M/S. HINDUSTAN SPORTS CLUB LTD.,NEW DELHI vs. ITO, NEW DELHI

(A) This appeal has been filed by the assessee against the impugned appellate order dated 08.08.2013 passed by Learned Commissioner of Income Tax (Appeals)-XI, New Delhi [in short, “Ld.CIT(A)”] pertaining to Assessment Year 2005-06. The Assessee has raised following grounds of appeal:-

“ 1. That on the facts and in the circumstances of the case, the CIT(A) has erred in confirming the addition of Rs. 70,40,000/- made u/s 68 by the AO, when a. The original order was passed by the AO u/s 143(3) of the I.T Act,

ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. 1961 on 24/X2/2007, while date of hearing of case was fixed for 26/12/2007. b. That the appellant Company has proved the source of deposit of Rs. 60,00,000/- made by Advance Engineering Company(Proprietor Shri Rajender Kumar Srivastava) with the appellant company c. Shri Rajender Kumar Srivastava has confirmed in his statement recorded on 25/04/2013, that he is the employee of the Company M/s Hindustan Domestic Oil and Gas Company Limited and the amount has been deposited out of amount received from the said Company, as per the directions of the employers. d. The appellant Company has proved the source of deposit of Rs. 10,00,000/- made by Shri Dharmendra Singh , Director of the Company with the appellant Company. e. The appellant Company has proved the source of deposit of Rs. 40,000/- made by the shareholders with the appellant Company.

2. That on the facts and in the circumstances of the case, the CIT(A) has erred in thi confirming the addition of Rs. 2,94,270/- as income of the appellant Company.

(B) Assessment Order dated 24.12.2007 was passed by the Assessing Officer (“AO”, for short) Under Section 143(3) of Income Tax Act, 1961 (“I.T. Act”, for short) wherein total income was assessed at Rs. 7334270/- as against the return income Nil; as per the following computation:

“Return Income Nil Add: 1. Income from undisclosed sources Rs. 7040000/- 2. Undisclosed business income Rs. 294270/- Total taxable income Rs. 7334270/-

ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. (B.1) The relevant portion of the Assessment Order is reproduced as under:

ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd.

ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd.

ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. (C) The Assessee filed appeal before the Ld. CIT(A) against the aforesaid Assessment Order dated 24.12.2007. Vide appellate order dated 06/07/2010, the Ld. CIT(A) dismissed assessee’s appeal in limine because inspite of repeated opportunities provided by the Ld. CIT(A), there was no representation on behalf of the assessee, in the appellate proceedings before the Ld. CIT(A). The assessee filed appeal in Income Tax Appellate Tribunal (“ITAT”, for short) against the aforesaid order dated 06.07.2010 of the Ld. CIT(A). Vide order dated 01.02.2011 of ITAT in assessee’s appeal vide Co-ordinate Bench of ITAT, Delhi set aside the aforesaid dated 06.07.2010 of the Ld. CIT(A) with the direction to decide the issue on merits.

Accordingly, fresh order dated 08.08.2013 was passed by Ld. CIT(A). In this order, the issues were decided and the assessee’s appeal was dismissed. The relevant portion of the aforesaid impugned appellate order dated 08.08.2013 is reproduced here:

ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd.

(D) The Assessee filed appeal in ITAT once again, vide (present appeal). Vide order dated 27.05.2014 of Co-ordinate Bench of ITAT, Delhi, the assessee’s appeal was technically dismissed as unadmitted because of non-attendance from assessee’s side. The assessee filed Miscellaneous Application (“M.A.”, for short) vide M.A. No. 206/Del/2015 with the request to recall the aforesaid ex parte appellate order dated 27.05.2014 of the Co-ordinate Bench of ITAT, Delhi. Vide another order 06.05.2016 in the aforesaid M.A. No. 206/Del/2015 the aforesaid order dated 27.05.2014 of Co-ordinate Bench of ITAT, Delhi, was recalled. Accordingly, the assessee’s appeal in was restored. It is in this background that the assessee’s appeal came up before us for hearing during appellate proceedings in ITAT. The Assessee filed a Paper Book during appellate proceedings in ITAT, consisting of the following particulars:

• Seema Jain vs. ACIT [2018] 96 taxmann.com 307 (Delhi) • PCIT Vs Bikram Singh [ITA No. 55/2017] (Delhi) • Sitaram Ramchanddas Patel Vs ITO[2018] 95 taxmann.com 290 (Gujarat) • Toby Consultants (P.) Ltd. Vs CIT [2010] 324 ITR 338 (Delhi) • Sanraj Engineering Pvt. Ltd. Vs CIT (ITA 79/2016) (Delhi)

ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. • Naresh Chandra Jain Vs CIT (ITA No. 335 of 2009) (Allahabad) • CIT Vs Precision Finance (P.) Ltd. [1995] 82 Taxman 31 (Calcutta)/ [1994]

208 ITR 465 (Calcutta)/ [1994] 121 CTR 20 (Calcutta)

(D.2) At the time of hearing before us, the Ld. Counsel for the assessee relied on the Paper Book filed in the course of appellate proceedings in ITAT [already referred by us in foregoing paragraph No. (D)] He placed particular reliance on written submission dated 21.01.2007 and 15.07.2007 made before the AO and the written submissions dated 21.10.2012, filed before the Ld. CIT(A). On the other hand, the Ld. Departmental Representative (“Ld. DR”, for short) placed reliance on the aforesaid written submissions.

(D.2.1) We have heard both sides and we have also perused the materials on records. A perusal of submissions made by the assessee before the AO shows that it was claimed by the assessee during assessment proceedings that the company made these investments from the unsecured loan received during the year, and that investments were made in the mutual funds during the year and subsequently in the same year these investments were liquidated also. It was also stated by the Assessee during assessment proceedings, that unsecured loan taken for the purpose were also repaid during the year. However, the assessee did not furnish any materials during the assessment proceedings on the basis of which it can be said that the additions made by the AO were unjust. The AO has passed a speaking order with detailed reasons for ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. making the additions of Rs. 70,40,000/- (on account of investment) and Rs. 2,94,270/- (on account of business income). The Assessee did file some details and explanation before the Ld. CIT(A) which have already been considered by the Ld. CIT(A). The Ld. CIT(A) has also considered the remand report of the AO and the rejoinder of the assessee to the AO’s remand report, in deciding the appeal. The Ld. CIT(A) has passed a speaking order on merits giving detailed reasons for dismissing assessee’s appeal.

After perusal of the order of the AO, and the aforesaid impugned order of the Ld. CIT(A), we find that the Ld. CIT(A) has passed speaking order on merits. We find that the Ld. CIT(A) has given detailed reasons for his decision on merits in the aforesaid impugned appellate order. During appellate proceedings in Income Tax Appellate Tribunal (“ITAT”, for short) no convincing material has been brought for our consideration to persuade us to take a view different from the view taken by the Ld. CIT(A) in the impugned order on merit. The impugned order of Ld. CIT(A) is found to be sound and in accordance with law, having regard to specific facts and circumstances of the case; and no convincing case has been made to warrant any interference with the aforesaid impugned appellate order dated 08.08.2013. The aforesaid impugned order dated 08.08.2013 of the Ld. CIT(A) is found to be a reasonable order; having regard to facts and circumstances of the case and applicable law. Relevant portion of the order of the Ld. CIT(A) has already been reproduced in foregoing paragraph No. (C) of this order. Various case laws cited in the written submissions filed from Revenue’s side [referred already by us in foregoing paragraph no. (D.1)] further advance the case of Revenue and support the additions made by the AO which are already confirmed by ITA No.- 5487/Del/2013. M/s Hindustan Sports Club Ltd. the Ld. CIT(A). As no case has been made before us to warrant any interference with the order of the Ld. CIT(A); additions made by the AO and sustained by the Ld. CIT(A) are hereby confirmed and the grounds of appeal are dismissed.

(E) In the result, appeal of the Assessee is dismissed.

Order pronounced in the open court on 31/10/19.