M/s. Brij Bala Singhal, New Delhi V. Acit, New Delhi

ITA 6185/DEL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90992 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-04-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 13-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK WADEKAR
• Assessee Lawyers: V MOHAN
• Keywords: Search and seizure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A , NEW DELHI BEFORE SH. N. K. SAINI , AM AND SH. A. T. VARKEY , JM ITA NO. 6185 /DEL/201 2 : ASSTT. YEAR : 2008 - 09 BRIJ BALA SINGHAL, E - 115, PHASE - I, ASHOK VIHAR, NEW DELHI - 1100 52 VS ACIT, CENTRAL CIRCLE - 21, NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A A TPS1415Q ASSESSEE BY : SH. RANO JAIN , CA & V. MOHAN, CA REVENUE BY : SH . VIVEK WADEKAR , CIT DR DATE OF HEARIN G : 21 . 04 .2015 DATE O F PRONOUNCEMENT : 24 .04 .2015 ORDER PER N.K . SAINI , A.M. THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 12.10.2012 OF THE L D. CIT(A) - II , NEW DELHI . 2 . THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL REL ATES TO THE CONFIRMATION OF ADDITION OF RS. 2,32,525/ - MADE BY THE AO ON ACCOUNT OF UNEXPLAINED CASH U/S 69A OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 3 . FACTS OF THE CASE IN BRIEF ARE THAT A SEARCH AND SEIZURE OPERATION WAS CARRI ED O UT ON OM LOGISTICS GROUP ON 04.10.2007. THE SEARCH WAS ALSO CARRI ED OUT AT THE RESIDENCE OF THE D IRECTORS , THE ASSESSEE S SON , MR. AJAY SINGHAL IS ONE ITA NO.6185 /DE L/201 2 BRIJ BALA SINGHAL 2 OF THE DIRECTORS. THE ASSESSEE IS ALSO ONE OF THE DIRECTORS OF OM LOGISTICS GROUP. DURING THE COURSE OF SEARCH , CASH AMOUNTING TO RS. 2,62,000/ - WAS FOUND IN THE CUSTODY OF THE ASSESSEE . W HEN THE AO ASKE D TO EXPLAIN THE SOURCE OF CASH, I T WAS STATED THAT THE AMOUNT WAS KEPT FOR HOUSEHOLD EXPENSES TAKEN OUT FROM MR. AJAY SINGHAL S DRAWING ACCOUNT. THE AO DI D NOT FIND MERIT IN THE SUBMISSIONS OF THE ASSESSEE, HOWEVER, GAVE BENEFIT OF RS. 29,475/ - WHICH WAS REFLECTED AS CASH IN HAND IN THE REGULARLY MAINTAINED STATEMENT OF AFFAIRS. 4 . BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO CONF IRM ED THE ADDITION BY OBSERVING THAT THE PLEA OF THE ASSESSEE THAT THE SUM FOUND IN HER CUSTODY WAS OUT OF THE DRAWING S OF HER SON , MR. AJAY SINGHAL, WAS ONLY A DESPERATE ATTEMPT. HE ALSO OBSERVED THAT NO EXPLANATION HAD BEEN RENDERED BY THE ASSESSEE WITH REFERENCE TO THE DATE OF SEARCH WHEN CASH WAS FOUND. ACCORDINGLY, THE ADDITION WAS SUSTAINED. 5 . NOW THE ASSESSEE IS IN APPEAL. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW AND FURTHER SUBMITTED THAT THE AO AS WELL AS THE LD. CIT(A) HAVE IGNORED THE STATEMENT RECORDED AT THE TIME OF SEARCH WHEREIN IT WAS CLEARLY STATED THAT THE CASH FOUND WAS OUT OF DAY TO DAY SAVINGS. IT WAS FURTHER STATED THAT ITA NO.6185 /DE L/201 2 BRIJ BALA SINGHAL 3 THE ASSESSEE IS A LADY LIVING IN A JOINT FAMILY HAVING NO OT HER SOURCE OF INCOME EXCEPT RENT AND INTEREST. IT WAS ALSO STATED THAT MR. AJAY SINGHAL HAD MADE WITHDRAWAL OF RS. 12,00,000/ - . OUR ATTENTION WAS DRAWN TOWARDS PAGE NO. 27 OF THE ASSESSEE S PAPER BOOK AND IT WAS STATED THAT MR. AJAY SINGHAL HAS CLARIFIED T HAT THE CASH FOUND WAS DAY TO DAY SAVINGS OF HIS MOTHER. 6 . IN HIS RIVAL SUBMISSIONS THE LD. DR STRONGLY SUPPORTED THE ORDER OF THE AUTHORITIES BELOW AND REITERATED THE OBSERVATIONS MADE BY THE LD. CIT(A) IN THE IMPUGNED ORDER. 7 . WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE STATEMENT OF MR. AJAY SINGHAL WAS RECORDED DURING THE COURSE OF SEARCH (COPY OF WHICH IS PLACED AT PAGE NOS. 18 TO 24 OF THE ASSESSEE S PAPER BOOK). IT IS NOTICED THAT MR. AJAY SINGHAL WHILE REPLYING THE QUESTION NO. 17 RELATING TO THE CASH FOUND FROM THE BED ROOM OF HIS MOTHER STATED THAT IT WAS OUT OF DAY TO DAY SAVINGS. IT IS ALSO NOTICED THAT MR. AJAY SINGHAL HAD A WITHDRAWAL OF RS. 12,00,000/ - ON ACCOUNT OF HOUSEHOLD EXPENSES WHICH IS EVIDENT FROM PAGE NO. 27 OF THE ASSESSEE S PAPER BOOK WHICH IS COPY OF STATEMENT OF AFFAIRS OF MR . AJAY SINGHAL AS ON 31.03.2008. S O , IT IS CLEAR THAT MR. AJAY ITA NO.6185 /DE L/201 2 BRIJ BALA SINGHAL 4 SINGHAL HAD WITHDRAWAL OF RS. 12,00,000/ - WHICH WAS CLAIMED TO HAVE BEEN USED BY HIS WIFE AND MOTHER FOR THE HOUSEHOLD PURPOSES. WE, THEREFORE, BY CONSIDERING THE TOTALITY OF THE FACTS ARE OF THE VIEW THAT THE EXPLANATION GIVEN BY THE ASSESSEE WAS PLAUSIBLE EXPLANATION BUT THE SAME WAS REJECTE D ARBITRARILY, PARTICULARLY WHEN NOTHING WAS BROUGHT ON RECORD TO SUBSTANTIATE THAT THE SAID AMOUNT WITHDRAWN BY MR. AJAY SINGHAL WAS NOT GIVEN TO THE ASSESSEE TO MEET THE HOUSEHOLD EXPENSES. WE, THEREFORE, DELETE THE ADDITION MADE BY THE A O AND SUSTAINED BY THE LD. CIT(A). 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED ( ORDER PRON OUNCED IN THE COURT ON 24 /04 / 2015) . SD/ - SD/ - (A. T. VARKEY ) ( N. K. SAINI ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 24 /04 /2015 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR