SANDHYA ASTHANA,NEW DELHI vs. ITO, WARD-33(4), NEW DELHI

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ITA 5108/DEL/2018Status: DisposedITAT Delhi06 September 2019AY 2010-115 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the Assessing Officer, directing him to grant the assessee a final opportunity to substantiate her claim for expenses and depreciation related to the leasing of a vehicle.

What were the facts?

The assessee's case was reopened based on AIR data showing credit card payments and receipts under Section 192/194C. The Assessing Officer made an addition of Rs. 4,80,000 for income not shown under 'other sources'.

What were the issues?

Whether the assessee is entitled to claim expenses and depreciation on income earned from leasing a vehicle, and if the addition made by the AO was justified without considering such deductions.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 44AD,Section 139(1),Section 57

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: SH. R. K. PANDA

Hearing: 07/08/2019Pronounced: 06/09/2019

This appeal filed by the assessee is directed against the order dated 14.05.2018 of the CIT(A)-11, New Delhi relating to A. Y. 2010-11.

2.

There was a delay of 9 days in filing of this appeal by the assessee. The assessee has filed a petition for condonation of delay alongwith an affidavit stating that due to her treatment of ill health she was out of Delhi for which the delay occurred. After hearing the Ld. DR and after considering the contents of the condonation petition filed alongwith the affidavit of the assessee, the delay in filing of this appeal is condoned.

3.

Facts of the case, in brief, are that the assessee is an individual and has filed her return of income on 27.09.2017 declaring total income of Rs.5,41,400/-. In this case as per AIR data available it was seen that the assessee had made payment of credit card Bill of Rs.5,62,452/- and had received Rs.9,50,484/- u/s. 192/194 C. Accordingly the case of the assessee was reopened u/s. 147 of the Act by recording reasons and after taking necessary prior approval of the competent authority.

4.

During the course of assessment proceedings the Assessing Officer noted that assessee has not shown the income under the head other sources of Rs.4,80,000/- In the return filed in response to notice u/s. 148. The Assessing Officer, therefore, made addition of Rs.4,80,000/- to the total income of the assessee. 5. In appeal the Ld. CIT(A) confirmed the addition so made by the Assessing Officer by observing as under :- “4.2 I have considered the facts of the case and the submission made by the AR. It is contended that the appellant had revised the return of income on 04.12.2017 in which the receipts of Rs. 4,80,000/- were considered while showing income u/s 44AD of the Act on presumptive basis. However, it is noticed that the notice u/s 148 of the Act was issued to the appellant on 29.03.2017 in response to which the appellant had filed the return of income on 27.09.2017 in which these receipts of Rs. 4,80,000/- were not shown by the appellant. It is also observed that the appellant had not filed the original return of income u/s 139(1) of the Act and therefore, the appellant was not entitled to revise her return of income. Page | 2

Moreover, the return was revised on 04.12.2017 which is after the assessment order was passed by the AO on 30.11.2017. As the appellant had not shown the income of Rs., 4,80,000/- which is duly reflected in her Form 26AS, the AO has rightly made the addition and therefore, the same is upheld and the ground of appeal is dismissed.”

6. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal challenging the addition of Rs.4,80,000/- made by the Assessing Officer and sustained by the CIT(A).

7.

The Ld. Counsel for the assessee submitted that the amount of Rs.4,80,000/- is on account of leasing of one vehicle. Therefore, if the gross receipt is treated as income of the assessee then corresponding expenditure and depreciation should have been allowed. However, the same has not been allowed. He accordingly submitted that this matter maybe restored to the file of the Assessing Officer for allowing the claim of expenses u/s. 57 of the IT Act. 8. The Ld. DR on the other hand heavily relied on the order of the CIT(A). 9. I have considered the rival arguments made by both the sides and perused the orders of the authorities below. I find the case of the assessee was reopened on the ground that assessee has received Rs.9,50,484/- u/s. 192 / 194C and has made payment of credit card bill of Rs.5,62,452/-. I find the Assessing Officer in the order passed u/s. 147/143 (3) made addition of Rs.4,80,000/- on the ground that assessee has not shown the income earned under the head “other sources”. I find the Ld. CIT(A) sustained the addition so made by the Assessing Officer the reasons of which has already been reproduced in the preceding paragraph. It is the submission of the Ld. Counsel for the assessee that the assessee should have been allowed the benefit of deduction of expenses incurred for earning the income from leasing of the vehicle and depreciation thereon. Considering the totality of the facts of the case and in the interest of justice I deem it proper to restore this issue to the file of the Assessing Officer with a direction to grant one final opportunity to the assessee to substantiate her case and decide the issue as per fact and law. I hold and direct accordingly. The grounds raised

by the assessee are accordingly allowed for statistical purpose.

10. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 06.09.2019.

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