Mrs. Inderjeet Kaur, New Delhi V. ITO, New Delhi

ITA 5781/DEL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6566 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 27-10-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 29-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JAIN
• Keywords: Peak credit
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-1, NEW DELHI BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER ITA NO.5505/DEL/2014 ASSESSMENT YEAR : 2009-10 CHHATAR PAL SINGH, H-3, LAJPAT NAGAR-2, NEW DELHI VS. INCOME TAX OFFICER, WARD-32(3), NEW DELHI PAN : ACXPS 6596 G (APPELLANT) (RESPONDENT) ITA NO.5781/DEL/2014 ASSESSMENT YEAR : 2009-10 INDERJEET KAUR, H-3, LAJPAT NAGAR-2, NEW DELHI VS. INCOME TAX OFFICER, WARD-32(3), NEW DELHI PAN : ABOPK 0959 P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P. C. YADAV, ADV. RESPONDENT BY : SHRI S. K. JAIN, SR. DR DATE OF HEARING : 27-10-2016 DATE OF PRONOUNCEMENT : 01-12-2016 O R D E R PER S.V. MEHROTRA, A.M : BOTH THE CAPTIONED APPEALS HAVE BEEN PREFERRED BY T WO DIFFERENT ASSESSEES. THEY WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2 ITA NO.5505/DEL/2014 ITA NO.5781/DEL/2014 ITA NO.5505/DEL/2014 (A.Y. 2009-10): 2. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AG AINST THE ORDER DATED 15.07.2014 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-XXVI, NEW DELHI, U/S 143(3) OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT) RELATING TO A.Y. 2009-10. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA D FILED RETURN OF INCOME ON 30.09.2009 DECLARING INCOME OF RS.2,38,568/-. T HE INCOME HAD BEEN DECLARED UNDER THE HEAD INCOME FROM BUSINESS AS S ALARY AND SHARE FROM PARTNERSHIP FIRM M/S SATNAM SONS U/S 44AF AND INCOM E FROM OTHER SOURCES. AFTER EXAMINING THE DETAILS FILED BY ASSESSEE, THE ASSESSMENT WAS COMPLETED AT A TOTAL INCOME OF RS.12,30,007/- INTER-ALIA MAKING FOLLOWING TWO ADDITIONS :- (I) PROFIT FROM BUSINESS - RS.4,17,692/- (PARA 4 OF AS SESSMENT ORDER) (II) PEAK BALANCE - RS.5,69,500/- (PARA 3 OF ASSESSMEN T ORDER) 4. THE LD. CIT(A) PARTLY ALLOWED THE ASSESSEES APP EAL WITH ENHANCEMENT INTER-ALIA OBSERVING IN PARA 5 THAT THE ASSESSEE HAD FAILED TO FILE ANY EVIDENCE INCLUDING HIS CAPITAL ACCOUNTS AP PEARING IN THE FIRMS, WHERE HE WAS ONE OF THE PARTNERS, DEMONSTRATING THE STATED WITHDRAWALS FROM THE FIRMS CLAIMED TO HAVE BEEN DEPOSITED IN TH E SAVING BANK ACCOUNT. HE FURTHER OBSERVED IN PARA 5.1 THAT ON THE SCHEDUL ED DATE OF HEARING ON 3 ITA NO.5505/DEL/2014 ITA NO.5781/DEL/2014 02.06.2014 AS PER THE ENHANCEMENT LETTER, NOTED AT PAGE 9 OF HIS ORDER, ASSESSEE SOUGHT ADJOURNMENT; WHICH WAS GRANTED. HO WEVER, ON THE NEXT DATE OF HEARING ON 01.07.2014 NEITHER ANY ONE ATTEN DED NOR SOUGHT ADJOURNMENT. UNDER SUCH CIRCUMSTANCES, HE DECIDED THE APPEAL AFTER INFERRING THAT THE ASSESSEE WAS NOT INTERESTED IN P URSUING THE APPEAL. LD. COUNSEL FILED AN AFFIDAVIT OF ASSESSEE BEFORE THE T RIBUNAL EXPLAINING THE CIRCUMSTANCES ALONGWITH COPIES OF MEDICAL REPORTS. THE AVERMENTS MADE IN THE SAID AFFIDAVIT ARE REPRODUCED HEREUNDER :- I CHATTAR PAL SINGH S/O LATE MOHAN SINGH R/O H-3, LAJPAT NAGAR-II, NEW DELHI-110024 DO HEREBY SOLEMNLY AFFIRM AND DECLARE AS UNDER: 1. THAT FOR A.Y. 2009-10, I FILED AN APPEAL BEFORE CIT (APPEALS) AGAINST THE ASSESSMENT ORDER. 2. THAT DURING THE APPELLANT PROCEEDINGS, CERTAIN DETA ILS/INFORMATION WAS SOUGHT BY THE CIT (APPEALS). 3. THAT DUE TO MY ADVERSE HEALTH AND ILLNESS, THE DETA ILS/INFORMATION SOUGHT BY THE CIT (APPEALS) COULD NOT BE COMPILED COMPLETELY AND THUS PART COMPILATIONS COULD NOT BE FURNISHED DURING THE APPE LLANT PROCEEDINGS. 4. THAT SUBSEQUENTLY THE DETAILS/INFORMATION SOUGHT BY THE CIT (APPEALS) WERE COMPILED AND DULY FURNISHED BEFORE CIT (APPEALS) DU RING THE PENALTY PROCEEDINGS. 5. THAT AS THE DETAILS/INFORMATION SOUGHT BY THE CIT ( APPEALS) HAVING BEING COMPILED AND DULY FURNISHED BEFORE CIT (APPEALS) DU RING THE PENALTY PROCEEDINGS, I AM HOPEFUL OF SUBSTANTIAL RELIEF IN THE PENALTY PROCEEDINGS. 6. THAT I DO HEREBY UNDERTAKE TO FULLY CO-OPERATE AND FULLY PARTICIPATE IN THIS REGARD BEFORE ASSESSING OFFICER / BEFORE CIT (APPEA LS) IF THE MATTER IS RESTORED BACK. 4 ITA NO.5505/DEL/2014 ITA NO.5781/DEL/2014 5. LD. COUNSEL SUBMITTED THAT THE MATTER MAY BE RES TORED BACK TO THE FILE OF LD. CIT(A) SO AS TO PROVIDE ONE MORE OPPORTUNITY TO ASSESSEE TO FURNISH THE NECESSARY DETAILS. 6. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PA RTIES AND HAVE PERUSED THE RECORD OF THE CASE ALONG WITH THE AFFID AVIT. THE ASSESSEE HAS FILED THE MEDICAL REPORTS TO SUBSTANTIATE HIS AVERM ENTS. UNDER SUCH CIRCUMSTANCES, IN ORDER TO IMPART SUBSTANTIAL JUSTI CE TO ASSESSEE, I CONSIDER IT IN THE INTEREST OF JUSTICE TO RESTORE THE MATTER BA CK TO THE FILE OF LD. CIT(A) FOR PROVIDING ONE MORE OPPORTUNITY TO ASSESSEE TO S UBSTANTIATE HIS CLAIMS. IN THE AVERMENTS, ASSESSEE HAS CLEARLY UNDERTAKEN TO F ULLY CO-OPERATE AND FULLY PARTICIPATE BEFORE THE LD. CIT(A). I ORDER ACCORDI NGLY. 7. IN THE RESULT, THE ASSESSEES APPEAL IN ITA NO.5 505/DEL/2014 FOR ASSESSMENT YEAR 2009-10 IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.5781/DEL/2014 (A.Y. 2009-10): 8. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AG AINST THE ORDER DATED 22.08.2014 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS), NEW DELHI, U/S 143(3) OF THE ACT RELATING TO A.Y. 2009- 10. 9. IN THIS CASE, THE FACTS ARE IDENTICAL TO THE CAS E OF CHHATAR PAL SINGH (SUPRA). THE SAME AVERMENTS HAVE BEEN MADE IN THE AFFIDAVIT FILED BY WIFE OF CHHATAR PAL SINGH. THEREFORE, FOLLOWING THE DEC ISION IN THE CASE OF 5 ITA NO.5505/DEL/2014 ITA NO.5781/DEL/2014 CHHATAR PAL SINGH IN ITA NO.5505/DEL/2014, THE MATT ER IS RESTORED BACK TO THE FILE OF THE LD. CIT(A) FOR DECIDING THE APPEAL AFRESH. 10. IN THE RESULT, THE ASSESSEES APPEAL IN ITA NO. 5781/DEL/2014 FOR ASSESSMENT YEAR 2009-10 IS ALSO ALLOWED FOR STATIST ICAL PURPOSES. 11. RESULTANTLY, BOTH THE APPEALS OF THE ASSESSEE A RE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 01 ST DAY OF DECEMBER, 2016. SD/- SD/- (SUDHANSHU SRIVASTAVA) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 01-12-2016. SUJEET COPY OF ORDER TO: - 1) THE APPELLANT; 2) THE RESPONDENT; 3) THE CIT; 4) THE CIT(A)-, NEW DELHI; 5) THE DR, I.T.A.T., NEW DELHI; BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, NEW DELHI