ITO, New Delhi v. Shri Harmohan Singh, New Delhi

ITA 4482/DEL/2009 | 1999-2000
Pronouncement Date: 28-05-2010 | Result: Dismissed

Appeal Details

RSA Number 448220114 RSA 2009
Assessee PAN AAUPM3318F
Bench Delhi
Appeal Number ITA 4482/DEL/2009
Duration Of Justice 6 month(s) 2 day(s)
Appellant ITO, New Delhi
Respondent Shri Harmohan Singh, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 28-05-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 28-05-2010
Date Of Final Hearing 19-05-2010
Next Hearing Date 19-05-2010
Assessment Year 1999-2000
Appeal Filed On 25-11-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C : NEW DELHI BEFORE SHRI I.P.BANSAL AND SHRI K.D.RANJAN ITA NO. 4482/DEL/2009 ASSESSMENT YEAR : 1999-2000 THE INCOME TAX OFFICER WARD 20(2) NEW DELHI. VS. SHRI HARMOHAN SINGH S/O S. HARBANS SINGH B-22 MAHARANI BAGH NEW DELHI. PANAAUPM3318F (APPELLANT) (RESPONDENT) APPELLANT BY : MS MONA MOHANTY SR. D.R. RESPONDENT BY : NONE ORDER PER K.D.RANJAN AM: THIS APPEAL BY THE ASSESSEE FOR ASSESSMENT YEAR 199 9-2000 ARISES OUT OF ORDER OF LD. CIT(A). 2. THE GROUNDS OF APPEAL ARE REPRODUCED AS UN DER: 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELE TING THE ADDITION OF RS.16 52 491/- AS INCOME FROM UNDISCLOSED SOURCE S. 2. THE LD. CIT(A) ERRED IN LAW IN HOLDING THAT SINC E ASSESSEE HAS MADE A DECLARATION UNDER VDIS 1997 AND PAID THE TA X ACCORDINGLY ASSESSING OFFICER WAS WRONG IN TREATING THE ALLEGED SALE OF JEWELLERY FOR RS.16 52 491/- AS BOGUS. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.16 52 491/- UNDER SECTI ON 68 OF THE I.T.ACT ON THE GROUND THAT THE APPELLANT HAD DISCHA RGED HIS BURDEN OF PROOF U/S 68 WITHOUT APPRECIATING THE FACT THAT THE PAPER TRAIL COMPRISED OF DOCUMENTS WHICH WERE GENERATED BY THE PARTIES CONCERNED THEMSELVES WAS ONLY SELF SERVING EVIDENC E. 2 3. THE ONLY ISSUE FOR CONSIDERATION RELATES TO D ELETING THE ADDITION OF RS.16 52 491/- MADE U/S 69. THE FACTS OF THE CASE STATED IN BRIEF ARE THAT RETURN OF INCOME DECLARING INCOME OF RS.1 25 772/- WAS FILED BY THE ASSESSEE ON 10/3/2000 WHICH WAS PROCESSED U/S 143(1) ON 29/6 /2000. SUBSEQUENTLY PROCEEDINGS U/S 147 WERE INITIATED BY THE ASSESSING OFFICER ON THE BASIS OF DDI (INV.) AMRITSARS REPORT TITLED ACCOMMODATION ENTRIES SCAM WHEREIN CERTAIN INFORMATION WAS RECEIVED FROM THE OFFICE OF DDI(INV.) AMRITSAR ACCORDING TO WHICH THE ASSESSEE HARMOHAN SINGH OBTA INED A BOGUS ACCOMMODATION ENTRY OF RS. 16 44 270/- AGAINST FAKE TRANSACTION OF SALE OF JEWELLERY TO ONE RISHI GROVER WHO IN FACT FLOATED A BOGUS ENTITY IN THE NAME OF M/S VISHNU JEWELLERS AMRITSAR WHO PASSED S UCH ENTRIES THROUGH HIS ACCOUNT NO.7674 IN THE PUNJAB NATIONAL BANK KA TRA JAIMAL SINGH AMRITSAR. THE ASSESSING OFFICER ISSUED NOTICE U/S 1 48. HOWEVER THE ASSESSEE DID NOT FILE ANY RETURN OF INCOME. DURING THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS OBSERVED BY THE ASSESSING OFFIC ER THAT SHRI RISHI GROVER PROPRIETOR OF M/S VISHNU JEWELLERS AMRITSAR DID NO T HAVE ANY JEWELLERY BUSINESS AND HE RATHER ADOPTED THE MODUS OPERANDI T O EARN ONLY COMMISSION OUT OF GIVING ACCOMMODATION ENTRIES IN THE GARB OF PURCHASE OF GOLD AND DIAMOND JEWELLERY AND OTHER ITEMS MOST OF THEM HAV ING BEEN DECLARED UNDER VDIS 1997 BY THE BENEFICIARIES. THE ASSESSING OFFICER OBSERVED THAT CURRENT ACCOUNT NO.7674 IN THE PUNJAB NATIONAL BANK AMRITSAR WAS OPENED IN THE NAME OF M/S VISHNU JEWELLERS WHICH WAS USED FOR GIVING ACCOMMODATION ENTRIES. THE ASSESSING OFFICER THERE FORE ADDED THE AMOUNT OF RS.16 44 270/-. HE ALSO ADDED THE PAYMENT OF COM MISSION AT RS.8 221/- @.5%. 3 5. BEFORE THE LD. CIT(A) IT WAS SUBMITTED THAT A SSESSEE DECLARED SAID JEWELLERY UNDER VDIS 1997. THE CERTIFICATE ISSUED U /S 68(2) BY THE LD. CIT AMRITSAR WAS ATTACHED ALONGWITH THE RETURN OF INCO ME. A PHOTOCOPY OF CERTIFICATE ALONGWITH THE PHOTOCOPY OF VALUATION RE PORT WAS ALSO ATTACHED. IT WAS SUBMITTED THAT ADDITION HAD BEEN MADE BY THE AS SESSING OFFICER TREATING THE SALE OF JEWELLERY AS ACCOMMODATION ENTRY AND A SSESSING THE SAME AS UNDISCLOSED INCOME OF THE ASSESSEE. IT WAS ALSO SUB MITTED THAT I.T.A.T. AMRITSAR BENCH VIDE ORDER DATED 26/6/2009 WHILE DIS POSING OF ALL THE FIVE APPEALS FOR ASSESSMENT YEARS 1998-99 TO 2002-03 IN THE CASE OF RISHI GROVER PROPRIETOR OF M/S VISHNU JEWELLERS HAD HELD THAT RISHI GROVER WAS ACTUALLY CARRYING ON JEWELLERY BUSINESS DURING THE ASSESSMENT YEARS 1998- 99 TO 2002-03 AND THAT THE ASSESSING OFFICER WAS NO T CORRECT IN HOLDING THAT HE WAS MERELY ENGAGED IN THE BUSINESS OF ACCOMMODAT ION ENTRIES. RELIANCE WAS ALSO PLACED ON SEVERAL DECISIONS INCLUDING THE DECISION OF FIVE MEMBER SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF MANOJ AGGARWAL V. DCIT 113 ITD 377 (DELHI)(SB). THE LD. CIT(A) AFTER CONSIDERI NG THE SUBMISSIONS OF THE ASSESSEE AND DECISION OF I.T.A.T. IN THE CASE O F VISHNU GROVER DELETED THE ADDITION. 6. WE HAVE HEARD BOTH THE PARTIES AND GONE THR OUGH THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THIS ISSUE IS SQUARELY COVE RED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF I.T.A.T. AMRITSAR BENCH IN THE CASE OF RISHI GROVER PROP. OF M/S VISHNU JEWELLERS WHEREIN IT HAS BEEN HELD AS UNDER: 3. THE RESULT OF THE ORDER PASSED IN THE CASE OF RISHI GROVER PROP. M/S VISHNU GROVER AMRITSAR IS DIRECTLY EFFECTED UP ON THE PRESENT ASSESSEES CASES. WE HAVE PASSED A DETAILED ORDER O F EVEN DATE IN THE CASE OF SHRI RISHI GROVER PROP. M/S VISHNU GROVER AMRITSAR IN ITA NO.198 TO 202/ASR/2006 ASSESSMENT YEAR 1998-99 TO 2002-03 IN WHICH WE HAVE HELD THAT THERE ARE SUBSTANTIAL EVIDE NCE AVAILABLE ON RECORD TO ESTABLISH THE FACT THAT SHRI RISHI GROVER PROP. M/S VISHNU 4 GROVER AMRITSAR WAS ENGAGED IN THE PURCHASE AND SA LE OF JEWELLERY BUSINESS AND WAS PROVIDING ACCOMMODATION ENTRIES AN D IS GENUINE PURCHASER. APART FROM THE AFORESAID FINDINGS WE HA VE ALSO RESPECTFULLY FOLLOWED THE DECISION OF FIVE MEMBER S PECIAL BENCH OF THE TRIBUNAL IN THE CASE OF MANOJ AGGARWAL V. DY. C IT C.C.3 NEW DELHI REPORTED IN (2008) 113 ITD 377 (DELHI) (SB) AND DELETED THE ADDITIONS BY CANCELING THE ORDERS OF THE LEARNED FI RST APPELLATE AUTHORITY. 5. AS REGARDS TO THE MERITS OF THE CASE WE HA VE DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE BY DECLARING THE PURCHASES M ADE BY SHRI RISHI GROVER PROP. M/S VISHNU JEWELLERS AMRITSAR TO BE GENUINE AND HAVE ALSO HELD THAT HE WAS ENGAGED IN THE BUSINESS OF P URCHASES AND SALE OF JEWELLERY. NONE OF THE DOCUMENT AND EVIDENCE COLLE CTED BY THE REVENUES AUTHORITIES GOES TO ESTABLISH THAT PURCHA SER WAS MAINLY ENGAGED IN PROVIDING ACCOMMODATION ENTRIES. THEREFO RE KEEPING IN VIEW OUR ORDER OF EVEN DATE PASSED IN THE CASE OF S HRI RISHI GROVER PROP. M/S VISHNU JEWELLERS AMRITSAR ALL THE APPEA LS FILED BY THE ASSESSEE AND THE APPEALS FILED BY THE REVENUE ARE D ISMISSED. THE FACTS IN THE CASE OF APPELLANT ARE SIMILAR TO T HE CASE OF SMT. SUKIRTI GUPTA AND OTHERS DECIDED BY THE HON'BLE ITA T ASR BENCH AMRITSAR IN AS MUCH AS THE CREDITS IN THE BANK ACC OUNT OF THE APPELLANT IS ON ACCOUNT OF SALE OF JEWELLERY TO M/S VISHNU JEWELLERS. THE REASON OF MAKING THE ADDITION IN THE CASE OF TH E APPELLANT WAS THE EVIDENCE COLLECTED IN THE CASE OF M/S VISHNU JEWELL ERS IN WHICH CASE THE PURCHASE OF JEWELLERY HAS BEEN HELD TO BE GENUI NE. THE JUDGEMENT OF HON'BLE ITAT ASR BENCH AMRITSAR IN THE CASE OF M/S VISHNU JEWELLERS HAS BEEN FOLLOWED BY HON'BLE ITAT ASR BE NCH AMRITSAR ALSO IN ITS ORDER DATED 26.06.2009 IN THE CASE OF S MT. SUKIRTI GUPTA VS. THE INCOME TAX OFFICER WARD 5(4) AAMRITSAR IN ITA NO.314/(ASR)/2008 AND SEVERAL OTHER CASES. HENCE BY RESPECTFULLY FOLLOWING THE JUDGMENT OF HON'BLE ITAT ASR BENCH AMRITSAR THE ADDITION MADE IN THE CASE OF THE APPELLANT ON ACCOU NT OF SALE OF JEWELLERY TO THE TUNE OF RS.16 44 270/- AND COMMISS ION THEREON OF RS.8 221/- IS DIRECTED TO BE DELETED AND ALL THE GR OUNDS OF APPEAL IN THIS REGARD ARE ALLOWED. 7. SINCE THE ISSUE IS SQUARELY COVERED BY THE A FORESAID DECISION OF AMRITSAR BENCH IN THE CASE OF RISHI GROVER PROP. M /S VISHNU 5 JEWELLERS(SUPRA) WE DO NOT FIND ANY INFIRMITY IN T HE ORDER PASSED BY THE LD. CIT(A) DELETING THE ADDITION. 8. IN THE RESULT APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH MAY 2010. SD/- SD/- (I.P.BANSAL) (K.D.RANJAN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 28.05.2010. PSP COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT DEPUTY REGISTRAR