Sunil Kumar Bhatia, Delhi vs Assessee

Shri Sunil Kumar Bhatia, vs. ITO, Ward 20 (1), F - 50, Kolhapur Road, New Delhi. Near Kamla Nagar, Delhi - 110 007.

(PAN : AAFPB5064J)

(APPELLANT) (RESPONDENT)

ASSESSEE BY : Shri K.R. Manjani, Advocate REVENUE BY : Shri Vijay Chhadha, CIT DR

Date of Hearing : 23.06.2015 Date of Pronouncement : 24.06.2015

ORDER

PER GEORGE GEORGE K., JUDICIAL MEMBER :

This appeal, at the instance of the assessee, is directed against the

order of the Commissioner of Income-tax (Appeals)-IV, New Delhi dated

14.06.2013. The relevant assessment year is 2003-04.

2. The solitary effective ground raised by the assessee reads as under:

"The Learned CIT (A) has erred on facts as well as in law in sustaining the addition of Rs.9,00,000/- in respect of loans from two parties even though confirmations were filed, loans are through banking channel and they are regular income tax assesseess. Therefore, the appellant has 2 ITA No.4592/Del./2013

discharged onus and department has nothing against these facts."

2. Briefly stated, the facts of the case are as follows.

A search was conducted on the assessee on 13.12.2005. The notice

u/s 153A of the Income-tax Act, 1961 was issued on 09.07.2007. In

response to the notice, the assessee submitted that original return filed u/s

139 declaring income of Rs.1,63,733/- be treated as return filed u/s 153A.

Accordingly, notices u/s 142 (1) and 143 (2) along with questionnaire were

issued on 31.10.2007. In response to the notices, the assessee submitted

vide reply dated 19.11.2007 that the assessee received two loans of Rs.9

lacs from Vijesh Kumar Gupta and Shyam & Sons. The Assessing Officer

observed that inspite of specific requirements, assessee failed to file any

confirmations and creditworthiness of the parties, hence, the amount of

loan added as income u/s 68 of the Act. Further, the assessee submitted

that he had received an amount of Rs.1,68,000/- as LIC maturity and the

same was credited directly to assessee's capital account. The Assessing

Officer observed that no confirmation had been filed in this regard.

Therefore, this amount was treated as undisclosed income. Accordingly,

the assessment was completed u/s 153A of the Act making addition on

account of unexplained loan of Rs.9 lacs and an amount of Rs.1,68,000/-

received from LIC.

3 ITA No.4592/Del./2013

3. Aggrieved, the assessee preferred an appeal to the first appellate

authority. The CIT (A) had deleted the addition of Rs.1,68,000/- received

from LIC. The CIT (A) upheld the addition of Rs.9 lacs by observing that

the assessee had failed to prove the identity of the creditor;

creditworthiness of the creditor; the genuineness of the transaction; no

confirmation letters from the creditors filed before the Assessing Officer;

even during the appellate proceedings, no confirmations were filed except

the Xerox copy of the certificate prepared by the assessee which was

purported to have been signed by the creditor and also there were no

supporting evidences like bank statement and Income tax returns.

4. The revenue, being aggrieved, is in appeal before us.

5. We have heard the rival submissions and perused the material

available on record. Before us, the ld. Counsel for the assessee submitted a

paper book consisting of the following documents :

1. Confirmation from Shri Yojesh Garg (HUF)

2. Paying Slips for depositing of cheques of creditors of Rs.5,00,000/- and Rs.4,00,000/- in bank account of Shri Sunil Kumar Bhatia

3. Confirmation for return of loan of Shri Yojesh Garg HUF

4. Confirmation of Shyam Gopal and Sons

5. Photocopy of cheque issued by Shyam Gopal and Sons 4 ITA No.4592/Del./2013

6. Balance Sheet and Income Exp. of Shyam Gopal and Sons

7. Bank A/c. of Shri Sunil Kumar Bhatia showing deposit and return of these cheques.

8. Photocopy of letters dt. 04.10.2008, 16.02.2010 and 20.01.2013 written to CIT(A)-IV

9. Bank A/c. of Yajesh Kumar Garg

We find from the paper book submitted by the assessee that these

documents require to be considered and verified at the level of the

Assessing Officer. In view of the above, we are of the opinion that in the

interest of justice and equity, the matter be restored to the file of the

Assessing Officer to decide afresh after going through the aforesaid

documents and of course, after providing an opportunity of being heard to

the assessee. It is ordered accordingly.

10. In the result, the appeal filed by the assessee is allowed for statistical

purposes.

Order pronounced in open court on this 24th day of June, 2015.

Sd/- sd/- (N.K. SAINI) (GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated the 24th day of June, 2015 TS 5 ITA No.4592/Del./2013

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