Sh. Sanjay Kumar, New Delhi V. ITO, New Delhi

ITA 6745/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7186 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC 1
• Next Hearing Date: 07-06-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 26-12-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRS RISHPAL BEDI
• Keywords: Business income
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I: NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.6745/DEL/2013 ASSESSMENT YEAR : 2004-05 SANJAY KUMAR, RZ-78, PHASE II, PREM NAGAR, NAJAFGARH, NEW DELHI. PAN: AAYPJ3821G VS. ITO, WARD-25(4), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANAT KAPOOR, ADVOCATE DEPARTMENT BY : MRS RISHPAL BEDI, JCIT DATE OF HEARING : 07.06.2016 DATE OF PRONOUNCEMENT : 07.06.2016 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER PASSED BY THE CIT(A) ON 5.1.2012 IN RELATION TO THE ASSESSMENT YEAR 2004-05. ITA NO.6745/DEL/2013 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE FURNISHED HIS RETURN DECLARING TOTAL INCOME OF RS.2,89,450/-. THIS AMOUNT OF TOTAL INCOME WAS DERIVED BY REDUCING `BUSINESS LOSS AMOU NTING TO RS.1,41,450/- FROM THE INCOME UNDER THE HEAD SALAR IES AT RS.4,30,899/. THE AO NOTICED IN COMPLETING THE ASSESSMENT U/S 147 THAT THE ASSESSEE WAS AN EMPLOYEE OF MARUTI UDYOG LIMITED WHO ACCEPTE D VOLUNTARY RETIREMENT UNDER THE V.R. SCHEME ON TOTAL SALARY OF RS.10,27,989/-. FORM NO.16A DISCLOSED TAXABLE SALARY OF RS.4,45,899 /-, ON WHICH TAX WAS DEDUCTED AT SOURCE AMOUNTING TO RS.97,270/-. T HE AO OBSERVED THAT THE ASSESSEE DECLARED BUSINESS LOSS OF RS.1,41 ,450/- OUT OF NON- EXISTENT BUSINESS STYLED AS UNIVERSAL COMPUTER CENT RE SIMPLE WITH A VIEW TO REDUCE ITS TOTAL INCOME UNDER THE HEAD SAL ARIES. SUCH LOSS WAS REJECTED AND BUSINESS INCOME WAS COMPUTED @5% ON GR OSS RECEIPTS FROM THIS BUSINESS SHOWN AT RS.62,500/-. THAT IS H OW, THE AO COMPUTED TOTAL INCOME AT RS.4,49,024/- COMPRISING OF SALARY AS PER FORM NO.16A AMOUNTING TO RS.4,45,899/- AND `BUSINESS INCOME O F RS.3,125/-. THE LD. CIT(A) DELETED THE ADDITION OF RS.3,125/-, BUT, UPHELD THE VALIDITY OF ITA NO.6745/DEL/2013 3 NOTICE ISSUED U/S 148 FOR RE-ASSESSMENT. THE ASSES SEE IS IN APPEAL BEFORE ME. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. THE LD. AR WAS FAIR IN HIS APPR OACH IN ACCEPTING THAT INCOME UNDER THE HEAD SALARIES AS PER FORM NO.16A BE CONSIDERED AS TOTAL INCOME AMOUNTING TO RS.4,45,899/- AND THE LOS S COMPUTED BY THE AO AT RS.3,125/- SHOULD BE IGNORED. SINCE THE LD. CIT(A) HAS DELETED THE ADDITION OF RS.3,125/- AND THE REVENUE IS NOT I N APPEAL, THERE REMAINS NO QUESTION OF AGITATING THIS ADDITION OF R S.3,125/- AS DELETED IN THE FIRST APPEAL. THE ISSUE OF RE-ASSESSMENT WAS NO T PRESSED BY THE LD. AR, WHEN HE CANDIDLY ADMITTED THAT THE TOTAL INCOME BE ASSESSED AT RS.4,45,899/-. I, THEREFORE, UPHOLD THE IMPUGNED OR DER. 4. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 07.06.201 6. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 07 TH JUNE, 2015. ITA NO.6745/DEL/2013 4 DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.