Patli putra Investment Pvt. Ltd.,, Noida v. ACIT, New Delhi

ITSSA 245/DEL/1997 | misc
Pronouncement Date: 10-01-2011 | Result: Allowed

Appeal Details

RSA Number 24520116 RSA 1997
Assessee PAN FORAY1996T
Bench Delhi
Appeal Number ITSSA 245/DEL/1997
Duration Of Justice 13 year(s) 2 month(s) 12 day(s)
Appellant Patli putra Investment Pvt. Ltd.,, Noida
Respondent ACIT, New Delhi
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 10-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 10-01-2011
Date Of Final Hearing 10-01-2011
Next Hearing Date 10-01-2011
Assessment Year misc
Appeal Filed On 28-10-1997
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI SHAMIM YAHYA IT(SS)A NO. 243/DEL/97 BLOCK PERIOD: 1-4-1986 TO 27-6-1996 ANNIE INVESTMENT & FINANCE CO. P. LTD. VS. ACIT C EN. CIR.-4 E-10 SECTOR 15 NOIDA. NEW DELHI. PAN NO. 3-A IT(SS)A NO. 244/DEL/97 BLOCK PERIOD: 1-4-1986 TO 27-6-1996 KANDLA PETRO CHEMICALS CORP. LTD. VS. ACIT CEN. CIR.-4 E-10 SECTOR 15 NOIDA. NEW DELHI. PAN NO. 6-K IT(SS)A NO. 245/DEL/97 BLOCK PERIOD: 1-4-1986 TO 27-6-1996 M/S PATLIPUTRA INTERNATIONAL TRADING LTD. VS. ACI T CEN. CIR.-4 E-10 SECTOR 15 NOIDA. NEW DELHI. PAN NO. 8-P IT(SS)A NO. 247/DEL/97 BLOCK PERIOD: 1-4-1986 TO 27-6-1996 HARMONY PSYCHIATRY CENTRE PVT.. LTD. VS. ACIT CEN . CIR.-4 E-10 SECTOR 15 NOIDA. NEW DELHI. PAN NO. 4-H IT(SS)A NO. 269/DEL/97 BLOCK PERIOD: 1-4-1986 TO 27-6-1996 VIKRAM INVESTMENT & FINANCE PVT. LTD. VS. ACIT CE N. CIR.-4 E-10 SECTOR 15 NOIDA. NEW DELHI. PAN NO. 13-U IT(SS) 243/DEL/97 & 5 ORS. ANNIE INVESTMENT & FIN. P. LTD. & ORS. 2 IT(SS)A NO. 35/DEL/98 BLOCK PERIOD: 1-4-1986 TO 27-6-1996 PROCESSIONAL LEASING & CAPITAL SERVICES LTD. VS. A CIT CEN. CIR.-4 E-10 SECTOR 15 NOIDA. NEW DELHI. PAN NO. 5-P ( APPELLANT ) ( RESPONDENT ) APPELLANTS BY : SHRI VINOD BINDAL & MS. SWEET Y KOTHARI CAS RESPONDENT BY : SHRI ASHOK PANDEY CIT DR O R D E R PER R.P. TOLANI J.M : THIS BUNCH OF APPEALS ARISES OUT OF THE VERY SAME G ROUP OF ASSESSEES. ISSUES INVOLVED IN THESE APPEALS BEING INTERCONNECT ED THE SAME WERE BEING HEARD TOGETHER AND ARE BEING DECIDED BY THIS CONSO LIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. LEARNED COUNSEL FOR THE ARE AT THE VERY OUT SET CONTENDS THAT THE ASSESSEES IN QUESTION ARE PART OF MR. ANIL SANGHI AND MR. P.C. YADAV GROUP. THE SUBSTANTIVE ADDITIONS HAVE BEEN MADE IN THE CAS E OF MR. ANIL SANGHI WHO OWNED UP ALL THE TRANSACTIONS OF THESE COMPANIE S. REVENUE MADE ADDITIONS IN RESPECT OF OTHER ENTITIES ALSO OVER AN D ABOVE THE ADDITIONS IN THE CASE OF MR. ANIL SANGHI. SIMILAR ISSUES CAME UP BEF ORE THE ITAT DELHI BENCH A IN IT(SS)A NOS. 241 & 242/DEL/97 IN THE C ASES M/S SHILPI SECURITIES P. LTD. AND M/S VAIDAHI LEASE & FINANCE RESPECTIVELY WHEREIN AFTER TAKING INTO CONSIDERATION ALL RELEVANT FACTS AND CIRCUMSTANCES THE ITAT VIDE ITS CONSOLIDATED ORDER DATED 23-7-2010 HA S RESTORED THE ASSESSMENTS BACK TO THE FILE OF AO BY FOLLOWING OBS ERVATIONS: IT(SS) 243/DEL/97 & 5 ORS. ANNIE INVESTMENT & FIN. P. LTD. & ORS. 3 4. HE HAS FILED THESE GROUNDS AND SUBMITTED THAT O N MERITS IN OTHER GROUP CASES THESE GROUNDS WERE RESTORED BA CK TO THE FILE OF AO FOR THE REASON THAT THE IMPUGNED ADDITIONS FO RM PART OF THE AMOUNT DECLARED IN THE HANDS OF SHRI ANIL SANGH I AND SH. PRASKAH CHANDRA YADAV. HE DREW OUR ATTENTION TOWARD S THE ORDER OF TRIBUNAL DATED 17-03-06 IN THE CASE OF M/S PATLIPUTRA CREDIT & SECURITIES LTD. [IT(SS)A NO. 372/DEL/1997] AND IT WAS SUBMITTED THAT THE ISSUE WAS DEALT WITH BY THE TRIB UNAL IN THE AFOREMENTIONED ORDER AS UNDER (COPY OF THE SAID ORD ER IS FILED AT PAGES 1 TO 17 OF THE PAPER BOOK): PATLIPUTRA CREDIT & SECURITIES LTD. [IT(SS)A NO. 372/DEL/1997] :- 13. IN THIS CASE SEARCH WAS CARRIED OUT ON 1.11. 1996 COVERING THE REGISTERED OFFICE OF THE COMPANY THE RESIDENCE OF THE DIRECTORS AND CERTAIN BANK ACCOUNT S IN THE NAME OF THE COMPANY. IN RESPONSE TO NOTICE U/S 158BC THE ASSESSEE DECLARED UNDISCLOSED INCOME OF RS. 1 24 947/- FOR THE BLOCK PERIOD. THE COMPANY HAD CO ME OUT WITH A PUBLIC ISSUE WHEREIN IT RECEIVED RS. 7 94 77 000/- AS SHARE APPLICATION MONEY. THE TOTAL RECEIPT ON ACCOUNT OF SHARE CAPITAL AMOUNTED TO RS. 10 44 78 000/-. HERE ALSO STATEMENTS OF SHRI ANIL SANGHI AND SHRI PRAKASH CHANDRA YADAV WERE RECORDED THESE STATEMENTS WERE IN CONFLICT WITH EACH OTHER ALLEGIN G EACH OTHER TO BE THE OWNER OF THE MONEY RECEIVED BY THE COMPANY. NOT BEING SATISFIED WITH THE EXPLANATION O F EITHER OF THE DEPONENTS THE AO MADE THE ADDITION O F THE DEPOSITS IN THE BANK ACCOUNTS AND DETERMINED THE TO TAL UNDISCLOSED INCOME AT RS. 11 81 81 210/-. 14. THE MAIN CONTENTION OF THE LD. COUNSEL IS THAT MOST OF THE MONEYS RECEIVED BY THE COMPANY HAS BEEN TREA TED AS UNDISCLOSED INCOME OF SH. ANIL SANGHI AS THE MON EY HAS PRIMARILY FLOWED FROM HIM AND IN THAT SENSE THE SAME INCOME HA BEEN TAXED TWICE. 15. WE HAVE ALREADY RESTORED THE ISSUE IN THE CASE OF SH. ANIL SANGHI BACK TO THE FILE OF THE AO TO CONSI DER THE IT(SS) 243/DEL/97 & 5 ORS. ANNIE INVESTMENT & FIN. P. LTD. & ORS. 4 PEAK AMOUNT FOR ADDITION. SINE THE CONTENTION HER I S THAT MOST OF THE MONEY HAS COME FROM SH. ANIL SANGHI IT WOULD BE IN THE FITNESS OF THINGS TO RESTORE THIS M ATTER ALSO BACK TO THE FILE OF THE AO WITH THE DIRECTION TO SEE THAT THE SAME INCOME DOES NOT GET TAXED TWICE. THE AO SHALL GIVE DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. SIMILARLY HE DREW OUR ATTENTION TOWARDS THE ISSU E OF INTEREST WHICH WAS ALSO RESTORED BACK TO THE FILE O F AO IN THE CASE OF PATLIPUTRA CREDIT & SECURITIES LTD. IN IT(S S)A NO. 10/DEL/08 ORDER DATED 31-03-09 WHERE THE TRIBUNAL HAS DEALT WITH THIS ISSUE IN PARA 8 TO 9 AS UNDER:- (COPY OF SUCH ORDER IS FILED AT PAGES 18 TO 23 OF THE PAPER BOOK): 8. THE NEXT ISSUE FOR CONSIDERATION RELATES TO ADD ITION OF RS. ______ THE NEXT ISSUE FOR CONSIDERATION RELA TES TO ADDITION OF RS. 29 83 768/- ON ACCOUNT OF INTEREST INCOME AND INCOME FROM OTHER SOURCES. THE ASSESSEE IN THE GROUNDS OF APPEAL HAS CLARIFIED THAT THE CORRECT TO TAL OF THE INCOME FOR ASSESSMENT YEARS 1995-96 TO 1997-98 DETERMINED BY THE AO COMES TO RS. 56 83 769/- AND N OT RS. 29 83 768/-. THUS THE TOTAL UNDISCLOSED INCOME FROM INTEREST AND OTHER SOURCES HAS BEEN UNDER-TOTALLED BY RS. 27 00 001/-. DURING THE COURSE OF HEARING BEFORE US THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE INCOME RE CEIVED FROM PARTIES BANKS AND OTHER SOURCES HAVE BEEN DISCLOSED. THE AO HAS WRONGLY STATED THAT THE ASSES SEE AHS NOT FILED RETURNS OF INCOME FOR THESE YEARS BEF ORE THE DATE OF SEARCH. HE AHS FURTHER SUBMITTED THAT THESE FACTS ARE VERIFIABLE FROM THE RECORDS AND THEREFORE THE INCOME ALREADY DISCLOSED IN THE RETURNS OF INCOME CANNOT B E ASSESSED AS UNDISCLOSED INCOME OF THE ASSESSEE. HOWEVER HE AGREED THAT THE ISSUE MAY BE DECIDED SU BJECT TO VERIFICATION BY THE AO. ON THE OTHER HAND THE L D. CIT DR SUPPORTED THE ORDER OF THE AO. 9. WE HAVE HEARD BOTH THE PARTIES. AS PER THE ASSESSEE THE INCOME OF RS. 56 83 769/- ON ACCOUNT O F INTEREST INCOME FROM PARTIES BANKS AND FROM OTHER IT(SS) 243/DEL/97 & 5 ORS. ANNIE INVESTMENT & FIN. P. LTD. & ORS. 5 SOURCES HAS BEEN DISCLOSED IN THE RETURNS OF INCOME AND THEREFORE THE SAME CANNOT CONSTITUTE AS UNDISCLOSE D INCOME FROM THE BLOCK PERIOD. ON THE OTHER HAND TH E AO HAS MENTIONED THAT RETURNS OF INCOME WERE NOT FILED BEFORE THE DATE OF SEARCH. IT IS A SETTLED LAW THAT INCOME WHICH HAS BEEN ASSESSED U/S 143(3) OR SEC. 144 OF T HE ACT OR SEC. 147 PRIOR TO THE DATE OF COMMENCEMENT OF SE ARCH OR THE DATE OF REQUISITION THE INCOME CANNOT BE AS SESSED AS INCOME FROM UNDISCLOSED SOURCES. SIMILARLY THE RETURN OF INCOME HAD BEEN FILED U/S 139 OR IN RESPONSE TO NOTICE U/S 142(1) OR 148 OF THE ACT BUT ASSESSMENTS HAVE NOT BEEN MADE TILL THE DATE OF SEARCH OR REQUISITION T HE INCOME ON THE BASIS OF SUCH RETURNS WILL BE REDUCED FROM UNDISCLOSED INCOME DETERMINED FOR THE BLOCK PERIOD U/S 158BB(1) OF THE ACT. LIKEWISE IN CLAUSE (D) OF SEC. 158BB(1) IN A CASE WHERE THE PREVIOUS YEAR HAS NOT ENDED OR THE DATE OF FILING THE RETURN OF INCOME UN DER SUB-SECTION (1) OF SEC. 139 HAS NOT EXPIRED ON THE BASIS OF ENTRIES RELATING TO SUCH INCOME OR TRANSACTIONS AS RECORDED IN THE BOOKS OF ACCOUNT AND OTHER DOCUMENT S MAINTAINED IN THE NORMAL COURSE ON OR BEFORE THE DA TE OF THE SEARCH OR REQUISITION RELATING TO SUCH PREVIOUS YEARS SHALL NOT BE TAKEN AS UNDISCLOSED INCOME. FOR AY 19 95- 96 THE DUE DATE FOR FILING OF RETURN OF INCOME EXPI RED AND THEREFORE IT HAS TO BE VERIFIED WHETHER ASSESSEE H AD DISCLOSED INTEREST/ OTHER INCOME AS CLAIMED BY ASSE SSEE IN THE RETURN OF INCOME. FOR AY 1996 THE DUE DATE FOR FILING OF RETURN OF INCOME IN CASE OF A COMPANY WAS 30.11.1996WHICH WAS NOT EXPIRED ON THE DATE OF SEAR CH. FOR AY 1997-98 THE PREVIOUS YEAR WAS NOT ENDED ON THE DATE OF SEARCH. THEREFORE WHATEVER WAS INCOME RECO RDED IN THE BOOKS OF ACCOUNT WILL NOT CONSTITUTE UNDISCL OSED INCOME FOR ASSESSMENT YEARS 1996-97 AND 1997-98. WE THEREFORE FEEL IT PROPER TO SET ASIDE THE MATTER F OR THE PURPOSE OF VERIFICATION TO THE FILE OF THE AO WITH THE DIRECTIONS THAT IF THE RETURN OF INCOME FOR AY 1995 -96 AND 1997-98 THE RETURNS OF INCOME WERE NOT DUE ON T HE DATE OF SEARCH. THE AO WILL EXCLUDE THE INCOME RECO RDED IN BOOKS OF ACCOUNT FOR THE ASSESSMENT YEARS 1996-9 7 & 1997-98 AFTER PROPER VERIFICATION. IT(SS) 243/DEL/97 & 5 ORS. ANNIE INVESTMENT & FIN. P. LTD. & ORS. 6 6. THUS IT WAS SUBMITTED BY LD. AR THAT MATTER MAY BE RESTORED BACK TO THE FILE OF AO AS THE FACTS ARE ID ENTICAL AND SUCH PROCEEDINGS ARE ALSO SAME. 7. ON THE OTHER HAND LD. DR RELIED UPON THE ORDER OF AO & CIT(A). 8. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS IN THE LIGHT OF MATERIAL PLACED BEFORE US. THE TRIBUNAL IN THE GROUP CASES UNDER SIMILAR FACTS HAS ALREADY RESTORED THE MATTER BACK TO THE FILE OF AO WITH THE AFOREMENTION4ED OBSERVATION S. THE ABOVE MENTIONED ORDERS OF THE TRIBUNAL MUTATES MUTA NDIS WILL APPLY TO THE PRESENT CASES. THEREFORE WE PASS SIM ILAR ORDER AS HAS BEEN PASSED BY THE TRIBUNAL IN THE CASE OF PATL IPUTRA CREDIT & SECURITIES LTD. THE ISSUE IS RESTORED BACK TO THE FILE OF AO TO DECIDE THE PRESENT CASES IN THE LIGHT OF DIRECTIONS GIVEN IN THE TRIBUNAL IN THE AFOREMENTIONED TWO ORDERS THE RELE VANT PORTION OF WHICH HAVE BEEN REPRODUCED ABOVE. WE DIRECT ACCO RDINGLY. 3. LEARNED COUNSEL CONTENDS THAT THE ISSUE BEING SI MILAR FOLLOWING THE ITAT ORDER IN THE CASES OF M/S SHILPI SECURITIES P . LTD. & M/S VAIDAHI LEASE & FINANCE P. LTD. (SUPRA) THE ISSUE NEEDS TO BE SET ASIDE RESTORED BACK TO THE FILE OF AO WITH SIMILAR DIRECTIONS. 4. LEARNED DR AGREES THAT THE FACTS OF THE APPEALS IN QUESTION ARE SIMILAR WITH THOSE MENTIONED TO ABOVE AND HAS NO OBJECTION TO THE SETTING ASIDE OF THE MATTER. 5. WE HAVE HEARD RIVAL SUBMISSIONS AND HAVE GONE TH ROUGH THE ENTIRE MATERIAL AVAILABLE ON RECORD. IN VIEW OF ABOVE FACT S AND CIRCUMSTANCES RESPECTFULLY FOLLOWING THE ORDER OF ITAT IN THE CAS ES OF M/S SHILPI SECURITIES P. LTD. & M/S VAIDAHI LEASE & FINANCE P. LTD. (SUPRA) WE SET ASIDE RESTORE BACK THE ISSUES INVOLVED IN THESE AP PEALS TO THE FILE OF AO WITH IT(SS) 243/DEL/97 & 5 ORS. ANNIE INVESTMENT & FIN. P. LTD. & ORS. 7 THE DIRECTION TO DECIDE THE ISSUES IN QUESTION IN T HE LIGHT OF OUR OBSERVATIONS IN THE CASE OF PATLIPUTRA CREDIT & SECURITIES LTD. (SUPRA). WE ORDER ACCORDINGLY. 6. IN THE RESULT ALL THE APPEALS FILED BY THE ASSE SSEE STAND ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN OPEN COURT ON 10-01-2011. SD/- SD/- (SHAMIM YAHYA ) ( R.P. TOLANI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10-01- 2011. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR