Late Shri Vishwa Nath Sahni, New Delhi v. DCIT, New Delhi

ITA 3101/DEL/2015 | 2007-2008
Pronouncement Date: 13-10-2016 | Result: Allowed

Appeal Details

RSA Number 310120114 RSA 2015
Assessee PAN AAAPS9411K
Bench Delhi
Appeal Number ITA 3101/DEL/2015
Duration Of Justice 1 year(s) 4 month(s) 26 day(s)
Appellant Late Shri Vishwa Nath Sahni, New Delhi
Respondent DCIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 13-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC 2
Tribunal Order Date 13-10-2016
Date Of Final Hearing 08-09-2016
Next Hearing Date 08-09-2016
Assessment Year 2007-2008
Appeal Filed On 18-05-2015
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-II NEW DELHI BEFORE SHRI H.S. SIDHU JUDICIAL MEMBER I.T.A.NO. 3101 /DEL/201 5 A.Y. 200 7 - 08 LATE SH. VISHWA NATH SAHNI THROUGTH LEGAL HEIR AND ACCOUNTABLE PERSON SMT. URMIL SAHNI C/O ISHER DAS SAHNI & BROS. ODEON CINEMA CONNAUGHT PLACE NEW DELHI 110 001 (PAN: AAAPS9411K) VS. DCIT CENTRAL CIRCLE 31(1) NEW DELHI (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) ASSESSEE BY : SH. MS SEKHON CA DEPARTMENT BY : SH. AMRIT LAL SR. DR ORDER ORDER ORDER ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 18.3.2015 OF THE LD. CIT(A)-18 NEW DELHI PERTAININ G TO ASSESSMENT YEAR 2007- 08 ON THE FOLLOWING GROUNDS:- 1. THAT THE LD. CIT(A)-18 NEW DELHI HAS ERRED IN CONF IRMING THE RETURNED INCOME OF RS. 47 31 554/- AS AGAINST THE R EVISED INCOME OF RS. 19 18 873/- 2. THAT THE ORDER OF THE CIT(A) IS BAD IN LAW AND ON T HE FACTS OF THE CASE; AND 3. THAT THE APPELLANT CRAVES LEAVE TO ADD ALTER AMEN D OR WITHDRAW ANY OF THE GROUNDS OF APPEAL AT ANY TIME B EFORE OR AT THE TIME OF HEARING OF THE APPEAL. 2 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE FILED THE RETURN DECLARING INCOME OF RS. 47 31 544 /- ON 22.10.2007. HOWEVER THE ASSESSEE ALSO FILED REVISED RETURN OF INCOME ON 27-01-2009 DECLARING IN COME OF RS19 18 873/- WHICH WAS PROCESSED U/S 143(1) OF THE IT ACT 1961. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS-AIR CATEGORY. ACCORDINGLY NOTI CES U/S 143(2) & U/S 142(1) WERE ISSUED FROM TIME TO TIME AND SERVED UPON THE A SSESSEE. IN RESPONSE TO ABOVE STATUTORY NOTICES THE AR OF THE ASSESSEE APP EARED FROM TIME TO TIME AND FILED THE NECESSARY DETAILS AS CALLED FOR IN RESPEC T OF SOURCES OF INVESTMENTS MADE IN MUTUAL FUNDS AND SHARES HAVE BEEN FURNISHED BY T HE ASSESSEE WHICH HAVE BEEN EXAMINED WITH REFERENCE TO THE DETAILS AND DOC UMENTS AS PER RECORD AND FURNISHED DURING THE COURSE OF ASSESSMENT PROCEEDIN GS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS NOTICED BY THE AO TH AT IN THE ORIGINAL RETURN OF INCOME THE ASSESSEE HAD DECLARED AN INCOME OF RS 4 7 31 544./- WHICH INCLUDED SHORT TERM CAPITAL GAIN INCOME OF RS 47 3 1 554/- FROM SALE OF SHARES/UNITS BF MUTUAL FUNDS WHICH WAS REVISED TO RS.19 18 873/- IN THE REVISED RETURN OF INCOME. IT HAS BEEN EXPLAINED BY THE ASSE SSEE THAT DUE TO WRONG UNDERSTANDING OF LAW ENTIRE CAPITAL GAIN OF RS. 47 31 554/- WAS RETURNED UNDER THE HEAD 'SHORT TERM CAPITAL GAIN U/S 111A AND THAT THERE WERE 'CERTAIN CLERICAL CALCULATION ERRORS WHICH ALSO REQUIRED REVISION. AO OBSERVED THAT SINCE THE ASSESSEE COULD NOT FILED ANY EVIDENCE IN RESPECT OF HIS CONTENTIONS AND THE 3 ASSESSEE HIMSELF HAS DISCLOSED THIS AS STCG IN THE ORIGINAL RETURN THE WHOLE AMOUNT OF SHORT TERM CAPITAL GAIN OF RS. 47 31 554/- (ROUNDED OFF TO RS. 47 31 550/-) WA S ASSESSED AS STCG INCOME BY COMPLETING THE ASSESSMENT U/S. 143(3) OF THE I.T. ACT 1961 ON 27.11.2009. 3. AGGRIEVED WITH THE ASSESSMENT ORDER ASSESSEE APPEALED BEFORE THE LD. CIT(A) WHO VIDE IMPUGNED ORDER DATED 18.3.2015 HAS HELD THAT THE AO HAS CORRECTLY CONCLUDED IN THE ASSESSMENT ORDER THAT T HE ASSESSEE FAILED TO FILE ANY EVIDENCE IN RESPECT OF HIS CONTENTIONS IN SUPPORT O F REVISED RETURN AND DISMISSED THE APPEAL OF THE ASSESSEE. 4. AGAINST THE ORDER OF THE LD. CIT(A) ASSESSEE I S IN APPEAL BEFORE THE TRIBUNAL. 5. DURING THE HEARING LD. COUNSEL OF THE ASSESSEE STATED THAT LD. CIT(A) HAS ERRED IN CONFIRMING THE RETURNED INCOME OF RS. 47 3 1 554/- AS AGAINST THE REVISED INCOME OF RS. 19 18 873/-. LD. COUNSEL FUR THER STATED THAT ORIGINAL RETURN OF INCOME WAS FILED ON 22.10.2007 DECLARING ASSESSA BLE INCOME OF RS. 47 31 554/- AND LATER IT WAS NOTICED THAT DUE TO W RONG UNDERSTANDING OF LAW THE ENTIRE CAPITAL GAIN OF RS. 47 31 554/- WAS RETU RNED UNDER THE HEAD STCG U/S. 11A OF THE I.T. ACT. IT WAS FURTHER CONTENTI ON THAT THERE WAS CERTAIN CLERICAL / CALCULATIONS ERRORS ALSO WHICH REQUIRE REVISION. TH EREFORE THE ASSESSEE RE- 4 CALCULATED HIS ASSESSABLE INCOME AND FILED A REVIS ED RETURN AT RS. 19 18 873/-. LD. COUNSEL FOR THE ASSESSEE ALSO FILED A PAPER BOO K CONTAINING PAGES 1 TO 93 HAVING VARIOUS DOCUMENTARY EVIDENCES I.E. COPY OF T HE ORDER AO AND THE CIT(A); COPY OF ORIGINAL ITR(3) AND RAISED COMPUTATION OF I NCOME; COPY OF LETTER DATED 27.8.2009 FILED BEFORE THE DCIT ALONGWITH COPY OF S TATEMENT OF SB A/C NO. 701211207 ICICI BANK CP NEW DELHI; COPY OF LETTE R DATED 4.9.2009 ALONGWITH ENCLOSURES; COPY OF LETTER DATED 4.9.2009 ALONGWITH ANALYSIS OF TRANSACTIONS IN 701211207 ICICI BANK CP NEW DELH I; COPY OF LETTER DATED 18.9.2009 FILED BEFORE DCIT ALONGWITH SUPPORTING EN CLOSURES; COPY OF LETTER DATED 18.11.2009 FILED BEFORE THE DCIT ALONGWITH S UPPORTING ENCLOSURES; COPY OF LIST EVIDENCES FILED BEFORE THE CIT(A); COPY OF WRITTEN ARGUMENTS FILED BEFORE CIT(A); LIST OF EVIDENCES SUBMITTED DURING THE ASSE SSMENT PROCEEDINGS; COPY OF REASONS FOR FILING REVISED RETURN OF INCOME; COPY O F STATEMENT OF MUTUAL FUND INVESTMENTS; LIST OF SECURITIES TRANSFERRED FROM SH ARE HOLDINGS TO CATERPILLAR ACCOUNT NO. 101433; COPY OF REMAND REPORT DATED 13. 10.2010 OF THE DCIT; COPY OF WRITTEN SUBMISSIONS ON BEHALF OF ASSESSEE T O REMAND REPORT DATED 13.10.2010; COMPUTATION OF WEALTH FOR THE AY 2007-0 8; COPY OF TRANSACTIONS STATEMENT WITH NSDL; COPY OF STATEMENT OF HOLDINGS WITH NSDL BONANZA PORTFOLIO LTD; STATEMENT OF COMPUTATION OF SHORT TERM CAPITAL GAINS; STATEMENT OF SHARES ALLOTTED DURING THE YEAR ENDED 31.3.2007; STATEMENT OF ACCOUNT WITH JV CAPITAL 5 SECURITIES PVT. LTD.; STATEMENT OF ACCOUNT OF VN SA HNI (INDL) AND VN SAHNI (HUF); COPY OF LETTER DATED 24.8.2010 FILED BEFORE THE CI T(A); COPY OF JUDGMENT DATED 6.2.2009 OF DELHI HIGH COURT IN THE CIT VS. NALWA I NVESTMENT LTD; COPY OF REGISTERED WILL OF LATE. SH. VISHWA NATH SAHNI ETC. 6. ON OTHER HAND LD. DR HAS RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW AND STATED THAT THE ORDER OF THE LD. CIT(A) IS A WE LL REASONED AND THE SAME DOES NOT NEED ANY INTERFERENCE ON OUR PART. 7. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE RE CORDS ESPECIALLY THE ORDERS OF THE REVENUE AUTHORITIES AND PAPER BOOK FI LED BY THE ASSESSEE HAVING VARIOUS ASSESSMENT AND APPELLATE PROCEEDINGS DOCUME NTS/ EVIDENCES. I FIND THAT BOTH THE REVENUE AUTHORITIES HAS OBSERVED THAT THE ASSESSEE HAS FAILED TO FILE ANY EVIDENCE IN RESPECT OF HIS CONTENTIONS IN SUPPORT O F THE REVISED RETURN AND ON THIS ACCOUNT THE REVISED RETURN WAS NOT TAKEN INTO ACC OUNT BY THE AO AS WELL AS BY THE LD. CIT(A). HOWEVER IT WAS THE CONTENTION OF THE LD. COUNSEL OF THE ASSESSEE THAT DUE TO WRONG UNDERSTANDING OF LAW TH E ENTIRE CAPITAL GAIN OF RS. 47 31 554/- WAS RETURNED UNDER THE HEAD SHORT TERM CAPITAL GAIN U/S 111A OF THE I.T. ACT 1961 AND THERE WAS CERTAIN CLERICAL / CALCULATIONS ERRORS ALSO WHICH REQUIRE REVISION. THEREFORE IN THE INTEREST OF JUS TICE I REMIT BACK THE ISSUES IN DISPUTE TO THE FILE OF THE AO TO DECIDE THE ISSUE I N DISPUTE ON THE BASIS OF THE REVISED RETURN WHICH HAS BEEN FILED BY THE ASSESSEE AS PER LAW AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THE ASSESSEE IS ALSO 6 DIRECTED TO PRODUCE THE RELEVANT EVIDENCES/DOCUMEN TS TO SUBSTANTIATE HIS CLAIM WITH REGARD TO REVISED RETURN AND FULLY COOPERATE WITH THE AO. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13/10/2016. SD/- [ [[ [H.S. SIDHU H.S. SIDHU H.S. SIDHU H.S. SIDHU] ]] ] JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER DATE 13/10/2016 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT DELHI BENCHES