Natranjan Balasubramaniam, Rajkot vs Assessee

Mr. Natranjan Balasubramaniam, vs. ITO, Ward 23 (4), C/o Kalpesh S. Doshi & Co. New Delhi. Chartered Accountants, 411, Cosmo Complex, Mahila College Circle, Rajkot - 360 001. (PAN : AAHPN4723A)

(APPELLANT) (RESPONDENT)

ASSESSEE BY : None REVENUE by : Shri P. Dam Kanunjha, Senior DR

Date of Hearing : 26.02.2015 Date of Pronouncement : 27.02.2015

ORDER

PER B.C. MEENA, ACCOUNTANT MEMBER :

This appeal filed by the assessee emanates from the order of the CIT (Appeals)-XII,

New Delhi dated 31.08.2012 for the assessment year 2005-06.

2. In this case, assessment was made u/s 144 of the Income-tax Act, 1961 dated

12.12.2007 wherein income has been taken at Rs.2,50,033/- which were expenses through

credit card during the relevant period. The record also shows that CIT (A) has dismissed the

appeal of the assessee without going into the written submissions made before him. From the

written submissions which have also been filed before us, we find that the assessee has tried

to explain the expenditure incurred through credit cards details are as under :- 2

ITA NO.6395/Del/2012

Date Amount (Rs.) Remarks 15/04/2004 30,000.00 Balance transferred to ICICI Credit Card.

02/09/2004 40,000.00 Balance transferred to ABN Amro Credit Card.

24/0912004 35,787.00 Balance transferred to AMEX Credit Card.

30/11/2004 10,000.00 Balance transferred to AMEX Credit Card.

19/11/2004 542.39 These amounts are incurred for Books & Periodicals and other 22/12/2004 1,818.89 items purchased online. These expenses are debited to Material 22/12/2004 953.11 Expenses Account.

23/12/2004 910.47

29/12/2004 613.37

29/12/2004 2,453.04

29/12/2004 2,460.11

25/01/2005 10,000.00 Balance transferred to AMEX Credit Card. 25/01/2005 34,669.00 Balance transferred to ICICI Credit Card.

22/02/2005 15,350.00 Balance transferred to AMEX Credit Card. 26/02/2005 25,384.00 Paid for Hotel charges and recorded as Travelling & Conveyance Expenses. 11/03/2005 40,000.00 Balance transferred to AMEX Credit Card. 2,50,941.40

15. The appellant was having four credit cards during the year under consideration and the amount lying as credit has been used to make payment of other credit card account and in effect has availed credit limit for longer period.

16. Further, the amount transferred to other credit card account was for expenditure incurred through those credit cards on various expenses as mentioned above and all such expenses are properly recorded in the books of accounts. Moreover, some of the amount transferred to other credit cards also transferred back to HSBC Credit Cards.

3 ITA NO.6395/Del/2012

17. Therefore, as the appellant has properly recorded all the expenses incurred through credit cards, the same cannot be treated as income from undisclosed sources u/s. 69C of the I. T. Act, 1961.

18. The appellant has submitted all the relevant details before the Ld. CIT(A), the Ld. CIT(A) has not considered the merit of the case and simply confirmed the addition.

19. It is therefore respectfully submitted to allow the claim of the appellant and delete the addition."

Before us also, no one appeared on behalf of the assessee and the narrations made in the

submissions need verification at the level of Assessing Officer as the assessee has claimed

that all the expenses have been properly recorded in its books of accounts. In view of these

facts and circumstances and in the interest of justice and equity, we restore the issue to the

file of the Assessing Officer for deciding afresh after providing an opportunity of being heard

to the assessee.

3. In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in open court on this 27TH day of February, 2015.

SD/- SD/- (GEORGE GEORGE K) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER

Dated the 27TH day of February, 2015 TS

Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(A)-XII, New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.