ITO, New Delhi v. Shri Sheikh Ziauddin Siddique, New Delhi

ITA 1581/DEL/2011 | 2007-2008
Pronouncement Date: 18-11-2011 | Result: Dismissed

Appeal Details

RSA Number 158120114 RSA 2011
Bench Delhi
Appeal Number ITA 1581/DEL/2011
Duration Of Justice 7 month(s) 17 day(s)
Appellant ITO, New Delhi
Respondent Shri Sheikh Ziauddin Siddique, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 18-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 18-11-2011
Date Of Final Hearing 16-11-2011
Next Hearing Date 16-11-2011
Assessment Year 2007-2008
Appeal Filed On 01-04-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G NEW DELHI BEFORE SHRI RAJPAL YADAV JUDICIAL MEMEBR AND SHRI K.G. BANSAL ACCOUNTANT MEMBER I.T.A NO. 1581/DEL/2011 ASSTT. YEAR 2007-08 INCOME TAX OFFICER WARD 28(4) NEW DELHI. VS. SHRI SHEIKH ZIAUDDIN SIDDIQUE C/O BHAGWATI PRASAD ADVOCATE 111 HANS BHAWAN I B.S. ZAFAR MARG NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI B.R.R DR RESPONDENT BY: NONE ORDER PER RAJPAL YADAV JM: THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF LD. CIT(A) DATED 21.1.2011 PASSED FOR ASSTT. YEAR 2007- 08. THE SOLITARY GRIEVANCE OF THE REVENUE IS THAT LD. CIT(A ) HAS ERRED IN DELETING THE ADDITION OF ` 24 99 900/- WHICH WAS AD DED BY THE AO ON ACCOUNT OF UNEXPLAINED INVESTMENT IN PROPERTY . 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE FI LED HIS RETURN OF INCOME ON 31.10.2007 DECLARING AN INCOME OF ` 2 31 647/-. HIS RETURN WAS SELECTED FOR SCRUTINY AS SESSMENT AND ITA NO. 1581/DEL/2011 ASSTT. YEAR 2007-08 2 NOTICE U/S 143(2) WAS DULY ISSUED AND SERVED UPON T HE ASSESSEE. LD. AO WHILE MAKING AN ADDITION OF `.24 9 9 000/- HAS MADE DISCUSSION IN PARAGRAPH NO. 6 TO 8 OF THE ASST T. ORDER. IT IS A BRIEF FINDING AND IN ORDER TO APPRECIATE THE CONT ROVERSY APPROPRIATELY IT IS WORTH TO NOTE THIS FINDING :- 6. WHILE PERUSING THE BALANCE SHEET IT WAS NOTICED THAT THERE IS ADDITION IN THE FIXED ASSET I.E. LAND OF `24 99 900 /-. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF THE ABOVE ADDITI ON. HE WAS CATEGORICALLY ASKED ON 11.12.09 AND 15.12.09 IN R ESPONSE TO WHICH THE ASSESSEE HAS SUBMITTED THE LETTER ON 31.1 2.2009 STATING THAT THE PAYMENT OF `.24 99 000/- HAS BEEN DULY REFLECTED IN THE BOOKS OF ACCOUNTS IN RESPECT OF PROPERTY AT A-62 SECTOR-7 DISTTT. GAUTAM BUDH NAGAR NOIDA U.P. THE CIRCLE VA LUE OF THE PROPERTY IS `. 23 70 000/- WHICH IS STATUTORY VALUE OF THE PROPERTY FOR THE PURPOSE OF STAMP DUTY PAYABLE ON TRANSFER O F PROPERTY REGARDLESS OF THE AGREED SALE CONSIDERATION. THE DE AL WAS AFFECTED THROUGH SH. VINOD KUMAR KASHYAP WHO WAS PA ID TWO CHEQUES OF `.7 50 000/- AND `.9 50 000/- AS PER PHO TOCOPY OF CHEQUES SUBMITTED. IT IS FURTHER STATED THAT `.1900 00/- WAS PAID FOR PURCHASE OF STAMP PAPER AND A SUM OF `.129900/ - AND `. 43200/- PAID TO NOIDA AUTHORITY TOWARDS TRANSFER CH ARGES. 7. WHILE GOING THROUGH THE SALE DEED IT HAS BEEN N OTICED THAT THE PROPERTY HAS BEEN SOLD BY M/S. UNITED INDUSTRIES TH ROUGH ITS PROPRIETOR SHRI PANKAJ MANI PAHUJA SON OF SHRI B.D. PAHUJA RESIDENT OF S-308 G.K. PART-II NEW DELHI. IT IS S URPRISED TO NOTICE THAT PAYMENTS HAVE BEEN MADE TO SHRI VINOD KUMAR KA SHYAP AS STATED BY THE ASSESEES AR WHEREAS THE PROPERTY IS OWNED BY SHRI PANKAJ MANI PAHUJA AND AS PER SALE DEED DATED 10.5.2006 IT IS CLEARLY MENTIONED THAT PAYMENT OF `. 13 50 000/- HAS BEEN ACKNOWLEDGED BY THE TRANSFEROR SHRI PANKAJ MANI PAH UJA. 8. THE ASSESEES AR WAS CATEGORICALLY ASKED TO EXPL AIN THE SOURCE OF ABOVE PROPERTY ALONGWITH DOCUMENTARY EVIDENCE SU CH AS BANK ACCOUNT ETC. BUT THE ASSESSEE HAS FAILED TO FU RNISH ANY DOCUMENTARY EVIDENCE WHICH CAN EXPLAIN THE SOURCE O F THE ABOVE PAYMENT. IN THESE CIRCUMSTANCES I HAVE LEFT WITH N O ALTERNATIVE EXCEPT TO TREAT THE ABOVE INVESTMENT OF `.24 99 900 /- AS INCOME FROM UNDISCLOSED SOURCES. PENALTY PROCEEDINGS U/S 2 71(1)(C) HAS BEEN INITIATED SEPARATELY. ITA NO. 1581/DEL/2011 ASSTT. YEAR 2007-08 3 (ADDITION `. 24 99 900/-) 3. ON APPEAL LD. CIT(A) HAS DELETED THE ADDITION. 4. IN RESPONSE TO THE NOTICE OF HEARING SHRI DHANES H CHANDER AND SHRI MOHIT GUPTA FILED AN APPLICATION FOR ADJO URNMENT ON THE GROUND THAT SHRI DHANESH CHANDER HAS UNDERGONE A SURGERY. HOWEVER AFTER GOING THROUGH THE ORDER OF LD. CIT(A) WE DO NOT FIND ANY MERIT IN THIS APPEAL AND THEREF ORE WE DECLINE TO GRANT ADJOURNMENT TO THE ASSESSEE. THE A PPLICATION OF THE ASSESSEE IS ACCORDINGLY REJECTED. 5. WITH THE ASSISTANCE OF LD. DR WE HAVE GONE THRO UGH THE RECORD AND WE FIND THAT AO HAS FAILED TO CONSTRUE THE FACTS AND CIRCUMSTANCES IN TRUE PERSPECTIVE. THERE IS NO DISP UTE WITH REGARD TO THE QUANTUM OF MONEY PAID BY THE ASSESSEE FOR THE PURCHASE OF PROPERTY A-68 SECTOR 7 NOIDA. THE AO HAS NOT OBSERVED THAT THE PROPERTY HAS BEEN PURCHASED FOR A CONSIDERATION MORE THAN THE ONE DISCLOSED IN THE S ALE DEED OR SHOWN IN THE BALANCE SHEET AS VALUE OF THE ASSET. T HE AO NOWHERE OBSERVED THAT ANY OTHER PROPERTY WAS PURCHA SED BY THE ASSESSEE. THE CASE OF THE ASSESSEE IS THAT ORIG INALLY THE PROPERTY WAS OWNED BY SHRI PANKAJ MANI PAHUJA WHICH WAS SOLD ITA NO. 1581/DEL/2011 ASSTT. YEAR 2007-08 4 BY HIM TO SHRI VINOD KUMAR KASHYAP AND FROM SHRI VI NOD KUMAR KASHYAP ASSESSEE HAS PURCHASED THE PROPERTY . HE HAS PAID TWO CHEQUES ONE TO SHRI VINOD KUMAR KASHYAP AN D THE OTHER TO SHRI PANKAJ MANI PAHUJA WHO HAS SIGNED THE SALE DEED AS AN ASSIGNEE OF HIS RIGHTS AVAILABLE IN PROPERTY. WE COULD UNDERSTAND THE CASE OF AO HAD HE POINTED OUT THAT P ROPERTY IN DISPUTE WAS PURCHASED FOR A HIGHER CONSIDERATION. S OME PART OF THE PURCHASE MONEY HAS NOT BEEN DISCLOSED IN THE IN VESTMENT AND IT WAS PAID TO SOME STRANGER. NO SUCH FACTS ARE THERE ON THE RECORD. THE PURCHASE CONSIDERATION HAS BEEN PAI D THROUGH ACCOUNT PAYEE CHEQUE AND ITS SOURCE HAS NOT BEEN DI SPUTED BY THE AO. THEREFORE WE ARE OF THE VIEW THAT AO HAS N OT ESTABLISHED ANY CASE OF UNEXPLAINED INVESTMENT BY T HE ASSESSEE. 6. IN VIEW OF THE ABOVE DISCUSSION THE APPEAL OF T HE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH NOVEMBER 2011. SD/- SD/- [K.G. BANSAL] [RAJPAL YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 18.11.2011 ITA NO. 1581/DEL/2011 ASSTT. YEAR 2007-08 5 VEENA COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT