Mr. Thomas Kanpathil Antony, Gurgaon V. ITO, Rewari

ITA 818/DEL/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6485 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-03-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 16-02-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BEDOBINA CHAUDHARI
• Keywords: Business income
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

ITA NO. 818 /DEL./201 6 ASSESSMENT Y EAR: 2010 - 11 PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH SM C NEW DELHI) BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMB E R ITA NO. 8 18 /DEL./201 6 ASSESSMENT YEAR: 20 10 - 11 THOMAS KANPATHIL ANTONY J - 67, 1 ST FLOOR, MAYFILED GARDEN, SECTOR - 51, GURGAON VS. ITO WARD - 2 , MODEL TOWN, REWARI (APPLICANT) (RESPONDENT) (PAN: A BVPA5754F) ASSESSEE BY: SH. SANJEEV JAIN, CA REVENUE BY: MS. BEDOBINA CHAUDHARI, SR. DR DATE OF HEARING 0 7 / 0 3 /201 7 DATE OF PRONOUNCEMENT 0 9 / 0 3 /201 7 ORDER PER B.P. JAIN , ACCOUNTANT MEMBER : 1. THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF LD. CIT(A) - 2 , GURGAON VIDE ORDER DATED 2 . 12 .201 5 FOR THE A.Y. 20 10 - 11 . THE ASSESSEE HAS RAISED MANY GROUNDS OF APPEAL BUT IN PARTICULAR ON TWO ISSUES REGARDING THE ADDITION OF RS. 16,38,000/ - AND DISALLOWANCE OF DEDUCTION U/S 10(13A). AS REGARDS THE FIRST ADDITION THE BRIEF FACTS OF THE CASE ARE AS PER ORDER OF THE LD. CIT (A) IN PARA 3.1 AS UNDER: - PAGE 2 OF 5 3.1. BRIEF FACTS ARE THAT RETURN DECLARING INCOME OF RS. 9,52,972/ - WAS FILED ON 23/07/2010. AO NOTED THAT APPELLANT HAD DEPOSITED CASH AMOUNTING TO RS. 16,38,000/ - IN HIS TWO BANK ACCOUNTS DURING THE YEAR. THE AO ASKED THE APPELLANT TO FURNISH EXPLANA TION WITH EVIDENCE REGARDING THE SOURCES OF CASH DEPOSITS. THE APPELLANT SUBMITTED THAT DURING THE YEAR HE WAS A SALARIED EMPLOYEE OF M/S HERO HONDA MOTORS LTD. AND ALSO DOING BUSINESS OF SPICE, CARDAMOM, CASHEWNUTS AND HERBAL OIL & TEA DURING THE YEAR AND THE DEPOSITS WERE MADE OUT OF SALE PROCEEDS OF BUSINESS. I HE APPELLANT HOWEVER FAILED TO FILE ANY DOCUMENTARY EVIDENCE IN SUPPORT OF HIS CLAIM. THE ASSESSING OFFICER ASKED THE APPELLANT TO FURNISH THE FOLLOWING DETAILS: - A . PLEASE FURNISH THE PURCHASE BILL /SALE BILL MADE DURING THE FY 2009 - 10 B . PLEASE FURNISH THE COMPLETE NAMES AND ADDRESSES FROM WHOM PURCHASES HAVE BEEN MADE ALONG WITH THEIR DETAILS LIKE PAN, COPY OF ITR, FIRM UNDER WHICH NAME & STYLE BUSINESS WERE DONE, THEIR SALE TAX RETURNS, TIN NO. AND MODE OF PAYMENT ETC. C . PLEASE FURNISH THE COMPLETE NAMES AND ADDRESS TO WHOM SALES WERE MADE DURING THE YEAR UNDER CONSIDERATION. D . PLEASE FURNISH YOUR SALE TAX RETURN ALONG WITH DEPOSIT VOUCHER OF SALES TAX AND YOUR TIN NO. E . YOU HAVE FILED YOUR RETURN OF INCOME IN ITR - 1 FOR THE YEAR UNDER CONSIDERATION AND NOT FILED IN ITR - 4 NOR DECLARED THESE BUSINESS RECEIPTS IN THAT. PLEASE FURNISH YOUR COPY OF RETURN FOR AY 200 - 10 AND 2011 - 12 TO VERIFY WHETHER SUCH RECEIPTS HAVE BEEN DECL ARED BY YOU OR NOT. 3.2. THE APPELLANT SUBMITTED THAT COPY OF PURCHASE BILLS WERE NOT IN HIS POSSESSIONS SINCE WHOLE OF T HE PURCHASE S WERE MADE FROM KERALA THROUGH EMAIL OR TELEPHONIEAI LY. REGARDING THE SALE TAX PAGE 3 OF 5 RETURNS AND TIN NUMBERS OF THE SELLERS THE APPELLANT SUBMITTED THAT THE SELLERS WERE INDIVIDUAL AGRICULTURISTS AND WERE EXEMPTED FROM MAINTAINING SALE TAX REGISTRATIONS AND TIN NUMBERS. REGARDING HIS OWN SALE TAX AND TIN NUMBER, THE APPELLANT SUBMITTED THAT HE WAS NOT REGISTERED WITH THE SALE TAX DEPARTMENT. THE AO FURTHER POINTED OUT THAT NO INCOME FROM BUSINESS HAD BEEN SHOWN BY THE APPELLANT IN HIS RETURN OF INCOME. THE AO FURTHER POINTED OUT THAT THE APPELLANT HAD NOT DECLARED ANY SUCH INCOME IN THE EARLIER YEARS BUT THERE WERE SIMILAR CASH DEPOSITS IN THE EARLIER YEAR AND AFTER YEARS ALSO. THE AO ACCORDINGLY HELD THAT THE APPELLANT HAD FAILED TO DISCHARGE HIS ONUS REGARDING SOURCE OF CASH DEPOSITS IN THE BANK ACCOUNT AND ADDED THE AMOUNT OF RS. 16,38.000/ - TO THE TOTAL INCOME OF THE APPELLA NT. 2. THE LD. CIT(A) CONFIRMED THE ADDITION OF THE ASSESSING OFFICER. 3. I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSE D THE FACTS OF THE CASE. THERE IS NO DISPUTE TO THE FACT THAT THE ASSESSEE HAS MADE THE PURCHASES FROM DIFFERENT PARTIES I.E. 4 PARTIES FOR WHICH DETAILS AVAILABLE IN THE ORDER OF LD. CIT(A) PAGE NO. 7 AND 8 . T HE ASSESSEE HAS SUBMITTED THAT THE INCOME TAX PARTICULARS AND COMPLETE ADDRESSES OF THE SAID PARTIES FROM WHOM THE PURCHASE WERE MADE AND THE PAYMENT HAVE BEEN MADE THROUGH ACCOUNT PAYEE CHEQUE. ONCE THERE IS NO QUESTION ON THE PURCHASES, THEN THE ASSESSING OFFICER IS NOT JUSTIFIED IN QUESTIONING THE PAGE 4 OF 5 SALES MADE TO THE EMPLOY EES WHO ARE COLLEAGUES OF THE ASSESSEE AND ACCORDINGLY NO ADDITION IS CALLED FOR. THUS ADDITION SO MADE IS DIRECTED TO BE DELETED. 4. AS REGARDS THE RENT PAID BY THE ASSESSEE THE ASSESSEE HAS MADE PAYMENT OF RENT TO THE WIFE , FOR WHICH THE NECESSARY RECEI PTS AND DOCUMENTARY EVIDENCES WERE PLACED ON RECORD . T HEREFORE THE ASSESSEE HAS DISCHARGED HIS ONUS BY PROVING THE RENT PAYMENT AND THEREFORE ERE CANNOT BE ANY DISALLOWANCE OF ANY RENT PAYMENT IN THE HOUSE RENT ALLOWANCE AND ANY DIS ALLOWANCE SO MADE IS DIR ECTED TO BE DELETED . A LL THE GROUNDS OF THE ASSESSEE ARE ALLOWED AND THE APPEAL OF THE ASSESSEE IS ALLOWED. 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. 6 . P RONOUNCED IN THE OPEN COURT ON . 0 3 .201 7. S D / - ( B.P. JAIN ) ACCOUNTANT MEMB E R DATED: 0 9 . 0 3 .2017 NARENDER COPY FORWARDED TO: PAGE 5 OF 5 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT (APPEALS) 5) DR: ITAT ASSISTANT REGISTRAR DATE DRAFT DICTATED ON 7 .0 3 .2017 DRAFT PLACED BEFORE AUTHOR 8 .0 3 .2017 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS 9 .3.2017 KEPT FOR PRONOUNCEMENT ON FILE SENT TO THE BENCH CLERK 9 .3.2017 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.