ACIT, New Delhi V. M/s. Ravi Kant Jaipuria, New Delhi

ITA 835/DEL/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97324 (ITAT-DELHI)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2006-2007
• Appeal Filed On: 11-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Search and seizure
• Section: 143(3); 153A; 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC - 2 , NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO S . 835 , 836, 837, 838 AND 839 /DEL/201 5 AY S : 200 6 - 07 , 2007 - 08, 2008 - 09, 2009 - 10 AND 2010 - 11 ACIT, CENTRAL CIRCLE 7 VS. SH. RAVI KANT JAIPURIA NEW DELHI R/O 118, ANSAL BHAWAN 16, K.G.MARG NEW DELHI 110 011 PAN: ANJPJ 6194 Q (APPELLANT) (RESPONDENT) APPELLANT BY : S MT. RAKHI VIMAL, JCIT RESPONDENT BY : NONE ORDER ALL THESE APPEALS ARE FILED BY THE REVENUE. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE ISSUANCE OF NOTIC E. HENCE I DISPOSE OF THE APPEALS EX - PARTE , ON MERITS , QUA THE ASSESSEE, AFTER HEARING THE LD. JCIT, D.R. 2. HEARD S MT.RAKHI VIMAL, THE LD. JCIT ON BEHALF OF THE REVENUE . 3. FACTS IN BRIEF ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND A RESIDENT OF CANADA. CONSEQUENT TO SEARCH AND SEIZURE OPERATION NOTICE U/S 153A OF THE I.T. ACT, 1961 (THE ACT ) WAS ISSUED TO THE ASSESSEE. IN RESPONSE THERETO THE ASSESSEE FILED HIS RETURN OF INCOME ON 5.3.2014. THE A.O. COMPLETED THE ASSESSMENT U/S 153A R.W.S. 143(3) OF THE ACT MAKING ADDITIONS FOR ALL THE ASSESSMENT YEARS (A.Y.) ON THE GROUND THAT THE ASSESSEE HAS PERQUISITES AND THESE ARE TAXABLE U/S 17(2) OF THE ACT. THE ADDITIONS ARE B ROUGHT OUT AT PARA 2.1 OF THE LD.CIT(A) S ORDER, WHICH IS EXTRACTED FOR READY REFERENCE. ITA NOS. 835, 836, 837, 838 AND 839/DEL/2015 SH. RAVI KANT JAIPURIA A.YS: 2006 - 07, 2007 - 08, 2008 - 09, 2009 - 10 AND 2010 - 11 2 2.1 A O HAS COMPLETED THE ASSESSMENT U/S 153A R.W.S. 143(3) FOR A.YS. 2006 - 07, 2007 - 08, 2008 - 09, 2010 - 11 AND U/S. 143(3) FOR A.Y. 2012 - 13 MAKING THE FOLLOWING ADDITIO N: FOR A.Y.2006 - 07 (I) ADDITION OF RS. 10,00,000 / - ON ACCOUNT OF INCOME FROM OTHER SOURCES. FOR A.Y. 2007 - 08 (I) ADDITION OF RS. 11,00,000 / - ON ACCOUNT OF INCOME FROM OTHER SOURCES. FOR A.Y. 2008 - 09 (I) ADDITION OF RS. 12,00,000 / - ON ACCOUNT OF INCOME FROM OTHER SOURCES. FOR A.Y. 2010 - 11 (I) ADDITION OF RS. 14,00,000 / - ON ACCOUNT OF INCOME FROM OTHER SOURCES. FOR A.Y. 2012 - 13 (II) ADDITION OF RS. 16,00,000 / - ON ACCOUNT OF INCOME FROM OTHER SOURCES. 4. THE LD.CIT(A) DELETED THE ADDITION BY HOLDING AT PARAS 4 AND 4.1 OF HIS ORDER, AS FOLLOWS. 4. DETERMINATION: 4 .1. THE ONLY ADDITION MADE BY THE AO IN ALL THE PRESENT APPEALS IS UNDER THE HEAD PERQUISITES. THE AO HAS TREATED A PORTION OF THE EXPENDITURE INCURRED BY M/S VARUN BEVERAGES LTD. ON THE ASSESSEE AS PERQUISITE U/S 17(2) OF THE ACT. FACTS OF THE CASE, CONTENTS OF THE ASSESSMENT ORDER AND ARGUMENTS OF THE ASSESSEE FOR THE PRESENT APPEALS ARE IDENTICAL TO THAT OF ASSESSEE S OWN CASE FOR AY 2009 - 10. VIDE MY SE PARATE ORDER DATED TODAY FOR AY 2009 - 10 (A.NO. 350/14 - 15), I HAVE DELETED THE ADDITION AMDE UNDER THE HEAD PERQUISITE. FACTS BEING SAME, FOLLOWING THE SAME ORDER OF AY 2009 - 10 THE ADDITION OF RS.10 LAKHS FOR AY 2006 - 07, RS.11 LAKHS FOR AY 2007 - 08, RS.12 L AKHS FOR AY 2008 - 09, RS.14 LAKHS FOR AY 2010 - 11 AND RS.16 LAKHS FOR AY 2012 - 13 ARE HEREBY DELETED. 5. AGGRIEVED THE REVENUE IS IN APPEAL BEFORE ME. 6. AFTER HEARING THE LD. JCIT, D.R., I AM OF THE CONSIDERED OPINION THAT NO INTERFERENCE IS CALLED FOR IN T HE ORDER OF THE FIRST APPELLATE AUTHORITY FOR THE FOLLOWING REASONS: ITA NOS. 835, 836, 837, 838 AND 839/DEL/2015 SH. RAVI KANT JAIPURIA A.YS: 2006 - 07, 2007 - 08, 2008 - 09, 2009 - 10 AND 2010 - 11 3 ( A ) ADMITTEDLY NO INCRIMINATING DOCUMENTS OR MATERIAL WAS FOUND DURING THE COURSE OF SEARCH TO CORROBORATE THE ALLEGATIONS OF THE A.O. THAT THERE WAS A PERSONAL ELEMENT IN THE BUSINESS EXPEND ITURE INCURRED BY THE COMPANY M/S VARUN B EVERAGES LTD. ( B ) THERE IS NO EVIDENCE THAT THE A.O. TO COME TO A CONCLUSION THAT THE EXPENDITURE INCURRED BY THE COMPANY M/S VARUN B EVERAGES LTD. W AS NOT FOR THE PURPOSE OF ITS BUSINESS AND THAT THERE WAS A PERSONAL ELEMENT IN THESE EXPENSES. ( C ) THE ADDITION IN QUESTION IS MADE MERELY ON THE BASIS OF CONJECTURES AND SURMISES. 7. THE FIRST APPELLATE AUTHORITY HAS AT PARA 4.1.14 TO PARA 4.1.19 IN HIS ORDER FOR THE A.Y. 2009 - 10 HAS DEALT WITH THE ISSUE AT LENGTH. I UPHOLD TH ESE FINDING S AND DISMISS ALL THESE APPEALS FILED BY THE REVENUE. 8. IN THE RESULT ALL THESE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH SEPTEMBER, 2015. SD/ - ( J. SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED: THE 11 TH SEPTEMBER, 2015 *MANGA ITA NOS. 835, 836, 837, 838 AND 839/DEL/2015 SH. RAVI KANT JAIPURIA A.YS: 2006 - 07, 2007 - 08, 2008 - 09, 2009 - 10 AND 2010 - 11 4 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR, ITAT