ACIT, New Delhi v. Sh. Gaganpreet Singh Sachdeva, New Delhi

ITA 2254/DEL/2013 | 2009-2010
Pronouncement Date: 27-04-2015 | Result: Dismissed

Appeal Details

RSA Number 225420114 RSA 2013
Assessee PAN AOCPS4642A
Bench Delhi
Appeal Number ITA 2254/DEL/2013
Duration Of Justice 2 year(s) 10 day(s)
Appellant ACIT, New Delhi
Respondent Sh. Gaganpreet Singh Sachdeva, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 27-04-2015
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 27-04-2015
Date Of Final Hearing 27-04-2015
Next Hearing Date 27-04-2015
Assessment Year 2009-2010
Appeal Filed On 17-04-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : C : NEW DELHI BEFORE SHRI R.S. SYAL AM AND SHRI C.M. GARG JM ITA NO.2254/DEL/2013 ASSESSMENT YEAR : 2009-10 ACIT CIRCLE 33(1) NEW DELHI. VS. GAGANPREET SINGH SACHDEVA 10/84 CLUB ROAD PUNJABI BAGH NEW DELHI. PAN: AOCPS4642A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V.K. BHUTANI CA DEPARTMENT BY : SHRI T. VASANTHAN SR. DR DATE OF HEARING : 27.04.2015 DATE OF PRONOUNCEMENT : 27.04.2015 ORDER PER R.S. SYAL AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 31.1.2013 IN RELATION TO THE ASSESSME NT YEAR 2009-10. ITA NO.2254/DEL/2013 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DELETION OF ADDITION OF RS.13 16 205/- MADE BY THE AO ON ACCOUN T OF UNEXPLAINED PAYMENTS FROM CREDIT CARDS. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT A SSESSEE AN INDIVIDUAL WAS EARNING SALARY FROM M/S PAL MOHAN ELECTRONICS P VT. LTD. M/S RISHIGAGAN CONSTRUCTION PVT. LTD. AND M/S VAM ELEC TRO DEVICES PVT. LTD. AS PER THE AIR INFORMATION THE ASSESSEE MADE PAYMENTS OF RS.13 16 205/- THROUGH HIS CREDIT CARDS. IN THE OP INION OF THE AO THE AMOUNT WAS LIABLE TO BE ADDED TO THE ASSESSEES TOT AL INCOME FOR WANT OF ANY RECONCILIATION/CLARIFICATION/EXPLANATION ABOUT THE SOURCE OF THE ABOVE AMOUNT. THE LD. CIT(A) DELETED THE ADDITION. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT THE ASSESS EE CATEGORICALLY STATED BEFORE THE LD. CIT(A) THAT THE ABOVE PAYMENTS WERE MADE FOR THE EXPENSES INCURRED BY TWO COMPANIES NAMELY M/S PAL MOHAN ELECTRONICS PVT. LTD. AND M/S VAM ELECTRO DEVICES IN THE CAPACITY OF THEIR DIRECTOR. THE LD. CIT(A) HAS FURTHER RECORDE D THAT THE PAYMENTS ITA NO.2254/DEL/2013 3 MADE AGAINST THESE BILLS WERE RECORDED BY THESE COM PANIES IN THEIR BOOKS OF ACCOUNT. THE LD. CIT(A) OBSERVED THAT THE ASSESSEE EXPLAINED THESE FACTS TO THE AO VIDE HIS LETTERS DATED 5.12. 2011 AND 22.12.2011 BUT THE SAME WERE NOT REFERRED TO BY THE AO IN THE ASSESSMENT ORDER. THE ABOVE FACTS AMPLY DEMONSTRATE THAT THE ASSESSEE A DIRECTOR OF THE ABOVE TWO COMPANIES INCURRED EXPENSES ON BEHALF OF THE COMPANIES AND THE PAYMENTS WERE SIMPLY MADE THROUGH HIS CREDIT CA RD. MERELY BECAUSE THE PAYMENTS WERE MADE THROUGH THE ASSESSEES CREDI T CARDS THE AMOUNT SO SPENT DOES NOT PER SE BECOME UNEXPLAINED INCOME OF THE ASSESSEE MORE SO WHEN IT HAS BEEN EXPLAINED THAT THE EXPENS ES SO INCURRED WERE BOOKED BY THESE COMPANIES IN THEIR REGULAR BOOKS OF ACCOUNT. THE LD. DR COULD NOT CONTROVERT ANY OF THE FINDINGS GIVEN B Y THE LD. CIT(A) IN THE IMPUGNED ORDER. IN SUCH CIRCUMSTANCES WE FIND THAT THE ASSESSEE SUCCEEDED IN GIVING EXPLANATION ABOUT THE AMOUNT SP ENT THROUGH HIS CREDIT CARDS AND NO ADDITION WAS CALLED FOR. THE I MPUGNED ORDER IS UPHELD. ITA NO.2254/DEL/2013 4 5. IN THE RESULT THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 27.04.201 5. SD/- SD/- [C.M. GARG] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED 27 TH APRIL 2015. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT AR ITAT NEW DELHI.