SMT. DIVYA NARULA,PANCHKULA vs. ITO, W-1, PANCHKULA

PDF · subscribers
ITA 1596/CHANDI/2018Status: DisposedITAT Chandigarh10 June 2019AY 2015-164 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the amount was received by the assessee on behalf of two employees of Delica Foods as salary payment. Since the assessee's accounts were audited and this was duly accounted for, the addition was unjustified.

What were the facts?

The Assessing Officer added Rs. 70,923/- to the assessee's income, which was received from M/s Delica Foods but not declared. The CIT(A) confirmed this addition.

What were the issues?

Whether the amount received by the assessee from M/s Delica Foods, which was salary paid to employees, should be added to the assessee's income as unexplained income.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

आदेश/Order

The present appeal has been preferred by the assessee against the order dated 03.10.2018 of the Commissioner of Income Tax (Appeals), Panchkula [hereinafter referred to as ‘CIT(A)’].

2.

The assessee in this appeal has taken following grounds of appeal:- 1. That the Learned Commissioner of Income Tax (Appeals) has failed to appreciate the materials on the record and facts of the case. 2. That the order of Learned Commissioner of Income Tax (appeals) is erroneous, arbitrary, opposed to law and facts of the case and is, thus untenable.

3.

That the facts and circumstances of the case and law, the

ITA No. 1596-Chd-2018- Smt. Divya Narula, Panchkula 2 Learned Commissioner of Income Tax (Appeals) has further erred in passing a non-speaking order of the principals of Natural Justice.

4.

The Ld. Assessing Officer has illegally, wrongly, arbitrarily and without any basis added Rs. 70,923/- to the returned income of the assessee.

5.

The Learned Assessing Officer and Learned Commissioner of Income Tax (Appeals) has illegally, wrongly, arbitrarily and without any basis created demand of Rs. 23,260/- for the AY 2015-16. 6. Any other ground which may be taken up at the time of herring of appeal with the kind permission.

3.

No one has come present on behalf of the assessee despite service

of notice, hence, I proceed to decide the appeal ex-parte of the assessee

after hearing the Ld. DR.

3.

The brief facts relating to the issue are that the Assessing Officer

noticed that the assessee had received a sum of Rs. 70,923/- from M/s

Delica Foods, however, the said receipt had not been shown by the

assessee in its return of income. The Assessing Officer, therefore, made

addition of the aforesaid amount into the income of the assessee.

4.

The Ld. CIT(A) confirmed the addition so made by the Assessing

Officer. Thus, the assessee has come in appeal before this Tribunal.

5.

I have heard the submissions of Ld. DR and also gone through the

record. I find that before the lower authorities the assessee had

explained that, in fact, the assessee had received the amount of Rs.

70,923/- on account of salary payable to two employees on behalf of the

ITA No. 1596-Chd-2018- Smt. Divya Narula, Panchkula 3 Delica Foods Ltd. That the accounts of the assessee were duly audited

accounts, wherein, the fact of the receipt of the aforesaid amount and

further payment of the salary to the employee was duly mentioned /

accounted for. I find there was no denial or rebuttal by the lower

authorities that the aforesaid amount of Rs. 70,923/- was actually paid

as salary by the assessee to two employees on behalf of M/s Delika

Foods under a mutual arrangement. Under the circumstances, merely

because the payer had deduced the TDS on the said amount, that itself,

cannot be a ground for rejecting the contention of the assessee. In view

of this, I do not find any justification on the part of the lower

authorities in making the impugned addition and the same is hereby

ordered to be deleted.

In the result, the appeal of the assessee is hereby allowed.

Order dictated and pronounced in the Open Court immediately on

completion of hearing

Sd/-

(संजय गग� / SANJAY GARG) �या�यक सद�य/ Judicial Member Dated : 10.06.2019 “आर.के.” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

ITA No. 1596-Chd-2018- Smt. Divya Narula, Panchkula 4 आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →