ACIT, New Delhi V. M/s. AJB Developers Pvt. Ltd., New Delhi

ITA 70/DEL/2012

• Counselvise Citation: 7020114 RSA 2012
• Duration Of Justice: 2 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-01-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 05-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RENU JAUHRI
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR, ,, , JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO. .. .70/DEL/2012 70/DEL/2012 70/DEL/2012 70/DEL/2012 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2005 2005 2005 2005- -- -06 0606 06 ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -22, 22, 22, 22, NEW NEW NEW NEW DELHI. DELHI. DELHI. DELHI. VS. VS. VS. VS. M/S AJB DEVELOPERS PVT.LTD., M/S AJB DEVELOPERS PVT.LTD., M/S AJB DEVELOPERS PVT.LTD., M/S AJB DEVELOPERS PVT.LTD., 201, VIPPS CENTRE, 201, VIPPS CENTRE, 201, VIPPS CENTRE, 201, VIPPS CENTRE, 2 COMMUNITY COMPLEX, 2 COMMUNITY COMPLEX, 2 COMMUNITY COMPLEX, 2 COMMUNITY COMPLEX, MASJID MOTH, G.K. MASJID MOTH, G.K. MASJID MOTH, G.K. MASJID MOTH, G.K.- -- -II, II,II, II, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 048. 110 048. 110 048. 110 048. PAN : AAFCA1721Q. PAN : AAFCA1721Q. PAN : AAFCA1721Q. PAN : AAFCA1721Q. (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. RENU JAUHRI, CIT-DR. RESPONDENT BY : SHRI SALIL KAPOOR AND SHRI SANAT KAPOOR, ADVOCATES. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VP VPVP VP : : : : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE O RDER OF LEARNED CIT(A)-III, NEW DELHI DATED 25 TH OCTOBER, 2011 FOR THE AY 2005- 06. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.21,00,000/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNCONFIRMED LOAN TREATING IT AS UNEXPL AINED CREDITS. 2. THE ORDER OF THE LD.CIT(A) IS ERRONEOUS AND IS NOT TENABLE ON FACTS AND IN LAW. 3. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERI AL PLACED BEFORE US. WE FIND THAT BEFORE THE ASSESSING OFFICER, T HE ASSESSEE ITA-70/DEL/2012 2 CHALLENGED THE APPLICABILITY OF SECTION 153C IN THE CASE OF THE ASSESSEE AND HAS ALSO CHALLENGED THE ADDITION OF ` 21 LAKHS MADE UNDER SECTION 68 OF THE INCOME-TAX ACT, 1961. WITH REGARD TO SEC TION 153C, THE LEARNED CIT(A) DISCUSSED THE ISSUE AT LENGTH AND AT PAGE 13 PARAGRAPH 5 CONCLUDED AS UNDER:- AS ALREADY DISCUSSED ABOVE, IN THE FACTS OF THE PRESENT CASE THE RECORDINGS MADE BY THE AO IN MY VIEW ARE NOT PRIMA FACIE RELEVANT FOR ISSUANCE OF NOTICE U/S 153C A ND THEREFORE FOR THIS REASON ITSELF THE PRESENT ASSESSMENT ORDER IS NOT SUSTAINABLE IN LAW. 4. THEREFORE, THE LEARNED CIT(A) HAS HELD THAT THE A SSESSMENT ORDER IS NOT SUSTAINABLE IN LAW. THEREAFTER, AT PAGE 14, ON MERITS ALSO, HE DELETED THE ADDITION OF ` 21 LAKHS MADE UNDER SECTION 68. THAT THE REVENUE HAS FILED THE APPEAL AGAINST THE ORDER OF LEA RNED CIT(A) BUT HAS NOT CHALLENGED THE FINDING OF THE LEARNED CIT(A) WITH REGARD TO VALIDITY OF THE ASSESSMENT ORDER. AS PER THE FINDING OF THE CIT(A) WITH REFERENCE TO SECTION 153C, THE ASSESSMENT ORDER IS HELD TO BE NOT SUSTAINABLE IN LAW AND WHICH FINDING IS ACCEPTED BY TH E REVENUE. ONCE THE ASSESSMENT ORDER ITSELF IS NOT SUSTAINABLE, ANY ADDITI ON MADE THEREIN ALSO DOES NOT SURVIVE. THEREFORE, THIS APPEAL OF THE REVENUE HAS NO MERIT. THE SAME IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . DECISION PRONOUNCED IN THE OPEN COURT ON 10 TH JANUARY, 2014. SD/- SD/- ( (( (I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 10.01.2014 VK. ITA-70/DEL/2012 3 COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT COMMISSIONER OF INCOME ASSISTANT COMMISSIONER OF INCOME ASSISTANT COMMISSIONER OF INCOME ASSISTANT COMMISSIONER OF INCOME TAX, TAX, TAX, TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -22, NEW DELHI. 22, NEW DELHI. 22, NEW DELHI. 22, NEW DELHI. 2. RESPONDENT : M/S AJB DEVELOPERS PVT.LTD., M/S AJB DEVELOPERS PVT.LTD., M/S AJB DEVELOPERS PVT.LTD., M/S AJB DEVELOPERS PVT.LTD., 201, VIPPS CENTRE, 2 COMMUNITY COMPLEX, 201, VIPPS CENTRE, 2 COMMUNITY COMPLEX, 201, VIPPS CENTRE, 2 COMMUNITY COMPLEX, 201, VIPPS CENTRE, 2 COMMUNITY COMPLEX, MASJID MOTH, G.K. MASJID MOTH, G.K. MASJID MOTH, G.K. MASJID MOTH, G.K.- -- -II, NEW DELHI II, NEW DELHI II, NEW DELHI II, NEW DELHI 110 048. 110 048. 110 048. 110 048. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR