ITO, Patiala V. Sh. Navin Kumar Dhingra, Patiala

ITA 614/CHANDI/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95810 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-12-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 04-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Gift; Tax effect
• Section: 69; 6

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, CHANDIGARH BEFORE SHRI H.L.KARWA, HON'BLE VICE PRESIDENT & MS. ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 614/CHD/2015 ASSESSMENT YEAR: 2010-11 THE ITO, VS. M/S NAVIN KUMAR DHINGRA, WARD 4, PATIALA PATIALA PAN NO. AEVPD6762P (APPELLANT) (RESPONDENT) APPELLANT BY : SH. MANOJ MISHRA RESPONDENT BY : SH. ASHWANI KUMAR DATE OF HEARING : 17.12.2015 DATE OF PRONOUNCEMENT : 21.12.2015 . ORDER PER H.L.KARWA, VP THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF CIT(A), PATIALA DATED 31.03.2015 RELATING TO ASSESSMENT YEA R 2011-12. 2. IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLOW ING GROUNDS:- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 21 ,55,000/- MADE BY THE AO ON ACCOUNT OF UNEXPLAINED CASH CREDITS U/S 6 9 OF THE INCOME TAX ACT, 1961. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) HAS ERRED IN NOT APPRECIATING THE FACT THAT THE DEPOSITS SHOWN 2 TO HAVE BEEN ROUTED THROUGH M/S BHOOMI AGROS REMAIN ED UNEXPLAINED AS THERE WAS NO CREDIT WORTHINESS /CAPA CITY ON THE PART OF THE LENDER AS IT IS CLEAR FROM THE SURROUNDING C IRCUMSTANCES, SUCH AS SIMULTANEOUS DEPOSITS IN FIRM FOR ROTATING MONEY FROM THERE IN CAPACITY OF THE FIRM. 3. IN THE FACTS AND CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CTT(A) HAS ERRED IN NOT SUSTAINING THE ADDITION OF RS.4,87,800/- MADE BY THE AO ON ACCOUNT OF UNEXPLAINED MONEY U/S 69 OF THE INCOME TAX ACT. 1961, 4. IN THE FACTS AND CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON A CCOUNT OF UNEXPLAINED MONEY U/S 69 OF THE INCOME TAX ACT, 19 61 WITHOUT APPRECIATING THE FACT THAT THE GIFT AMOUNTS ALLEGED LY RECEIVED FROM SMT. BABITA VERMA. SMT. SUSHMA VERMA AND NAVIN DHIN GRA HUF, WERE SHOWN TO HAVE BEEN WITHDRAWN FROM THE FIRM M/S NAVIN KUMAR & CO. WHEREAS, THE CREDITWORTHINESS/CAPACITY OF THE SAID FIRM WAS NOT ESTABLISHED AND EVEN THE SAID FIRM FAILED TO FI LE INCOME TAX RETURNS FOR THE RELEVANT ASSESSMENT YEAR. 5. IT IS PRAYED THAT THE ORDER OF LD. CIT(A) BE SET ASIDE AND THAT OF THE AO RESTORED 3. WE HAVE HEARD MANOJ MISHRA LD. DR AND SHRI ASHWA NI KUMAR, LD. COUNSEL FOR THE ASSESSEE. IT IS OBSERVED THAT IN THIS CASE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS. 10 LAKHS. THUS, IN VIEW OF CIRCULAR NO. 21/2015 DATED 10.12.2015, F.NO. 279/MISC.142/2007-I TJ(PT), GOVERNMENT. OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, CENTRAL BOARD OF DIRECT TAXES, THE INSTANT APPEAL DESERVES TO BE TREATED AS WITHDRAWN / NOT PRESSED. VIDE PARA 10 OF THE ABOVE INSTRUCTIONS, THE CBDT HA S CLARIFIED THAT THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING A PPEALS AND APPEALS TO BE FILED HENCEFORTH IN ITAT. THE CBDT HAS FURTHER CLARIFIED THAT THE PENDING APPEALS BEFORE THE TRIBUNAL BELOW THE SPECIFIED TAX LIMITS I.E. RS. 10 LAKHS MAY BE 3 WITHDRAWN / NOT PRESSED BY THE REVENUE. IT IS ALSO OBSERVED THAT THE ISSUES INVOLVED IN THIS APPEAL ARE NOT COVERED BY PARA 8 O F THE ABOVE INSTRUCTIONS. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS TRE ATED AS WITHDRAWN / NOT PRESSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21.12.2014 SD/- SD/- (ANNAPURNA MEHROTRA) (H.L.KARWA) ACCOUNTANT MEMBER VICE PRESIDENT DATED 21 ST DECEMBER, 2015 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR