Shri Shyam Khatu Investments Pvt. Ltd., New Delhi v. ITO, New Delhi

ITA 4651/DEL/2011 | 2002-2003
Pronouncement Date: 11-10-2013 | Result: Partly Allowed

Appeal Details

RSA Number 465120114 RSA 2011
Assessee PAN AAECS8564J
Bench Delhi
Appeal Number ITA 4651/DEL/2011
Duration Of Justice 1 year(s) 11 month(s) 20 day(s)
Appellant Shri Shyam Khatu Investments Pvt. Ltd., New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 11-10-2013
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted G
Tribunal Order Date 11-10-2013
Date Of Final Hearing 11-06-2012
Next Hearing Date 11-06-2012
Assessment Year 2002-2003
Appeal Filed On 21-10-2011
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 BENCH BENCH BENCH G GG G : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO.4651/DEL/2011 4651/DEL/2011 4651/DEL/2011 4651/DEL/2011 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2002 2002 2002 2002- -- -03 0303 03 M/S SHREE SHYAM KHATU M/S SHREE SHYAM KHATU M/S SHREE SHYAM KHATU M/S SHREE SHYAM KHATU INVESTMENTS PVT.LTD. INVESTMENTS PVT.LTD. INVESTMENTS PVT.LTD. INVESTMENTS PVT.LTD. 35A FF SHAHPUR 35A FF SHAHPUR 35A FF SHAHPUR 35A FF SHAHPUR JAT JAT JAT JAT NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 049. 110 049. 110 049. 110 049. PAN : PAN : PAN : PAN : AAECS8564J. AAECS8564J. AAECS8564J. AAECS8564J. VS. VS. VS. VS. INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER WARD WARD WARD WARD- -- -8(3) 8(3) 8(3) 8(3) NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.K.JAIN ADVOCATE. RESPONDENT BY : MS. Y.S.KAKKAR SR.DR. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VP VPVP VP : : : : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XI NEW DELHI DATED 23 RD AUGUST 2011 FOR THE AY 2002- 03. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESSEE:- 1. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCE S OF THE CASE LD.CIT-A HAS ERRED IN LAW AND ON FACTS BY UPHOLDING THE ORDERS OF THE INCOME TAX OFFICER WARD 8(3) NEW DELHI PASSED U/S 147/144 AFTER MAKING ADDITION U/ S 68 RESULTING IN HUGE DEMAND. 2. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE LD.CIT-A HAS ERRED IN LAW AND ON FACTS IN PA SSING THE ORDER WITHOUT LOOKING INTO THE FACTS OF THE CASE AND BY NOT ALLOWING THE OPPORTUNITY TO THE APPELLANT FOR B EING HEARD DEPRIVING THE RIGHT OF NATURAL JUSTICE. ITA-4651/DEL/2011 2 3. HOWEVER AT THE TIME OF HEARING BEFORE US THE MA IN ARGUMENT OF THE LEARNED COUNSEL FOR THE ASSESSEE WAS THAT THE ASSESSING O FFICER MADE THE ADDITION OF ` 4 LAKHS FOR UNEXPLAINED CREDIT IN THE ASSESSEES BANK ACCOUNT UNDER SECTION 68 OF THE INCOME-TAX ACT 1961. HE STATED THAT THE ABOVE ADDITION HAS BEEN MADE ON THE BASIS OF THE INFORMATION RECEIVED BY THE ASSESSING OFFICER FROM DIT(INVESTIGATIO N). HOWEVER IT IS CONTENDED BY THE LEARNED COUNSEL THAT THERE WAS NO CREDIT OF ` 4 LAKHS IN THE ASSESSEES BANK ACCOUNT FROM ALLEGED MKM FIN SEC PVT.LTD. HE ALSO STATED THAT THE BANK STATEMENT OF THE ASSESSEE IS ALREADY ON RECORD OF THE ASSESSING OFFICER IN WHICH THERE IS NO SUC H CREDIT. THE LEARNED COUNSEL ALSO STATED THAT THE NOTICES OF HEARING BY THE ASSESSING OFFICER WERE ISSUED AT THE WRONG ADDRESS AND THE REFORE THE ASSESSEE COULD NOT APPEAR BEFORE HIM. HE THEREFORE SU BMITTED THAT THE ADDITION OF ` 4 LAKHS MADE BY THE ASSESSING OFFICER UNDER SECTION 68 DESERVES TO BE DELETED OR MATTER BE SET ASIDE TO TH E FILE OF THE ASSESSING OFFICER. 4. LEARNED DR ON THE OTHER HAND RELIED UPON THE O RDERS OF AUTHORITIES BELOW AND SHE OBJECTED TO EITHER THE RELI EF OF ` 4 LAKHS OR SET ASIDE OF THE MATTER TO THE FILE OF THE ASSESSING OFFICER . 5. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERI AL PLACED BEFORE US. THE ASSESSING OFFICER MADE THE ADDITION OF ` 4 LAKHS WITH THE FOLLOWING FINDING:- AS PER INFORMATION RECEIVED FROM THE OFFICE OF DIT(INVESTIGATION) UNIT-I NEW DELHI FOLLOWING ENTR IES HAVE BEEN CREDITED TO THE ASSESSEES BANK ACCOUNT MAINTAINED WITH SYNDICATE BANK HAUZ KHAS BRANCH FROM M/S MKM FINSEC PVT.LTD.:- ITA-4651/DEL/2011 3 DATE CREDIT 28-08-2001 2 00 000 11-08-2001 2 00 000 ------------ 4 00 000 ------------ THE ASSESSEE HAS NOT PRODUCED BOOKS OF ACCOUNT NOR SUBMITTED ANY EXPLANATION/DETAILS/EVIDENCE IN RESPECT OF THESE CREDIT ENTRIES. THEREFORE THE AMOUNT OF RS.4 00 000/- IS TREATED AS UNEXPLAINED CASH CREDITS AS P ER THE PROVISIONS OF SECTION 68 OF THE INCOME TAX 1961 FOR THE ASSESSMENT YEAR 2002-03. 6. FROM THE ABOVE IT IS EVIDENT THAT THE ABOVE ADDI TION HAS BEEN MADE SIMPLY ON THE BASIS OF INFORMATION RECEIVED FROM THE OFFICE OF DIT(INVESTIGATION) UNIT-I NEW DELHI STATING THAT TH E ASSESSEE HAS TAKEN THE ENTRIES OF ` 4 LAKHS FROM MKM FINSEC PVT.LTD. HOWEVER THE ASSESSING OFFICER OUGHT TO HAVE VEIRIFED FROM THE BANK ACCOUNT OF THE ASSESSEE WHETHER THERE IS ANY SUCH CREDIT IN FACT IN THE ASSESSEES BANK ACCOUNT. IF THERE IS ANY SUCH CREDIT THEN ONLY THE QUESTION OF EXPLAINING THE SOURCE OF SUCH CREDIT BY THE ASSESSEE WOUL D ARISE. THE ASSESSEES COUNSEL HAS VEHEMENTLY CONTENDED BEFORE US THAT THERE IS NO SUCH CREDIT IN THE ASSESSEES BANK ACCOUNT AND HE HAS ALSO STATED THAT THE BANK STATEMENT OF THE ASSESSEE IS ALREADY ON RE CORD OF THE ASSESSING OFFICER. CONSIDERING THE FACTS OF THE CASE AND THE ARGUMENTS OF BOTH THE SIDES IN OUR OPINION IT WOULD MEET THE ENDS OF JUSTICE IF THE ORDERS OF AUTHORITIES BELOW ARE SET ASIDE AND MATTER IS RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER. WE ORDER ACCORDINGL Y AND DIRECT THE ASSESSING OFFICER TO VERIFY HIS RECORD WHETHER THERE IS A BANK STATEMENT OF THE ASSESSEE WITH SYNDICATE BANK HAUZ KHA S BRANCH. IF IT IS AVAILABLE HE WILL VERIFY FROM THE SAID BANK AC COUNT WHETHER THERE IS ANY CREDIT ON THE DATES MENTIONED IN THE INFORMATI ON RECEIVED FROM THE OFFICE OF DIT(INVESTIGATION). IF THERE IS SUCH CR EDIT THEN CERTAINLY IT ITA-4651/DEL/2011 4 WOULD BE THE DUTY OF THE ASSESSEE TO EXPLAIN THE SOURCE OF SUCH CREDIT. BUT IF THERE IS NO SUCH CREDIT THEN THERE WOULD BE NO QUESTION OF ANY ADDITION FOR UNEXPLAINED CASH CREDIT. THE ASSESSING OFF ICER WILL READJUDICATE THE ISSUE IN ACCORDANCE WITH LAW AFTER V ERIFYING ALL THE FACTS IN THIS REGARD. WE ALSO DIRECT HIM TO ALLOW ADE QUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE DIRECT THE ASSESSEE ALS O TO FURNISH IN WRITING HIS CORRECT ADDRESS. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DEEMED TO BE ALLOWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 11 TH OCTOBER 2013. SD/- SD/- ( (( (I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL ME MEME MEMBER MBER MBER MBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 11.10.2013 VK. COPY FORWARDED TO: - 1. APPELLANT : M/S SHREE SHYAM KHATU INVESTMENTS PVT.L TD. M/S SHREE SHYAM KHATU INVESTMENTS PVT.LTD. M/S SHREE SHYAM KHATU INVESTMENTS PVT.LTD. M/S SHREE SHYAM KHATU INVESTMENTS PVT.LTD. 35A FF SHAHPUR JAT NEW DELHI 35A FF SHAHPUR JAT NEW DELHI 35A FF SHAHPUR JAT NEW DELHI 35A FF SHAHPUR JAT NEW DELHI 110 049. 110 049. 110 049. 110 049. 2. RESPONDENT : INCOME TAX OFFICER WARD INCOME TAX OFFICER WARD INCOME TAX OFFICER WARD INCOME TAX OFFICER WARD- -- -8(3) NEW DELHI. 8(3) NEW DELHI. 8(3) NEW DELHI. 8(3) NEW DELHI. 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR