Rajan Govil, New Delhi V. ACT Circle-Int. Tax-1(3)(1), New Delhi

ITA 6157/DEL/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2402 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 22-07-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: FARHAN KHAN
• Keywords: Unexplained cash credit; Principle of natural justice; Additional evidence

Judgement Text

1 ITA NO. 6157/DEL/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC-2 NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A. NO. 6157/DEL/20 19 (A.Y 2016-17) (THROUGH VIDEO CON FERENCING) RAJAN GOVIL 72, GROUND FLOOR, SUKHDEV VIHAR, NEW DELHI AASPG7354Q (APPELLANT) VS ACIT CIRCLE-INTERNATIONAL TAXATION-1(3) NEW DELHI (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 11/06/2019 PASSED BY THE CIT(A)- 42, NEW DELHI FOR ASSESSMENT YEAR 2016-17. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THE ACTION OF THE LD, CIT(A) IN CONFIRMING THE A CTION OF THE LD. AO IN ADDING A SUM OF RS.3,25,811/- BEING THE SUMS CREDITED IN T HE BANK A/C OF THE ASSESSEE IS ILLEGAL ARBITRARY, UNWARRANTED UNCALLED FOR THE AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE: DATE AMOUNT SOURCE AS EXPLAINED BY ASSESSEE 18.04.2015 RS. 1,00,000/- FUNDS FROM MY MOTHER 30.09.2015 RS. 1,00,000/- TRANSFER FROM MY BROTHER SANJAY GOVIL APPELLANT BY SH. K. V. S. GUPTA, ADV RESPONDENT BY SH. FARHAN KHAN, SR. DR DATE OF HEARING 24.02.2021 DATE OF PRONOUNCEMENT 24.02.2021 2 ITA NO. 6157/DEL/2019 21.10.2015 RS. 1,00,000/- TRANSFER FROM MY BROTHER SANJAY GOVIL 04.05.2015 RS. 23, 085/- AJAY GUPTA LANDLORD PAYMENT FOR REPAIRS 11.03.2106 RS. 47,729/- REFUND OF EXPENSES FROM MARKETNOMIX 2. THE ACTION OF THE LD.CIT(A) IN NOT ACCEPTING/AD MITTING ADDITIONAL EVIDENCE SUBMITTED DURING APPELLATE PROCEEDINGS UNDER R.46A IS ILLEGAL, ARBITRARY, UNWARRANTED, UNCALLED FOR AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE ACTION OF THE LD. C1T(A) IN COMING TO THE CO NCLUSION (HAT THE APPELLANT HAS FAILED TO DEMONSTRATE ITS CASE OF SUFFICIENT OP PORTUNITY NOT BEING GIVEN, IS ILLEGAL, ARBITRARY, UNWARRANTED, UNCALLED FOR AND A GAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. THE ACTION OF THE LD. CIT(A) IN CONFIRMING THE ACTION OF THE LD, AO IN NOT ACCEPTING RETURNED INCOME IS ILLEGAL, ARBITRARY, UN WARRANTED, UNCALLED FOR AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE ASSESSEE FILED HIS RETURN OF INCOME FOR THE CONCERNED ASSESSMENT YEAR DECLARING TAXABLE INCOME OF RS. 4,11,670/-. TH E ASSESSING OFFICER IDENTIFIED FOLLOWING CREDIT ENTRIES IN ICICI SAVING S BANK ACCOUNT OF THE ASSESSEE FOR ENQUIRY. IN THIS REGARD, THE ASSESSEE SUBMITTE D EXPLANATION REGARDING SOURCE OF EACH CREDIT ENTRY AS SHOWN IN THE TABLE B ELOW: SR. NO DATE AMOUNT DEPOSITED (RS.) ASSESSEES EXPLANATION REGARDING SORUCE 1 18.04.2015 100000 FUNDS FROM MY MOTHER 2 30.09.2015 100000 TRANSFER FROM MY BROTHER SANAY GOVIL 3 21.10.2015 100000 TRANSFER FROM MY BROTHER SANAY GOVIL 4 04.05.2015 23085 AJAY GUPTA LANDLORD PAYMENT FOR REPAIRS 5 11.03.2016 44003 REFUDN OF DEPOSIT FROM REGUS 6 11.03.2016 46729 REFUND OF EXPENSES FORM MARKETNOMIX 3 ITA NO. 6157/DEL/2019 IN VIEW OF THE ABOVE SUBMISSION, THE ASSESSING OFFI CER ACCEPTED THE EXPLANATION IN RESPECT OF CREDIT OF RS. 44,003/- AS PER THE EVI DENCE RELATING TO COPY OF HSBC ACCOUNT AND COPY OF ACCOUNT OF REGUS WHICH WAS DULY FILED. HOWEVER, AS REGARDS OTHERS CREDITS, THE ASSESSING OFFICER OBSER VED THAT THE CORROBORATIVE EVIDENCE WAS NOT FILED. ACCORDINGLY, THE ASSESSING OFFICER HELD IT TO BE UNEXPLAINED CREDITS U/S 68/69A OF THE ACT AND MADE ADDITION OF RS. 3,69,814/-. 4. BEING AGGRIEVED BY THE ORDER OF THE ASSESSING OF FICER, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. THE LD. AR SUBMITTED THAT THE ASSESSEE IS A RESI DENT BUT NOT ORDINARY RESIDENT AND THE PERIOD GIVEN FOR FILING REPLY WAS INSUFFICIENT BEFORE THE ASSESSING OFFICER RELATED TO THE ADDITIONS MADE BY THE ASSESSING OFFICER. THUS, PROPER OPPORTUNITY WAS NOT GIVEN TO THE ASSES SEE DURING THE ASSESSMENT PROCEEDINGS. THE LD. AR FURTHER SUBMITTED THAT THE CIT(A) ALSO HAS IGNORED THE APPLICATION UNDER RULE 46A FOR ADMISSION OF ADDITIO NAL EVIDENCE FILED BY THE ASSESSEE. THEREFORE, THE LD. AR SUBMITTED THAT THE ADDITIONAL EVIDENCE MAY BE ADMITTED AND THE MATTER MAY BE REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT BOTH THE ASSE SSING OFFICER HAS NOT GIVEN PROPER OPPORTUNITY OF FILING THE EVIDENCE TO THE AS SESSEE DURING THE ASSESSMENT PROCEEDINGS AND EVEN THE CIT(A) DID NOT ADMIT THE A DDITIONAL EVIDENCE SUBMITTED BEFORE THE CIT(A) UNDER RULE 46 APPLICATI ON. THEREFORE, IT WILL BE APPROPRIATE TO REMAND BACK THE MATTER TO THE FILE O F THE ASSESSING OFFICER AFTER TAKING INTO ACCOUNT THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE AND AFTER 4 ITA NO. 6157/DEL/2019 VERIFYING THE ADDITIONAL EVIDENCE THE ASSESSING OFF ICER SHOULD PASS APPROPRIATE ORDER. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPOR TUNITY OF HEARING BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT IN PRESENCE OF B OTH THE PARTIES ON THIS 24TH DAY OF FEBRUARY, 2021 SD/- SD/- (N. K. BILLAIYA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 24/02/2021 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI