ITO, Meerut v. Shri Indra Pal Singh, Meerut

ITA 423/DEL/2011 | 2006-2007
Pronouncement Date: 28-03-2011 | Result: Partly Allowed

Appeal Details

RSA Number 42320114 RSA 2011
Assessee PAN ALHPS8650C
Bench Delhi
Appeal Number ITA 423/DEL/2011
Duration Of Justice 2 month(s) 3 day(s)
Appellant ITO, Meerut
Respondent Shri Indra Pal Singh, Meerut
Appeal Type Income Tax Appeal
Pronouncement Date 28-03-2011
Appeal Filed By Department
Order Result Partly Allowed
Bench Allotted C
Tribunal Order Date 28-03-2011
Date Of Final Hearing 28-03-2011
Next Hearing Date 28-03-2011
Assessment Year 2006-2007
Appeal Filed On 24-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH C BENCH C BENCH C BENCH C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI C.L.SETHI JM AND SHRI BEFORE SHRI C.L.SETHI JM AND SHRI BEFORE SHRI C.L.SETHI JM AND SHRI BEFORE SHRI C.L.SETHI JM AND SHRI K.D.RANJAN K.D.RANJAN K.D.RANJAN K.D.RANJAN AM AM AM AM ITA NO. ITA NO. ITA NO. ITA NO.423/DEL/2011 423/DEL/2011 423/DEL/2011 423/DEL/2011 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2006 2006 2006 2006- -- -07 0707 07 INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER WARD WARD WARD WARD- -- -1(3) 1(3) 1(3) 1(3) MEERUT. MEERUT. MEERUT. MEERUT. VS. VS. VS. VS. SHRI INDRA PAL SINGH SHRI INDRA PAL SINGH SHRI INDRA PAL SINGH SHRI INDRA PAL SINGH PROP. M/S SINGH ENTERPRI PROP. M/S SINGH ENTERPRI PROP. M/S SINGH ENTERPRI PROP. M/S SINGH ENTERPRISES SES SES SES 328/8 SHASTRI NAGAR 328/8 SHASTRI NAGAR 328/8 SHASTRI NAGAR 328/8 SHASTRI NAGAR MEERUT MEERUT MEERUT MEERUT UP. UP. UP. UP. PAN NO. PAN NO. PAN NO. PAN NO.ALHPS8650C. ALHPS8650C. ALHPS8650C. ALHPS8650C. (APPELLANT) (RESPONDENT) APPELLANT BY : MS.MONA MOHANTY SR.DR RESPONDENT BY : SHRI SUNIL KUMAR CA. ORDER ORDER ORDER ORDER PER C.L.SETHI PER C.L.SETHI PER C.L.SETHI PER C.L.SETHI J J J JM : M : M : M : THE REVENUE IS IN APPEAL AGAINST THE ORDER DATED 2 6.11.2010 PASSED BY LEARNED CIT(A) PERTAINING TO THE AY 2006- 07. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REVO LVE AROUND THE ADDITION OF `7 11 286/- ON ACCOUNT OF CREDIT ENTRIE S IN THE BANK ACCOUNT WHICH HAS BEEN DELETED BY THE LEARNED CIT(A). 3. IN THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS FOUND BY THE AO THAT THERE WERE CREDIT ENTRIES OF `7 27 529/- IN TH E BANK ACCOUNT OF THE ASSESSEE. IN THE ABSENCE OF ANY CLARIFICATION OR E XPLANATION OF THE ASSESSEE THE AO HAD NO ALTERNATIVE BUT TO ADD THE AMOUNT OF `7 27 529/- TO THE INCOME OF THE ASSESSEE BEING UNE XPLAINED DEPOSITS MADE IN THE BANK ACCOUNTS. 4. BEING AGGRIEVED THE ASSESSEE PREFERRED AN APPEA L BEFORE THE LEARNED CIT(A). ITA-423/DEL/2011 2 5. BEFORE THE LEARNED CIT(A) THE ASSESSEE SUBMITTE D VARIOUS DETAILS AND PROOF TO ESTABLISH THAT THE CREDIT ENTRIES IN T HE BANK ACCOUNT WERE IN RESPECT OF THE DISCLOSED RECEIPTS RECEIVED FROM U.P.PROJECTS CORPORATION LTD. AND RURAL ENGINEERING SERVICE DIVI SION. THE ASSESSEE HAD PRODUCED NECESSARY EVIDENCE BEFORE THE LEARNED CIT(A). THE THREE CERTIFICATES FROM UPPCL GHAZIABAD RES BAGHPAT AN D RES MEERUT FURNISHED BY THE ASSESSEE BEFORE THE CIT(A) WERE SE NT BY THE LEARNED CIT(A) TO THE AO FOR HIS COMMENTS TO BE SUBMITTED B Y 26.11.2010. HOWEVER THE AO HAD NOT SENT ANY COMMENTS ON THOSE EVIDENCES. THE LEARNED CIT(A) THEREFORE DECIDED THE ISSUE ON MER ITS AFTER TAKING INTO ACCOUNT THE CERTIFICATES AND OTHER EVIDENCES PRODUC ED BY THE ASSESSEE BEFORE HIM. THE LEARNED CIT(A)S ORDER ON THIS ISS UE RUNS AS UNDER:- 5.4 I HAVE CONSIDERED FACTS. THE PAYMENTS CERTIFI ED BY THE THREE AGENCIES WERE PART OF ACCOUNTS OF THE ASS ESSEE WITH WHICH THE AO HAS FOUND NO DEFECTS. NOW THAT T HE DEPOSITS HAVE BEEN LINKED TO THE PAYMENTS RECEIVED WHICH ARE DULY CERTIFIED THE SAME HAVE TO BE ACCEPTED. I HOWEVER FIND THAT TWO DEPOSITS - RS.5 323/- ON 24 .5.2005 AND RS.10 920/- ON 31.12.2005 HAVE NOT BEEN CERTIFI ED. THE SOURCES OF THE SAME HAVE NOT BEEN EXPLAINED TO ME. THE ADDITION OF RS.16 243/- IS CONFIRMED AND THE AD DITION OF RS.7 11 286/- IS DELETED. 6. FROM THE ORDER OF LEARNED CIT(A) IT IS SEEN THA T HE HAS CONFIRMED THE ADDITION TO THE EXTENT OF `16 243/- AGAINST WHI CH THE ASSESSEE IS NOT IN APPEAL BEFORE US. THEREFORE THAT ADDITION CONFIRMED BY THE CIT(A) STANDS FINALIZED. HOWEVER THE LEARNED CIT( A) HAS DELETED THE ADDITION TO THE EXTENT OF `7 11 286/- ON THE BASIS OF EVIDENCES FILED BY THE ASSESSEE AND BY OBSERVING THAT THE DEPOSITS IN THE BANK ACCOUNT HAD LINK TO THE PAYMENT RECEIVED BY THE ASSESSEE FR OM VARIOUS AUTHORITIES. 7. HENCE THE DEPARTMENT IS IN APPEAL BEFORE US. ITA-423/DEL/2011 3 8. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. 9. IT IS NOT IN DISPUTE THAT THE ASSESSEE HAD FURNI SHED FRESH EVIDENCE BEFORE THE LEARNED CIT(A) AND LEARNED CIT( A) SENT THE FRESH EVIDENCE TO THE AO FOR HIS COMMENTS FIXING THE DATE ON 26.11.2010. THE CIT(A) PASSED THE ORDER ON 26.11.2008 ITSELF WI THOUT GIVING ANY REMINDER TO THE AO. WE ARE THEREFORE OF THE CONS IDERED OPINION THAT ONE MORE OPPORTUNITY SHOULD HAVE BEEN GIVEN TO THE AO TO EXAMINE AND VERIFY THE NEW EVIDENCES AND TO SUBMIT HIS REPO RT BUT THAT HAS NOT BEEN DONE BY THE LEARNED CIT(A). 10. FOR PROPER ADJUDICATION OF THE MATTER IN ITS RI GHT AND CORRECT PERSPECTIVE WE ARE OF THE CONSIDERED OPINION THAT THE MATTER SHOULD GO BACK TO THE AO FOR HIS VERIFICATION OF THE VARIO US EVIDENCES PRODUCED BY THE ASSESSEE. THE ASSESSEE SHALL PRODU CE ALL THESE EVIDENCES BEFORE THE AO AND IN CASE IT IS FOUND BY THE AO THAT THE AMOUNT DEPOSITED IN THE BANK HAS ACTUALLY BEEN RECE IVED BY THE ASSESSEE FROM THE CONTRACTEE THAT HAS BEEN INCLUDE D IN THE CONTRACT RECEIPTS NO ADDITION SHALL BE CALLED FOR. THE AO SHALL DECIDE THE ISSUE AS PER THE RESULT OF HIS ENQUIRY AND VERIFICATION A FTER PROVIDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 11. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS TREATED TO BE ALLOWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF HEARING ON 28 TH MARCH 2011. SD/- SD/- (K.D.RANJAN (K.D.RANJAN (K.D.RANJAN (K.D.RANJAN) )) ) (C.L.SETHI (C.L.SETHI (C.L.SETHI (C.L.SETHI) )) ) ACCO ACCO ACCO ACCOUNTANT MEMBER UNTANT MEMBER UNTANT MEMBER UNTANT MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATED : 28.03.2011. VK. ITA-423/DEL/2011 4 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR