Income Tax Appellate Tribunal - Delhi
Subhash Chand Babbar,, vs Department Of Income Tax
IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH : 'H' NEW DELHI)
BEFORE SHRI A.D. JAIN , JUDICIAL MEMBER AND
SHRI K.D. RANJAN, ACOCUANTANT MEMBER
I.T(SS).A. No.225/Del./2005
(Block Assessment Years : 1.4.96 to 17.10.02)
ACIT, Cen. Circle 25, Vs. Shri
Shri Subhash Chand Babbar,
New Delhi. 17/41A, Tiak Nagar,
New Delhi.
(PAN/GIR No. : AELPB2321L)
(Appellant) (Respondent)
Assessee by : Shri K. Sampath, Adv.
Revenue by : Reena S. Puri, CIT(DR)
ORDER
PER A.D. JAIN, JM
This is department's appeal for the block period from 1.4.96 to 17.10.02, taking the following rounds:
"1. On the facts and circumstances of the case, the CIT(A) has erred in deleting the addition of `5,80,500 made on account of undisclosed cash found.
2. On the facts and circumstances of the dcase, the CIT(A) has erred in deleting the addition of `4,20,000 made on account of undisclosed investment made on renovation of building at Farmhouse."
2. The facts are that a search was conducted on 17.10.02 at the premises of J.M.D. Trading Co., a sole proprietorship concern of the assessee's brother, Shri Vineet Kumar Babbar and at the residential premises No.25/6, Tilak Nagar, New Delhi. The first floor of the residential premises was occupied by the assessee, whereas the ground floor thereof was in the occupation of the assessee's aforesaid I.T(SS).A. No.225/Del./2005 (Block A.Ys. : 1.4.96 to 17.10.02) :
brother. The search on the first floor of the residential house was carried out in the absence of the assessee.
3. By virtue of order dated 28.9.04, the AO made an addition of `5,80,500 in respect of cash found from the residence of the assessee at the time of search and of `4,20,000 on account of amount shown paid/payable to the contractor as per the certificate dated 12.10.02, of M/s Sagoo & Associates, Architect.
4. Vide the impugned order dated 25.2.05, the CIT(A) deleted both these additions. Aggrieved, the Department is in appeal.
5. In the search, documents were seized i.e., Annexure A-3, Annexure A5 and Annexure A15.
6. Ld.DR has contended that the CIT(A) has erred in deleting the additions of `5,80,500 and `4,20,000 made by the AO on account of undisclosed cash found and undisclosed investment in renovation of building at farmhouse, respectively.
7. The Ld.Counsel for the assessee, on the other hand, has placed strong reliance on the impugned order.
8. Apropos the addition of `5,80,500 made on account of undisclosed cash found, it is seen that neither the AO while making the addition, nor the CIT(A) while deleting the same, have taken into consideration the seized document Annexure A3, though the same was referred to specifically by the assessee. This document comprises pages 3 & 4 of Panchnama on 17.10.02. According to the assessee the closing cash balances as dated 02.10.02 to 12.10.02 had been bifurcated therein, according to the placement, wherein, the name of the assessee appeared. This, according to the assessee, was conclusive evidence that out of the cash as per seized cash book Annexure A15, cash of `9 lakhs was kept by Shri Vineet Kumar Babbar, the brother of he assessee with the assessee.
9. Accordingly, this matter is remitted to the file of the AO to be decided afresh in accordance with law, on considering all the 2 I.T(SS).A. No.225/Del./2005 (Block A.Ys. : 1.4.96 to 17.10.02) :
evidences including the seized documents, particularly Annexure A3, on giving adequate opportunity to the assessee.
10. The amount of `4,20,000, it is seen, is stated to have been paid out of the amount of `5,80,500 concerning Ground No.1. Both these issues are, thus, interconnected and inter-dependent. As such, the issue regarding he addition of `4,20,000 is also remitted to the file of the AO to be decided afresh, as above.
11. In the result, for statistical purposes, the appeal of the department is treated as allowed.
Order pronounced in open court on 03.05.2011.
Sd/- Sd/-
(K.D. RANJAN) (A.D. JAIN)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated, May 03, 2011
SKB
Copy forwarded to:
1.Appellant
2.Respondent
3.CIT
4.CIT(A)-I, New Delhi.
5.CIT(ITAT), New Delhi.
AR/ITAT
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