Raj Kumar Khandelwal, New Delhi V. ITO, Ward-60(3), New Delhi

ITA 5998/DEL/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5445 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 22-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Assessee Lawyers: SANJEEV BANSAL
• Keywords: Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER ITA NO.-5998/DEL/2017 ( ASSESSMENT YEAR: 2011-12) RAJ KUMAR KHANDELWAL B-50, CENTRAL MARKET, KALYAN PURI, G T ROAD, SHAHDRA, DELHI AAIPK2016J VS ITO WARD 60(3) NEW DELHI. ASSESSEE BY SH. SANJEEV BANSAL, CA REVENUE BY MS. ASHIMA NEB, SR. DR ORDER THE PRESENT HAS BEEN FILED BY THE ASSESSEE ASSAILI NG THE CORRECTNESS OF THE ORDER DT. 7.6.2017 OF CIT(A)-19, NEW DELHI PERTAINI NG TO 2011-12 ASSESSMENT YEAR, WHEREIN THE CHALLENGE IS POSED TO THE ADDITIO N OF RS. 10,52,000/- FOUND DEPOSITED IN SB ACCOUNT NO. 604310100014167 AT BANK OF INDIA, MAYUR VIHAR, DELHI. . 2. AT THE TIME OF HEARING, AN ADJOURNMENT REQUEST W AS MOVED ON BEHALF OF THE ASSESSEE. HOWEVER, CONSIDERING THE MATERIAL AVAILA BLE ON RECORD IT WAS DEEMED APPROPRIATE TO REJECT THE SAME AFTER NOTING THAT TH E SAME COULD BE DECIDED ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. BOTH THE PA RTIES WERE HEARD. THE LD. AR REITERATED THE SUBMISSIONS ADVANCED BEFORE THE AUTH ORITIES BELOW. THE LD. SR. DR RELIED UPON THE IMPUGNED ORDER. 3. THE RELEVANT FACTS OF THE CASE AS FOUND DISCUSSE D IN THE ORDERS ARE THAT THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF TRADING IN ELECTRICAL/ELECTRONIC ITEMS THE CASE WAS REOPENED ON THE BASIS OF AIR INFORMATION S HOWING THAT DEPOSITS OF RS. 11,52,000/- WERE FOUND TO HAVE BEEN MADE IN THE ASS ESSEES AFOREMENTIONED BANK ACCOUNT. THE ASSESSEE EXPLAINED ON QUERY THAT THE ASSESSEES BUSINESS IS LARGELY DONE IN CASH AND THESE DEPOSITS WERE FROM THE BUSIN ESS RECEIPTS IN ORDER TO CLEAR THE EMIS FOR REPAYMENT OF CHEQUE OF LOAN TAKEN FROM G MONEY FINANCE TOWARDS PROPERTY IN GAUR SONS HITECH. APART FROM THAT LIC MATURITY OF RS. 1,25,000/- AND ICICI PRUDENTIAL MUTUAL FUND OF RS. 34,835/- WAS AL SO RECEIVED BY THE ASSESSEE DATE OF HEARING 23.04.2018 DATE OF PRONOUNCEMENT 26.04.2018 ITA NO. 599 8 /DEL/2017 2 AND THE DEPOSIT WAS FROM THESE SOURCES. THE AO NOT ING THE FACT THAT DESPITE HAVING A CURRENT ACCOUNT WITH NAINITAL BANK THE ASS ESSEE DEPOSITED THE MONEY IN CASH IN THE SAVINGS BANK ACCOUNT HELD THE SAME TO B E NOT EXPLAINED SATISFACTORILY. IT IS SEEN THAT THE CIT(A) CONSIDERING THE BALANCE SHEET OF THE ASSESSEE NOTED THAT THERE WERE NO SUBSTANTIAL CREDITORS GRANTED PART OF RELIEF TO THE EXTENT OF RS. 1 LAKH. HOWEVER, THE CIT(A) IT IS SEEN FAILED TO ADDRESS TH E FACT THAT THE ASSESSEES CASE WAS OF A NO BOOKS OF ACCOUNTS CASE. THE TOTAL TURN OVER OF THE ASSESSEE AS PER RECORD WAS 31,73,927/- AND THE INCOME WAS TO BE CON SIDERED U/S 44AD. ACCORDINGLY, IN THE PECULIAR FACTS & CIRCUMSTANCES OF THE PRESENT CASE, SOME REASONABLE ESTIMATE OF PAST SAVINGS AND CASH AVAILA BLE FROM THE RUNNING OF THE BUSINESS COULD HAVE BEEN MADE. IT IS FURTHER NOT C LEAR FROM THE IMPUGNED ORDER WHETHER THE BENEFIT OF REDEMPTION FROM LIC, MUTUAL FUNDS, ETC. HAS BEEN GIVEN BY THE CIT(A) OR NOT. ACCORDINGLY, IN THE INTERESTS OF SUBSTANTIAL JUSTICE THE IMPUGNED ORDER IS SET ASIDE BACK TO THE FILE OF THE AO WITH THE DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW, DIRECTING TH E ASSESSEE TO PLACE SUPPORTING EVIDENCES ALONGWITH FACTUAL HISTORY ON THE PAST EAR NINGS OF THE ASSSESSEE FROM ITS STATED SOURCE OF INCOME. SAID ORDER IS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26.04.2018. SD/- (DIVA SINGH) JUDICIAL MEMBER DATED: 26.04.2018 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO. 599 8 /DEL/2017 3 DRAFT DICTATED ON 23.04.2018/25.4.18/26.4.18 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS 26.4.18 KEPT FOR PRONOUNCEMENT ON 26.4.18 FILE SENT TO THE BENCH CLERK 26.4.18 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.