Income Tax Appellate Tribunal - Delhi
Swami Rameshwar Anandagiri Purna, New ... vs Dcit, Circle-2(1) Int Taxation, ... on 27 June, 2024
0IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'D', NEW DELHI
Before Dr. B. R. R. Kumar, Accountant Member,
Sh. Anubhav Sharma, Judicial Member
ITA No. 395/Del/2023 : Asstt. Year: 2016-17
Swami Rameshwar Anandagir Vs DCIT,
Purna, C/o MM Bhasin & Co. 603, Circle-2(1),
Padma Tower, 15, Rajendra Place, International Taxation,
New Delhi-110008 Gurugram
(APPELLANT) (RESPONDENT)
PAN No. CUZPP7370M
Assessee by : Dr. Rakesh Gupta, Adv. &
Sh. Saksham Agarwal, CA
Revenue by : Sh. Vizay B. Vasanta, CIT-DR
Date of Hearing: 04.04.2024 Date of Pronouncement: 27.06.2024
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the as sessee against the order dated 30.01.2023 passed by the AO u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961.
2. Following grounds have been raised by the assessee:
" 1 . Th e L e a rn ed A s s e ss in g O ff ic e r ( A O)/ D i sp u t e R es ol u t ion Pa n el (D R P) ( a s th e ca s e ma y b e) e r r ed in Pa s si ng th e o rd e r o f as s e ss m en t d a t e d 30 . 0 1 .2 0 23 u /s 1 4 7 r. w .s . 14 4 C ( 1 3 ) o f th e In c o m e T a x A ct , 1 96 1 (t h e A ct ) a n d ma k i ng a d di ti on s a n d di s all ow a n c es on th e b a s is of su r m is e s , c onj e ctu r e s, pr e su m p ti on s a n d a s s um pt i ons a n d wi th ou t p r op e rl y c on sid e rin g th e p ap e r s a n d d o c um ent s su b m it t ed a n d s u b m i s si on ma d e du ri ng th e c ou r s e of a s s e ss m en t p r o c e ed in g s and th e pr o c e ed in g s b efo r e th e Di s pu t e R es o l ut ion P a n el in t h e fa ct s an d ci r c um st a n c e s o f t h e c a s e of a p p ell ant a n d i n l a w . Th e o rd e r pa s s ed b y A O i s il l eg a l a nd ba d i n la w a n d c ons e qu e n tl y , n ul l an d v oid .2 ITA No. 395/Del/2023
Swami Rameshwar Anandagiri Purna 2 . P r o c e edin g u / s 1 4 7 o f th e Ac t On th e fa ct s a n d c ir cu m st a n ce s o f th e ca s e a n d in la w , th e L ea rn ed A O/ D RP e r r ed in Pa s sin g t he o r d er of a s s es s m en t dat ed 3 0 .0 1 . 2 02 3 u / s 1 4 7 r .w . s. 1 4 4 C ( 1 3 ) o f th e Ac t -
2 .1 w it h out a pp r e ci a t in g th e st a tu t or y c ond it io n p r es c rib e d u / s 1 47 r . w . s 1 48 o f t h e A c t w a s n o t sa t is fi ed f o r a ssu m pt i on o f j uri sd i ct io n of th e c a s e o f a pp el la n t a s w el l a s is su a n c e o f n oti c e u / s 1 48 o f th e A c t.
2 .2 w ith ou t a p pr e c i a tin g t h e r e a s on s r e c o rd ed w a s n ot sa t i s f i ed th e r equ i r e m en t o f s ec t i on 1 47 o f th e A ct .
2 .3 wi th ou t a pp r e c ia t in g t h a t th e r ea s on s r e c o rd ed w a s t o o v agu e an d a m big u o u s a s it ha s n o li v e lin k /n e xu s w i th ma t e ria l in p o s s es si on o f A O t o f o r m r e a s on s t o b eli e v e t ha t i nc o m e ha s e s cap ed a s s e ss m ent .
2 .4 w i th ou t a pp r e c ia ti ng t ha t t h e r ea s ons r e c o rd ed wa s n ot e xhi bi ti ng e v en p ri ma - fa ci e t h a t a n y in c om e h a s a c c ru e/ a ri se o r de e m ed t o h a v e a c c ru e/ a ri s e in I n di a on th e b a s is of ma t e ria l in p o s s es si on o f A O t o f o r m r e a s on s t o b eli e v e t ha t i nc o m e ha s e s cap ed a s s e ss m ent .
2 .5 w i th ou t a pp r e ci a t i on th a t t h e r ea ss e s s m en t p r oc e e di ng w a s c ont in u e d ju s t on t he ba si s o f r e a s on s t o su s p ec t , su r m is e s , c onj ec tu r es , p r es u mp ti on s a n d i n t h e fa c t s of a p p el la nt , r ea s on s t o b el i e f c a n not b e f o rm ed b y th e A O t h a t in c om e ha s e s cap ed a s s e ss m ent .
2 .6 w it ho ut a p p r e c i a ti ng a n d d i sp o si n g t h e ob j e c ti on s r a i se d r ega r di ng th e a s s e s s m en t p r o ce ed in g s u / s 1 4 7 o f t h e A ct a nd by p a s si n g r ea s on ed o rd e r di sp o s in g ea ch c on t en t i on s o f app ell a n t .
2 .7 wi th ou t a pp r e c i a t in g th a t a pp r o va l u / s 1 5 1 o f t h e A c t f or is s uan c e o f n o ti c e u /s 1 4 8 o f t h e A ct w a s gi v en in r o ut in e man n e r w it h out r e c o rd in g p r op e r s a ti s fa c t io n b y th e a p p r o vi ng Au t ho r ity .
2 .8 w it hou t a pp r ec i a ti ng t h e f a c t t h a t si n c e n ot i c e w a s b a d in law , v oi d- a b- in it i o , the s ub s equ ent p r o ce ed in g s is n ot s u stai n a bl e u n d e r l a w .
2 .9 w it h ou t p r ov i di ng p ro p e r a n d r ea son a b l e opp o rt u n it y a nd adh e ri ng wi th pr i n c i pl e o f n a t u ra l ju sti c e .
3 . A dd iti on u / s 69 r .w . s 11 5 B B E of th e Ac t i n re s p e ct o f l o a n o f R s. R s. 7, 1 8 ,54 ,1 6 7 / - r ec e iv ed fr o m M/ s A d h y a tm ik F ou n da t ion In c . , U SA , M /s V i s v a Ad h ya t mi k S a nsth a n (V AS ), U K, M /s Ad h y atmi k F ou n da t i on , U K a n d M/ s A F e l ix , UK .3 ITA No. 395/Del/2023
Swami Rameshwar Anandagiri Purna On th e fa ct s a n d c ir cu m st a n ce s o f th e ca s e a n d in la w , th e L ea rn ed A O/ D RP er r ed in m a k in g a d d it ion u / s 69 of th e A ct i n r e s p e ct o f l oa n r e c e i v ed d ur i ng th e y ea r w hi l e p a s si ng th e o rd e r o f as se s sm en t 3 0 .0 1 .2 02 3 u / s 1 47 r .w . s . 1 4 4 C ( 13 ) of t h e A c t -
3 .1 w it h out a pp r e c i a t in g t ha t th e p ro vi s i on s o f S e cti on 6 9 is n ot app li ca bl e i n t h e fa c ts o f th e a p p e ll a n t .
3 .2 wi th ou t a pp r e c i a t in g t h a t r e c ei p t o f l oa n b y n on- r e si d ent app ell a n t i s n ei th e r in c o m e r e c ei v e d o r is d e e m ed t o b e r e c eiv e d i n I nd ia n o r i n c o m e a c c ru e s or a ri s e s o r i s d e e m e d t o ac c ru e o r a ri s e t o hi m in I n dia i n v i e w o f S e ct i on 5 ( 2 ) o f th e Ac t .
3 .3 w it h ou t a pp r ec i a ti n g th a t a p p el la n t h a s p r ov id ed id en ti ty , c r edi t w o rt hi n e s s a n d g en ui n en e s s of t r a n s a c t i on w ith s u ffi ci en t e v id en ce r eg a rd in g s ou r ce of l oa n s u c h a s c on fi rm a t i on , ba n k s tat e m en t , p ro mi s s o ry n ot e et c .
3 .4 w it h ou t a p p r e ci a ti n g th a t a l l th e r e c eip t a r e r ou t ed t h r oug h au th o ri z ed ba n k in g c ha n n e l o f R ese r v e B a nk of In dia .
3 .5 w it h out a pp r e c i a t i on th a t a ny n on c om p lia n c e b y l en d e r sh a ll n ot co n v e rt l oa n f ro m i n com e o f t h e a p p el l a nt .
3 .6 w i t h out a pp r e c ia t in g t ha t c on t r a c t o f th e a pp ell a nt a nd len de r c ann ot b e r e w r it t en by t h e d ep a rt me n t wi th ou t p ro v idi ng an y ev i d en c e s u gg e st in g t h a t c ont r a c t w a s dif f e r en t .
3 .7 w i th ou t a p p r ec i a ti ng th e s e tt l ed l e ga l p os it i on s by su p r em e C o u r t a n d High C ou r ts .
3 .8 w i th out ma k i n g a n y i nd e p end ent e nq ui ry t o a s c e rta i n th e c r edi t w o rt hi n e s s of th e l en d e r b e fo r e m a k in g a d di ti on u / s 6 9 o f th e A ct 3 .9 wi th ou t a pp r e c i a t in g th a t ta x w a s not l e via b l e u/ s 11 5 BB E o f th e A ct .
3 .1 0 w it h ou t p r ov i d i ng p r op e r a n d re a s on a b l e opp o rtu n it y a nd adh e ri ng wi th pr i n c i pl e o f n a t u ra l ju sti c e .
4 . Le a rn ed A s s es s in g O ffi ce r / D i sp ut e R e s ol ut i o n Pa n e l e r r ed i n mak i ng w r on g c omp u ta t i on o f in c o m e a n d ta x pa ya b l e th e r e on on t h e fa ct s a n d c i r cu m st a n ce s of th e ca s e a n d in l a w , th e w hi l e pa s sin g t h e o rd e r of a s s es s m ent u /s 1 4 7 r .w . s . 1 4 4C ( 13 ) o f th e A ct .
5 . On th e fa c t s a nd c i r c u ms t a n c es of t he c a s e a n d in la w, th e L ea rn ed As s e s si ng O ffi c e r/ D i sp ut e R e s olu ti on Pa n el e r r e d in c ha rg i n g in t e r e st u / s 2 3 48 of t h e A c t w h ile pa s s in g t h e or d e r of as s e ss m en t u / s 1 47 r. w . s . 1 4 4 C( 1 3) o f th e I n c om e T a x Ac t.
4 ITA No. 395/Del/2023Swami Rameshwar Anandagiri Purna 6 . On th e fa c t s a nd c i r c u ms t a n c es of t he c a s e a n d in la w, th e L ea rn ed As s e s si ng O ffi c e r/ D i sp ut e R e s olu ti on Pa n el e r r e d in in it iat i ng p en a l t y p r o c e ed in g s u / s 2 71 ( 1) ( c ) o f th e Ac t w h il e pas sin g th e o rd e r o f a s se s s m en t u/ s 1 4 7 r . w. s . 1 4 4 C ( 1 3) o f th e In c o m e T ax A c t w i t hou t a pp r e ci a t in g t ha t th e p r o vi s i on s o f ab ov e S e cti on i s n o t a p p li ca b l e in th e fa ct s o f t h e a p p el la n t . "
3. In the order of assessment, the Assessing Officer has made addition in respe ct of loan received of Rs. 7,18,54,167/- from foreign foundations.
4. The assessee was born in India and is a German C itizen and non-resident taxpayer in India. The assessee filed its return of income declaring income of Rs 2,28,210/- o n 27.11.2017. Notice u/s 148 of the Income Tax Act was issued. In response of Notice u/s 148 of the Income Tax Act again filed return declaring the same income on 12.12.2021. The As sessing officer passed draft order of assessment dated 23.11 .2021 u/s 147 r.w.s 144C of the Act assessing income of Rs. 18,77,33 ,630/, propo sing the addition of investment of Rs. 18,75,00,000/- alleging the s ame as unexplained investment.
5. Aggrieve d, the assessee filed objections before the ld. DRP on 21 .01.2022 for suitable directions. Ld. DRP ha s dispose d the objec tions vide order dated 08.02.2022. The Ld. D RP direc ted to sustain additio n of Rs. 7,18,54,167 in respect of funds borrowed from the following parties for the purpose of investment in property.
M/s Adhyatmik Foundation Inc., USA, M/s A Felix, M/s Visva AdhyatmikSansthan (VAS) and M/s Adhyatmik Foundation, UK 5 ITA No. 395/Del/2023 Swami Rameshwar Anandagiri Purna
6. Aggrieve d, the assessee filed appeal before the Tribunal.
7. During the hearing before the Tribunal, the assessee has submitted substantial evidence in form of confirmation, promissory note, bank statement etc of lenders whic h are already been submitted before the authorities below. One of the objec tions of AO/DRP was that docume nts are not apos tilled. Confirmations and pro missory note were also submitted before lower authorities. The assessee now submitted applicatio n for admission of additional evidences under Rule 29 of the ITAT Rules, 1963 filing along with the apostilled copy of confirmation and transfer invoice. These confirmations go to the root cause of proving the loans.
8. With a view to substantiate the claim of the appellant and to meet the objection of the Assessing Officer/DRP, the assessee is submitting copies of the following doc uments now:
(i) Copy of Apostilled copy of confirmation o f loan given to appellant by M/s Adhyatmik Foundation I nc.
(ii) Copy of Apostilled copy of special resolution dated 03.09.2011 regarding loan to appe llant by M/s Adhyatmik Foundation Inc.
(iii) Copy of Apostilled copy of special resolution dated 09.09.2014 regarding loan to appe llant by M/s Adhyatmik Foundation Inc.
(iv) Copy of Apostilled copy of special resolution dated 09.04.2015 regarding loan to appe llant by M/s Adhyatmik Foundation Inc.
(v) Copy of Apostilled copy of Pro missory Note regarding loan to appellant by M/s Adhyatmik Foundation Inc. 6 ITA No. 395/Del/2023 Swami Rameshwar Anandagiri Purna
(vi) Copy of Apostilled copy of confirmation o f loan given to appellant by M/s Visva Adhyatmik Sanstha. Copy of Apos tilled copy of spe cial resolution dated 11.03 .2014 regar ding loan to appellant by M/s Visva Adhyatmik Sans than.
(vii) Copy of Apostilled copy of confirmation o f loan given to appellant by UK branch of M/s Adhyatmik Foundation Inc.
(viii) Copy of death certificate of Ms. A. Felix
(ix) Copy of confirmation o f Ms. A. Felix.
(x) Copy of promissory note given by the appellant to Ms. A. Felix.
(xi) Copy of promissory note give by assessee to M/s Visva Adhyatmik Sa nsthan.
9. We find that the ld. DRP did not give cognizance to the documents filed by the assessee as they w ere not duly apostilled. Now these documents are obtained w hich were also not available earlier to the assessee are to be considered for deter mining the taxability of the assessee.
10. Hence, in the interest of justice to both the parties, we remand the matter to the file of the Assess ing Officer to consider the documents now obtained and complete Asses sment proceedings de novo. Since , the assessment proceedings are directed to be initiated afresh, revenue is at liberty to co nduct inves tigations as deem fit and the assessee can file to suitable evidences / documents to support their case.
7 ITA No. 395/Del/2023Swami Rameshwar Anandagiri Purna
11. In the result, the appeal of the assessee is allowe d for statistical pur pose.
Order Pronounced in the Open Court on 27/06/202 4.
Sd/ - Sd/-
(Anubhav Sharma) (Dr. B. R. R. Kumar)
Judicial Member Accountant Member
Dated: 27/06/2024
*Subodh Kumar, Sr. PS*
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
ASSISTANT REGISTRAR