ITO, Gurgaon V. Smt. Poonam Dhingra, Gurgaon

ITA 6390/DEL/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6314 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2002-2003
• Appeal Filed On: 02-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APPLICATION REJECTED
• Keywords: Business income; Additional evidence; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH.O.P.KANT, ACCOUNTANT MEMBER I.T.A .NO.-6390/DE L/2015 (ASSESSMENT YEAR-2002- 03) ITO, WARD-3(2), HSIIDC BUILDING, UDYOG VIHAR, PHASE-V, GURGAON. (APPELLANT) VS POONAM DHINGRA, PROP. M/S. DHINGRA CLOTHING, D-4, A/7, DLF CITY, GURGAON. PAN-AEPPD4102D (RESPONDENT) APPELLANT BY APPLICATION REJECTED RESPONDENT BY NONE ORDER PER DIVA SINGH, JM THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AS SAILING THE CORRECTNESS OF THE ORDER DATED 31.08.2015 OF CIT(A)-29, NEW DELHI PERTAINING TO 2002 03 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS: 1. ON FACTS AND CIRCUMSTANCES OF THE CASE, LD.CIT(A) HAS ERRED IN FACT AND IN LAW IN ADMITTING ADDITIONAL EVIDENCE INSPITE OF THE FACTS THAT THE CASE DOES NOT FALL IN ANY OF THE CIRCUMSTANCES PROVIDED IN CLAUSE (A) TO (D) OF RULE 46A OF THE INCOME TAX RULES, 1962. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN FACT AND IN LAW IN NOT PROVIDING OPPORTUNITY TO THE AO AFTER ADMITTING ADDITIONAL EVIDENCE AS PROVIDED UNDER RULE 46A(3) O F THE INCOME TAX RULES, 1962. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN FACT AND IN LAW IN DELETING THE ADDITION OR RS.8,00 ,000/- MADE ON ACCOUNT OF BUSINESS INCOME FOR TRANSACTION WITH GRO UP CONCERNS. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A HAS ERRED IN FACT AND IN LAW IN DELETING THE ADDITION OF RS.7,20 ,000/- MADE BY THE AO ON ACCOUNT OF DEPOSIT OF UNEXPLAINED CASH IN BANK A CCOUNT. 5. THE APPELLANT CRAVES FOR THE PERMISSION TO ADD, DEL ETE OR AMEND THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING OF APPEAL. DATE OF HEARING 10.03.2016 DATE OF PRONOUNCEMENT 22.03.2016 I.T.A .NO.-6390/DEL/2015 PAGE 2 OF 2 2. WHEREAS ON BEHALF OF THE REVENUE, AN ADJOURNMENT HAD BEEN MOVED STATING THAT THE LD.CIT DR IS ON LEAVE. FOR ASSESSEE, NO O NE WAS PRESENT. HOWEVER, CONSIDERING THE FACT THAT THE AMOUNT AT STAKE FOR T HE REVENUE IS MUCH BELOW THE TAX LIMITS SET BY THE CBDT CIRCULAR NO. 21/2015 DA TED 10 TH DECEMBER, 2015, THE ADJOURNMENT MOVED WAS REJECTED. THE INSTRUCTIO N HAS BEEN ISSUED BY THE CBDT U/S 268A OF THE INCOME TAX ACT, 1961 WHICH BINDS THE TAX AUTHORITIES. WE FIND FROM THE RECORD THAT THE DELETION DIRECTED BY THE CIT(A) LEADING TO THE GRIEVANCE OF THE REVENUE IS OF RS.15,20,000/-(R S.8,00,000/- + RS.7,20,000/-). EVEN AT THE MAXIMUM RATE OF TAX THE TAX EFFECT THER EON WOULD BE MUCH BELOW RS.10 LAKH. PARA 10 OF THE AFORESAID CIRCULAR MAKES IT CL EAR THAT THE INSTRUCTION SHALL APPLY RETROSPECTIVELY. ACCORDINGLY NOTING THAT THE PRESENT DEPARTMENTAL APPEAL HAS BEEN FILED CONTRARY TO THE MANDATE OF THE CBDT CIRC ULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 THE DEPARTMENTAL APPEAL IS DISMISSED . ORDERED ACCORDINGLY. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 22 ND MARCH, 2016. SD/- SD/- (O.P.KANT) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22 /03/2016 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSI STANT REGISTRAR ITAT NEW DELHI