ITO, New Delhi v. Shri Tej Prakash Chhabra, New Delhi

ITA 3074/DEL/2009 | 2005-2006
Pronouncement Date: 26-02-2010 | Result: Dismissed

Appeal Details

RSA Number 307420114 RSA 2009
Assessee PAN AIOPC7352F
Bench Delhi
Appeal Number ITA 3074/DEL/2009
Duration Of Justice 7 month(s) 24 day(s)
Appellant ITO, New Delhi
Respondent Shri Tej Prakash Chhabra, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 26-02-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted H
Tribunal Order Date 26-02-2010
Date Of Final Hearing 23-02-2010
Next Hearing Date 23-02-2010
Assessment Year 2005-2006
Appeal Filed On 02-07-2009
Judgment Text
I.T.A. NO. 3074 /DEL/2009 1/5 IN THE INCOME TAX APPELLATE TRIBUNAL NEW DELHI BENCH H BEFORE SHRI K. G. BANSAL ACCOUTANT MEMBER AND SHRI GEORGE MATHAN JUDICIAL MEMBER ITA NO.3074 /DEL/2009 (ASSESSMENT YEAR 2005-06) ITO WARD 35(2) VS. SHRI TEJ PRAKASH CHHABRA NEW DELHI 10/989 CHAND MOHALLA GANDHI NAGAR DELHI 31 (APPELLANTS) (RESPONDENTS) PAN / GIR NO. AIOPC7352F APPELLANT BY: SHRI A K MONGA SR. DR RESPONDENT BY: SHRI J P CHAWLA CA ORDER PER GEORGE MATHAN JM: 1. THIS APPEAL BY THE REVENUE HAS BEEN PREFERRED AG AINST THE ORDER OF LD. CIT(A) XXVII NEW DELHI IN APPEAL NO.77/2008-09 DATED 27.03.2009 FOR THE ASSESSMENT YEAR 2005-06. SHRI A K MONGA SR. DR REPRESENTED O N BEHALF OF THE REVENUE AND SHRI J P CHAWLA CA REPRESENTED FOR THE ASSESSEE. 2. IT WAS THE SUBMISSION BY THE LD. D.R. THAT THE R EVENUE HAS CHALLENGED THE ACTION OF THE LD. CIT(A) IN DELE TING THE ADDITION OF RS.18 LACS MADE BY THE A.O. ON ACCO UNT OF CASH DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSE E AND I.T.A. NO. 3074 /DEL/2009 2/5 AGAINST THE ACTION OF LD. CIT(A) IN DELETING THE AD DITION OF RS.2 LACS MADE BY THE A.O. ON ACCOUNT OF REIMBURSEMENT FROM M/S. SRS BUILDERS. IT WAS THE SUBMISSION BY THE LD. D.R. THAT ON THE BASIS OF INDIVIDUAL TRANSACTION STATEMENT RECEIVED BY THE REVENUE IT WAS NOTICED THAT THE ASSESSEE HAD DEPOS ITED AN AMOUNT OF RS.25 94 500/- IN THE ACCOUNT OF THE ASSESSEE AT THE VAISH COOPERATIVE ADARSH BANK LTD. THE ASSESSEE HAD BEEN ASKED TO FILE HIS RETURN OF I NCOME BY ISSUING NOTICE U/S 142(1) AND THE ASSESSEE HAD F ILED HIS RETURN DISCLOSING AN INCOME OF RS.1 53 114/-. IT WAS THE SUBMISSION THAT THE ASSESSEE WAS DOING THE BUSI NESS OF KIRANA SHOP/PROVISION STORE AND THE ASSESSEE HAD GROSS SALES OF RS.30 25 240/- AND BY APPLYING THE PROVISIONS OF SECTION 44AF HE HAD DISCLOSED BUSINE SS INCOME OF RS.1 51 262/-. IT WAS THE SUBMISSION THA T THE A.O. WAS NOT SATISFIED WITH THE REPLY OF THE ASSESS EE THATS THE DEPOSITS IN THE BANK ACCOUNT WAS ON ACCO UNT OF THE BUSINESS TURNOVER OF THE ASSESSEE AND HAD BR OUGHT TO TAX THE DEPOSITS TOTALING TO RS.18 LACS AS THE UNDISCLOSED INCOME OF THE ASSESSEE. IT WAS THE FUR THER SUBMISSION THAT THE ASSESSEE HAD RECEIVED RS.2 LACS FROM M/S. SRS BUILDERS AND THIS WAS ALSO BROUGHT TO TAX BY THE A.O. IT WAS THE SUBMISSION THAT THE LD. CIT( A) HAD VERIFIED THE BANK ACCOUNT OF THE ASSESSEE AND H AD I.T.A. NO. 3074 /DEL/2009 3/5 ACCEPTED THE CONTENTION OF THE ASSESSEE THAT THE DE POSITS IN THE BANK ACCOUNT WAS THE DEPOSITS FROM THE BUSIN ESS TURNOVER OF THE ASSESSEE. IT WAS THE FURTHER SUBMI SSION THAT THE LD. CIT(A) HAD DELETED THE ADDITION OF RS. 18 LACS BY HOLDING THAT THE ASSESSEE HAD DISCLOSED THE TURNOVER OF RS.30 25 240/- AND HAD OFFERED THE INCO ME THEREFROM TO TAX BY APPLYING THE PROVISIONS OF SECT ION 44AF @ 5% AND CONSEQUENTLY NO FURTHER ADDITION CAN BE MADE IN THE HANDS OF THE ASSESSEE. IT WAS THE F URTHER SUBMISSION THAT IN RESPECT OF THE ADDITION OF RS.2 LACS THE LD. CIT(A) HAD ACCEPTED THE CONTENTION OF THE ASSESSEE THAT AN AMOUNT OF RS.2 LACS WAS RECEIVED B Y THE ASSESSEE FROM M/S. SRS BUILDERS ON BEHALF OF MR . CHADDHA WHO WAS THE ACTUAL OWNER OF THE PLOT WHICH HAD BEEN TAKEN OVER BY M/S. SRS BUILDERS AND WHO WAS THE RELATIVE OF THE ASSESSEE. THE SAID MR. CHAD DHA WAS AN NRI AND THE AMOUNT OF RS.2 LACS HAD BEEN CONSIDERED IN THE SALE PROCEEDS OF SITE BELONGING T O MR. CHADDHA. IT WAS THE SUBMISSION THAT THE ORDER OF L D. CIT(A) WAS LIABLE TO BE REVERSED AND THAT OF THE A. O. RESTORED. HE VEHEMENTLY SUPPORTED THE ORDER OF THE A.O. 3. IN REPLY THE LD. A.R. VEHEMENTLY SUPPORTED THE O RDER OF THE CIT(A). I.T.A. NO. 3074 /DEL/2009 4/5 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS WE HAVE ALSO PERUSED THE ORDER OF LOWER AUTHORITIES. IT IS NOTI CED THAT THE ASSESSEE HAS PRODUCED ALL THE DOCUMENTS WHICH W AS PRODUCED BEFORE THE A.O. BEFORE THE LD. CIT(A) TO SUBSTANTIATE HIS CLAIM THAT THE AMOUNT OF RS.2 LACS DID NOT BELONG TO HIM. IT IS ALSO NOTICED THAT THE LD. CIT(A) HAS CONSIDERED THE FACT THAT THE AMOUNT OF RS.2 LAC S CONSIDERED AS THE SALE PROCEEDS WAS THE EXPENSES REIMBURSED FOR THE EVICTION OF THE ILLEGAL OCCUPANT S OF TH SITE BELONGING TO SHRI CHADDHA THE RELATIVE OF THE ASSESSEE WHICH WAS UNDER ADVERSE POSSESSION WITH TH IRD PARTY. IT IS ALSO NOTICED THAT THE LD. CIT(A) HAS VERIFIED THE BANK ACCOUNT AND HAS ALSO VERIFIED THE CONFIRMA TION ISSUED BY SHRI SANJAY BHASIN HARBANS LAL GERA IN RESPECT OF WITHDRAWAL MADE FROM THE BANK ACCOUNT TOWARDS BUSINESS EXPENSES. IT IS ALSO NOTICED THAT THE LD. CIT(A) HAS CONSIDERED THE EXPLANATION REGARDING THE ENTRIES IN RESPECT OF DEPOSITS AND WITHDRAWALS APPEARING IN THE BANK ACCOUNT AS ALSO THE FACT THAT THE ASSESSEE HAS DISCLOSED HIS INCOME BY APPLYING THE PROVISIONS OF SECTION 44AF. IT IS ALSO NOTICED THA T THE REVENUE IS NOT IN DISPUTE THAT THE TURNOVER OF THE ASSESSEE IS BELOW RS.40 LACS AND IN FACT RS.30 25 2 40/- AND THAT THE PROVISIONS OF SECTION 44AF OF THE ACT APPLIES TO THE ASSESSEES CASE. ONCE THE INCOME OF THE I.T.A. NO. 3074 /DEL/2009 5/5 ASSESSEE IS ACCEPTED BY APPLYING THE PROVISIONS OF SECTION 44AF AND IT IS NOTICED THAT THE DEPOSITS AN D WITHDRAWALS FROM THE BANK ACCOUNT DOES NOT EXCEED T HE TURNOVER AS DISCLOSED BY THE ASSESSEE IT CANNOT BE SAID THAT PART OF THE TURNOVER OF THE ASSESSEE IS THE UNDISCLOSED INCOME OF THE ASSESSEE. IN THESE CIRCUMSTANCES WE ARE OF THE VIEW THATS THE FINDIN G OF LD .CIT(A) IN DELETING THE ADDITION OF BOTH RS.18 L ACS AND RS.2 LACS IS ON A RIGHT FOOTING AND DOES NOT CA LL FOR ANY INTERFERENCE. CONSEQUENTLY THE ORDER OF THE L D. CIT(A) IS UPHELD. IN THESE CIRCUMSTANCES APPEAL O F THE REVENUE IS DISMISSED. 5. IN THE RESULT THE APPEAL OF THE REVENUE STANDS DISMISSED. 6. THIS DECISION WAS PRONOUNCED IN THE OPEN COURT O N 26 TH FEB. 2010. SD./- SD./- (K. G. BANSAL) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:26 TH FEB. 2010 SP. COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT TRUE COPY: BY ORDER 4. CIT(A) 5. DR DY. REGISTRAR ITAT NEW DELHI