Shri Santosh Kumar Suneja, New Delhi V. ITO, New Delhi

ITA 5869/DEL/2012

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3816 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 17-05-2017
• Assessment Year: 1999-2000
• Appeal Filed On: 22-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANU MUKHERJEE
• Assessee Lawyers: VIRENDER KR CHAUHAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER ITA NO.5869/DEL/2012 ASSESSMENT YEAR : 1999-2000 SMT. DEVKI RANI SUNEJA, L/H OF LATE SANTOSH KUMAR SUNEJA, C/O. M/S. ARUN VIRANDER & CO., CA, 5C/9, IIND FLOOR, OPP. LIBERTY CINEMA, NEW ROHTAK ROAD, NEW DELHI. VS. ITO, WARD- 30(3), NEW DELHI. PAN : AOAPS1482A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VIRENDER KR. CHAUHAN, CA DEPARTMENT BY : MS. RANU MUKHERJEE, SR.DR DATE OF HEARING : 18-01-2018 DATE OF PRONOUNCEMENT : 30-01-2018 O R D E R PER R. K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 16.10.2012 OF CIT(A)- XXV, NEW DELHI RELATING TO AS SESSMENT YEAR 1999-2000. 2. ALTHOUGH A NUMBER OF GROUNDS HAVE BEEN RAISED BY THE ASSESSEE, HOWEVER, THEY ALL RELATE TO THE ORDER OF THE LD. CI T(A) IN SUSTAINING THE ADDITION OF RS.3,50,435/- MADE BY THE ASSESSING OFFICER ON A CCOUNT OF SHORT TERM CAPITAL GAIN. 3. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMI TTED THAT THE CASE WAS REOPENED BY THE ASSESSING OFFICER TO TAX THE BOGUS SALE/PURCHASE OF JEWELLERY 2 ITA NO.5869/DEL/2012 FOR AN AMOUNT OF RS.8,42,097/- OF M/S BISHAN CHAND MUKESH KUMAR SARAF. IN THE ORDER PASSED U/S 143(3)/147, THE ASSESSING OFFI CER HAD MADE ADDITION OF RS.8,46,307/- ON ACCOUNT OF TRANSACTION WITH M/S BI SHAN CHAND MUKESH KUMAR SARAF. SIMILARLY, HE HAS ALSO MADE ANOTHER ADDITIO N OF RS.3,50,435/- TREATING SHORT TERM CAPITAL GAIN OF RS.3,50,450/- AS INCOME FROM OTHER SOURCES. HE SUBMITTED THAT THE LD. CIT(A) DELETED THE ADDITION OF RS.8,46,307/- MADE BY THE ASSESSING OFFICER FOR WHICH THE REVENUE IS NOT IN A PPEAL. SINCE THE VERY BASIS ON WHICH THE RE-ASSESSMENT PROCEEDINGS WERE INITIAT ED DO NOT SURVIVE, THEREFORE, THE OTHER ADDITIONS MADE BY THE ASSESSING OFFICER A ND UPHELD BY THE LD. CIT(A) IS NOT CORRECT. FOR THE ABOVE PROPOSITION, LD. COU NSEL FOR THE ASSESSEE DREW THE ATTENTION OF THE BENCH TO THE DECISION OF THE TRIBU NAL IN THE CASE OF TIKAULA SUGAR MILLS LTD. VS. DCIT AND OTHERS IN ITA NO.86/D EL/2006 AND ITA NO.442/DEL/2006 ORDER DATED 21.01.2016 FOR ASSESSME NT YEAR 2000-01. HE ALSO RELIED ON VARIOUS OTHER DECISIONS. 4. LD. DR ON THE OTHER HAND HEAVILY RELIED ON THE O RDER OF THE LD. CIT(A). 5. I HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BO TH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND THE PAPER BOOK FIL ED ON BEHALF OF THE ASSESSEE. I HAVE ALSO CONSIDERED THE VARIOUS DECISIONS CITED BEFORE ME. IT IS AN ADMITTED FACT THAT THE ADDITION OF RS.8,46,307/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF TRANSACTIONS WITH M/S BISHAN CHAND MUKESH KUMAR SARAF, WHICH WAS THE BASIS FOR REOPENING THE ASSESSMENT, HAS BEEN DELETE D BY THE LD. CIT(A) AND NO 3 ITA NO.5869/DEL/2012 APPEAL HAS BEEN FILED BY THE REVENUE AS STATED BY T HE LD. COUNSEL FOR THE ASSESSEE AND NOT CONTROVERTED BY THE LD. DR. SINCE THE VERY BASIS ON WHICH THE REOPENING WAS MADE DOES NOT SURVIVE, THEREFORE, THE OTHER ADDITION NAMELY TREATING THE SHORT TERM CAPITAL GAIN OF RS3,50,435/ - AS INCOME FROM OTHER SOURCES DOES NOT SURVIVE IN VIEW OF THE DECISION OF THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF M/S TIKAULA SUGAR MILLS LTD . (SUPRA) AND VARIOUS OTHER DECISIONS AS RELIED ON BY THE LD. COUNSEL FOR THE A SSESSEE FILED IN THE PAPER BOOK. SINCE THE ADDITION WHICH WAS BASED FOR REOPENING TH E ASSESSMENT HAS BEEN DELETED, THEREFORE, THE OTHER ADDITION DOES NOT SUR VIVE. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH JANUARY, 2018. SD/- (R. K. PANDA) ACCOUNTANT MEMBER DATED: 30-01-2018. SUJEET COPY OF ORDER TO: - 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT 4) THE CIT(A) 5) THE DR, I.T.A.T., NEW DELHI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, NEW DELHI