ITO, New Delhi v. Sh. Rajinder Kumar,, New Delhi

ITA 2483/DEL/2010 | 2005-2006
Pronouncement Date: 30-07-2010 | Result: Dismissed

Appeal Details

RSA Number 248320114 RSA 2010
Assessee PAN ABLPK2348B
Bench Delhi
Appeal Number ITA 2483/DEL/2010
Duration Of Justice 2 month(s) 5 day(s)
Appellant ITO, New Delhi
Respondent Sh. Rajinder Kumar,, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 30-07-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 30-07-2010
Date Of Final Hearing 27-07-2010
Next Hearing Date 27-07-2010
Assessment Year 2005-2006
Appeal Filed On 25-05-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA HONBLE VICE PRESI DENT AND SHRI I.P. BANSAL JUDICIAL MEMBER ITA NO.2483/DEL/2010 ASSESSMENT YEAR : 2005-06 INCOME TAX OFFICER WARD 36 (1) NEW DELHI. VS. SHRI RAJINDER KUMAR 411-A GALI NO.12 LALITA PARK LAXMI NAGAR DELHI 110 092. PAN : ABLPK 2348 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI H.K. LAL SR. DR REVENUE BY : SHRI B.L. KHANNA AR ORDER PER I.P. BANSAL JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE. IT IS DIR ECTED AGAINST THE ORDER OF THE CIT (A) DATED 14 TH DECEMBER 2009 FOR ASSESSMENT YEAR 2005-06. GROUN DS OF APPEAL READ AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS.21 47 000/- AND RS.4 35 900/- MADE BY THE A.O. ON ACCOUNT OF UNEXPL AINED CASH CREDIT U/S 68 OF THE IT ACT. 2. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RI GHT TO AMEND MODIFY ALTER ADD OR FOREGO ANY GROUND (S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS AP PEAL. 2. THE IMPUGNED ASSESSMENT WAS FRAMED VIDE ORDER DA TED 28 TH DECEMBER 2007 PASSED U/S 143 (3) OF THE IT ACT 1961 WHEREIN TWO ADDITIONS REGARDING UNEXPLAINED CASH CREDITS WERE MADE THE DETAILS OF W HICH ARE AS UNDER:- ITA NO.2483/DEL/2010 2 (I) ADD: CASH CREDITS OF RS.21 47 000 IN DCB LTD. AS DISCUSSED IN THE BODY OF ORDER RS.21 47 00 0/- (II) ADD: CASH CREDITS OF RS.4 35 900/- IN ABN AMRO BANK AS DISCUSSED ABOVE RS.04 35 900 3. THE ADDITION WAS INITIALLY UPHELD BY THE CIT (A) VIDE ORDER DATED 19 TH JUNE 2008 AGAINST WHICH THE ASSESSEE PREFERRED APPEAL BE FORE ITAT WHICH WAS DECIDED VIDE ORDER DATED 30 TH JUNE 2009 IN ITA NO.2888/DEL/2008 WHEREIN THE ORDER OF THE CIT (A) WAS SET ASIDE AND THE MATTER W AS RESTORED BACK TO THE FILE OF CIT (A) WITH A DIRECTION TO EXAMINE THE ISSUES RAIS ED IN THE SAID APPEAL IN ACCORDANCE WITH THE LAW AFTER AFFORDING THE ASSESSE E A REASONABLE OPPORTUNITY OF BEING HEARD. IN PURSUANCE OF THOSE DIRECTIONS THE IMPUGNED ORDER HAS BEEN PASSED BY CIT (A) IN WHICH THE AFOREMENTIONED ADDIT IONS HAVE BEEN DELETED. THE DEPARTMENT IS AGGRIEVED HENCE IN APPEAL. BEF ORE THE CIT (A) IT WAS EXPLAINED BY THE ASSESSEE THAT THE CASH DEPOSITED I N THE ABOVE BANK ACCOUNTS WERE FROM THE FOLLOWING SOURCES:- I. VISA FROM THE VARIOUS EMBASSIES. II. OBTAINING FOREIGN EXCHANGE IN LIEU OF THIS CASH PAID TO HIM BY THE SAME VISA SEEKERS AND THAT THE FACTS ARE VERIFI ABLE FROM BANK STATEMENTS SINCE THE ASSESSEE HAS ISSUED WITHD RAWN CASH AND HAS PAID THE SAME TO THE AUTHORIZED LICENS ED FOREIGN EXCHANGE DEAL FOR OBTAINING FOREIGN EXCHANGE FOR AN D ON BEHALF OF THE VISA SEEKERS. 4. DURING THE COURSE OF HEARING BEFORE THE CIT (A) THE ASSESSEE SUBMITTED THE FOLLOWING DOCUMENTS:- I) POWER OF ATTORNEY II) COPY OF BALANCE SHEET & PROFIT & LOSS ACCOUNT. III) DETAILS OF VISA FEES RECEIVED AND PAID TO EMBA SSIES THUS BRINGING THE NET INCOME. IV) DETAILS OF EXPENSES: ITA NO.2483/DEL/2010 3 A) STAFF WELFARE MONTH WISE. B) BUSINESS PROMOTION MONTH WISE. C) DETAILS OF SALARIES. D) BANK CHARGES. E) ACCOUNTANCY CHARGES. F) TELEPHONE CHARGES. G) TRAVELLING AND CONVEYANCE. H) INTEREST ON CAR LOAN. I) MONTHLY SUMMARY OF CAR LOAN. J) DRAWINGS ACCOUNT. K) COPY OF ACCOUNT WITH THE FIRM. V. PHOTOCOPY OF BANK STATEMENT. VI. TRIAL BALANCE VII. COPIES OF BANK ACCOUNTS LEDGER VIII. FULL CASH BOOK IS ENCLOSED IX. THERE IS NO ADDITION IN THE FIXED ASSETS DURING THE YEAR. X. ASSESSEE IS A VISA PROVIDER/SERVICES RENDERED TO VARIOUS TRAVEL AGENTS AND INDIVIDUALS. DETAILS OF GROSS RE CEIPTS ARE ENCLOSED. THE AMOUNTS SO RECEIVED ARE INVARIABLY D EPOSITED IN THE BANK ACCOUNT. PHOTOCOPY OF BANK STATEMENT ALONG WI TH NARRATION IS ENCLOSED FOR PERUSAL. IT IS EVIDENT THAT ON CERTAI N DATES AMOUNT OF RS.1 LAKH HAS BEEN DEPOSITED AND IN THIS RESPECT PH OTO COPIES OF CASH BOOK PAGES PROVING CASH IN HAND ARE ENCLOSED W HICH MATCH WITH THE AMOUNT DEPOSITED IN BANK. XI. SINCE THE ASSESSEE IS NOT IN ANY KIND OF TRADE NO G P RATIO CHART CAN BE ENUMERATED. 5. LD. CIT (A) HAS CALLED FOR THE REMAND REPORT OF THE ASSESSING OFFICER ALSO AND HE HAS OBSERVED THAT IT IS CLEAR FROM THE FACTS PLACED ON RECORD THAT THE ASSESSEE IS A VISA PROVIDER AND IS RENDERING SERVIC E TO VARIOUS TRAVEL AGENTS AND INDIVIDUALS. THE AMOUNTS SO RECEIVED HAVE BEEN DEP OSITED INTO THE SUBJECT BANK ACCOUNTS. HE OBSERVED THAT AFTER EXAMINING THESE F ACTS RELATING TO THE MODUS ITA NO.2483/DEL/2010 4 OPERANDI OF THE ASSESSEES BUSINESS IT WILL BE OBSE RVED THAT THE ASSESSING OFFICER HAS FAILED TO EXAMINE THE NATURE OF THE BUS INESS AND THE RELATED CREDITS INTO THE BANK ACCOUNTS OF THE ASSESSEE AND THUS H AS ERRONEOUSLY ASSESSED SUCH CREDITS AS UNEXPLAINED CASH CREDITS U/S 68 OF THE ACT. HE OBSERVED THAT HE IS NOT ABLE TO AGREE WITH THE STAND OF THE ASSESSIN G OFFICER VIDE REMAND REPORT AS THE ASSESSING OFFICER HAS FAILED TO EXAMINE THE TRU E NATURE AND THE SOURCE OF THE CREDITS INTO THE SUBJECT BANK ACCOUNTS AND AS PER T HE FINDINGS OF CIT (A) AFTER EXAMINING THE REASONS FURNISHED BY THE ASSESSEE ALO NG WITH THE SUPPORTING EVIDENCES WITH RESPECT TO BANK ACCOUNTS AND VERIFYI NG THE CREDITS THEREIN HE IS CONVINCED THAT THE ADDITION OF RS.21 47 000/- REPRE SENTING THE CREDITS IN DEVELOPMENT CREDIT BANK LTD. AND RS.4 35 900/- CRED ITED INTO THE ABN AMRO BANK ARE REQUIRED TO BE DELETED AS THEY ARE SATISFA CTORILY EXPLAINED BY THE ASSESSEE IN THE COURSE OF APPELLATE PROCEEDINGS. 6. THE CIT (A) HAS ASSIGNED OTHER REASON FOR DELETI ON THAT IN RESPECT OF ASSESSMENT YEAR 2007-08 WHICH IS AN ASSESSMENT MA DE UNDER SCRUTINY THE ASSESSING OFFICER HAS ACCEPTED THE BUSINESS RESULTS OF THE ASSESSEE THEREBY ENDORSING THE NATURE OF CREDITS INTO THE SUBJECT BA NK ACCOUNTS WHICH ARE THE VERY SAME MAINTAINED BY THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION. IT IS AGAINST THESE FINDINGS THE DEPARTMENT HAS FILED AN APPEAL. 7. AT THE TIME OF HEARING RELYING UPON THE ORDER O F ASSESSING OFFICER IT WAS PLEADED BY LD. DR THAT THE ASSESSEE COULD NOT SATIS FACTORILY EXPLAIN THE CREDITS INTO THE ABOVE MENTIONED TWO BANK ACCOUNTS AND THE CIT (A) HAS WRONGLY DELETED THE ADDITION. HE SUBMITTED THAT THE ORDER OF ASSESSING OFFICER SHOULD BE RESTORED AND THAT OF CIT (A) SHOULD BE SET ASIDE. 8. ON THE OTHER HAND IT WAS SUBMITTED BY LD. AR TH AT THE CIT (A) AFTER CONSIDERING THE DETAILS FILED BY THE ASSESSEE IN RE SPECT OF SET ASIDE LD. CIT (A) HAS RIGHTLY HELD THAT THE DEPOSITS IN THE BANK ACCO UNTS WERE EXPLAINED. THEY WERE IN ACCORDANCE WITH THE BUSINESS OF THE ASSESSE E AND THUS THE CIT (A) WAS RIGHT IN DELETING THE ADDITION. ITA NO.2483/DEL/2010 5 9. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS IN THE LIGHT OF THE MATERIAL PLACED BEFORE US. THE NATURE OF BUSINES S OF THE ASSESSEE IS PROVIDING VISA FACILITY TO THE VISITORS FROM VARIOUS EMBASSIE S AND IN THE PROCESS HE IS OBTAINING FOREIGN EXCHANGE IN LIEU OF CASH PAID TO HIM AND THESE FACTS WERE STATED TO BE VERIFIABLE FROM THE BANK STATEMENTS SI NCE THE ASSESSEE HAD ISSUED WITHDRAWN CASH AND HAS PAID THE SAME TO THE AUTHORI ZED LICENSED FOREIGN EXCHANGE DEALER FOR OBTAINING FOREIGN EXCHANGE FOR AND ON BEHALF OF VISA SEEKERS. THE ACTIVITY STATED TO BE CARRIED ON BY T HE ASSESSEE HAS NOT BEEN CONTROVERTED BY BRINGING ANY ADVERSE MATERIAL ON RE CORD. THE CASH HAS BEEN FOUND BY THE CIT (A) TO BE DEPOSITED IN THE COURSE OF BUSINESS CARRIED ON BY THE ASSESSEE. ALL THE DOCUMENTARY EVIDENCE WAS SUBMITT ED TO CIT (A) WHICH WAS CONFRONTED TO THE ASSESSING OFFICER. NO MATERIAL H AS BEEN BROUGHT ON RECORD BY THE DEPARTMENT TO SHOW THAT THERE WAS ANY DISCREPAN CY IN THE DOCUMENTS SUBMITTED BY THE ASSESSEE AND TO CONTEND THAT THE F INDING OF FACT RECORDED BY THE CIT (A) IS INCORRECT THAT THE CASH DEPOSITED IN THE BANKS ARE SATISFACTORILY EXPLAINED BY THE ASSESSEE DURING THE COURSE OF APPE LLATE PROCEEDINGS. THE APPEAL WAS RESTORED TO THE FILE OF CIT (A) FOR THE PURPOSE OF ALL THESE VERIFICATIONS. IN THE ABSENCE OF ANY MATERIAL TO CONTROVERT THE FI NDINGS OF FACT RECORDED BY THE CIT (A) WE DECLINE TO INTERFERE IN THE RELIEF GIVE N BY THE CIT (A). IT MAY ALSO BE MENTIONED HERE THAT UNDER SIMILAR CIRCUMSTANCES THE CASE OF THE ASSESSEE FOR ASSESSMENT YEAR 2007-08 WAS ACCEPTED AND IT IS ALSO RECORDED IN THE ORDER OF CIT (A) IN PARA 9 OF HIS ORDER. THEREFORE WE FIND NO MERIT IN THE DEPARTMENTAL APPEAL AND THE SAME IS DISMISSED. 10. IN THE RESULT THE APPEAL FILED BY THE DEPARTME NT IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 30.07.20 10. SD/- SD/- [G.E. VEERABHADRAPPA] [I.P. BANSAL] VICE PRESIDENT JUDICIAL MEMBER DATED 30.07.2010. DK ITA NO.2483/DEL/2010 6 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES