ITO, New Delhi v. Smt Praveen Sanan, New Delhi

ITA 4861/DEL/2010 | 2006-2007
Pronouncement Date: 10-01-2011 | Result: Dismissed

Appeal Details

RSA Number 486120114 RSA 2010
Assessee PAN AQXPS1964L
Bench Delhi
Appeal Number ITA 4861/DEL/2010
Duration Of Justice 2 month(s) 1 day(s)
Appellant ITO, New Delhi
Respondent Smt Praveen Sanan, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 10-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 10-01-2011
Date Of Final Hearing 10-01-2011
Next Hearing Date 10-01-2011
Assessment Year 2006-2007
Appeal Filed On 08-11-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH `F: NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA VICE PRESIDENT AND SHRI C.L.SETHI JUDICIAL MEMBER. I.T. A. NO.4861/DEL/2010 ASSESSMENT YEAR: 2006-07 INCOME-TAX OFFICER SMT. PRAVEEN SANAN WARD 33(4) NEW DELHI. VS. U-12 PRASAD NAGAR NEW DELHI. PAN: AQXPS1964L (APPELLANT) (RESPONDE NT) APPELLANT BY: SHRI H.K. LAL SR. DR. RESPONDENT BY: NONE . O R D E R PER C.L. SETHI JUDICIAL MEMBER: THE REVENUE IS IN APPEAL AGAINST THE ORDER DATED 31 .08.2010 PASSED BY THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) IN THE MATTER OF AN ASSESSMENT MADE UNDER SEC. 144 OF THE INCOME-TAX AC T 1961 (THE ACT) BY THE ASSESSING OFFICER FOR THE ASSESSMENT YEAR 2006- 07. 2 2. THE ASSESSEE FILED HER RETURN OF INCOME DECLARIN G INCOME AT RS.3 18 630/- ON 331.05.2007. THE CASE WAS SELECTE D FOR SCRUTINY AND NOTICES UNDER SEC. 143(2)/142(1) WERE SERVED UPON T HE ASSESSEE. HOWEVER NO ONE FOR THE ASSESSEE ATTENDED BEFORE THE ASSESSI NG OFFICER. THE AO THEREFORE COMPLETED THE ASSESSMENT U/S 144 OF THE ACT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO OBTAINED A BANK STAT EMENT FROM THE HDFC BANK OLD RAJINDER NAGAR BRANCH NEW DELHI FROM WH ICH IT WAS REVEALED THAT THERE WAS CREDIT ENTRIES OF RS.14 93 406/- DUR ING THE YEAR UNDER CONSIDERATION. THE AO THEN FURTHER OBSERVED THAT T HESE CREDIT ENTRIES REMAINED UNEXPLAINED IN THE ABSENCE OF ANY EXPLANAT ION FROM THE ASSESSEE. THE AO THEREFORE TREATED THE SUM OF RS.12 50 000/ - BEING THE ENTRIES EXCEEDING RS.1 00 000/- TO BE AN UNDISCLOSED INCOME OF THE ASSESSEE WITHIN THE MEANING OF SEC. 68 OF THE ACT. THE AO THEREFOR E MADE AN ADDITION OF RS.12 50 000/- TO THE TOTAL INCOME OF THE ASSESSEE. 3. ON AN APPEAL THE ASSESSEE SUBMITTED AN EXPLANAT ION REGARDING THE SOURCE OF THE CREDIT OF RS.12 50 000/- AS UNDER:- M/S. NAGESH TRADING COMPANY THE ASSESSEE HAD ADVANCED LOANS TO THE PARTY AS PER DETAIL BELOW:- 10/3/2005 RS.2 00 000/- BY CHEQUE 7/2/2006 RS.2 00 000/- BY CHEQUE 3 THE AMOUNTS WERE RECEIVED BACK FROM THE PARTY AGAIN ST THE ABOVE REFERRED ADVANCES. COPY OF CONFIRMATION OF A CCOUNT FROM THE PARTY FOR THE FINANCIAL YEAR 2004-05 AND 2 005-06 ARE ATTACHED HEREWITH. COPY OF THE INCOME-TAX RETURN O F THE PARTY AND BANK STATEMENT FOR THE RELEVANT PERIODS IS ATTA CHED HEREWITH. M/S. DEEPAK ENTERPRISES THE ASSESSEE HAD ADVANCED LOANS TO THE PARTY AS PER DETAIL BELOW:- 23/12/2003 RS.5 00 000/- BY CHEQUE 24/3/2006 RS.2 00 000/- BY CHEQUE THE AMOUNTS WERE RECEIVED BACK FROM THE PARTY AGAIN ST THE ABOVE REFERRED ADVANCES. COPY OF CONFIRMATION OF A CCOUNT FROM THE PARTY FOR THE FINANCIAL YEAR 2003-04 2004 -05 AND 2005-06 ARE ATTACHED. COPY OF INCOME-TAX RETURN OF THE PARTY AND BANK STATEMENT FOR THE RELEVANT PERIODS IS ATTA CHED HEREWITH. THESE DOCUMENTS HAVE ALREADY BEEN SUBMIT TED BEFORE THE AO DURING REMAND PROCEEDINGS. THAT THE REMAINING CREDIT OF RS.2 LAKHS WAS TRANSFE RRED FROM THE CURRENT ACCOUNT OF THE ASSESSEE WHICH IS ALSO B EING SHOWN IN THE BALANCE SHEET OF THE ASSESSEE. COPY OF BANK STATEMENT OF CURRENT ACCOUNT NO.001210002900 WITH ORIENTAL BANK OF COMMERCE KAROL BAGH SHOWING REFERRED DEBIT OF RS.2 LAKHS ON 31/1/2006 IS ATTACHED HEREWITH FOR YOUR READY REFER ENCE. THE STATEMENT HAS NOT BEEN PRODUCED BEFORE THE AO AS TH E SAME WAS NEVER CALLED UPON. IT IS ONCE AGAIN SUBMITTED THAT THE CREDIT IN THE B ANK ACCOUNT OF THE ASSESSEE BEING TREATED AS UNEXPLAINED CREDITS BY THE LEARNED AO ONLY RELATES TO REFUND OF LOAN ADVANCED BY THE ASSESSEE AND TRANSFER OF FUNDS FROM OTHER ACCOUNT O F THE ASSESSEE. 4 4. IN THE LIGHT OF THE EXPLANATION GIVEN BY THE ASS ESSEE THE CIT(A) CALLED FOR A REMAND REPORT FROM THE AO. 5. IN THE LIGHT OF THE REMAND REPORT AND THE DETAIL S SUBMITTED BY THE ASSESSEE THE LEARNED CIT(A) DELETED THE ADDITION B Y OBSERVING AS UNDER:- 6.2 THE AO IN THE REMAND REPORT DATED 10.06.2010 HAS STRESSED UPON THE FAILURE OF THE ACCOUNTANT OF M/S. NAGESH TRADING COMPANY TO EXPLAIN THE NATURE OF TRANSACTIO NS. SIMILARLY THE AO HAS EXPRESSED RESERVATION ON THE F AILURE OF M/S. DEEPAK ENTERPRISES TO APPEAR IN PERSON TO EXPL AIN THE TRANSACTIONS. HOWEVER IT IS SEEN THAT THESE OBSERVATIONS DO NOT A DVERSELY EFFECT THE CONTENTION OF THE APPELLANT. THE APPELL ANT HAS IN THE COURSE OF APPELLATE PROCEEDINGS PRODUCED COPIES OF VARIOUS BANK STATEMENTS CONFIRMED COPY OF ACCOUNT FROM THE PARTIES FROM WHO THE AMOUNT WERE RECEIVED. ASSESSEE HAS AL SO EXPLAINED THE NATURE OF RECEIPTS-DEPOSITS (RETURN O F OLD LOANS) ON WHICH THE ASSESSEE HAS DECLARED INTEREST INCOME. IN THE REMAND REPORT THE AO HAS ACCEPTED THAT THESE DETAIL S HAD BEEN FILED. THE SOURCE OF THE AMOUNTS CREDITED IN THE H DFC BANK ACCOUNT OF THE ASSESSEE HAVE BEEN EXPLAINED AS UNDE R:- DATE RUPEES 30.11.2005 5 00 000.00 DEEPAK ENTERPRISES (RETURN O F OLD LOAN) 31.1.2006 2 00 000.00 TRANSFER FROM OBC-C/A (SOURCE THEREIN RETURN OF LOA N FROM NAGESH TRADING) 16.2.2006 1 50 000.00 NAGESH TRADING CO. (RETURN OF OLD LOAN) 18.2.2006 1 00 000.00 NAGESH TRADING CO. (RETURN OF OLD LAON) 5 20.2.2006 1 00 000.00 NAGESH ATRADING CO. (RETURN OF OLD LOAN) 3.3.2006 2 00 000.00 DEEPAK ENTERPRISES. (RETURN O F OLD LOAN). -------------- TOTAL 12 50 000.00 THE EXPLANATION SUBMITTED BY THE APPELLANT REGARDIN G SOURCE OF DEPOSIT IS DULY SUPPORTED BY EVIDENCE. NONE OF THE DEPOSITS ARE IN THE NATURE OF `CASH DEPOSIT. ALL ARE DEPOSITS THROUGH CHEQUE. THE BANK STATEMENTS OF M/S. NAGESH TRADING CO. & M/S. DEEPAK ENTERPRISES HAVE BEEN FILED WHICH REFLE CT THESE PAYMENTS BY CHEQUE. ASSESSEE HAS ALSO FILED CONFIR MED COPY OF A/C OF THE ASSESSEE AS MAINTAINED IN THE BOOKS OF A CCOUNTS OF THESE PARTIES FOR THE PERIOD ENDING 31.3.03 31.3.0 4 31.3.05 AND 31/3/2006 WHICH REFLECT THE FACT OF ASSESSEE GI VING LOANS TO THESE PARTIES WHICH HAVE BEEN RECEIVED BACK THIS YE AR. IN VIEW OF THESE EVIDENCES THE ASSESSEE HAS BEEN ABLE TO ES TABLISH THE SOURCE OF THE DEPOSITS IN HER BANK ACCOUNT. AS THE SOURCE OF THE `CASH CREDITS STANDS SATISFACTORILY EXPLAINED THE ADDITION OF RS.12 50 000/- U/S. 68 IS DELETED. (RELIEF RS.12 50 000/-) 6. HENCE THE DEPARTMENT IS IN APPEAL BEFORE US. 7. IN THE COURSE OF HEARING OF THIS APPEAL NO MATE RIAL HAS BEEN POINTED OUT BY THE LEARNED DR TO PROVE THAT THE ASSESSEE HA S NOT RECEIVED THE AMOUNTS FROM VARIOUS PARTIES AS DETAILED BY THE CIT (A) IN HIS ORDER. NONE OF THE DEPOSITS IN THE BANK ACCOUNT WERE MADE IN CA SH. ALL THE DEPOSITS WERE MADE THROUGH CHEQUES AND IN SUPPORT THEREOF BANK ACCOUNT OF PAYER M/S. NAGESH TRADING CO. AND M/S. DEEPAK ENTERPRISES WERE ALSO FILED FROM WHERE IT WAS CLEAR THAT THE CHEQUES WERE ISSUED BY M/S. NAGESH TRADING CO. 6 AND M/S. DEEPAK ENTERPRISES TO THE ASSESSEE AND WER E CREDITED IN THE ASSESSEES BANK ACCOUNT. IN THE LIGHT OF THIS CATE GORICAL FINDING GIVEN BY THE CIT(A) IN HIS ORDER ON THE BASIS OF EXPLANATION AND DOCUMENTS FILED BY THE ASSESSEE WE UPHOLD THE ORDER OF THE CIT(A) IN DELE TING THE ADDITION. 8. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. 9. THIS DECISION IS PRONOUNCED IN THE OPEN COURT IM MEDIATELY AFTER THE HEARING WAS OVER ON 10 TH JANUARY 2011. SD/- SD/- (G.E. VEERABHADRAPPA) (C.L. SETHI) VICE PRESIDENT JUDICIAL MEMBER DATED: 10 TH JANUARY 2011. COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR BY ORDER *MG DEPUTY REGISTRAR ITAT.