Mrs. Lalita Kautiyal, Uttrakhand V. ITO, Uttrakhand

ITA 695/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7093 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 14-06-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 07-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YOGESH KUMR SHARMA
• Assessee Lawyers: VAIBHAV VISHAAL
• Keywords: Unexplained expenditure; Opportunity of being heard; Corroborative evidences; Reassessment proceedings
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH D NEW DELHI BEFORE : SHRI C.M. GARG , JUDICIAL MEMBER & SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 695/DEL./2014 ASSTT. YEAR : 2009 - 10 LALITA KAUTIYAL, VS. INCOME - TAX OFFICER, W/O SRI UPPER SINGH KAUTIYAL, PITHORAGARH. DHARCHULA, PITHORAGARH. [PAN: AHQPK 5720 N] (APPELLANT) (RESPONDENT) APPELLANT BY : SH. VAIBHAV VISHAAL, C.A. RESPONDENT BY : SH. YOGESH KUMR SHARMA, SR. DR DATE OF HE ARING : 14.06.2016 DATE OF PRONOUNCEMENT : 30 .06.2016 ORDER PER L.P. SAHU, ACCOUNTANT MEMBER: THIS APPEAL IS DIRECTED BY ASSESSEE AGAINST THE ORDER OF LD. CIT, HALDWANI DATED 26.08.2013 PASSED U/S. 263 OF THE INCOME - TAX ACT ( THE ACT ) FOR THE ASSESSMENT YEAR 2009 - 19, WHEREBY THE LD.CIT DIRECTED THE ASSESSING OFFICER TO ISSUE THE NOTICE OF DEMAND A ND CHALLAN AFTER CONSIDERING THE CREDIT ENTRIES OF RS.8,00,000/ - & RS.6,47,500/ - IN THE BANK ACCOUNT OF ASSESSEE AS UNEXPLAINED AND ALSO RS.2,06,000/ - AS UNEXPLAINED EXPENDITURE INCURRED TOWARDS PURCHASE OF IMMOVABLE PROPERTY. BY WAY OF VARIOUS GROUNDS OF APPEAL, THE ASSESSEE HAS CHALLENGED THE ABOVE THREE ADDITIONS MADE BY LD. CIT ITA NO. 695/DEL./2014 2 VIDE IMPUGNED ORDER, CONSIDERING THE ASSESSMENT ORDER AS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE. 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSMENT ORDER OF THE A SSESSEE WAS MADE ON 28.12.2011 U/S. 147/143(3) OF THE ACT . THE REASSESSMENT PROCEEDINGS WERE INITIATED ON THE INFORMATION THAT THE ASSESSEE HAD INVESTED RS.32,00000/ - IN PURCHASE OF PROPERTY. THE EXPLANATION OF THE ASSESSEE AS TO THE SOURCE OF THIS INVESTM ENT, INASMUCH AS, RS.24,00,000/ - INVESTED OUT OF LOAN TAKEN FROM UTTARANCHAL GRAMIN BANK DHARCHULA AND REMAINING RS.8,00,000/ - OUT OF PAST SAVINGS, WAS ACCEPTED BY AO AS BOTH THESE INVESTMENTS WERE FOUND SUPPORTED FROM BANK STATEMENTS. SUBSEQUENTLY, THE LD . CIT ISSUED NOTICE U/S. 263 TO THE ASSESSEE, AS IT REVEALED FROM THE RECORD THAT THE AO HAS NOT EXAMINED THE SOURCE OF RS.6,47,500/ - & RS.8,00,000/ - DEPOSITED IN BANK ACCOUNT ON 29.07.2008 AND ON 13.01.2009 RESPECTIVELY AND ALSO FAILED TO EXAMINE THE SOUR CE OF RS.2,06,000/ - INCURRED TOWARDS STAMP DUTY AND OTHER EXPENSES IN THE PURCHASE OF IMMOVABLE PROPERTY. SINCE, THE ASSESSEE DID NOT APPEAR IN PROCEEDINGS U/S. 263, THE LD. CIT PROPOSED TO MAKE THE ABOVE ADDITIONS AND DIRECTED THE AO ACCORDINGLY VIDE IMPU GNED ORDER. AGGRIEVED BY THE ORDER OF LD. CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. ITA NO. 695/DEL./2014 3 3. WE HAVE HEARD THE SUBMISSIONS OF BOTH THE PARTIES AND HAVE PERUSED THE ENTIRE MATERIAL AVAILABLE ON RECORD. AS REGARDS THE CREDIT ENTRY OF RS.8,00,000/ - I N THE BANK ACCOUNT, IT IS SUBMITTED ON BEHALF OF THE ASSESSEE THAT THIS AMOUNT REPRESENTS THE SALE CONSIDERATION OF PASHMINA RAW WOOL TO ONE MR. KARMA NAMGYAL WORTH RS.8,00,000/ - , PAYMENT OF WHICH WAS MADE BY THE PURCHASER THROUGH A/C PAYEE CHEQUE, WHICH W AS DEPOSITED IN BANK ACCOUNT. THE ASSESSEE HAS SUBMITTED COPY OF SALE BILL, BANK STATEMENT AND A CONFIRMATORY LETTER FROM THE SAID PURCHASER BEFORE US. SIMILARLY, AS TO THE SECOND CREDIT ENTRY OF RS.6,47,500/ - , IT WAS SUBMITTED ON BEHALF OF THE ASSESSEE TH AT THIS AMOUNT WAS THE MATURITY PROCEEDS OF LIC FOR RS.6,97,500/ - . H OWEVER, THE CHEQUE WAS RECEIVED AFTER ADJUSTING THE PREMIUM DUE & PAYABLE FOR RS.50,000/ - . THIS FACT HAS BEEN CONFIRMED BY LIC DIDIHAT VIDE THEIR LETTER DATED 26.06.2015, COPY OF WHICH IS PLACED BEFORE US. AS REGARDS THE EXPENSES OF RS.2,06,000/ - INCURRED, IT WAS SUBMITTED THAT THIS REPRESENTS THE COST OF STAMP DUTY PAID. THE STAMP DUTY WAS PAID IN CASH OUT OF ASSESSEE S OWN SOURCES/SAVINGS AS THE ASSESSEE IS AN OLD ASSESSEE AND HAS BEEN FI LING THE RETURNS SINCE 1999 - 2000. COPY OF RETURNS FOR THREE YEARS I.E., A.Y. 2009 - 10, 2008 - 09 AND 2007 - 08 HAVE BEEN PLACED BEFORE US. THE LD. DR COULD NOT REBUT THE CONTENTIONS OF THE ASSESSEE RAISED AS ABOVE. HOWEVER, THE EXPLANATION OF THE ASSESSEE AS TO THE SOURCE OF CREDIT ENTRIES ETC. AND THE DOCUMENTARY EVIDENCE FILED BEFORE US REQUIRE VERIFICATION AND CHECKING AT THE STAGE OF ITA NO. 695/DEL./2014 4 ASSESSING OFFICER, AS THESE CONTENTIONS AND SUPPORTING EVIDENCES WERE NOT ADDUCED BEFORE THE LD. CIT BY ASSESSEE WHO DID NOT A PPEAR IN PROCEEDINGS BEFORE HIM. WE, THEREFORE, DEEM IT JUST AND PROPER TO RESTORE THE MATTER TO THE FILE OF AO TO ENQUIRE INTO THE ABOVE CONTENTIONS RAISED BY THE ASSESSEE AND TO VERIFY THE DOCUMENTARY EVIDENCE SUBMITTED BEFORE US. IN CASE, THE SAME ARE F OUND CORRECT AND CREDIBLE, THE AO SHALL DECIDE THE MATTER IN ACCORDANCE WITH LAW BY WAY OF SPEAKING ORDER AS TO THE SOURCE OF CREDIT ENTRIES ETC. NEEDLESS TO SAY, THE ASSESSEE SHALL BE GIVEN REASONABLE OPPORTUNITY OF BEING HEARD. ACCORDINGLY, THE APPEAL O F THE ASSESSEE DESERVES TO BE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30.06.2016 . SD/ - SD/ - ( C.M. GARG ) (L.P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 30.06.2016 *AKS/ - COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT. R EGISTRAR INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES, NEW DELHI