DCIT, Central Circle-20,, v. Chandraswamy,,

ITA 3924/DEL/2004 | 1998-1999
Pronouncement Date: 08-12-2011 | Result: Dismissed

Appeal Details

RSA Number 392420114 RSA 2004
Bench Delhi
Appeal Number ITA 3924/DEL/2004
Duration Of Justice 7 year(s) 3 month(s) 4 day(s)
Appellant DCIT, Central Circle-20,,
Respondent Chandraswamy,,
Appeal Type Income Tax Appeal
Pronouncement Date 08-12-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 08-12-2011
Date Of Final Hearing 08-12-2011
Next Hearing Date 08-12-2011
Assessment Year 1998-1999
Appeal Filed On 03-09-2004
Judgment Text
ITA NOS. 3927-3930 & 3923-3926/DEL/2004 1 IN THE INCOME TAX APPELATE TRIBUNAL DELHI BENCH A: NEW DELHI BEFORE SHRI A.D. JAIN JUDICIAL MEMBER & SHRI SHAMIM YAHYA ACCOUNTANT MEMBER ITA NOS. 3927 3928 3929 & 3930 A.YRS. : 1997-98 98-99 1999-2000 2000-01 DCIT-CC-20 VS. M/S. VISHWA DHARMAYATAN TRUST JHANDEWALAN EXTN. C-18-19 QUTUB INSTITUTIONAL AREA NEW DELHI NEW DELHI [PAN/GIR NO. : 14-V) AND ITA NOS. 3923 3924 3925 & 3926 A.YRS. : 1997-98 98-99 1999-2000 2000-01 DCIT-CC-20 VS. SH. CHANDRASWAMY JHANDEWALAN EXTN. C-18-19 QUTUB INSTITUTIONAL AREA NEW DELHI NEW DELHI [PAN/GIR NO. : 7-C) (APPELLANTS) (RESPONDENTS) ASSESSEE BY : SH. M.S. SEKHON CA DEPARTMENT BY : SH. ANOOP SHARMA SPL. COUNSEL F OR DEPARTMENT O R D E R PER BENCH THE REVENUE HAS FILED THESE EIGHT APPEALS AGAINST THE RESPECTIVE ORDERS OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) NEW DELHI PERTAINING TO ASSESSMENT YEARS 1997-98 98-99 1999-200 0 & 2000-01. ITA NOS. 3927-3930 & 3923-3926/DEL/2004 2 2. THE APPEALS BEING ITA NO. 3923-3926 ARE FILED BY THE REVENUE AND AGAINST THE ASSESSEE SHRI CHANDRASWAMI IN WHOSE CASE THE A DDITION WAS MADE ON SUBSTANTIVE BASIS. 3. THE APPEALS BEING ITA NO. 3927-3930 ARE FILED BY THE REVENUE AGAINST M/S VISHWA DHARMAYATAN TRUST IN WHOSE CASE THE SAME ADDIT ION WAS DONE ON PROTECTIVE BASIS. 4. SINCE THESE APPEALS ARE CONNECTED HENCE HEARD T OGETHER. THESE ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. ITA NOS. 3923 ITA NOS. 3923 ITA NOS. 3923 ITA NOS. 3923- -- -3926 3926 3926 3926/DEL/2004 /DEL/2004 /DEL/2004 /DEL/2004 5. THESE ARE APPEALS BY THE REVENUE AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) FOR ASSESSMENT YEA RS 1997-98 TO 2000-01 RESPECTIVELY. THE COMMON GROUND RAISED IS T HAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. COMMISSIONER OF INCOM E TAX (APPEALS) HAS ERRED IN DELETING ADDITIONS ON ACCOUNT OF TELEPH ONE FOOD CLOTHING AND LODGING TRAVEL AND MEDICAL EXPENSES MADE BY THE ASSESSI NG OFFICER. 6. IN THESE CASES ASSESSEE WAS ASKED BY THE ASSESSING OFFICER T O SUBMIT THE DETAILS OF FOLLOWING EXPENSES (A) TELEPHONE (B) EL ECTRICITY & WATER (C) EXPENSES ON FOOD CLOTHING LODGING ETC. (D) TRAVELLI NG (E) MEDICAL EXPENSES. ASSESSING OFFICER FURTHER OBSERVED THAT FROM THE REPLY OF THE ASSESSEE IT WAS EVIDENT THAT NEITHER THE DETAIL OF THE EXPENSES HA VE BEEN QUANTIFIED NOR THE SOURCE THEREOF CONFIRMED. HENCE ASSESSING OFFICE R OPINED THAT HE HAD NO OPTION BUT TO ESTIMATE THESE EXPENSES ON THE BASIS OF THE DETAILS ITA NOS. 3927-3930 & 3923-3926/DEL/2004 3 AVAILABLE ON RECORD. ACCORDINGLY ASSESSING OFFICER PROCEEDED TO MAKE THE ESTIMATE ADDITIONS AS UNDER:- 1997-98 ` 12 LACS 1998-99 ` 7.50 LACS 1999-2000 ` 8.50 LACS 2000-2001 ` 8.50 LACS 7. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX ( APPEALS) CONSIDERED THE ISSUE IN ITA NO. 3923 ASSESSMENT YEAR 97- 98 AND HELD AS UNDER:- IN THE GROUND NO. 8 THE APPELLANT HAS CHALLENGED TH E ADDITION OF ` 12 00 000/- ON ACCOUNT OF TELEPHONE EXPENSES MEDIC AL EXPENSES EXPENSES FOR FOOD CLOTHING LODGING ETC. AN D TRAVELLING EXPENSES ALLEGED TO HAVE BEEN INCURRED BY THE APPELLANT. IN THE LETTER DATED 27.5.2004 FILED B Y THE APPELLANT IT HAS BEEN SUBMITTED THAT NO MATERIAL OR EVIDENCE HAVE BEEN BROUGHT ON RECORD BY THE ASSESSING OFFICER IN SUPPORT O F THESE ESTIMATED ADDITIONS. ACCORDING TO THE APPELLANT THE SE ADDITIONS HAVE BEEN MADE MERELY ON THE BASIS OF SURMISES AND CONJECTURES. THE ASSESSING OFFICER IN HIS ORDER DATED 28.3.2002 HAS DISCUSSED THIS ISSUE IN DETAIL BUT HAS NOT GIVEN ADEQUA TE REASONS FOR MAKING THESE ADDITIONS. THESE ADDITIONS HAV E BEEN MADE AS THE APPELLANT HAD NOT GIVEN ANY SATISFACTORY EXPLANATION TO ESTABLISH THAT THE ESTIMATED EXPENSES WE RE NOT ITA NOS. 3927-3930 & 3923-3926/DEL/2004 4 INCURRED BY THE APPELLANT ON HIMSELF. THE ASSESSING OFF ICER HAS NOT CITED ANY EVIDENCE ON THE BASIS OF WHICH IT CAN B E SAID THAT SUCH EXPENSES WERE INCURRED BY THE APPELLANT. THESE EX PENSES WERE ESTIMATED BY AS THE APPELLANTS EXPLANATION ABO UT THE EXPENSES WAS NOT FOUND SATISFACTORY BY THE ASSESSING OFFICER . SINCE THERE IS NO EVIDENCE TO CONCLUDE THAT THE APPE LLANT HAD SPENT SUCH AMOUNTS ON HIMSELF THE ADDITION OF ` 12 00 000/- IS DELETED. 8. FOR ASSESSMENT YEAR 1998-99 FOLLOWING THE SAME REASON ING ABOVE LD. COMMISSIONER OF INCOME TAX (APPEALS) DELETED THE ADDI TION OF ` 7.50 LACS. SIMILARLY A.Y. 1999-2000 ON SIMILAR REASONING LD. CO MMISSIONER OF INCOME TAX (APPEALS) DELETED THE ADDITION OF ` 8.50 LACS AND FURTHER FOR A.Y. 2000-01 ON SIMILAR REASONING THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DELETED THE ADDITION OF ` 8.50 LACS. 9. AGAINST THE ABOVE ORDER THE REVENUE IS IN APPEAL BEFORE US. 10. WE HAVE HEARD THE RIVAL CONTENTIONS IN LIGHT OF THE MATERIAL PRODUCED AND PRECEDENT RELIED UPON. WE FIND THAT THESE ADDIT IONS WERE MADE BY THE ASSESSING OFFICER ON ESTIMATE BASIS WITHOUT BRINGING ANY COGENT MATERIAL ON RECORD. THESE EXPENSES RELATED TO TELEPHONE MEDICAL EXPENSES FOOD CLOTHING LODGING ETC. AND TRAVELLING EXPENSES. ASSESSE E HAS SUBMITTED BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) T HAT NO MATERIAL OR EVIDENCE HAS BEEN BROUGHT ON RECORD IN SUPPORT OF TH E ESTIMATED ADDITIONS. IT WAS PLEADED THAT THESE ADDITIONS WERE MADE MERELY O N THE BASIS OF THE ITA NOS. 3927-3930 & 3923-3926/DEL/2004 5 SURMISES AND CONJECTURES. CONSIDERING THE ABOVE LD. COMMISSIONER OF INCOME TAX (APPEALS) OBSERVED THAT ASSESSING OFFICER HAS NOT GIVEN ANY COGENT REASON FOR MAKING THESE ADDITIONS. THESE ADDI TIONS HAVE BEEN MADE AS THE ASSESSEE HAS NOT GIVEN ANY SATISFACTORY EXPLAN ATION TO ESTABLISH THAT THE ESTIMATED EXPENSES WERE NOT INCURRED BY THE A SSESSEE HIMSELF. LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS OBSERVED TH AT ASSESSING OFFICER HAS NOT CITED ANY EVIDENCE ON THE BASIS OF W HICH IT CAN BE SAID THAT SUCH EXPENSES WERE INCURRED BY THE ASSESSEE. SINCE THERE WAS NO EVIDENCE TO CONCLUDE THAT THE ASSESSEE HAD SPENT SUCH AMOUNTS ON H IMSELF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DELETED THE ADDIT ION. IN OUR CONSIDERED OPINION THERE IS NO INFIRMITY IN THE ORD ER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) AND ACCORDINGLY WE UPHOLD THE SAME. IN THE RESULT THE ITA NO. 3923 TO 3926/DEL/2 004 FILED BY THE REVENUE STAND DISMISSED. ITA NOS. 3 ITA NOS. 3 ITA NOS. 3 ITA NOS. 39 99 927 2727 27- -- -3930 3930 3930 3930/DEL/2004 /DEL/2004 /DEL/2004 /DEL/2004 11. THE COMMON GROUND RAISED IN THESE APPEALS ARE THA T ON THE FACTS AND CIRCUMSTANCES OF THE CASE LD. COMMISSIONER OF INCOME T AX (APPEALS) HAS ERRED IN DELETING THE ADDITION ON ACCOUNT OF TELEP HONE FOOD CLOTHING AND LODGING AND MEDICAL EXPENSES ETC. MADE BY THE ASSESSIN G OFFICER ON PROTECTIVE BASIS AS APPEALS HAVE BEEN FILED AGAINST SI MILAR RELIEF ALLOWED IN THE CASE OF SHRI CHANDRASWAMY WHERE THE ADDITION WAS M ADE ON SUBSTANTIVE BASIS. ITA NOS. 3927-3930 & 3923-3926/DEL/2004 6 12. IN THESE CASES ASSESSING OFFICER HAS MADE THE ADDI TIONS IN THE HANDS OF THE TRUST ON PROTECTIVE BASIS AS UNDER:- 1997-98 ` 12 LACS 1998-99 ` 7.50 LACS 1999-2000 ` 8.50 LACS 2000-2001 ` 8.50 LACS 13. BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEAL S) ASSESSEE CONTENDED THAT THESE ESTIMATED ADDITIONS DID NOT PERTA IN TO THE ASSESSEE TRUST AND THEREFORE COULD NOT BE INCLUDED IN ITS HAN D. IT WAS POINTED OUT THAT ASSESSEE TRUST HAD INFACT INCURRED CERTAIN EXPENSES WHICH WERE DULY SUPPORTED BY THE BILLS AND VOUCHERS. ACCORDINGLY IT WAS PLEADED THAT THE ASSESSING OFFICER HAS WRONGLY ADDED THE SAME ON PROTECT IVE BASIS IN THE HANDS OF THE ASSESSEE. 13.1 CONSIDERING THE ABOVE LD. COMMISSIONER OF INCOME TAX (APPEALS) HELD THAT THESE ADDITIONS WERE MADE IN THE HANDS OF SHRI C HANDRA SWAMI ON ACCOUNT OF EXPENSES WHICH WERE ESTIMATED TO HAVE BEE N INCURRED BY SHRI CHANDRA SWAMI BY HIMSELF AND FOR THE REASON THAT SHRI CHANDRASWAMI COULD NOT SATISFACTORILY EXPLAIN THE SOURCES FOR THESE EXPENSES. LD. COMMISSIONER OF INCOME TAX (APPEALS) OBSERVED THAT ASSESSING OFFICER HAS NOT COME TO A FINDING THAT THESE EXPENSES WERE MET OUT OF THE UNDISCL OSED INCOME OF THE ASSESSEE TRUST AND THEREFORE THERE WAS NO JUSTIFICATION I N MAKING THESE ADDITIONS IN THE HANDS OF THE ASSESSEE TRUST ON PROTECTIV E BASIS. ACCORDINGLY LD. COMMISSIONER OF INCOME TAX (APPEALS) DELETED THESE ADDITIONS. 14. AGAINST THE ABOVE ORDER THE REVENUE IS IN APPEAL BEFORE US. 15. WE HAVE HEARD THE RIVAL CONTENTIONS IN LIGHT OF THE MATERIAL PRODUCED AND PRECEDENT RELIED UPON. WE FIND THAT IN ITA NO. 3923-3926/DEL/2004 WE HAVE ALREADY DELETED SUBSTANTIVE ADDITION MADE IN THE HANDS OF SHRI ITA NOS. 3927-3930 & 3923-3926/DEL/2004 7 CHANDRASWAMI IN THIS REGARD. HENCE THESE ADDITIONS ON PROTECTIVE BASIS IN THE HANDS OF THE ASSESSEE TRUST CANNOT SURVIVE. MORE OVER LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS OBSERVED THAT A SSESSING OFFICER HAS NOT GIVEN ANY FINDING THAT THESE EXPENSES WERE MET OUT OF THE UNDISCLOSED INCOME OF THE ASSESSEE TRUST AND THEREFORE THERE WAS NO REASON TO MAKE THESE ADDITIONS IN THE HANDS OF THE A SSESSEE TRUST. IN OUR CONSIDERED OPINION THERE IS NO INFIRMITY IN THE ORD ER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IN THIS REGARD HENCE WE UPH OLD THE SAME. IN THE RESULT THE ITA NO. 3927 TO 3930/DEL/2004 FILED BY THE REVENUE STAND DISMISSED. 16. IN THE RESULT ALL THE EIGHT APPEALS FILED BY TH E REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08/12/2011 UPON CONCLUSION OF THE HEARING. SD/- SD/- [A.D. JAIN] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 08/12/ 2011 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT DELHI BENCHES