ACIT, New Delhi V. M/s. Jay Tel Mobile Private Limited, New Delhi

ITA 6469/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3326 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 27-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINAY VERMA
• Section: 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES D : DELHI BEFORE SHRI BHAVNESH SAINI, J.M. AND SHRI O.P. KANT , A.M. ITA.NO.6469/DEL./2014 ASSESSMENT YEAR 2010-2011 THE ACIT, CENTRAL CIRCLE - 3, ROOM NO.332, ARA CENTRE, JHANDEWALAN EXTENSION, NEW DELHI. VS. M/S. JAY TEL MOBILE PRIVATE LIMITED, A-101, LAJPAT NAGAR-1, NEW DELHI. PAN AABCJ4022D (APPELLANT) (RESPONDENT) FOR ASSESSEE : -NONE- FOR REVENUE : SHRI VINAY VERMA, CIT - D.R. DATE OF HEARING : 09.11.2017 DATE OF PRONOUNCEMENT : 21 .11.2017 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE HAS BEEN DIRECTED AG AINST THE ORDER OF THE LD. CIT(A)-1, NEW DELHI, DATED 1 ST SEPTEMBER, 2014, FOR THE A.Y. 2010-2011, CHALLENGING THE DELETION OF ADD ITION OF RS.3,27,05,000 MADE BY A.O. ON ACCOUNT OF UNEXPLAIN ED INVESTMENT FOR PURCHASE OF PROPERTY AT GURGAON. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT SEARCH A ND SEIZURE ACTION UNDER SECTION 132 OF THE I.T. ACT IN THE CAS E OF M/S. JAY 2 ITA.NO.6469/DEL./2014 M/S. JAY TEL MOBILE PRIVATE LIMITED, NEW DELHI. POLYCHEM INDIA LTD., AND ITS ASSOCIATES WAS INITIAT ED ON 14 TH MARCH, 2012. THE DIRECTORS OF THE GROUP AND THE ASSESSEE-C OMPANY WERE ALSO COVERED UNDER THE SEARCH. NOTICE UNDER SECTION 153A WAS ISSUED TO THE ASSESSEE-COMPANY AND ASSESSEE-COMPANY FILED ITS RETURN OF INCOME DECLARING NIL INCOME. THE A.O. NOTED THAT DU RING THE COURSE OF SEARCH OPERATION, SOME DOCUMENTS WERE FOUND AND SEIZED. THEY ARE COPY OF SALE DEED EXECUTED ON 24 TH DECEMBER, 2009 BETWEEN KAWAL SINGH AND JAY MOBILE PVT. LTD., FOR SALE/PURC HASE OF LAND MEASURING 31 KANAL 2 MARLA AT VILLAGE TAJ NAGAR, TE HSIL FARRUKH NAGAR, DIST. GURGAON FOR CONSIDERATION OF RS.3,27,0 5,000. ASSESSEE- COMPANY SUBMITTED THAT TRANSACTION IS RECORDED IN T HE BOOKS OF ACCOUNT BUT ACCORDING TO A.O. NO EVIDENCE WAS SUBMI TTED TO HIM. THEREFORE, THE A.O. MADE THE ADDITION OF THE AFORES AID AMOUNT. 3. THE ASSESSEE-COMPANY CHALLENGED THE ADDITION BE FORE THE LD. CIT(A) THAT THE SALE DEED FOUND DURING THE COUR SE OF SEARCH WERE DULY ACCOUNTED FOR IN THE BOOKS OF ACCOUNT OF THE A SSESSEE-COMPANY WHICH IS EVIDENT FROM THE COPY OF THE AUDITED ACCOU NTS I.E., BALANCE SHEET AND P & L A/C TO SHOW THAT LAND IS SHOWN IN T HE FIXED ASSET SCHEDULE AND COPY OF THE BANK ACCOUNT WAS ALSO FILE D TO SHOW 3 ITA.NO.6469/DEL./2014 M/S. JAY TEL MOBILE PRIVATE LIMITED, NEW DELHI. PAYMENT HAVE BEEN MADE THROUGH BANKING CHANNEL. THE LD. CIT(A) NOTED THAT THE ACCOUNTS OF ASSESSMENT YEAR UNDER AP PEAL WERE ALREADY FINALIZED AND AUDITED ON 06 TH SEPTEMBER, 2009 I.E., PRIOR TO THE SEARCH CONDUCTED ON 14 TH MARCH, 2012. THE SAID PROPERTY IS DULY REFLECTED IN THE AUDITED BALANCE SHEET OF THE ASSES SEE-COMPANY. THUS, IT CANNOT BE CONCLUDED THAT THE SAID PROPERTY /INVESTMENT IS UNDISCLOSED. THE LD. CIT(A) FURTHER NOTED THAT THE ABOVE INVESTMENT WAS DULY RECORDED IN THE BOOKS OF ACCOUNT AND REFLE CTED IN THE AUDITED BALANCE SHEET WAS FILED AS PART OF THE DEPA RTMENTAL RECORD BEFORE THE DATE OF SEARCH. THE LD. CIT(A) ACCORDING LY, DELETED THE ADDITION. 4. THE LD. D.R. RELIED UPON THE ORDER OF THE A.O. HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE-COMPANY DES PITE NOTIFYING THE DATE OF HEARING THROUGH REGISTERED POST. 5. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. D. R. IN THE LIGHT OF FINDINGS OF THE AUTHORITIES BELOW, WE ARE OF THE VIEW THAT NO INTERFERENCE IS CALLED FOR IN THE MATTER. THE ASSES SEE-COMPANY SUBMITTED BEFORE A.O. THAT TRANSACTION HAS ALREADY BEEN RECORDED IN THE REGULAR BOOKS OF ACCOUNT. THE LD. CIT(A) FOUND THAT AUDITED 4 ITA.NO.6469/DEL./2014 M/S. JAY TEL MOBILE PRIVATE LIMITED, NEW DELHI. ACCOUNTS ARE FILED WITH THE RETURN OF INCOME PRIOR TO THE SEARCH, IN WHICH THE ABOVE INVESTMENT HAS ALREADY BEEN SHOWN I N THE ACCOUNTS OF THE ASSESSEE-COMPANY AND DISCLOSED TO THE REVENU E DEPARTMENT. IN THE ABSENCE OF ANY CONTRARY MATERIAL ON RECORD, NO INTERFERENCE IS CALLED FOR IN THE MATTER. THE DEPARTMENTAL APPEAL H AS NO MERIT AND THE SAME IS ACCORDINGLY DISMISSED. 6. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (O.P. KANT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 21 ST NOVEMBER, 2017 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT D BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASST. REGISTRAR : ITAT DELHI BENCHES : DELHI.