STERLING VEHICLE SALES PVT LTD,NEW DELHI V. DEPUTY COMMISSIONER OF INCOME TAX, NEW DELHI

ITA 4527/DEL/2024

AI Insights

The case involves Sterling Vehicle Sales Pvt. Ltd., which filed an appeal against the order of the Commissioner of Income Tax Appeal/National Faceless Appeal Centre (NFAC) for the Assessment Year 2012-13. Initially, the Assessee declared a loss in their income tax return, which was later scrutinized, leading to an addition of Rs. 8,99,02,132 under sections 68/69 of the Income Tax Act, 1961. The Assessee's appeal to the CIT(A) was dismissed, prompting the current appeal. The Tribunal allowed the submission of additional documents that were not presented in earlier proceedings and remanded the case for a fresh assessment, emphasizing the need for the Assessee to prove the source of cash deposits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474869 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Assessee Lawyers: VASUDHA SEN
• Section: 148; 143(3)

Judgement Text

" 1 ITA No. 4527/Del/2025 Sterling Vehicle Sales Pvt. Ltd. Vs. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘G’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No. 4527/DEL/2024 (A.Y. 2012-13) Sterling Vehicle Sales Pvt. Ltd. 6A, Tata Apartments, 23, Prithviraj Road, New Delhi PAN: CCRPK0128G Vs. Deputy Commissioner of Income Tax C.R. Building, I.P. Estate, New Delhi Appellant Respondent Assessee by Ms. Vasudha Sen,Adv Revenue by Sh. Sahil Kumar Bansal, Sr. DR Date of Hearing 25/02/2025 Date of Pronouncement 28/02/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of the Commissioner of Income Tax Appeal/National Faceless Appeal Centre [‘NFAC’ for short] dated 29/07/2024 for the Assessment Year 2012-13. 2. Brief facts of the case are that, the Assessee filed return of income declaring loss of Rs. 92,26,790/-. The case of the Assessee was selected for scrutiny and an order u/s 143(3) of the Income Tax Act, 1961 (‘Act’ for short) was passed on 29/01/2015. Subsequently, the A.O. recorded the reason that the income of the Assessee had 2 ITA No. 4527/Del/2025 Sterling Vehicle Sales Pvt. Ltd. Vs. DCIT escaped assessment and issued notice u/s 148 of the Act. An assessment order came to be passed u/s 144/147 of the Act on 11/12/2019 by making an addition of Rs. 8,99,02,132/- u/s 68 /69 of the Act. Aggrieved by the assessment order dated 11/12/2019, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 29/07/2024, dismissed the Appeal of the Assessee. As against the order of the Ld. CIT(A) dated 29/07/2024, the Assessee preferred the present Appeal. 3. The Ld. Assessee's Representative submitted that the Assessee has filed an application under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 for seeking permission to produce additional document i.e. cash book containing details of cash received from each customer and the invoices of the sales of vehicle made by the Assessee. The Ld. Assessee's Representative submitted that the Assessee could not produce those documents before the Lower Authorities as the relevant person handling the matter omitted to produce the same, therefore, sought for allowing the Application and remanding the matter to the A.O. for fresh adjudication. 4. Per contra, the Ld. Department's Representative submitted that the Assessee has not produced those documents before the A.O. as well as before the Ld. CIT(A) and the documents intended to be 3 ITA No. 4527/Del/2025 Sterling Vehicle Sales Pvt. Ltd. Vs. DCIT produced areafterthought, therefore, submitted that the application for additional document may be dismissed. 5. We have heard both the parties and perused the material available on record. It is the case of the Assessee that the cash deposits which were made by the Assessee are out of the sale consideration for vehicles duly delivered to the customers. The Ld. Counsel has taken us through the documentsproduced along with the applicationfiled under Rule 29 of the Income Tax (Appellate Tribunal) Rules 1963 and submitted that those documents could not be produced before the Lower Authorities as the relevant person handing mater omitted to be produced the same. We have gone through the application and also documents produced by the Assessee. Considering the fact that the documents produced along with the application for admitting evidence have been produced for the first time by the Assessee, we have of the opinion that if those documents are admitted and if the issue is restoredto the file of the A.O, the Department will be in a better position to frame the assessment order to determine the actual tax liability of the Assessee.Considering the fact that the Assessee has not produced those documents right from the assessment proceedings to Ld. CIT(A), we admit those documents by imposing cost of Rs. 3000/- to the Assessee which shall be payable to the Prime Ministers National Relief Fund. 4 ITA No. 4527/Del/2025 Sterling Vehicle Sales Pvt. Ltd. Vs. DCIT 6. Accordingly, we remand the matter to the file of the A.O. with a direction to consider the documents produced by the Assessee and frame the de-novo assessment in accordance with law.We hereby make it clear that it is for the Assessee to prove its burden that the entire cash deposits are out of the cash received from each of the customers. 7. Since we have restored the issue to the file of the A.O. we refrain from adjudicating any other Grounds of appeal of the Assessee on its merit. 8. In the result, the appeal of the Assessee is partly allowed for statistical purpose. Order pronounced in the open court on 28th February, 2025 Sd/- Sd/- (BRAJESH KUMAR SINGH) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 28 .02.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "