Mr. Natranjan Balasubramaniam, Rajkot V. ITO, New Delhi

ITA 6395/DEL/2012

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 8851 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 26-02-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 26-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJHA SENIOR
• Keywords: Income from undisclosed sources; Opportunity of being heard
• Section: 69C; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE SHRI GEORGE GEORGE K, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.6395/DEL./2012 ASSESSMENT YEAR : 2005-06 MR. NATRANJAN BALASUBRAMANIAM, VS. ITO, WARD 23 ( 4), C/O KALPESH S. DOSHI & CO. NEW DELHI. CHARTERED ACCOUNTANTS, 411, COSMO COMPLEX, MAHILA COLLEGE CIRCLE, RAJKOT 360 001. (PAN : AAHPN4723A) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI P. DAM KANUNJHA, SENIOR DR DATE OF HEARING : 26.02.2015 DATE OF PRONOUNCEMENT : 27.02.2015 ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE CIT (APPEALS)-XII, NEW DELHI DATED 31.08.2012 FOR THE ASSESSMENT YEAR 2005-06. 2. IN THIS CASE, ASSESSMENT WAS MADE U/S 144 OF THE INCOME-TAX ACT, 1961 DATED 12.12.2007 WHEREIN INCOME HAS BEEN TAKEN AT RS.2,50 ,033/- WHICH WERE EXPENSES THROUGH CREDIT CARD DURING THE RELEVANT PERIOD. THE RECORD ALSO SHOWS THAT CIT (A) HAS DISMISSED THE APPEAL OF THE ASSESSEE WITHOUT GOING INTO THE WRITT EN SUBMISSIONS MADE BEFORE HIM. FROM THE WRITTEN SUBMISSIONS WHICH HAVE ALSO BEEN FILED BEFO RE US, WE FIND THAT THE ASSESSEE HAS TRIED TO EXPLAIN THE EXPENDITURE INCURRED THROUGH CREDIT CARDS DETAILS ARE AS UNDER :- 2 ITA NO.6395/DEL/2012 DATE AMOUNT (RS.) REMARKS 15/04/2004 30,000.00 BALANCE TRANSFERRED TO ICICI CREDIT CARD. 02/09/2004 40,000.00 BALANCE TRANSFERRED TO ABN AMRO CREDIT CARD. 24/0912004 35,787.00 BALANCE TRANSFERRED TO AMEX CREDIT CARD. 30/11/2004 10,000.00 BALANCE TRANSFERRED TO AMEX CREDIT CARD. 19/11/2004 542.39 THESE AMOUNTS ARE INCURRED FOR BOOKS & PERIODICALS AND OTHER ITEMS PURCHASED ONLINE. THESE EXPENSES ARE DEBITED TO MATERIAL EXPENSES ACCOUNT. 22/12/2004 1,818.89 22/12/2004 953.11 23/12/2004 910.47 29/12/2004 613.37 29/12/2004 2,453.04 29/12/2004 2,460.11 25/01/2005 10,000.00 BALANCE TRANSFERRED TO AMEX CREDIT CARD. 25/01/2005 34,669.00 BALANCE TRANSFERRED TO ICICI CREDIT CARD. 22/02/2005 15,350.00 BALANCE TRANSFERRED TO AMEX CREDIT CARD. 26/02/2005 25,384.00 PAID FOR HOTEL CHARGES AND RECORDED AS TRAVELLING & CONVEYANCE EXPENSES. 11/03/2005 40,000.00 BALANCE TRANSFERRED TO AMEX CREDIT CARD. 2,50,941.40 15. THE APPELLANT WAS HAVING FOUR CREDIT CARDS DURI NG THE YEAR UNDER CONSIDERATION AND THE AMOUNT LYING AS CREDIT HAS BE EN USED TO MAKE PAYMENT OF OTHER CREDIT CARD ACCOUNT AND IN EFFECT HAS AVAI LED CREDIT LIMIT FOR LONGER PERIOD. 16. FURTHER, THE AMOUNT TRANSFERRED TO OTHER CREDIT CARD ACCOUNT WAS FOR EXPENDITURE INCURRED THROUGH THOSE CREDIT CARDS ON VARIOUS EXPENSES AS MENTIONED ABOVE AND ALL SUCH EXPENSES ARE PROPERLY RECORDED IN THE BOOKS OF ACCOUNTS. MOREOVER, SOME OF THE AMOUNT TRANSFERRED TO OTHER CREDIT CARDS ALSO TRANSFERRED BACK TO HSBC CREDIT CARDS. 3 ITA NO.6395/DEL/2012 17. THEREFORE, AS THE APPELLANT HAS PROPERLY RECORD ED ALL THE EXPENSES INCURRED THROUGH CREDIT CARDS, THE SAME CANNOT BE T REATED AS INCOME FROM UNDISCLOSED SOURCES U/S. 69C OF THE I. T. ACT, 1961 . 18. THE APPELLANT HAS SUBMITTED ALL THE RELEVANT DE TAILS BEFORE THE LD. CIT(A), THE LD. CIT(A) HAS NOT CONSIDERED THE MERIT OF THE CASE AND SIMPLY CONFIRMED THE ADDITION. 19. IT IS THEREFORE RESPECTFULLY SUBMITTED TO ALLOW THE CLAIM OF THE APPELLANT AND DELETE THE ADDITION. BEFORE US ALSO, NO ONE APPEARED ON BEHALF OF THE AS SESSEE AND THE NARRATIONS MADE IN THE SUBMISSIONS NEED VERIFICATION AT THE LEVEL OF ASSES SING OFFICER AS THE ASSESSEE HAS CLAIMED THAT ALL THE EXPENSES HAVE BEEN PROPERLY RECORDED I N ITS BOOKS OF ACCOUNTS. IN VIEW OF THESE FACTS AND CIRCUMSTANCES AND IN THE INTEREST OF JUST ICE AND EQUITY, WE RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING AFRESH A FTER PROVIDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 27 TH DAY OF FEBRUARY, 2015. SD/- SD/- (GEORGE GEORGE K) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 27 TH DAY OF FEBRUARY, 2015 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XII, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.