INCORRECT OR ARE UNTEN ABLE. 4. 'THAT WITHOUT PREJUDICE TO ABOVE GROUNDS, THE AD DITION IF AT ALL COULD BE OF PEAK CREDIT ONLY, WHICH WILL BE FAR LESS THAN THE ADDITION MADE BY THE LD. CIT(A). 5. THAT THE TOTAL INCOME ASSESSED BY GIVING EFFECT TO CIT(A) ORDER AND THE INCOME TAX DEMAND CREATED THER EON ARE ARBITRARY, UNJUST AND AT ANY RATE WITHOUT PREJUDICE , VERY EXCESSIVE. 6. THAT THE LEVY OF INTEREST U/S 234B AND 234C OF T HE I.T. ACT IS ILLEGAL AND AT ANY RATE, WITHOUT PREJUDICE, VERY EXCESSIVE. 7. THAT THE APPELLANT RESERVES HIS RIGHT TO ADD, AMEND/MODIFY THE GROUNDS OF APPEAL. 4. THE GROUNDS RAISED IN 5749/DEL/2013 (AY 2006-07) READ AS UNDER:- 1. THAT THE IMPUGNED ASSESSMENT ORDER DATED 12/12/2011 AS PASSED U/S 144/147 READ WITH SECTION 143(3) OF I.T. ACT IS ARBITRARY AND ILLEGAL ON VARI OUS FACTUAL AND LEGAL GROUNDS. THE ID. CIT(A) WAS NOT JUSTIFIED IN UPHOLDING THE A CTION TAKEN BY THE AO U/S 147 OF THE I.T. ACT. THE IMPUGNED ASS ESSMENT ORDER DESERVES TO BE CANCELLED/ANNULLED. 5 2. THAT THE ACTION OF THE ID. CIT(A) IN RELYING UPO N THE DOCUMENTS COLLECTED FROM STANDARD CHARTERED BANK AS MADE BY HER PART OF THE APPELLATE ORDER AS ANNEXURE A (RUNNING IN 28 PAGES) WITHOUT CONFRONTING THEM TO T HE APPELLANT IN THE COURSE OF APPELLATE PROCEEDINGS VI TIATED THE IMPUGNED APPELLATE ORDER AND CONSEQUENTLY, THE SAME DESERVES TO BE CANCELLED/ANNULLED. 3. THAT WITHOUT PREJUDICE TO THE ABOVE GROUNDS, THE ADDITION OF RS.5,67,419/- ON ACCOUNT OF THE ALLEGE D DEPOSIT IN STANDARD CHARTERED BANK GK BRANCH, NEW DELHI AS ENHANCED BY THE LD. CIT(A) TO RS.6,61,706/- IS ARBI TRARY AND WHOLLY ILLEGAL PARTICULARLY WHEN THE APPELLANT HAD DENIED TO HAVE ANY ACCOUNT WITH STANDARD CHARTERED BANK. VARIOUS OBSERVATIONS MADE BY THE AUTHORITIES BELOW IN THEIR RESPECTIVE ORDERS ARE EITHER INCORRECT OR ARE UNTEN ABLE. 4. 'THAT WITHOUT PREJUDICE TO ABOVE GROUNDS, THE AD DITION IF AT ALL COULD BE OF PEAK CREDIT ONLY, WHICH WILL BE FAR LESS THAN THE ADDITION MADE BY THE LD. CIT(A). 5. THAT THE TOTAL INCOME ASSESSED BY GIVING EFFECT TO CIT(A) ORDER AND THE INCOME TAX DEMAND CREATED THER EON ARE ARBITRARY, UNJUST AND AT ANY RATE WITHOUT PREJUDICE , VERY EXCESSIVE. 6. THAT THE LEVY OF INTEREST U/S 234B AND 234C OF T HE I.T. ACT IS ILLEGAL AND AT ANY RATE, WITHOUT PREJUDICE, VERY EXCESSIVE. 7. THAT THE APPELLANT RESERVES HIS RIGHT TO ADD, AMEND/MODIFY THE GROUNDS OF APPEAL. 6 5. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE NOT REPEATED HERE FOR THE SAKE OF CONVENIENCE. 6. AT THE TIME OF HEARING, LD. COUNSEL OF THE AS SESSEE HAS STATED THAT REVENUE AUTHORITIES HAVE PASSED THE ORDERS IN VIOLATION OF THE PRINCIPLE OF NATURAL JUSTICE AND WITHOUT GIVING ADE QUATE TIME AND OPPORTUNITY TO THE ASSESSEE TO REPRESENT ITS CASE A ND TO FILE ITS REPLIES AND CLARIFICATIONS. HE REQUESTED THAT THE ASSESSE E IS HAVING ALL THE NECESSARY EVIDENCES WHICH CAN BE PRODUCED BEFORE TH E LD. CIT(A), IF THIS BENCH GRANTED AN OPPORTUNITY TO THE ASSESSEE. HE FILED A SMALL PAPER BOOK CONTAINING PAGES 1 TO 33 HAVING THE COPY OF LEDGER A/C OF STANDARD CHARTERED BANK SHOWING PEAK NEGATIVE CASH BALANCE AS PER THE BANK STATEMENT OBTAINED BY THE AO DIRECTLY FROM THE BANK FOR THE ASSESSMENT YEARS 2004-05 TO 2006-07; COPY OF CASH B OOK PREPARED ON THE BASIS OF ABOVE MENTIONED BANK STATEMENT OBTAI NED BY THE AO DIRECTLY FROM THE BANK FOR THE FOLLOWING ASSESSMEN T YEARS FOR THE ASSESSMENT YEARS 2004-05 TO 2006-07 AND DETAILS OF TOTAL PEAK NEGATIVE CASH BALANCE AND INTEREST INCOME ETC. PREP ARED ON THE BASIS OF THE ABOVE MENTIONED BANK STATEMENT OBTAINED BY T HE AO DIRECTLY FROM THE BANK FOR THE ASSESSMENT YEARS 2004-05 TO 2 006-07. HE REQUESTED THAT ISSUES IN DISPUTE MAY BE SET ASIDE T O THE FILE OF THE LD. CIT(A) FOR FRESH CONSIDERATION AND ALSO ASSURED THE BENCH THAT 7 ASSESSEE WILL COOPERATE WITH THE LD. CIT(A) IN THE PROCEEDINGS BEFORE HIM AND WILL NOT TAKE ANY UNNECESSARY ADJOURNMENT I N THE CASE. 7. ON THE CONTRARY, LD. DR RELIED UPON THE ORDERS O F THE AUTHORITIES BELOW AND STRONGLY OPPOSED THE REQUEST OF THE ASSES SEES COUNSEL FOR REMITTING BACK THE ISSUES IN DISPUTE TO THE FILE OF THE LD. CIT(A). 8. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY GON E THROUGH THE ORDERS PASSED BY THE AUTHORITIES BELOW AND THE CONT ENTION RAISED BY THE ASSESSEES COUNSEL, AS AFORESAID. WE FIND CONSI DERABLE COGENCY IN ASSESSEES COUNSEL CONTENTION THAT LOWER AUTHORITI ES HAVE NOT GIVEN PROPER OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIAT E ITS CASE AS ASSESSEE IS HAVING ALL THE PAPERS AND DOCUMENTS WIT H HIM WHICH HE FILED IN THE SHAPE OF PAPER BOOK BEFORE US, AS AFO RESAID, NEEDS TO BE EXAMINED AT THE LEVEL OF THE LD. CIT(A) AFRESH ALON GWITH OTHER RELATED DOCUMENTS / EVIDENCE. THEREFORE, IN THE INTERES T OF JUSTICE, WE SET ASIDE THE ISSUES IN DISPUTE TO THE FILE OF THE LD. CIT(A) FOR FRESH CONSIDERATION, AS PER LAW, AFTER CONSIDERING ALL TH E DOCUMENTARY EVIDENCES/DOCUMENTS. HOWEVER, THE ASSESSEE IS DIRE CTED TO FULLY COOPERATE WITH THE LD. CIT(A) DURING THE PROCEEDIN GS BEFORE HIM AND NOT TO TAKE ANY UNNECESSARY ADJOURNMENT IN THE CASE AND ALSO PRODUCE ALL THE NECESSARY EVIDENCES BEFORE THE LD. CIT(A) TO SUBSTANTIATE HIS CLAIM. 8 9. FOLLOWING THE CONSISTENT VIEW AS TAKEN IN ASSESS MENT YEAR 2004-05, AS AFORESAID, THE ISSUES INVOLVED IN THE A PPEALS PERTAINING TO AYRS. 2005-06 TO 2006-07 ALSO STAND REMITTED BACK T O THE FILE OF THE LD. CIT(A) TO DECIDE THE SAME AFRESH, UNDER THE LA W, ON THE SIMILAR LINES. 10. IN THE RESULT, ALL THE 03 APPEALS FILED BY THE ASSESSEE STAND ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 03/1/2017. SD/- SD/- [PRASHANT MAHARISHI] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 03/1/2017 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 9