Gyanendra Tyagi, New Delhi V. DCIT, Central Circle, Noida

ITA 7769/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0955 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 27-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Principle of natural justice
• Section: 132; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C: NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE, SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER I.T.A NO.7769/DEL/2017 (ASSESSMENT YEAR 2012-13) SHRI GYANENDRA TYAGI H.NO.101, STREET NO.3, NEW BASELVA COLONY, OLD FARIDABAD, TEHSIL & DISTT., FARIDABAD PANADUPT 6282C VS. DY.CIT, CENTRAL CIRCLE, NOIDA (APPELLANT) (RESPONDENT) APPELLANT BY SH. SOMIL AGARWAL, CA RESPONDENT BY MS. SUNITA SINGH, CIT- DR DATE OF HEARING 07.07.2021 DATE OF PRONOUNCEMENT 07.07.2021 ORDER PER SUDHANSHU SRIVASTAVA, JM: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST OR DER DATED 21.11.2017 PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-IV, KANPUR {CIT(A)} FOR ASSESSMENT YE AR 2012-13. 2 ITA NO.7769/DEL/2017 GYAN ENDRA TYAGI VS . DCIT 2.0 THE BRIEF FACTS OF THE CASE ARE THAT A SEARC H AND SEIZURE OPERATION U/S 132 OF THE INCOME TAX ACT, 1961 (HERE INAFTER CALLED THE ACT) WAS CONDUCTED ON 15.10.2013 ON THE PREMI SES OF THE ASSESSEE COMPRISING DKRRISH GROUP OF CASES. DURING THE COURSE OF SEARCH & SEIZURE OPERATION, CERTAIN INCRIMINATING D OCUMENTS WERE FOUND AND SEIZED. ACCORDING TO THESE DOCUMENTS, THE ASSESSEE HAD PURCHASED FOUR PROPERTIES WHICH ARE AS UNDER: PAGE NO. ANNEXURE DATE OF PURCHASE AMOUNT OF PURCHASE SHARE OF THE ASSESSEE IN THE PURCHASE PAGE NO.75 TO 79 LP - 7 15/03/2012 1304000 1304000 PAGE NO.54 TO 60 LP - 7 27/02/2012 3500000 700000 PAGE NO.28 TO 34 LP - 7 27/02/2012 3500000 700000 PAGE NO.61 TO 67 LP - 24 27/02/2012 3500000 700000 TOTAL PAYMENT MADE BY THE ASSESSEE 3404000 2.1 AS PER THE ASSESSING OFFICER (AO), THE I NVESTMENT MADE BY THE ASSESSEE IN THESE PROPERTIES AMOUNTED TO RS.27, 04,000/-. THE ASSESSEE WAS ASKED TO PROVIDE THE DETAILS OF SOURCE S OF THESE INVESTMENTS ALONG WITH THE DOCUMENTARY EVIDENCES OF THESE 3 ITA NO.7769/DEL/2017 GYAN ENDRA TYAGI VS . DCIT INVESTMENTS BUT SINCE THE ASSESSEE FAILED TO PROVID E THE REQUIRED DETAILS, ADDITION OF RS.27,04,000/- WAS MADE U/S 69 OF THE ACT TO THE INCOME OF THE ASSESSEE AND THE ASSESSMENT WAS CO MPLETED AT AN INCOME OF RS.30,61,390/- U/S 143(3)/153C OF THE ACT . 2.2 THE ASSESSEES APPEAL BEFORE THE LD. CIT(A) WAS PARTLY ALLOWED WHEREIN THE LD. CIT(A) GAVE A RELIEF OF RS.1 3,04,000/- TO THE ASSESSEE. THUS, THE LD. CIT(A) SUSTAINED AN ADDITIO N OF RS.14,00,000/-. WHILE PASSING THE IMPUGNED ORDER, T HE LD. CIT(A) GAVE A CATEGORICAL FINDING THAT THE ADDITION MADE B Y THE ASSESSING OFFICER WAS SUSTAINABLE U/S 56(2)(VII)(B)(I) OF THE ACT TO THE EXTENT OF RS.14,00,000/-. 2.3 AGGRIEVED, THE ASSESSEE HAS NOW APPROACHED THIS TRIBUNAL AND HAS CHALLENGED THE ACTION OF THE LD. C IT(A) BY RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. THAT HAVING REGARD TO THE FACTS AND CIRCUMS TANCES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN S USTAINING THE ACTION OF LD. AO IN MAKING ADDITION OF RS.14,00,000 /- AND THAT TOO U/S 56(2)(VII)(B)(I) AND HAS FURTHER ERRED IN D IRECTING THE ASSESSING OFFICER TO COMPUTE THE ADDITION UNDER THE SAID SECTION 4 ITA NO.7769/DEL/2017 GYAN ENDRA TYAGI VS . DCIT AND THAT TOO BY RECORDING INCORRECT FACTS AND FINDI NGS AND IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 2. THAT IN ANY CASE AND IN ANY VIEW OF THE MATT ER, ACTION OF LD. CIT(A) IN SUSTAINING THE ACTION OF LD. AO IN MA KING ADDITION OF RS.14,00,000/- AND THAT TOO U/S 56(2)(VII)(B)(I) , IS BAD IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE . 3. THAT HAVING REGARD TO THE FACTS AND CIRCU MSTANCES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN C ONFIRMING THE ACTION OF LD. AO IN CHARGING INTEREST U/S 234A, 234 B, 234C AND 234D OF INCOME TAX ACT, 1961. 4. THAT THE APPELLANT CRAVES THE LEAVE TO ADD, MODIFY, AMEND OR DELETE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING AND ALL THE ABOVE GROUNDS ARE WITHOUT PREJUDICE TO EACH OTHER. 3.0 AT THE OUTSET, THE LD. AUTHORIZED REPRESENTATI VE (AR) SUBMITTED THAT THE ASSESSING OFFICER HAD MADE THE A DDITION U/S 69 OF THE ACT AS BEING UNEXPLAINED INVESTMENT WHEREAS T HE LD. CIT(A), WHILE PARTLY ALLOWING THE ASSESSEES APPEAL HAD OBSER VED THAT THE ADDITION WAS TO BE SUSTAINED TO THE EXTENT OF RS.14 ,00,000/- U/S 56(2)(VII)(B)(I) OF THE ACT. HE DREW OUR ATTENTION TO PAGE-6 OF THE FIRST APPELLATE ORDER AND SUBMITTED THAT THE LD. CIT(A) H AS INVOKED THE 5 ITA NO.7769/DEL/2017 GYAN ENDRA TYAGI VS . DCIT PROVISIONS OF SECTION 56(2)(VII)(B)(I) OF THE ACT WI THOUT GIVING THE ASSESSEE ANY SHOW CAUSE NOTICE IN THIS REGARD AND, T HEREFORE, THE PRINCIPLE OF NATURAL JUSTICE WAS NOT FOLLOWED. THE A UTHORIZED REPRESENTATIVE PRAYED THAT THE ISSUE SHOULD BE REST ORED TO THE FILE OF THE ASSESSING OFFICER FOR BEING EXAMINED AFRESH. 4.0 PER CONTRA, THE LD. CIT-DR HAD NO OBJECTION IF THE MATTER WAS BEING RESTORED FOR FRESH EXAMINATION. 5.0 HAVING HEARD BOTH THE PARTIES AND HAVING GONE THROUGH THE IMPUGNED ORDER, WE DO FIND FORCE IN THE SUBMISS ION OF THE LD. AUTHORIZED REPRESENTATIVE THAT THE LD. CIT(A) HAS I NVOKED PROVISIONS OF SECTION 56(2)(VII)(B)(I) OF THE ACT WI THOUT GIVING THE ASSESSEE AN OPPORTUNITY OF HEARING IN THIS REGARD WH EREAS THE INITIAL ADDITION HAD BEEN MADE U/S 69 OF THE ACT. THEREFORE , IN THE INTEREST OF SUBSTANTIAL JUSTICE, WE RESTORE THIS ISSUE TO TH E FILE OF THE ASSESSING OFFICER FOR BEING EXAMINED AFRESH AFTER G IVING PROPER OPPORTUNITY TO THE ASSESSEE TO PRESENT ITS CASE. 6 ITA NO.7769/DEL/2017 GYAN ENDRA TYAGI VS . DCIT 6.0 IN THE FINAL RESULT, THE APPEAL OF THE ASSESSE E STANDS ALLOWED FOR STATISTICAL PURPOSES. ABOVE DECISION WAS ANNOUNCED ON CONCLUSION O F VIRTUAL HEARING ON 7 TH JULY, 2021 SD/- SD/- (ANIL CHATURVEDI) (SUDHANSHU SRIVASTAVA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 07/07/2021 PK/PS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT DEHRADUN