Vinod Kumar Bali, Mysore V. ITO, New Delhi

ITA 6596/DEL/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1834 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 09-12-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 05-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJANA
• Assessee Lawyers: NITIN BANSAL
• Keywords: Additional evidence
• Section: 69C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI R.S. SYAL, AM & SHRI C.M. GARG, JM ITA NO.6596/DEL/2014 ASSESSMENT YEAR : 2009-10 VINOD KUMAR BALI, FLAT NO.1, 1 ST FLOOR, NO.9, GAGANCHUMBI DOUBLE ROAD, I BLOCK, KUVEMPUNAGAR, MYSORE. PAN: AAMPB0069J VS. ITO, WARD-25(3), NEW DELHI. (AP PELLANT) (RESPONDENT) ASSESSEE BY : SHRI NITIN BANSAL, CA DEPARTMENT BY : SHRI P. DAM KANUNJANA, SR. DR DATE OF HEARING : 09.12.2015 DATE OF PRONOUNCEMENT : 10.12.2015 ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER PASSED BY THE CIT(A) ON 30.9.2014 IN RELATION TO THE ASSESSME NT YEARS 2009-10. ITA NO.6596/DEL/2014 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.2,49,565/- ON ACCOUNT OF CREDIT CARD EXPENSES. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IS AN INDIVIDUAL ENGAGED IN BUSINESS. AN AIR INFORMATION WAS RECEIVED ABOUT THE CREDIT CARD EXPENSES INCURRED BY THE ASSESSEE A MOUNTING TO RS.4,32,370/-. THE AO ADDED THE SAME U/S 69C OF TH E ACT. THE LD. CIT(A) OBSERVED THAT ACTUAL EXPENDITURE WAS ONLY TO THE TUNE OF RS.2,49,565/- AGAINST THE AIR INFORMATION OF RS.4,3 2,307/-. HE, THEREFORE, DELETED THE EXCESS ADDITION OF RS.1,82,7 42/-. AS REGARDS THE REMAINING EXPENDITURE OF RS.2,49,565/-, THE ASSESSE ES CONTENTION THAT HE INCURRED EXPENSES ON BEHALF OF SOME OF HIS FRIENDS WHICH AMOUNT WAS RECEIVED BACK IN DUE TIME, WAS NOT ACCEPTED. IN UP HOLDING THE ADDITION, THE LD. CIT(A) REFUSED TO ADMIT/ENTERTAIN ADDITIONA L EVIDENCE FILED BY THE ASSESSEE UNDER RULE 46A IN SUPPORT OF SUCH CONTENTI ON. THIS LED TO THE AFFIRMATION OF ADDITION TO THE EXTENT OF RS.2,49,56 5/-, AGAINST WHICH THE ASSESSEE HAS COME UP IN APPEAL BEFORE US. OUR ATTEN TION HAS NOT BEEN DRAWN TOWARDS ANY CROSS APPEAL HAVING BEEN FILED BY THE REVENUE. THE ITA NO.6596/DEL/2014 3 ASSESSEE IS AGGRIEVED AGAINST THE SUSTENANCE OF ADD ITION TO THE ABOVE EXTENT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT THE ASSESS EE ADMITTEDLY INCURRED AN EXPENDITURE OF RS.2,49,565/- THROUGH CREDIT CARD WHICH WAS NOT RECORDED IN HIS BOOKS OF ACCOUNT. WHEN THE ASSESSE E TRIED TO FURNISH ADDITIONAL EVIDENCE BEFORE THE LD. CIT(A) IN SUPPOR T OF HIS CONTENTION THAT SUCH EXPENDITURE WAS INCURRED ON BEHALF OF HIS FRIENDS, WHICH AMOUNT WAS SUBSEQUENTLY RECEIVED BACK, THE LD. FIRS T APPELLATE AUTHORITY REFUSED TO ADMIT SUCH ADDITIONAL EVIDENCE ON THE GR OUND THAT THE AO GAVE ENOUGH OPPORTUNITIES TO THE ASSESSEE. CONSIDER ING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES IN THE INSTANT CASE AND WIT HOUT COMMENTING UPON THE MERITS OF THE ADDITIONAL EVIDENCE, WE ARE OF THE CONSIDERED OPINION THAT THE ENDS OF JUSTICE WOULD MEET ADEQUAT ELY IF THE IMPUGNED ORDER IS SET ASIDE PRO TANTO AND THE MATTER IS RESTORED TO THE FILE OF AO. WE ORDER ACCORDINGLY AND DIRECT THE AO TO EXAMINE T HE ASSESSEES CONTENTION IN THIS REGARD AND, THEN, DECIDE THE ISS UE AFRESH. NEEDLESS TO ITA NO.6596/DEL/2014 4 SAY, THE ASSESSEE WILL BE AT LIBERTY TO FILE FRESH EVIDENCE BEFORE THE AO IN SUPPORT OF HIS CONTENTION IN SUCH FRESH PROCEEDINGS . 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 10.12.201 5. SD/- SD/- [C.M. GARG] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 10 TH DECEMBER, 2015. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.