M/s Kuber Securities Ltd., New Delhi v. ACIT, New Delhi

ITA 134/DEL/2011 | 1996-1997
Pronouncement Date: 17-02-2012 | Result: Dismissed

Appeal Details

RSA Number 13420114 RSA 2011
Assessee PAN AADCK3522B
Bench Delhi
Appeal Number ITA 134/DEL/2011
Duration Of Justice 1 year(s) 1 month(s) 7 day(s)
Appellant M/s Kuber Securities Ltd., New Delhi
Respondent ACIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 17-02-2012
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 17-02-2012
Date Of Final Hearing 13-02-2012
Next Hearing Date 13-02-2012
Assessment Year 1996-1997
Appeal Filed On 10-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `D : NEW DELHI) BEFORE SHRI U.B.S. BEDI JUDICIAL MEMBER AND SHRI B.C. MEENA ACCOUNTANT MEMBER ITA NO.134/DEL./2011 (ASSESSMENT YEAR : 1996-97) M/S KUBER SECURITIES LTD. VS. ACIT CIRCLE 5(1) C/O RAJ KUMAR & ASSOCIATES CA NEW DELHI. 4435/7 ANSARI ROAD DARYA GANJ NEW DELHI. (PAN/GIR NO.AADCK3522B) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI HARISH GOEL AR REVENUE BY : MS. Y. KAKKAR SR. DR ORDER PER U.B.S. BEDI J.M. THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER PASSED BY THE CIT(A)- VIII NEW DELHI DATED 01.11.2010 RELEVANT TO ASSES SMENT YEAR 1996-97 WHEREBY ASSESSEE HAS CHALLENGED CONFIRMATION OF ADDITION OF RS.59 504/- FOR DIFFERENCE IN CLOSING BALANCES OF SHARES ACCOUNT BESIDES CHALLENGING CHAR GING OF INTEREST U/S 234B OF THE I.T. ACT 1961 WHEN OTHER GROUNDS RAISED IN THE MEMO OF APPEAL HAVE NOT BEEN PRESSED AND ENDORSEMENT TO THIS EFFECT HAS BEEN MADE BY LD.COUN SEL FOR THE ASSESSEE AT THE TIME OF HEARING. 2. AS PER ORIGINAL ASSESSMENT U/S 143(3) OF THE ACT VIDE ORDER DATED 30.3.1999 ON A TOTAL INCOME OF RS.1 15 39 847/- WHEN VARIOUS ADDIT IONS/DISALLOWANCES WERE MADE. AGAINST SUCH ORDER OF ASSESSMENT ASSESSEE FILED AP PEAL AND CIT(A) VIDE ORDER DATED 31.12.2002 DELETED ALL THE ADDITIONS/DISALLOWANCE M ADE IN THE ASSESSMENT ORDER. IN I.T.A. NO.134/DEL./2011 (A.Y. : 1996-97) 2 SECOND APPEAL PREFERRED BY THE REVENUE BEFORE ITAT SET ASIDE THE ORDER OF CIT(A) AND REMANDED THE ISSUES RAISED IN THE APPEAL BACK ON TH E FILE OF THE ASSESSING OFFICER BY OBSERVING THAT CIT(A) HAS NOT PROPERLY EXAMINED THE WHOLE ISSUES AND HAS NOT RECORDED FINDING AS TO HOW THE DIFFERENCES FOUND IN THE ACCO UNT WAS RECONCILED AND MOREOVER APPEAL OF THE ASSESSEE HAS BEEN ACCEPTED BY THE CIT (A) WITHOUT GIVING ANY OPPORTUNITY TO THE ASSESSING OFFICER. SO THE MATTER WAS RESTORED BACK ON THE FILE OF THE ASSESSING OFFICER FOR DE NOVO CONSIDERATION WITH SPECIFIC DIR ECTIONS CONTAINED IN PARA.6 OF THE ITAT ORDER. 3. IN COMPLIANCE TO THE DIRECTION ISSUED BY ITAT IN PARA.6 OF ITS ORDER THE ASSESSING OFFICER EXAMINED THE WHOLE ISSUE ALL OVER AGAIN AND THREE ADDITIONS OF RS.7959/- 59 504/- AND RS.29 509/- ON ACCOUNT OF DIFFERENCES IN CLOSING BALANCE OF CASH IN HAND DIFFERENCE IN CLOSING BALANCE OF SHARES ACCOUNT AND UNDECLARED INTEREST INCLUDING TDS RESPECTIVELY WERE MADE. AGAINST WHICH ASSESSEE PRE FERRED APPEAL BUT WAS UNSUCCESSFUL. 4. IN FURTHER APPEAL ASSESSEE ONLY CHALLENGED ADDI TION OF RS.59 504/- FOR DIFFERENCE IN CLOSING BALANCES OF SHARES ACCOUNT AND OTHER TWO ADDITIONS WERE NOT PRESSED AND GROUNDS RAISED IN THIS REGARD WERE WITHDRAWN. ASSE SSEE HAS ALSO CHALLENGED CHARGING OF INTEREST U/S 234B OF THE ACT BEFORE FIRST APPELLAT E AUTHORITY CAME TO BE DISMISSED BEING MANDATORY AND CONSEQUENTIAL IN NATURE AND IT HAS FU RTHER BEEN CHALLENGED HERE. 5. LD.COUNSEL FOR THE ASSESSEE WHILE REITERATING TH E SUBMISSIONS MADE BEFORE THE ASSESSING OFFICER AND CIT(A) WITH REGARD TO ADDITIO N OF RS.59 504/- ON ACCOUNT OF DIFFERENCE IN CLOSING BALANCE OF SHARES ACCOUNT LD.COUNSEL FILED COPY OF THE BALANCE SHEET AND CONTENDED THAT THERE IS NO DIFFERENCE IN THE AMOUNT APPEARING IN THE BALANCE SHEET UNDER THIS HEAD AND ASSESSEE DOES NOT KNOW HO W THERE IS DIFFERENCE BETWEEN THE I.T.A. NO.134/DEL./2011 (A.Y. : 1996-97) 3 TRIAL BALANCE AS PER BOOKS OF ACCOUNT AND THE AMOUN T RECORDED IN THE BALANCE SHEET SINCE CORRECT AMOUNT HAS BEEN RECORDED AND SHOWN IN THE B ALANCE SHEET. THEREFORE ADDITION IS NOT CALLED FOR WHICH MAY BE DELETED. 6. LD.DR SUBMITTED THAT AS PER BOOKS OF ACCOUNT AND TRIAL BALANCE FOUND BY THE ASSESSING OFFICER THERE WAS A CLEAR DIFFERENCE OF R S.59 504/- WHICH DIFFERENCE ASSESSEE COULD NOT EXPLAIN DESPITE HAVING REMANDED BACK THE ISSUE ON THE FILE OF THE ASSESSING OFFICER BY ITAT AND THEREFORE ADDITION WAS CALLED FOR. EVEN BEFORE CIT(A) ASSESSEE WAS NOT ABLE TO EXPLAIN SUCH DIFFERENCE AND BEFORE THIS BENCH ALSO NOTHING HAS BEEN PLACED ON RECORD TO JUSTIFY SUCH DIFFERENCE. THERE FORE ADDITION HAS RIGHTLY BEEN MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE CIT(A) W HOSE ACTION SHOULD BE CONFIRMED. 7. AFTER HEARING BOTH THE SIDES AND CONSIDERING THE MATERIAL ON RECORD WE FIND THAT THE BALANCE IN THE SHARES ACCOUNT IS RS.23 52 580/- WHEREAS AS PER BOOKS OF ACCOUNT AND AS PER TRIAL BALANCE IT IS RS.22 93 130/- AND ASSES SEE HAS FAILED TO EXPLAIN THE DIFFERENCE OR SUBSTANTIATE HIS PLEA THAT THERE IS NO DIFFERENCE. AS SUCH IT IS HELD THAT SINCE ASSESSEE HAS NOT BEEN ABLE TO EXPLAIN THE DIFFERENCE THEREFORE ADDITION IS CALLED FOR WHICH HAS RIGHTLY BEEN CONFIRMED BY THE CIT(A) WHOSE ACTION IS FURTH ER CONFIRMED AND THIS GROUND APPEAL OF THE ASSESSEE IS DISMISSED. 8. AS REGARDS CHARGING OF INTEREST U/S 234B OF THE ACT WE FIND THAT CIT(A) HAS RIGHTLY HELD THAT IT IS MANDATORY AND CONSEQUENTIAL AND SINCE ASSESSEE HAS NOT BEEN ABLE TO GET ANY RELIEF WITH REGARD TO THE ADDITIONS MADE. FURTHER ASSESSEE COULD NOT BE ABLE TO EXPLAIN THAT INTEREST CHARGED IS EXCESSIVE. THEREF ORE WE DO NOT FIND ANY VALID GROUND TO INTERFERE ON THIS COUNT AND WHILE REJECTING THE PLE A OF THE ASSESSEE IN THIS REGARD WE UPHOLD THE IMPUGNED ORDER. I.T.A. NO.134/DEL./2011 (A.Y. : 1996-97) 4 9. AS A RESULT THE APPEAL OF THE ASSESSEE IS DISMI SSED. ORDER PRONOUNCED IN OPEN COURT ON 17.02.2012. SD/- SD/- (B.C. MEENA) ACCOUNTANT MEMBER (U.B.S. BEDI ) JUDICIAL MEMBER DATED : FEBRUARY 17 2012 SKB COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A)-VIII NEW DELHI. 5. CIT(ITAT) DEPUTY REGISTRAR ITAT