M/s. Raj Kumar Anand & Sons HUF, New Delhi V. ITO, New Delhi

ITA 644/DEL/2014

• Counselvise Citation: 64420114 RSA 2014
• Duration Of Justice: 1 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 10-09-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 04-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR B R R KUMAR
• Keywords: Gift; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER I.T.A .NO. - 644 /DEL/201 4 (ASSESSMENT YEAR - 200 3 - 04 ) RAJ KUMAR ANAND & SONS HUF, 43/22, EAST PATEL NAGAR, NEW DELHI - 110008. PAN - AAGHR4916Q ( APPELLANT) VS ITO, WARD - 33(1), NEW DELHI (RESPONDENT ) APPELLANT BY NONE RESPONDENT BY DR.B.R.R.KUMAR, SR.DR ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSAILING THE CORRECTNESS OF THE ORDER DATED 03.12.2013 OF CIT(A) - XXI, NEW DELHI PERTAINING TO 2003 - 04 ASSESSMENT YEAR ON THE FOLLOWING GROUND: - 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED A.O WAS NOT JUSTIFIED IN MAKING GENUINE ENTRIES AS ACCOMMODATION/BOGUS ENTRIES AND THUS THE CLAIM OF LTCG OF 6,37,772 ON SALE OF SHARES IS VALID. 2. NO ONE WAS PRESENT ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING. ACCORDINGLY IT IS CONSIDERED APPROPRIATE TO PROCEED WITH THE PRESENT APPEAL EX - PARTE QUA THE ASSESSEE ON THE BASIS OF THE MATERIAL AVAILABLE ON RECORD AFTER HEARING THE LD. SR.DR. 3. THE RECORD SHOWS THAT THE ASSESSEE DECLARED AN INCOME OF RS.1,46,622/ - WHICH WAS PROCESSED U/S 143(1) . P URSUANT TO THE INFORMATION RECEIVED FROM THE DIRECTORATE OF INCOME TAX (INVESTIGATION) [HEREINAFTER REFERRED TO AS DIT(E)] T HE ASSESSMENT WAS RE - OPENED BY AN ORDER U/S 143(3)/147 WHEREIN ADDITION OF RS. 6,37,772/ - WAS MADE. THE RECORD SHOWS THAT T HE DIT(E) CONSEQUENT TO THE SURVEY IN THE CASE OF M/S GURCHARAN JEWELLERS ( PROPRIETOR SH. ASHOK KUMAR CHAUHAN ) WAS FOUND TO HAVE ADMITTED THAT HE HAD TAKEN CHEQU E S UNDER THE DATE OF HEARING 10 .0 9 .2015 DATE OF PRONOUNCEMENT 30 . 1 0 .2015 I.T.A .NO. - 644/ DEL/2014 PAGE 2 OF 3 GARB OF GIFTS AFTER GIVING CHEQUES TO THE ENTRY OPERATORS. IN THE FACTS OF THE PRESENT CASE, THE ASSESSEE WAS FOUND TO HAVE T H E FOLLOWING CREDIT IN ITS BANK ACCOUNTS: - BANK OF THE ASSESSEE BRANCH OF THE BANK INSTRUMENT NO. AMOUNT DATE CREDIT ENTR Y COMING FROM THE ACCOUNT OF BOR NEW ROHTAK ROAD 637772/ - 16/05/2002 S.J.CAPITAL LTD. 3.1. ALSO T AKING NOTE OF THE FACT THAT ONE SH. MAHESH GARG OF BHIWANI, HARYANA WHO WAS CONTROLLING THE BANK ACCOUNTS IN VARIOUS NAMES WAS USING VARIOUS PERSONS TO OPERATE VARIOUS ACCOUNTS THE ADDITION WAS MADE . THE ASSESSEE AS PER RECORD CLAIMED THAT IT HAD RECEIVED AN AMOUNT FROM S.J. CAPITAL LTD. THE SAID CLAIM WAS NOT ACCEPTED AS THE ASSESSEE FAILED TO PRODUCE THE SAID BROKER. 4. THE ASSESSEE CAME IN APPEAL BEF ORE THE CIT(A) WHO DISMISSED THE APPEAL. 5 . AGGRIEVED BY WHICH THE ASSESSEE IS IN APPEAL. THE LD. SR. DR RELIED UPON THE IMPUGNED ORDER. 6. HAVING HEARD THE SUBMISSIONS AND CONSIDERED THE ARGUMENTS OF THE LD. SR.DR, I AM OF THE VIEW THAT IN THE FACTS OF T HE PRESENT CASE THE CONCLUSIONS DRAWN BY THE AUTHORITIES HAVE BEEN ARRIVED AT ON THE BASIS OF THE GENERAL INFORMATION IN REGARD TO ACCOMMODATION ENTRY OPERATORS AND VARIOUS DECISIONS. HOWEVER, DISCUSSION ON FACTS RELATABLE TO THE ASSESSEE ARE FOUND TO BE MISSING. WHAT IS COMING OUT FROM THE ASSESSMENT ORDER IS THAT THE RE W AS A SURVEY ON M/S GURCHARAN JEWELLERS IT IS ALSO SEEN THAT STATEMENT UNDER OATH U/S 131OF THE ITAT ACT RECORDED OF SH. MAHESH GARG OF BHIWANI HARYANA. WHAT WAS SAID IN THE STATEMENT QUA THE ASSESSEE IS NOT COMING OUT IN THE ORDERS. ACCORDINGLY THE IMPUGNED ORDER IS SET ASIDE AND THE ISSUE IS RESTORED TO THE FILE TO THE CIT(A) WITH THE DIRECTION TO ADDRESS THE FULL, PROPER AND RELEVANT FACTS. ACCORDINGLY FOR WANT OF DISCUSSION ON FACTS, THE ISSUE IS RESTORED BACK TO THE CIT(A) WITH THE DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 3 0 T H OF OCTOBER, 2015. S D / - (DIVA SINGH) JUDICIAL MEMBER DATED: 3 0 /10 /2015 * AMIT KUMAR * I.T.A .NO. - 644/ DEL/2014 PAGE 3 OF 3 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI