M/s. N.K.C. Projects (P) Ltd., New Delhi V. DCIT, New Delhi

ITA 6809/DEL/2015

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0308 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 28-12-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained expenditure; Income from undisclosed sources
• Section: 69C; 133(6); 68; 69

Judgement Text

ITA NO.- 6809/DEL/2015. N.K.C. PROJECTS PVT. LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: A: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 6809/DEL/2015 ( ASSESSMENT YEAR: 2010-11) M/S N.K.C. PROJECTS (P) LTD., C-8/19, GF SMILE CHAMBER, W.E.A, KAROL BAGH, NEW DELHI-110005. VS. DEPUTY COMMISSIONER OF INCOME TAX, CIRLCE-13(1), NEW DELHI. APPELLANT RESPONDENT PAN NO: AACCN4070E ASSESSEE BY : SHRI LALIT MOHAN, CA REVENUE BY : SHRI PRAKASH DUBE, SR. DR PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY ASSESSEE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-42, NEW DELHI, [LD. CIT(A), FOR SHORT], DATED 27.11.2015 FOR ASSESSMENT YEAR 2010-11. GROUNDS TAKEN IN THIS APP EAL OF ASSESSEE ARE AS UNDER: 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) HAS ERRED BOTH IN LAW AND ON FACTS IN UPHOLDING ADDITIO N OF RS 50,00,000/- REPRESENTING THE SHARE CAPITAL RECEIVED FROM M/S. P ANCHMUKHI COMMODITIES PVT. LTD. AND M/S BLUE BIRD DEALERS PVT. LTD. UNDER SECTION 68 OF THE ACT. ITA NO.- 6809/DEL/2015. N.K.C. PROJECTS PVT. LTD. PAGE 2 OF 4 1.1 THAT WHILE UPHOLDING THE ADDITION, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS FAILED TO APPRECIATE THAT THE APP ELLANT COMPANY HAD PLACED ON RECORD EVIDENCES IN THE SHAPE OF CONFIRMA TION, BANK STATEMENTS, ACKNOWLEDGEMENT OF INCOME TAX RETURN, FINANCIAL STA TEMENTS TO DISCHARGE THE INITIAL BURDEN ON THE APPELLANT COMPANY AND THE REFORE, ADDITION SUSTAINED ON THE GROUND THAT THE AFORESAID TWO SHAR EHOLDERS CONFIRMATIONS WAS NOT FILED OR THEY HAD NOT COMPLIED WITH NOTICE UNDER SECTION 133(6) OF THE ACT IS NOT BASED ON CORRECT APPRECIATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE OF THE APPELLANT COMPANY AND STATUTORY PROVISIONS OF LAW AND HENCE UNTENABLE. 2. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APP EALS) HAS FURTHER ERRED BOTH IN LAW AND ON FACTS IN UPHOLDING THE PRO PORTIONATE ADDITION REPRESENTING ALLEGED UNEXPLAINED EXPENDITURE INCURR ED UNDER SECTION 69C OF THE ACT IN RESPECT OF THE SHARE CAPITAL SUBSCRIBED BY THE TWO SHAREHOLDERS OF RS. 50,00,000/- IN THE INSTANT YEAR. 3. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APP EALS) HAS ALSO ERRED BOTH IN LAW AND ON FACTS IN UPHOLDING AN ADDITION O F RS. 2,00,000/- ON ACCOUNT OF INCOME DECLARED DURING SURVEY AND HELD A N INCOME FROM UNDISCLOSED SOURCES UNDER SECTION 69 OF THE ACT. IT IS THEREFORE PRAYED THAT THE ADDITIONS SUSTAINED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) MAY KINDLY BE DELETED AND APPEAL OF THE APPELLANT COMPANY BE ALLOWED. (B) AT THE TIME OF HEARING, AT THE OUTSET, THE LD. AUT HORIZED REPRESENTATIVE (LD. AR, FOR SHORT) FOR THE ASSESSEE INFORMED US THAT THE AS SESSEE HAS INTENDS TO FILE A DECLARATION UNDER VIVAD SE VISHWAS SCHEME, 2020 (VSVS, FOR SH ORT) THE LD. AR FOR ASSESSEE ALSO DREW OUR ATTENTION TO LETTER DATED 29.12.2020 FILED IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) GIVING INTIMATION FOR THE SAME. AT THE TIME OF HEARING BEFORE US, THE LD. AR FOR ASSESSEE AS WELL AS THE LEARNED SENIOR D EPARTMENTAL REPRESENTATIVE (LD. SR. DR, FOR SHORT) SUBMITTED BEFORE US THAT THIS APPEA L MAY BE TREATED AS WITHDRAWN AND MAY BE DISMISSED ON ACCOUNT OF THE AFORESAID VSVS. AFTER DUE CONSIDERATION, AND IN VIEW OF THE FOREGOING; AND AS BOTH SIDES HAVE AGREED TO THIS; WE TREAT THIS APPEAL AS WITHDRAWN ITA NO.- 6809/DEL/2015. N.K.C. PROJECTS PVT. LTD. PAGE 3 OF 4 ON ACCOUNT OF THE AFORESAID VSVS. ACCORDINGLY, THIS APPEAL IS DISMISSED, SUBJECT TO SETTLEMENT OF THE DISPUTES IN THE APPEAL, UNDER THE AFORESAID VSVS. (B.1) BEFORE WE PART, WE HEREBY CLARIFY, BY WAY OF ABUNDA NT CAUTION, THAT IF THE ASSESSEE DOES NOT EVENTUALLY FILE DECLARATION U NDER VSVS; OR IF THE DISPUTES UNDER THIS APPEAL ARE NOT FULLY SETTLED UNDER VSVS, THEN THE ASSESSEE WILL BE AT LIBERTY TO APPROACH ITAT FOR RESTORATION OF THIS AP PEAL IN ACCORDANCE WITH LAW. (C) IN THE RESULT, THIS APPEAL IS DISMISSED. THIS ORDER HAS BEEN ALREADY PRONOUNCED ON 29 TH DECEMBER, 2020 IN OPEN COURT, IN THE PRESENCE OF REPRESENTATIVES OF BOTH SIDES; A FTER CONCLUSION OF THE HEARING. SD/- SD/- (H.S. SIDHU) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 29/12/2020 (POOJA) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ITA NO.- 6809/DEL/2015. N.K.C. PROJECTS PVT. LTD. PAGE 4 OF 4 ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER