Sarika Malhotra, Delhi V. ITO ward-34(5), New Delhi

ITA 6941/DEL/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4615 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 21-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MANU LUTHRA CA SH ANSHUL KOHLI
• Keywords: Opportunity of being heard
• Section: 44AD; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.694/DEL/2019 ASSESSMENT YEAR: 2011-12 SARIKA MALHOTRA 8333, SHINGLOO BUILDING ROSHANARA ROAD, NEW DELHI-110007 PAN NO. AKUPM6303L VS ITO WARD- 34 (5) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SH. MANU LUTHRA, CA SH. ANSHUL KOHLI, CA RESPONDENT BY SH. VIPUL KASHYAP, SR. DR. DATE OF HEARING: 30/09/2021 DATE OF PRONOUNCEMENT: 30/09/2021 ORDER PER N. K. BILLAIYA, AM: 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE CIT(A)-12, NEW DELHI DATED 18.06.2021 PERTAINING TO A.Y. 2011-12. 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE AS SESSEE IS THAT THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF 2 RS.1057065/- MADE BY THE AO ON ACCOUNT OF DEPOSIT O F CASH IN THE SAVINGS BANK ACCOUNT WITH PUNJAB NATIONAL BA NK. 3. BRIEFLY STATED THAT THE FACTS OF THE CASE ARE TH AT THE AO WAS SEIZED WITH THE INFORMATION OF CASH DEPOSIT OF RS.1057067/- IN THE SAVINGS BANK ACCOUNT WITH PUNJA B NATIONAL BANK. SINCE NO RETURN WAS FOUND TO BE FIL ED BY THE ASSESSEE, THE AO ISSUED NOTICE U/S. 148 OF THE ACT. REQUIRING THE ASSESSEE TO FURNISH THE RETURN OF INCOME. ASSE SSEE FILED HER RETURN OF INCOME UNDER PRESUMPTIVE SCHEME OF TA XATION U/S. 44AD OF THE ACT. THE AO ALLOWED OPPORTUNITIES TO THE ASSESSEE TO EXPLAIN THE SOURCE OF CASH DEPOSIT AND ON RECEIVING NO PLAUSIBLE REPLY THE AO COMPLETED THE A SSESSMENT BY MAKING ADDITION OF RS.1057065/-. 4. ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A) A ND EXPLAINED THAT THE ASSESSEE IS RUNNING SMALL HANDLO OM AND TEXTILE BUSINESS FROM WHICH THE ASSESSEE MADE A TOT AL TURNOVER OF RS.14,55,550/- DURING THE YEAR UNDER CONSIDERATION AND HAS RETURNED PROFIT OF 12% ON THE SAME WHICH IS MUCH HIGHER THAN THE PRESUMPTIVE RATE OF T AX U/S. 44 AD OF THE ACT. IT WAS EXPLAINED THAT THE CASH D EPOSIT OF RS.1057065/- HAS COME OUT OF THE TOTAL TURNOVER OF RS.1455550/-. THE CIT(A) CONFIRMED THE ADDITION BY STATING 3 THAT THE ASSESSEE DID NOT FILE ANY REPLY DURING THE ASSESSMENT PROCEEDINGS. 5. I AM OF THE CONSIDERED VIEW THAT THE ASSESSEE SH OULD GET ONE MORE OPPORTUNITY TO SUBSTANTIATE HER CLAIM THAT SHE IS RUNNING HANDLOOM AND TEXTILE BUSINESS FROM WHICH SH E HAD A TURNOVER OF RS.14 LACS DURING THE YEAR UNDER CONSID ERATION WHICH IS THE SOURCE OF THE CASH DEPOSIT OF RS.10 LA CS. 6. I, THEREFORE, RESTORE THIS ISSUE TO THE FILES OF THE AO. THE ASSESSEE IS DIRECTED TO FURNISH NECESSARY EVIDENCES IN SUPPORT OF HER CLAIM OF BUSINESS AND THE SOURCE OF CASH DEPOSIT THERE ON. 7. THE AO IS DIRECTED TO VERIFY THE SAME AND DECIDE THE ISSUE AFRESH AFTER GIVING A REASONABLE AND SUFFICIE NT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 4 9. DECISION ANNOUNCED IN THE OPEN COURT IN THE PRESENC E OF BOTH THE REPRESENTATIVES ON 30.09.2021. SD/- (N. K. BILLAIYA) ACCOUNTANT MEMBER *NEHA* DATE:- 30.09.2021 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI 5 DATE OF DICTATION 30 .09.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 30 .09.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 30 .09.2021 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 30 .09.2021 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 30 .09.2021 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 30 .09.2021 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 30 .09.2021 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 30 .09.2021 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER