News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
From the Courts »
 M/s. Siomond Pharmaceuticals (P.) Ltd. 880/804B, Main Market, 3rd Floor, Rani Bagh New Delhi Vs. JCIT Range-77 New Delhi
 The ACIT, Central Circle-15, Room No.353, E-2, ARA Centre, Civic Centre, New Delhi. Vs. Mr. Rajesh Gupta, B-393, New Friends Colony, New Delhi
 National Crime Investigation Bureau, H.No. K-44, Second Floor, Kh. No.75/7, Amar Colony, Nangloi, Delhi Vs. Commissioner of Income Tax (Exemption), New Delhi
 Akg Securities & Consulting Ltd., 3776/309, Nirmal Market, Netaji Subhash Marg, Daryaganj, New Delhi Vs. Ito, Ward-1(1), New Delhi Room No. 380-A, C.R. Building, Ip Estate, New Delhi
  Administrator vs. Swarn Theater (Supreme Court)
 NRA Iron & Steel Pvt. Ltd vs. PCIT (Supreme Court) (Review Petition)
 Maruti Suzuki India Ltd vs. CIT (Supreme Court)
 How investing in NPS can help you save tax
 Barnala Steel Industries Ltd., Village Vehlana, Meerut Road, Muzaffarnagar. Vs. JCIT, Range-2, Muzaffarnagar.
 Athena Energy Venture Pvt. Ltd.,Second Floor, Vijaya Building, Vs. DCIT Circle – 2 (1) New Delhi
 Balwant Singh Bindra, Prop. M/s Bindra Tyres, Shop No.178, Janta Market, Rani Jhansi Road, Jhandewalan, New Delhi. Vs. ITO, Ward-63(4), New Delhi.

M/s Raman Kumar Sawhney, New Delhi. Vs. ITO, Ward-50(3), New Delhi.a
August, 19th 2019
                                                                        ITA No.- 6620/Del/2016.
                                                                    M/s Raman Kumar Sawhney.

                   (DELHI BENCH: `F': NEW DELHI)


                             ITA No:- 6620/Del/2016
                           (Assessment Year: 2012-13)

      M/s Raman Kumar                             ITO,
      Sawhney,                                Vs. Ward-50(3),
      New Delhi.                                  New Delhi.
      PAN No:     AAKPS4637B
      APPELLANT                                     RESPONDENT

              Assessee by             : Shri Mohd. Amir, Adv.
              Revenue by              : Shri Surender Pal, Sr. DR


Per Anadee Nath Misshra, AM

(A)     This appeal by Assessee is filed against the order of Learned Commissioner of

Income Tax (Appeals)-17, New Delhi, ["Ld. CIT(A)", for short], dated 27.10.2016 for

Assessment Year 2012-13. The grounds of appeal are as under:

           1. That the order of the Ld. Commissioner of appeals and the ld. ITO are bad
           at law and on facts of the case.
           2. That proper opportunity was not granted to the assessee for presenting
           the proper facts of the case thus violating the principles of natural Justice.
           3. That the additions made by the Ld. ITO and confirmed by the Ld. CIT

                                              Page 1 of 7
                                                             ITA No.- 6620/Del/2016.
                                                         M/s Raman Kumar Sawhney.

(Appeals) are not justified. As during the course of appeal there was a change
in the counsel to whom sufficient time was not granted to prepare and submit
the requisite evidences and contest the case. There was confusion because the
date was fixed for 25th October 2016 and by department as mistake it was kept
in the date of 26.10.2016 which was not intimated to the counsel nor the
assessee as is clear from the copy of CIT order showing date of hearing as
4. That the addition U/s 68 made for Rs 26., 55., 000/- from relatives has
wrongly been added.
5. That the addition U/s 68 made of Rs 3,30,000/- for cash deposited in bank
account from earlier withdrawals from bank has been wrongly added.
6. That the addition U/s 68 made for 30,20,000/- has wrongly been added.
7. That the addition of Rs 10,55,800/- made by the ld. A.O U/s 68 and
directed by the Ld. CIT to be made U/s 41(1) is baseless as the amounts were
not found credited in the books in the year under scrutiny nor there was any
remission in liability during the year under assessment. Therefore it has been
wrongly added.
8. That the addition U/s 68 made for 23,53,000/- has wrongly been added.
9. That Disallowing loss of Rs 34,943/- as account of F & 0 share trading
activities without viewing the details is unjustified.

10. That disallowance of commission of Rs 200,000/-which is in ordinary course
business is not justified.

11. That disallowance of 20% on account of personal expenses is not justified.
12. That the benefit of brought forward losses has not been Provided.
13. That the other disallowance although nominal in amount as shown under
have neither been discuss not the AO nor Specified any reason of those

       S.No.        Particular                                   Amount
       1.           Difference in Depreciation                   19
       2.           Interest Paid on Service Tax Being           30,900
                    Penal in nature
       3.           STT, Service Tax and Stamp duty not          29,516
                    incidental to business activities
       4.           Transaction Charges on Shares not            2,188
                    incidental to business
       5.           Demat Charge not incidental to               1,785
       6.           Brokerage on Shares not incidental           2,459
                    to business

                               Page 2 of 7
                                                                            ITA No.- 6620/Del/2016.
                                                                        M/s Raman Kumar Sawhney.

          14. That interest of Rs. 6,55,884/- U/s 234B has been wrongly charged.
          15. The appellant craves leave to add, alter, delete and modify all or any of the
              grounds of appeal, at any time during the course of this appeal and request
              and opportunity of being heard before the order are passed on this appeal."

(B)    Assessment Order was passed on 16.03.2015 Under Section 143(3) of Income

Tax Act, 1961, ("I.T. Act", for short) wherein total income of the Assessee was

determined at Rs. 80,52,480/- as per following computation:

  Income from House Property

  Income as declared                                                          1,74,052

  Business income

  Net Loss as per P & L a/c                             (-) 19,94,840

  Less: STCG & LTCG (Rs. 504402 + 34943) for            5,39,345
  separate consideration
                                                        (-) 14,55,495

  Other income for separate consideration (Rs.          (-) 5,71,911          (-) 20,27,405
  281375 + 248645+ 16113+ 25777)
  Less: Difference in Depreciation Claim                19

  Interest paid on Service tax being penal in           30,900
  STT, Service tax and Stamp duty not incidental        29,516
  to business activities
  Transaction charges on shares not incidental to       2,188
  Demat Charge not incidental to business               1,785

  Brokerage on shares not incidental to business        2,459

  Unexplained credits u/s 68 of the Act                 26,55,000

  Unexplained cash deposits to Capital A/c u/s 68       3,30,000

                                          Page 3 of 7
                                                                          ITA No.- 6620/Del/2016.
                                                                      M/s Raman Kumar Sawhney.

  Unexplained credits u/s 68                              30,20,000

  Disallowance of commission to R.K. Sawhney              2,00,000
  Unexplained credits u/s 68                              10,55,800

  Unexplained credits u/s 68                              23,53,000

  Disallowance out of Car expenses                        83,791            97,64,458


  Short-term capital Loss                                                   0

  Short-term Capital loss on a/c of F & O                                   0


  Income from other sources

  Bank interest as declared                               14,278

  Interest on NSC                                         2,41,843

  Interest on I.T refund                                  23,604

  IFCI Infra bonds                                        1650              2,81,375


  Less: Deduction u/s 80C, 80D & 80CCF                                      1,40,00

  Taxable income                                                            80,52,480

  Or say : Rs. 80,52,480/-

(B.1) The Assessee filed appeal before the Learned Commissioner of Income Tax

(Appeals)-17, New Delhi. The Assessee did not appear before the Ld. CIT(A) during

appellate proceedings before the Ld. CIT(A), and filed requests for adjournments

repeatedly. Vide ex-parte order dated 27.10.2016, the Ld. CIT(A) dismissed the

                                            Page 4 of 7
                                                                    ITA No.- 6620/Del/2016.
                                                                M/s Raman Kumar Sawhney.

assessee`s appeal on merits, on the basis of details / materials available on his record.

The Assessee has filed the present appeal in Income Tax Appellate Tribunal ("ITAT",

for short) against the aforesaid impugned ex-parte order dated 27.10.2016 of the Ld.

CIT(A). When the appeal came up before us for hearing, the Ld. Counsel for assessee

requested for restoration of the disputed issues in this appeal to the file of the Ld.

CIT(A) for fresh order, so that the assessee has an opportunity of being heard by the

Ld. CIT(A). The Ld. Departmental Representative ("DR", for short) also agreed that all

the disputed issues in the present appeal in ITAT filed by the Assessee may be restored

to the file of the Ld. CIT(A) for fresh order on merits, provided the assessee co-

operates in speedy disposal of appeal by the Ld. CIT(A) and does not take unnecessary


(C)   We have heard both sides. We have perused the materials available on record.

We find that the Ld. CIT(A) passed an ex-parte order in which assessee's submissions

could not be considered because of failure of the assessee to avail of opportunities

provided by the Ld. CIT(A). Before us both sides are in agreement that all the disputed

issues may be set aside to the file of the Ld. CIT(A) for fresh adjudication on merits.

Accordingly, we set aside the impugned ex-parte order dated 27.10.2016 of Ld. CIT(A),

and restore all the disputed issues to the file of the Ld. CIT(A) for fresh orders on

merits after providing opportunity of being heard to the assessee. The Assessee is also

directed to co-operate in speedy disposal of appeal before the Ld. CIT(A) in pursuance

                                       Page 5 of 7
                                                                       ITA No.- 6620/Del/2016.
                                                                   M/s Raman Kumar Sawhney.

to this order; and , to not request unnecessary adjournments. The assessee is further

directed to appear in the office of the Ld. CIT(A) on 15.10.2019 for receiving notice of

hearing from the office of the Ld. CIT(A).

(D)     In the Result, appeal of the Assessee is partly allowed.

        Order pronounced in the open court on 19th day of August, 2019.

         Sd/-                                                        Sd/-
       (H.S. SIDHU)                                    (ANADEE NATH MISSHRA)
      JUDICIAL MEMBER                                   ACCOUNTANT MEMBER

Dated: 19.08.2019

Copy    forwarded to:
  1.    Appellant
  2.    Respondent
  3.    CIT
  4.    CIT(Appeals)
  5.    DR: ITAT

                                                         ASSISTANT REGISTRAR
                                                               ITAT NEW DELHI

                                         Page 6 of 7
                                                         ITA No.- 6620/Del/2016.
                                                     M/s Raman Kumar Sawhney.

Date of dictation

Date on which the typed draft is placed before the
dictating Member
Date on which the typed draft is placed before the
Other Member

Date on which the approved draft comes to the Sr.

Date on which the fair order is placed before the
Dictating Member for pronouncement

Date on which the fair order comes back to the Sr.
Date on which the final order is uploaded on the
website of ITAT

Date on which the file goes to the Bench Clerk

Date on which the file goes to the Head Clerk

The date on which the file goes to the Assistant
Registrar for signature on the order

Date of dispatch of the Order

                                Page 7 of 7
Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting