Sh. Bhupesh Kumar Dhingra, New Delhi V. ACIT, New Delhi

ITA 6559/DEL/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6809 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-01-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 09-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Assessee Lawyers: BHUPESH KUMAR DHINGRA
• Keywords: Unexplained investment; Search and seizure
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : A NEW DELHI BEFORE SHRI H.S.SIDHU, J.M. AND SHRI J.SUDHAKAR REDDY, AM ITA NO: 6 559 /DEL/201 3 AY : 20 07 - 08 SH. BHUPESH KUMAR DHINGRA VS. ACIT, CC. 17 F 6/5, BASEMENT NEW DELHI VASANT VIHAR NEW DELHI 110 057 PAN: AAFPD 2778 P (APPELLANT) (RESPONDENT) APPELLANT BY : SH. BHUPESH KUMAR DHINGRA RESPONDENT BY : SH.RAVI JAIN, CIT, D.R. O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LD.COMMISSIONER OF INCOME TAX (APPEALS) - II DATED 8 TH NOVEMBER,2013 PERTAINING TO THE ASSESSMENT YEAR (A.Y.) 2007 - 08. 2. FACTS IN BRIEF : - THE ASSESSEE IS AN INDIVIDUAL AND DERIVES INCOME FROM PROFESSION, HOUSE PROPERTY AND OTHER SOURCES. A SEARCH AND SEIZURE OPERATION WAS CONDUCTED AT THE P REMISES OF THE ASSESSEE ON 20.11.2008. IN RESPONSE TO A NOTICE U/S 153 A OF THE INCOME TAX ACT, 1961 (THE ACT) DT. 30.9.2009, THE ASSESSEE FILED A RETURN OF INCOME ON 23.10.2009 DECLARING INCOME OF RS.69,42,160/ - . 2.1. THE FACTS LEADING TO THE ADDITION I N QUESTION BEFORE US IS AT PAGE 1 PARA 2 OF THE ASSESSMENT ORDER WHICH IS EXTRACTED FOR READY REFERENCE. ITA NO. 6559/DEL/2013 A.Y. 2007 - 08 SH.BHUPESH KUMAR DHINGRA, NEW DELHI 2 AS PER SEIZED ANNEXURE A - 15 FROM 604, PADMA TOWER, RAJINDER PLACE, NEW DELHI PAGES 73 TO 102 RELATE TO A PROPERTY TRANSACTION BY THE ASSESSEE WITH SH RI SC JAGOTA IN RESPECT OF PROPERTY NO. D - 8, SOAMI NAGAR, DELHI. AS PER THE COPY OF THE SIGNED AGREEMENT TO SELL DT. 8.3.2007 AND 6.3.2007 BOTH DECLARED THAT SHRI BK DHINGRA HAS PAID RS.5 LAKHS BY CASH ON 8.3.2007. A COPY OF CASH RECEIPT IS ALSO AVAILABL E ON PAGE 86 TO 87 OF THIS ANNEXURE. THE TOTAL ADVANCE PAID WAS RS.30 LAKHS. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF RS.5 LAKHS. THE ASSESSEE REPLIED THAT IT IS OUT OF CASH IN HAND. HOWEVER, WHILE GO THROUGH THE BANK STATEMENT IT IS BEEN FOUND THAT THERE WAS NO CASH WITHDRAWAL IN BANK ACCOUNT DURING MARCH, 2007. THE ASSESSEEALSO OTHERWISE COULD NOT PROVE THAT THE AMOUNT WAS AVAILABLE AS CASH IN HAND. THEREFORE, THE AMOUNT OF RS.5 LAKHS IS TREATED AS UNEXPLAINED INVESTMENT U/S 69 OF THE ACT. H ENCE THE AMOUNT OF RS.5 LAKHS IS ADDED TO THE INCOME OF THE ASSESSEE U/S 69. AS THE ASSESSEE HAS CONCEALED INCOME PENALTY U/S 271(1) (C ) IS INITIATED SEPARATELY. 3. ON APPEAL THE FIRST APPELLATE AUTHORITY CONFIRMED THE ADDITION. 4. AGGRIEVED THE ASSESSEE FILED THE PRESENT APPEAL BEFORE US. 5. WE HAVE HEARD SHRI RAVI JAIN, LD.CIT, DR ON BEHALF OF THE REVENUE. SHRI BHUPESH KUMAR DHINGRA, THE ASSESSEE REPRESENTED HIMSELF. ON A CAREFUL CONSIDERATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE, PERUS AL OF MATERIAL ON RECORD, ORDERS OF LOWER AUTHORITIES, CASE LAWS CITED, WE H OLD AS FOLLOWS. 6. THOUGH THE ASSESSEE HAS FILED 10 GROUNDS OF APPEAL, HE PRESSED ONLY GROUND NOS. 7(A), 7(B) AND 7(C ). ALL THE OTHER GROUNDS I.E. GROUND NOS. 1 TO 6 AND GROUND NOS. 8, 9 AND 10 ARE DISMISSED AS NOT PRESSED . 7. WE FIND THAT THE ADDITION IN QUESTION IS MADE U/S 69 OF THE ACT. S.69 OF THE ACT READS AS FOLLOWS. S. 69. UNEXPLAINED INVESTMENTS SS WHERE IN THE FINANCIAL YEAR IMMEDIATELY PRECEDING THE ASSESSMENT YEA R THE ASSESSEE HAS MADE INVESTMENTS WHICH ARE NOT RECORDED IN THE ITA NO. 6559/DEL/2013 A.Y. 2007 - 08 SH.BHUPESH KUMAR DHINGRA, NEW DELHI 3 BOOKS OF ACCOUNT, IF ANY, MAINTAINED BY HIM FOR ANY SOURCE OF INCOME, AND THE ASSESSEE OFFERS NO EXPLANATION ABOUT THE NATURE AND SOURCE OF THE INVESTMENTS OR THE EXPLANATION OFFERED BY HIM IS NOT, IN THE OPINION OF THE 2[ASSESSING] OFFICER, SATISFACTORY, THE VALUE OF THE INVESTMENTS MAY BE DEEMED TO BE THE INCOME OF THE ASSESSEE OF SUCH FINANCIAL YEAR. 7.1. THE INVESTMENT IN QUESTION IS RECORDED IN THE BOOKS OF ACCOUNTS. THIS IS CLEAR FROM THE AUDITED BALANCE SHEET DT. 30.4.2007. THIS FACTUAL SUBMISSION OF THE ASSESSEE COULD NOT BE CONTROVERTED BY THE LD.CIT, D.R. THUS WE DELETE THE ADDITION OF RS.5 LAKHS MADE U/S 69 OF THE ACT, AS THE ASSESSEE HAS DEMONSTRATED THAT THE CASH ADVANCE WAS M ADE OUT OF BALANCE AVAILABLE AS ON THAT DATE IN THE BOOKS OF ACCOUNTS AND AS THE TRANSACTIONS WERE DULY RECORDED IN THE BOOKS OF ACCOUNTS. 7.2. IN THE RESULT THE ADDITION IS DELETED AND TH IS GROUND OF THE ASSESSEE IS ALLOWED. 8. IN THE RESULT ASSESSEE S APPEAL IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH FEBRUARY, 2016 . SD/ - SD/ - ( H.S. SIDHU ) (J.SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: THE 16 TH FEBRUARY, 2016 *MANGA ITA NO. 6559/DEL/2013 A.Y. 2007 - 08 SH.BHUPESH KUMAR DHINGRA, NEW DELHI 4 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR