Income Tax Appellate Tribunal - Delhi
Dcit, New Delhi vs Tushar Kumar,, New Delhi on 10 February, 2021
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'C', NEW DELHI
Before Sh. Amit Shukla, Judicial Member
Dr. B. R. R. Kumar, Accountant Member
(Through Video Conferencing)
ITA No. 3796/Del/2010 : Asstt. Year : 2006-07
DCIT, Vs Tushar Kumar,
Central Circle-12, G-5, GTM House, Pushkar Enclave,
New Delhi Outer Ring Road, Pachim Vihar,
New Delhi-110063
(APPELLANT) (RESPONDENT)
PAN No. ABMPT5448C
Assessee by : Sh. K. Sampath, Adv.
Revenue by : Ms. Sunita Singh, CIT DR
Date of Hearing: 12.01.2021 Date of Pronouncement: 10.02.2021
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the revenue against the order of l d. CIT(A)-1, New Delhi dated 28.05.2010.
2. Following grounds have been raised by the revenue:
"1. The order of the Ld. CIT (A) is not correct in law and facts.
2. In the facts and circumstances of the case, Learned CIT(A) has erred in law and on facts in deleting the addition of Rs. 56,90,039/- towards unexplained bank credit e ntries not explaine d before, AO, while admitting addition e vidence in the form of confirmations, in violation of provisions of Rule - 46A(3) of Income Tax Rules, 1962.2 ITA No.3796/Del/2010
Tushar Kumar
3. In the facts and circumstances of the case, Learned CIT(A) has erred in law and on facts in deleting the addition of Rs. 56,90,039/- towards unexplained bank cre dit entries without examining the chargeability o f the source of such entries to Income Tax and without giving opportunity to AO to examine the same.
4. In the facts and circumstances of the case, Learned CIT(A) has erred in law and on facts in deleting the addi tion of Rs. 1,92,00,000/- on protective basis, towards undisclosed income on sale of flats as recorded in documents seized during search in GTM Group and impounded during survey under section 133A, showing payments to the assessee while ignoring the provisions of section 132(4A) and 292-C of Income Tax Act 1961. Learned CIT(A) has also deleted the addition of substantive basis in the case of M/s GTM Builders and Promoters Private Limited."
Credit entries in the Bank Account:
Ground Nos.2 & 33. The Assessing Officer on perusal of the bank account no.01321000057551 in the name of Tushar kumar with HDFC Bank, Palam Vihar, New Delhi found that there were some debit and credit e ntries. The AO held that the assessee has not explained the narration fo r debited entries, as well as some of credit entries. Furthe r, it was held that a credit entry of Rs.25,00,000/- on 11.08.2005, for which the assessee has not given any narration. On 08.08.2005, before this credit entry the assessee was having a balance of Rs.4085/-. It was held that on 12.08.2005, the assessee has transferre d Rs.24,50,000/- in GT M Builder & Pro moters Pvt. Ltd. as introduction share capital.
3 ITA No.3796/Del/2010Tushar Kumar Since, the assessee has failed to explain the bank entries appearing in the bank state ments, the Cre dit entries which have no explanations were treated as unexplained income and added to the inco me of the asse ssee. The total of these entries work out by the AO are to the tune of Rs.76,90,039/-. However, as a sum of Rs.20,00,000/- declared by the assessee as income from various miscellaneous works of civil nature for different parties, the addition of Rs.56,90,039/-(Rs.76,90,039/- - Rs.20,00,000/-) was made to the income of the assessee as unexplained income.
4. Aggrieved the assessee filed appeal before the ld. CIT (A).
5. The ld. CIT (A) deleted the addition on the grounds that the entries have been duly e xplained.
6. Aggrieved with the o rde r of the ld. CIT (A), the revenue filed appeal before us.
7. Heard the arguments of both the parties and perused the material available on reco rd.
8. We have pe rused the documents and the explanation, the details of the bank entries are as unde r:
S.No. Date Partic ulars Ch. No. Receipts A mount 1 01.04.2005 Tus har Malik R s. 98 /-
2 07.04.2005 Director Rem uneration Rs. 20,000 /- 3 07.05.2005 G TM Buil ders & 196868 Rs. 18,000 /-
Prom oters Pvt. Ltd.
4 16.05.2005 Cash deposited Rs. 20,000 /- 5 30.05.2005 G TM Buil ders & 205963 Rs. 18,000 /-
Prom oters Pvt. Ltd.
30.05.2005 G TM Buil ders & 205964 Rs. 100,000 /- 6 Prom oters Pvt. Ltd.4 ITA No.3796/Del/2010
Tushar Kumar 7 23.06.2005 G TM Buil ders & 205909 R s. 2,00,000 /-
Prom oters Pvt. Ltd.
8 25.06.2005 G TM Buil ders & 205912 Rs. 32,400 /-
Prom oters Pvt. Ltd.
9 30.06.2005 Tus har Malik Rs. 9 /-
10 11.07.2005 Tus har Malik 205944 Rs. 20,000 /-
16.07.2005 G TM Buil ders & 217781 Rs. 32,400 /- 11 Prom oters Pvt. Ltd.
02.08.2005 G TM Buil ders & 217800 Rs. 17,400 /- 12 Prom oters Pvt. Ltd.
13 11.08.2005 A nsal Properties Ltd . 771068 Rs. 25,00,000 /- 14 31.08.2005 Tus har Malik 217944 Rs. 11,400 /- 15 14.09.2005 G TM Buil ders & 217959 Rs. 32,400 /-
Prom oters Pvt. Ltd.
16 16.09.2005 Tus har Malik Rs. 2,800 /- 17 26.09.2005 Tus har Malik 217995 Rs. 73,200 /- 18 1 28.09.2005 Tus har Malik 217998 Rs. 17,000 /- 19 30.09.2005 Tus har Malik R s. 31 /-
20 10.10.2005 G TM Buil ders & 227427 Rs. 34,650 /-
Prom oters Pvt. Ltd.
21 18.10.2005 The Seth V ihar CGHS 404000 R s. 3,00,000 /-
Ltd.
22 19 .10.2005 Tus har Malik 113008 R s. 6,00,000 /- 23 31 .10.2005 Tus har Malik 228401 Rs. 23,830 /- 24 03 .11.2005 G autam K umar 751416 R s. 8,00,000 /- 25 03 .11.2005 Tus har Malik 228404 Rs. 6,000 /-
05 .11.2005 G TM Buil ders & 228417 R s. 8,00,000 / -
26Prom oters Pvt. Ltd.
27 10 .11.2005 G TM Buil ders & 228424 Rs. 34,650 /-
Prom oters Pvt. Ltd.
28 07 .12.2005 Tus har Malik 228487 Rs. 50,167 /- 29 31 .12.2005 Tus har Malik Rs. 188 /- 30 05 .01.2006 G TM Buil ders & 228574 R s. 2,00,000 /-
Prom oters Pvt. Ltd.
31 G TM Buil ders & 228588 Rs. 43,330 /-
12 .01.2006 Prom oters Pvt. Ltd.
32 14 .02.2006 G TM Buil ders & 240335 Rs. 33,330 /-
Prom oters Pvt. Ltd.
33 15 .02.2006 Tus har Malik 240357 Rs. 36,152 /- 34 G TM Buil ders & 240388 Rs. 33,330 /-
28 .02.2006 Prom oters Pvt. Ltd.
35 06 .03.2006 Cash deposited Rs. 100 /- 36 13 .03.2006 Tus har Malik 240230 Rs. 10,735 /- 37 23 .03.2006 Tus har Malik 240256 Rs. 37 ,839/
-
5 ITA No.3796/Del/2010Tushar Kumar 38 27 .03.2006 O ther Income 817026 R s. 2,25,100 /-
Total(A ) Rs. 63,84,539/-
Entries consid ered b y the A ssessing O fficer in Cred it entries which are actually reversal entries For ch eques returned S. No. Date Partic ulars Ch. No. Receipts A mount 1 05 .11.2005 Cheque Returned 398932 R s. 6,00,000 / - 2 05 .11.2005 Cheque Returned 398933 R s. 2,00,000 /- 3 06 .01.2006 Cheque Returned 398944 R s. 5,00,000 / - 4 06 .03.2006 Cheque Returned 400137 Rs. 5,000 /- 5 13 .08.2005 Cheque Returned 246775 Rs. 500 /-
Total(B ) Rs. 13,05,500/-
G ross T otal(A+B ) Rs. 76,90,039/-
9. It was argued that the Assessing Officer has wrongly worked out the credit entries at Rs. 76,90,039/- in the bank statement instead of actual credit e ntries Rs. 63,84,539/- and acco rding to the Assessing Officer the addition should have been (Rs. 63,84,539/- - Rs. 20,00,000/- = Rs. 43,84,539/-). Whereas, the Ld. Assessing Office r has made the addition of Rs. 56,90,039/- without looking the facts relating to the credit entries in the bank statement.
10. It was submitted that actual credit entries amounting to Rs.63,84,530/- consists of the following cre dits:
Date Cheq ue No Received from A m ount 30 .05.2005 205964 G TM B uilders & Prom oters 1,00 ,000 23 .06.2005 205909 -d o- 2,00 ,000
11 .08.2005 246775 A nsal Prop erties Ltd 25,00 ,000 18 .10.2005 404000 The Seth Vihar CGHS Ltd 3,00 ,000 19 .10.2005 113008 G TM B uilders & Promoters 6,00 ,000 03 .11.2005 751416 G autam K um ar 8,00 ,000 05 .11.2005 228417 G TM B uilders & Promoters 8,00 ,000 05 .01.2006 228574 G TM B uilders & Promoters 2,00 .000 55,00 ,000 6 ITA No.3796/Del/2010 Tushar Kumar
11. The rest of the credits are small receipts from GTM Builders & Promoters and Rs. 2,25,100/- representing other income. Confirmation in respect of GT M Builders & Promoters, Ansal Properties, The Seth Vihar CGHS Ltd. Gautam Kumar were filed.
12. Having examined the observations of the Assessing Officer and the submissions made by the assessee, the total credit entries after taking out the cheques reversed works out to Rs.63,84,539/- as under:
S. No. D ate Part i cu l a rs Ch. No. Re c ei p t sA m o u n t 1 01.04.2005 Tus har Mal ik Rs. 98/-
2 07.04.2005 Director R emuneration R s. 20 ,000/-
3 07.05.2005 G TM Build ers &
196868 R s. 18 ,000/-
Prom oters Pvt. Ltd .
4 16.05.2005 Cash deposited R s. 20 ,000/-
5 30.05.2005 G TM Build ers Promoters
&
205963 R s. 18 ,000/-
Pvt. Ltd .
6 30.05.2005 G TM Build ers &
205964 Rs. 100 ,000/-
Prom oters Pvt. Ltd .
7 23.06.2005 G TM Build ers &
205909 Rs. 2,00 ,000/-
Prom oters Pvt. Ltd .
8 25.06.2005 G TM Build ers &
205912 R s. 32 ,400/-
Prom oters Pvt. Ltd .
9 30.06.2005 Tus har Mal ik Rs. 9/-
10 11.07.2005 Tus har Mal ik 205944 R s. 20 ,000/-
11 16.07.2005 G TM Build ers & 217781 1R s. 32 ,400/-
Prom oters Pvt. Ltd .
12 02.08.2005 G TM Build ers & 217800 R s. 17 ,400/-
Prom oters Pvt. Ltd .
13 11.08.2005 A nsal Properties Ltd . 771068 Rs. 25,00 ,000/-
14 31.08.2005 Tus har Mal ik 217944 R s. 11 ,400/-
15 14.09.2005 G TM Build ers & 217959 R s. 32 ,400/-
Prom oters Pvt. Ltd .
16 16.09.2005 Tus har Mal ik Rs. 2 ,800/-
17 26.09.2005 Tus har Mal ik 217995 R s. 73 ,200/-
18 28.09.2005 Tus har Mal ik 217998 R s. 17 ,000/-
19 30.09.2005 Tus har Mal ik Rs. 31/-
20 10.10.2005 G TM Build ers & 227427 R s. 34 ,650/-
Prom oters Pvt. Ltd .
7 ITA No.3796/Del/2010
Tushar Kumar
21 18.10.2005 The Seth V ihar CGHS 404000 Rs. 3,00 ,000/-
Ltd.
22 19.10.2005 Tus har Mal ik 113008 Rs. 6,00 ,000/-
23 31.10.2005 Tus har Mal ik 228401 R s. 23 ,830/-
24 03.11.2005 G autam K um ar 751416 Rs. 8,00 ,000/-
25 03.11.2005 Tus har Mal ik 228404 Rs. 6 ,000/-
26 05.11.2005 G TM Build ers & 228417 Rs. 8,00 ,000/-
Prom oters Pvt. Ltd .
27 10.11.2005 G TM Build ers & 228424 R s. 34 ,650/-
Prom oters Pvt. Ltd .
28 07.. Tus har Mal ik 228487 R s. 50 ,167/-
29 12.2005
31.12.2005 Tus har Mal ik iRs. 188/-
30 05.01.2006 G TM Build ers & 228574 Rs. 2,00 ,000/ -
Prom oters Pvt. Ltd .
31 12.01.2006 G TM Build ers & 228588 R s. 43 ,330/-
Prom oters Pvt. Ltd .
32 14.02.2006 G TM Build ers & 240335 R s. 33 ,330/ -
Prom oters Pvt. Ltd .
33 15.02.2006 Tus har Mal ik 240357 R s. 36 ,152/-
34 28.02.2006 G TM Build ers & 240388 R s. 33 ,330/ -
Prom oters Pvt. Ltd .
35 06.03.2006 Cash deposited Rs. 100/-
36 13.03.2006 Tus har Mal ik 240230 R s. 10 ,735/-
37 23.03.2006 Tus har Mal ik 240256 R s. 37 ,839/-
38 27.03.2006 O ther Income 817026 Rs. 2,25 ,100/-
Total(A ) Rs.63,84,53 9/-
Entri es consid ered by the A ssessing O fficer in C redit entries which are actually reversal entri es
13. The details of the cheque returned is as under:
F or c heque s returne d So Date Partic ulars Ch . No. Rece ipts No. A mount 1 05.11.2005 Cheq ue R eturned 398932 Rs. 6,00,000/- 2 05.11.2005 Cheq ue R eturned 398933 Rs. 2,00,000/- 3 06.01.2006 Cheq ue R eturned 398944 Rs. 5,00 ,000/ - 4 06.03.2006 Cheq ue R eturned 400137 Rs. 5 ,000/- 5 13.08.2005 Cheq ue R eturned 246775 Rs. 500/-
TotalfB ) Rs. 13,05,500/-
Gross T otal(A+B ) Rs. 76,90,039/-
8 ITA No.3796/Del/2010
Tushar Kumar
14. Thus, the major cre dit entries were of Rs.55,00,000/- as shown in the table abo ve at para.
15. The entries considered by the Assessing Officer includes bank reversal entries too. The explanation of the cre dit entries has been examined which are received from Ansal Properties Ltd., The Seth Vihar, CGHS Ltd. and the re maining from flagship company of the assessee. There has been an unre conciled difference of Rs.8,84,500/- which has been already declared as business income of Rs.20,00,000/- in the return filed in response to the notice u/s 153A of the Income Tax Act, 1961. Since, the balance amount stands offe red to tax and the o ther credit entrie s have been duly explained. We decline to interfere with the order of the ld. CIT (A) on this issue.
16. Gro und No. 4 deals with undisclosed income asse ssed in the hands of the assessee on protective basis. The amounts were held to be received from sale of flats. The matter has already been dealt in the case of GTM Builders & P romoters Pvt. Ltd. in IT A No. 3797/Del/2010 A.Y. 2006-07 under the head unaccounted income from sale of flats in Coope rative Societies vide para no. 30 to 32 wherein it was held that the addition was unwarranted.
17. Hence, the appeal of the revenue on this ground is liable to be dismissed.9 ITA No.3796/Del/2010
Tushar Kumar
18. In the result, the appeal of the revenue is dismissed. Orde r Pronounced in the Open Court on 10/02/2021.
Sd/- Sd/-
(Amit Shukla) (Dr. B. R. R. Kumar)
Judicial Member Accountant Member
Dated: 10/02/2021
*Subodh*
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
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