I.T.O., Ward-1(1), Aligarh V. Smt. Rashmi Gupta, Aligarh

ITA 94/AGR/2011

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9593 (ITAT-AGRA)
• Duration Of Justice: 4 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 27-08-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 07-04-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KM PRARTHANA JALAN
• Assessee Lawyers: BELU SINHA
• Keywords: Unexplained investment; Opportunity of being heard; Additional evidence; Non compliance
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.94/AGRA/ 2011 ASSESSMENT YEAR: 2007-08 INCOME TAX OFFICER (AO), VS. SMT. RASHMI GUPTA, WARD 1(1), ALIGARH. PROP. M/S. TANYA ADVERTISING , 503, SQUARE TOWER, MARRIS ROAD, ALIGARH. (PAN AHIPG 8407 A). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEEPEN DRA MOHAN, CA & KM. PRARTHANA JALAN, C.A. RESPONDENT BY : SMT. BELU SINHA, SR. D.R. DATE OF HEARING : 20.07.2015 DATE OF PRONOUNCEMENT : 23.07.2015 ORDER PER INTURI RAMA RAO, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-I, GHAZIABAD DATED 28.01.2011 FOR THE A.Y. 2007-08. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. THE ORDER OF THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN ADMITTING THE ADDITIONAL EVIDENCE, WITHOUT ADJUDICATING ADMIS SIBILITY OF THE SAME. ITA NO.94/AGRA/2011 A.Y. 2007-08 2 2. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELE TING THE ADDITION OF RS.16,43,564/- SINCE THE SERVICE TAX COLLECTED WAS NEITHER DEPOSITED WITH THE SERVICE TAX DEPARTMENT NOR SHOWN IN THE BOOKS O F ACCOUNT. 3. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELE TING THE ADDITION OF RS.14,01,000/- TREATING AS SIPHONED OF FROM THE BOO KS. 4. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELE TING THE AUDITION OF RS.2,00,757/- ON ACCOUNT OF PEAK DEPOSIT IN ACCOUNT NO.8816 OF VIJAYA BANK. 5. THE LD CIT(A) ERRED IN LAW AND ON FACTS IN DELET ING THE ADDITION OF RS.2,09,450/- ON ACCOUNT OF VALUATION OF CLOSING ST OCK. 6. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELE TING THE ADDITION OF RS.1,00,000/- ON ACCOUNT OF UNEXPLAINED INVESTMENT IN FDR. 7. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELE TING THE ADDITION OF RS.20,000/- ON ACCOUNT OF INTEREST ON FDR. 3. BRIEFLY THE FACTS OF THE CASE ARE THAT THE APPEL LANT IS AN INDIVIDUAL AND ENGAGED IN THE BUSINESSES OF HOARDING CONTRACTOR. THE RETU RN OF INCOME FOR THE A.Y. 2007-08 WAS FILED ON 31.10.2007 DECLARING AN INCOME OF RS.4 ,91,660/-. AGAINST THE SAID RETURN OF INCOME, ASSESSMENT WAS COMPLETED UNDER SECTION 1 44 OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) VIDE ORDER DATED 15.12.2009 . AFTER MAKING SEVERAL DISALLOWANCES AT A TOTAL INCOME OF RS.51,38,670/- T HE A.O, FOR NON COMPLIANCE OF THE NOTICES, COMPLETED THE ASSESSMENT UNDER SECTION 144 OF THE ACT BY DISALLOWING EXPENDITURE OF RS.22,84,000/- AND MADE ADDITION OF RS.16,43,564/- ON ACCOUNT OF SERVICE TAX NOT PAID. BEING AGGRIEVED, APPEAL WAS FILED BEFORE THE CIT(A) WHO VIDE ORDER DATED 28.01.2011 PARTLY ALLOWED THE APPEAL. WHILE DOING SO, THE LD. CIT(A) ITA NO.94/AGRA/2011 A.Y. 2007-08 3 DELETED THE ADDITION IN RESPECT OF SERVICE TAX UNPA ID R.16,43,564/- AND CONFIRMED THE ADDITION OF RS.22,84,000/- IN RESPECT OF BOGUS EXP ENDITURE AND PART RELIEF WAS GRANTED IN RESPECT OF OTHER ADDITIONS. 4. BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. IT WAS CONTENDED BY THE LD. SR. DEPARTMENTAL REPRESENTATIVE THAT THE APPELL ANT HAD NEVER PRODUCED BOOKS OF ACCOUNT FOR VERIFICATION OF DETAILS BEFORE THE A.O. TO MEET THE ENDS OF JUSTICE THE MATTER MAY BE REMITTED BACK TO THE FILE OF A.O. FOR FRESH ADJUDICATION. ACCORDINGLY, WE REMIT THE MATTER BACK TO THE FILE OF A.O. FOR DE NOVO ASSESSMENT, AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS PA RTLY ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 23.07.201 5) SD/- SD/- (G.C. GUPTA) (INTURI RAMA RAO) VICE PRESIDENT ACCOUN TANT MEMBER DATE: 23 RD JULY, 2015 PBN/* ITA NO.94/AGRA/2011 A.Y. 2007-08 4 COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA