ACIT, New Delhi V. M/s. Raj Refullers & Fire Safety Equipment Pvt. Ltd., New Delhi

ITA 6495/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2910 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2007-2008
• Appeal Filed On: 28-11-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 68; 132; 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.6495/DEL/2014 ASSESSMENT YEAR : 2007-08 ACIT, CENTRAL CIRCLE-13, NEW DELHI. VS. RAJ REFULLERS & FIRE SAFETY EQUIPMENT PVT. LTD., 2A/53, GEETA COLONY, NEW DELHI. PAN : AAACR3712F (APPELLANT) (RESPONDENT) DEPARTMENT BY : SMT. RACHNA SINGH, CIT(DR) ASSESSEE BY : NONE DATE OF HEARING : 27-12-2017 DATE OF PRONOUNCEMENT : 27-12-2017 O R D E R PER R. K. PANDA, AM : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER DATED 26.09.2014 OF THE CIT(A)-I, NEW DELHI RELATING TO A SSESSMENT YEAR 2007-08. 2. THE NOTICE ISSUED BY THE REGISTRY FIXING THE APP EAL FOR HEARING WAS RETURNED BY THE POSTAL AUTHORITIES WITH THE REMARK NO SUCH FIRM. THE ASSESSEE HAS ALSO NOT TAKEN ANY STEPS TO INTIMATE THE CHANGE OF ADDRESS, IF ANY. EVEN THOUGH THE NOTICE WAS SERVED THROUGH THE LD. DR STI LL THERE WAS NO RESPONSE FROM THE SIDE OF THE ASSESSEE TODAY BY FILING AN AD JOURNMENT PETITION OR 2 ITA NO.6495/DEL/2014 APPEARANCE. IN VIEW OF THE ABOVE, WE PROCEEDED TO DECIDE THE APPEAL ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEA RING THE LD. DR. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT A SEARCH A ND SEIZURE OPERATION WAS CARRIED OUT IN MAHESH MEHTA GROUP OF CASES ON 30.06 .2009 DURING WHICH CERTAIN DOCUMENTS BELONGING TO THE PERSON OTHER THAN THE PE RSON SEARCHED U/S 132 OF THE I.T. ACT WERE FOUND AND SEIZED. ON THE BASIS OF SE IZED DOCUMENTS AND AFTER RECORDING SATISFACTION, ASSESSMENT PROCEEDINGS U/S 153C WERE INITIATED BY ISSUING NOTICE. THE ASSESSEE, IN RESPONSE TO THE S AID NOTICE, STATED THAT THE RETURN OF INCOME FILED ORIGINALLY AS PER PROVISION OF SECT ION 139 MAY BE TREATED AS RETURN IN RESPONSE TO NOTICE U/S 153C OF THE ACT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER OBSER VED THAT THERE HAS BEEN INCREASE IN UNSECURED LOANS TO THE TUNE OF RS.52,65 ,694/- DURING THE YEAR. THE ASSESSEE FAILED TO PROVIDE THE DETAILS FROM WHOM UN SECURED LOANS HAVE BEEN TAKEN AND WAS NOT ABLE TO PROVE THE IDENTITY, CREDI TWORTHINESS AND GENUINENESS OF THE TRANSACTION. THE ASSESSING OFFICER, THEREFO RE, INVOKED THE PROVISIONS OF SECTION 68 OF THE I.T. ACT AND MADE ADDITION OF RS. 52,62,694/- TO THE TOTAL INCOME OF THE ASSESSEE. 4. IN APPEAL, THE LD. CIT(A) DELETED THE ADDITION M ADE BY THE ASSESSING OFFICER BY OBSERVING AS UNDER :- 3. THE FACTS OF THE CASE AND THE GROUNDS OF APPEAL ARE THE SAME IN THIS AY AS DISCUSSED IN DETAILS IN AY 2004-05 IN APPEAL NO.336 /13-14 DECIDED VIDE ORDER OF EVEN DATE. THE ONLY DIFFERENCE IS THAT IN THIS YEAR THE RE IS NO ADDITION ON ACCOUNT OF 3 ITA NO.6495/DEL/2014 INCREASE IN SHARE APPLICATION MONEY. ALSO, THAT TH E AMOUNT OF ADDITION OF RS.52,62,694/- HAS BEEN MADE ON ACCOUNT OF INCREASE IN UNSECURED LOAN, WHICH IS NET OF FRESH LOAN OF RS.2,01,84,313/- RAISED FROM M/S G UNVARDHAN VYAPAR LTD., AN EXISTING ASSESSEE (PAN-AACV8561C), AND REPAYMENT OF ALL OTHER OUTSTANDING LOANS, AND THE INTEREST ACCRUED ON THE OUTSTANDING/ REPAID LOANS. THE DETAILS FILED DURING THESE PROCEEDINGS HAVE BEEN EXAMINED AND ESTABLISH THE CLAIM OF THE APPELLANT. 5. AGGRIEVED WITH SUCH ORDER OF THE LD. CIT(A), THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUND S :- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING ADDITION OF RS.52,62,690/- MADE BY THE ASSESSING OFFICER ON ACC OUNT OF DISALLOWANCE OF INCREASE IN UNSECURED LOANS. 2. (A) THE ORDER OF LD. CIT(A) IS ERRONEOUS AND NOT TENABLE IN LAW AND ON FACTS. (B) THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AME ND ANY/ALL OF THE GROUND OF APPEAL BEFORE OR DURING THE COURSE OF THE HEARING OF THE APPEAL. 6. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. WE FIND DESPITE OPPORTUNITIES GIVEN BY THE ASSESSIN G OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE DID NOT PROD UCE THE DETAILS FROM WHOM UNSECURED LOANS HAVE BEEN TAKEN AND HAS NOT PROVED THE INGREDIENTS OF PROVISIONS OF SECTION 68 OF THE I.T. ACT. WE FIND THE LD. CIT(A) IN A VERY CRYPTIC ORDER DELETED THE ADDITION, THE CONTENTS OF WHICH HAVE ALREADY BEEN REPRODUCED IN THE PRECEDING PARAGRAPH. SINCE THE A SSESSEE HAD NOT FILED THE REQUISITE DETAILS BEFORE THE ASSESSING OFFICER, THE REFORE, CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUS TICE, WE DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE WITH EV IDENCE TO HIS SATISFACTION 4 ITA NO.6495/DEL/2014 REGARDING THE INCREASE IN THE UNSECURED LOANS. THE ASSESSING OFFICER SHALL DECIDE THE ISSUE AS PER FACT AND LAW AFTER GIVING D UE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE REVENUE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PUR POSES. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME HEA RING ITSELF I.E. ON THIS 27 TH DAY OF DECEMBER, 2017. SD/- SD/- (SUCHITRA KAMBLE) (R. K. P ANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27-12-2017. SUJEET COPY OF ORDER TO: - 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT 4) THE CIT(A) 5) THE DR, I.T.A.T., NEW DELHI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, NEW DELHI