Income Tax Appellate Tribunal - Delhi
Shri Brij Gopal Chauhan, New Delhi vs Ito, New Delhi on 27 November, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: 'A', NEW DELHI
BEFORE SHRI G.S. PANNU, HON'BLE VICE PRESIDENT
AND
SHRI H.S. SIDHU, JUDICIAL MEMBER
ITA No. 4706/Del/2016
AYR. : 2009-10
SHRI BRIJ GOPAL CHAUHAN, VS. INCOME TAX OFFICER,
C/O SHRI K.R. MANJANI, WARD 60(4),
K-98, FIRST FLOOR, NEW DELHI
LAJPAT NAGAR-II,
NEW DELHI - 110 024
(PAN: AHFPC5855M)
(Appellant) (Respondent)
Assessee by Shri K.R. Manjani, Adv.
Department by Shri Sanjog Kapoor, Sr. DR.
ORDER
PER H.S. SIDHU, JM:
Assessee has filed this Appeal against the impugned order dated 03.6.2016 passed by the Ld. CIT(A)-19, New Delhi for the assessment year 2009-10 on the following grounds:-
"The Ld. CIT(A) has erred on facts as well as in law in not allowing deduction u/s. 80C in respect of insurance premium paid by wrongly stating that receipts were not field before him.2
It is therefore prayed that above deduction u/s. 80C as claimed may kindly be ordered to be allowed."
2. The brief facts of the case are that the assessee was engaged in trading of paints and hardware and his business was on small scale. He filed his return of income u/s. 139(1) of the Income Tax Act, 1961 (in short "Act") on 15.6.2009 declaring an income of Rs. 1,74,630/-. The AO processed his return of income u/s. 143(1) of the Act on 02.4.2010 at the declared returned income. Later on the case of the assessee for the assessment year 2010-11 declaring income of Rs. 4,62,460/- was selected for scrutiny assessment, as there was steep decline in profit rate and to verify sources of capital amounting to Rs. 3.33 crores, to verify genuineness of unsecured loan of Rs. 1.89 crores, to verify sundry debtors of Rs. 25,60,342/-, sundry creditors of Rs. 7,95,143/- and fixed assets of Rs. 34,95,591/-. AO issued notice u/s. 143(2)/142(1) of the Act and questionnaire/ show cause were also issued by the AO allowing the assessee opportunity of being heard and to furnish the details/documents called for. In response to the same, the AR of the assessee appeared and filed their necessary documents, but without Audit Report u/s. 44AB of the Act. Since the assessee did not furnish the desired details/ documents called for by the AO vide show cause notice dated 26.02.2013 and 07.03.2013. The AO allowed various opportunities to the Assessee for providing the complete details / documents as required by him. Assessee failed to comply with the directions of the AO and the AO was bound to complete the assessment. After going through the incomplete details / documents furnished by the assessee, the AO after adopting the prescribed procedure under the law, reopened the assessment of the assessee for the assessment 2009-10 by issuing the notice and recording the reasons as per law and issued notice 3 u/s. 148 of the I.T. Act for the year under consideration. In response to the same, the AR of the assessee appeared and filed objections against the reopening which were disposed off by the AO by passing a speaking order dated 31.12.2014. After disposing off the objections of the assesee, a notice u/s. 143(2) of the Act alongwith questionnaire was issued to the assessee which was served upon the assessee seeking assessee's presence on 07.1.2015. However, nobody appeared on this date, but the same was also returned back with postal remarks "incomplete address". But on 15.1.2015, Sh. Tarun Aswani, Advocate appeared who was provided with the copy of order passed disposing off the objections raised by the assessee against the reopening of the case dated 31.12.2014 and copy of questionnaire dated 7.1.2015 was issued with the directions to file the reply on 22.2.2015. 2.1 Ld. Counsel for the assessee has not filed any documentary evidence in response to the questionnaire and in order to verify the correctness of income/ expenditure claimed by the assessee and items appearing in the balance sheet, necessary details/documents were called for and examined. AO after examination thereof, the AO made various additions mentioned in the assessment order including the addition in dispute i.e. disallowance of unverifiable deduction claimed u/s. 80C amounting to Rs. 1 lakh on account of non-filing of the evidences supporting this claim and completed the assessment u/s. 143(3) of the Act vide order dated 11.3.2015 by assessing the income at Rs. 2,02,18,200/-. Aggrieved by the assessment order, assessee filed appeal before the Ld. CIT(A), who vide his impugned order dated 03.6.2016 has partly allowed the appeal filed by the assessee and upheld the addition of Rs. 1 lac made by the AO on account unverified claim of deduction u/s. 80C of the I.T. Act. Against the impugned order of the Ld. CIT(A), assessee is aggrieved and filed the present appeal before the Tribunal.
43. At the time of hearing, Ld. Counsel for the assessee stated that assessee has filed all the necessary documentary evidences for substantiating the deduction u/s. 80C of the Act in respect of the premium paid by the assessee during the year under consideration. He further stated that AO as well as Ld. CIT(A) has not appreciated the evidences and wrongly made the addition in dispute. He has also filed the copy of LIC receipts dated 24.6.2008; 28.11.2008; 21.5.2008 22.9.2008; 2.3.2009 & 18.9.2008. He requested that keeping in view of the evidences filed by the assessee before the authorities below as well as before the Tribunal the deduction claimed by the assessee u/s. 80C in respect of insurance premium paid by the asessee may be allowed. In the alternative Ld. Counsel for the assessee also agreed that the evidences supporting the claim of the assessee may be sent to the AO for verification and allow the claim as per law.
4. Ld. DR relied upon the orders of the authorities below and agreed that the payment in respect of insurance premium paid by the assessee claiming deduction u/s. 80C of the Act may be set aside to the file of the AO to decide the same afresh, after considering the documents/evidences.
5. We have heard both the parties and perused the orders passed by the revenue authorities as well as the evidences filed by the Ld. Counsel for the assessee about which he has stated that he has filed the same before the authorities below. We are of the view that as agreed by both the parties, the evidences for claiming deduction u/s. 80C in respect of insurance premium paid by the assessee for the assessment year in dispute is required to be thoroughly investigated at the level of the AO. Therefore, in the interest of justice, we are setting aside the issues in dispute to the file of the AO with the directions to verify the payment made by the Assessee and then decide the claim in dispute of the assessee, in accordance 5 with law, after giving adequate opportunity of being heard to the assessee.
6. In the result, the appeal filed by the Assessee stands allowed for statistical purposes.
This decision is pronounced on 27.11.2019.
Sd/- Sd/-
(G.S. PANNU) (H.S. SIDHU)
VICE PRESIDENT JUDICIAL MEMBER
Dated: 27.11.2019
"SRB"
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asstt. Registrar, ITAT, New Delhi