Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: cpt :: VAT RATES :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT Audit :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ACCOUNTING STANDARD
« From the Courts »
  Dr. Gautam Sen vs. CCIT (Bombay High Court)
 Dr. Gautam Sen vs. CCIT (Bombay High Court)
 DCIT vs. Shivshankar R. Sharma (ITAT Mumbai)
 ACIT vs. Jawaharlal Agicha (ITAT Mumbai)
 CIT vs. M/s. D. Chetan & Co (Bombay High Court)
 Makes further amendments to Notification no. 157/90-Customs dated 28th March, 1990 regarding temporary admission under the ATA Carnet
 Appointment of Common Adjudicating Authority by DGRI - 2/2016-Customs
 ransfers Of Hon’ble Members Of The ITAT (September 2016)
 M. G. Contractors Pvt. Ltd vs. DCIT (ITAT Delhi)
 Haryana State Road & Bridges Development Corporation Ltd vs. CIT (P&H High Court)
 Dharamshibhai Sonani vs. DCIT (ITAT Ahmedabad)

ITO, Ward 34(3) Room No.318 Block D Vikas Bhavan, IP Estate New Delhi 110 002 Vs. Sh.Praveen Kumar Jain I-92, Gali no.10, Brahampuri Delhi 110 053
June, 12th 2015
                  DELHI BENCH "F", NEW DELHI


                                (A.Y. 2007-08)
ITO, Ward 34(3)                           Sh.Praveen Kumar Jain
Room No.318 Block D                  Vs. I-92, Gali no.10, Brahampuri
Vikas Bhavan, IP Estate                   Delhi 110 053
New Delhi 110 002
                                            PAN: ACYPJ 6551 H

       (APPELLANT)                                     (RESPONDENT)

          Assessee by                  :   Sh.Ved Prakash Bansal, C.A.
         Department by                 :   Sh. Vikram Sahay, Sr. DR


     This is an appeal filed by the Revenue directed against the order dt.
8.6.2012 of Ld.CIT(A)-XXVII, New Delhi pertaining to the Assessment Year
(AY) 2007-08, wherein the assessment order passed by the AO u/s 143(3)
dt. 30.11.2009, and a subsequent rectification order passed by the AO u/s
154 of the Act on 12.4.2010,   was held as illegal. The grounds of Revenue
read as under.

           "1. On the facts and [in the circumstances of the case, the Ld.
           CIT(A) had erred in deleting the addition of Rs. 11,16,805/ - as
           unexplained purchases of NSCs and KVPs made by the A.O. u/s
           154 of the I.T. Act.
           2 .On the facts, and in the 'circumstances of the case, the Ld.
           CIT(A) had erred in para -10, page ,6 of his order that the
           appellant made withdrawal in cash
           In totaling to Rs.13,67,798/- from OBC and Rs. 1,47,0001- from
           the HDFC Bank for purchase of NSCs/KVPs as the statement
           filed show that withdrawals of the dates specified by the
                               ITA No. 4803/Del/2012
                                    AY 2007-08
                             Praveen Kumar Jain, Delhi

            assessee have been made for other than cash also such as for
            making pay order/ drafts.
            3. On the facts and in the circumstances of the case, the Ld.
            CIT(A) had erred in not correlating withdrawals made with the
            payments made to the purchasers of NSCs/KVPs."
            The appellant craves leave to add, alter or amend any or all the
            grounds of appeal before or during the course of hearing of the

2.    We have heard Shri Ved Prakash Bansal, C.A. Ld.Counsel for the
assessee and Shri Vikram Sahay, Ld.Sr.D.R. on behalf of the Revenue.

3.    The Ld.CIT(A) at para 9 and 10 of his order held as follows.

"9.    I have carefully considered the submissions of the appellant and the
facts of the case. Firstly, as submitted by the appellant the addition made by
the A.O. amounting to Rs.15,16,805/- representing unexplained investment in
NSC/KVP cannot be made U/S 154 of the Act as it is not a mistake apparent
from the record as held in various judgments relied upon by the appellant
referred to above. Moreover, the bank accounts of the appellant had already
been examined u/s 143(3) of the Act. On this ground alone the rectification
order passed u/s 154 of the Act by the A.O. deserves to be set aside.

10. On merits also it is seen that the primary reason why the A.O. has
made this addition to the income of the appellant is that though there were
cash deposits in the appellant's bank accounts amounting to Rs. 15,34,420/-,
there were no corresponding cash withdrawals to explain the source of
investment in the purchase of NSC/KVPs amounting to Rs. 15,16,805/-. On
perusal of the bank accounts of the appellant with OBC & HDFC Banks, it is
seen that the appellant had withdrawn various amounts in cash totaling
Rs.13,67,798/- from the OBC bank and Rs. 1,47,0001- from his HDFC Bank
account. The appellant during the course of the current proceeding had filed a
copy of these bank accounts placed at Page No. 203 to 213 of the paper book
which were forwarded to the A.O. for his comments. The AO in his comments
on the same has not drawn any adverse inference with regard to the cash
withdrawals shown by the appellant from these accounts. Thus, the primary
reason for making the addition itself has been found to be factually incorrect.
Therefore, on merits also the addition deserves to be deleted. The A.O. is
directed accordingly."

                                ITA No. 4803/Del/2012
                                     AY 2007-08
                              Praveen Kumar Jain, Delhi

4.      We find no infirmity in the same. The AO in this case made huge
additions in the guise of rectification proceedings u/s 154 of the Act.
Sources of purchase of NSCs and KVPs cannot be a subject matter of
rectification u/s 154 of the Act.        It is well settled that only mistakes
apparent on record can be rectified u/s 154 of the Act. Thus, we dismiss
this appeal filed by the Revenue.

5.      In the result the Revenue 's appeal is dismissed.

        Order pronounced in the Open Court on 11th June, 2015.

           Sd/-                                                  Sd/-
   [I.C.SUDHIR]                                           [J. SUDHAKAR REDDY]
JUDICIAL MEMBER                                           ACCOUNTANT MEMBER

Dt.    the 11th June, 2015

      · Manga

Copy forwarded to: -

1.      Appellant
2.      Respondent
3.      CIT
4.      CIT (A)
5.      DR, ITAT
                                TRUE COPY

                                                              By Order,

                                      Assistant Registrar, ITAT, Delhi Benches

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions