Krishna Nandan, New Delhi V. ITO WARD - 43(4), New Delhi

ITA 8330/DEL/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1890 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2016-2017
• Appeal Filed On: 21-10-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SOHAIL MALIK
• Assessee Lawyers: ANUPAM
• Section: 68; 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.8330/DEL/2019 ASSESSMENT YEAR: 2016-17 KRISHNA NANDAN C-74, AIR INDIA EMPLOYEES, CGHS PLOT NO.9, SECTOR-3, NEW DELHI PAN NO.ACHPN3910F VS ITO WARD 43 (4) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY MS. ANUPAM, ADVOCATE RESPONDENT BY SH. SOHAIL MALIK, SR. DR DATE OF HEARING: 30/06/2021 DATE OF PRONOUNCEMENT: 30/06/2021 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE CIT(A)-15, DELHI DATED 23.08.2019 PERTAINING TO A.Y. 2016-17. 2. THE GRIEVANCE OF THE ASSESSEE READS AS UNDER :- 2 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE FILED HIS RETURN OF INCOME ON 01.08.2016 DECLARING INCOME AT RS.1063720/-. THE RETURN WAS SELECTED FOR SCRUTINY ASSESSMENT AND ACCORDINGLY STATUTORY NOTICES WERE ISSUED AND S ERVED UPON THE ASSESSEE. 3 4. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PRO CEEDINGS THE AO NOTICED THAT THE ASSESSEE HAS DEPOSITED CASH OF RS.14.21 LACS IN KOTAK MAHINDRA BANK AND HAS ALSO MADE THE C REDIT CARD PAYMENT OF RS.3,38,210/-. THE AO FURTHER NOTICED TH AT THE ASSESSEE HAS PURCHASED A PROPERTY OF RS. 41 LACS. 5. THE AO ISSUED A SHOW CAUSE NOTICE AND ASKED THE ASSESSEE TO EXPLAIN THE SOURCE OF INVESTMENT IN THE PROPERTY , CREDIT CARD PAYMENT AND CASH DEPOSITED IN THE BANK. 6. ON RECEIVING NO PLAUSIBLE REPLY THE AO MADE THE IMPUGNED ADDITIONS. 7. ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A) AN D EXPLAINED THAT THE PROPERTY WAS PURCHASED BY M/S. NAGARKA PRO PERTY AND FINANCE PRIVATE LIMITED ON WHICH THE PAN OF THE ASS ESSEE WAS USED. IN SO FAR AS THE CASH DEPOSITED IN THE BANK AND CREDIT CARD PAYMENT IS CONCERNED THE ASSESSEE FURNISHED THE COP IES OF THE BANK STATEMENTS BEFORE THE CIT(A). 8. NONE OF THE EXPLANATION FOUND MERIT WITH THE CIT (A) WHO CONFIRMED THE ASSESSMENT. 9. BEFORE US THE COUNSEL FOR THE ASSESSEE REITERATE D WHAT HAS BEEN STATED BEFORE THE LOWER AUTHORITIES AND THE DR RELIED UPON THE FINDINGS OF THE AO/CIT(A). 4 10. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AUTHORITIES BELOW. WE HAVE ALSO GONE THROUGH THE RELEVANT DOCUM ENTARY EVIDENCES BROUGHT ON RECORD BEFORE US. 11. WE FIND THAT THE IMPUGNED PROPERTY WAS PURCHASE D BY M/S. NAGARKA PROPERTY AND FINANCE PRIVATE LIMITED THROUG H DIRECTOR BRIGADIER KRISHNA NANDAN. SINCE THE PROPERTY WAS P URCHASED IN THE NAME OF A LEGAL PERSON, THE PAN NUMBER OF NATUR AL PERSON HAS BEEN MENTIONED. IT CAN BE SEEN FROM THE PURCHA SED DEED THAT IT HAS BEEN SPECIFICALLY MENTIONED THAT THE PR OPERTY HAS BEEN PURCHASED BY M/S. NAGARKA PROPERTY AND FINANCE PRIV ATE LIMITED THROUGH DIRECTOR/ BRIGADIER KRISHNA NANDAN. IN OUR CONSIDERED OPINION SINCE THE ASSESSEE HAS NOT PURCHASED ANY PR OPERTY IN HIS OWN NAME WE DO NOT FIND ANY MERIT IN THE ADDITION M ADE BY THE AO THE SAME IS ACCORDINGLY DIRECTED TO BE DELETED. IN THIS FINDING WE FIND SUPPORT FROM THE BANK STATEMENTS, NAGARKA P ROPERTY AND FINANCE PRIVATE LIMITED FROM WHERE WE HAVE VERIFIED THE PAYMENTS MADE TO THE SELLER PRABHA SINHA ADDITION OF RS. 41 LACS IS DIRECTED TO BE DELETED. 12. IN SO FAR AS THE CASH DEPOSIT IN THE KOTAK MAHI NDRA BANK IS CONCERNED. WE HAVE CAREFULLY PERUSED THE BANK STAT EMENT WHICH IS PART OF OUR RECORD. WE FIND THAT ON EVERY ENTRY OF CASH DEPOSIT THE NOMENCLATURE IS CASH DEPOSIT @ DWARKA. THE ASS ESSMENT ORDER AND ALSO THE ORDER OF THE FIRST APPELLATE AUT HORITY IS 5 COMPLETELY SILENT ON SUCH ENTRIES MADE BY THE PERSO N MENTIONED IN THE BANK STATEMENTS. THE AOS FINDING READ AS U NDER :- IN VIEW OF THE ABOVE TOTAL CASH DEPOSIT IN KOTAK MAHINDRA BANK LIMITED AMOUNTING TO RS.14.21 LACS IS ADDED IN HIS TOTAL INCOME UNDER HEAD OF UNDISCLOSED SOURCE OF INCOME U/S. 68 AS NO EXPLANATION OF CASH DEPOSIT HAS BEEN GIVEN BY ASSESSEE 13. THIS FINDING OF THE AO HAS BEEN CONFIRMED BY TH E CIT(A). 14. NEITHER OF THE LOWER AUTHORITIES HAS VERIFIED T HE CASH WITHDRAWAL IN THE BANK STATEMENT. 15. CONSIDERING THE PECULIAR FACTS OF THE CASE WHER E NEITHER THE AO HAS GIVEN ANY SPECIFIC FINDING FOR MAKING THE AD DITIONS NOR THE ASSESSEE HAS GIVEN ANY EXPLANATION. FURTHER WE DO NOT FIND ANY SUBSTANTIAL BALANCE IN THE SAID BANK ACCOUNT AND CO NSIDERING THE FACT THAT THE ASSESSEE IS A EX ARMY MEN RETIRED AS BRIGADIER WE DIRECT THE AO TO RESTRICT THE ADDITION TO RS.3.5 LA CS. THE ASSESSEE GETS A PART RELIEF. 16. THE ADDITION ON ACCOUNT OF CREDIT CARD PAYMENT AMOUNTING TO RS.33,8210/-ADDED AS PAYMENT FOR WHICH NO EXPLAN ATION OF THE SOURCES HAS BEEN GIVEN, SINCE WE HAVE CONFIRMED THE ADDITION OF RS.3.50 LACS THIS SHOULD BECOME THE SOURCE OF CREDI T CARD 6 PAYMENT ACCORDINGLY WE DIRECT THE AO TO DELETE THE ADDITION OF RS.3,38,210/-. 17. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. 18. DECISION ANNOUNCED IN THE OPEN COURT IN THE PRE SENCE OF BOTH THE REPRESENTATIVES ON 30.06.2021. SD/- SD/- (SUDHANSHU SRIVASTAVA) (N.K. BILLAIYA ) JUDICIAL MEMBER ACCOUNTAN T MEMBER *NEHA* DATE:-30.06.2021 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI 7 DATE OF DICTATION 30.0 6 .2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 30.06.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 30.06.2021 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 30.06.2021 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 30.06.2021 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 30.06.2021 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 30.06.2021 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHI CH 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