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Income Tax Appellate Tribunal, DELHI BENCH “SMC-II”, NEW DELHI
Before: SHRI H.S. SIDHU
Assessee by : Sh. MS SEKHON, CA Department by : Sh. AMRIT LAL, SR. DR ORDER ORDER ORDER ORDER
This appeal by the Assessee is directed against the Order dated 18.3.2015 of the Ld. CIT(A)-18, New Delhi pertaining to assessment year 2007- 08 on the following grounds:-
That the ld. CIT(A)-18, New Delhi has erred in confirming the returned income of Rs. 47,31,554/- as against the revised income of Rs. 19,18,873/- 2. That the order of the CIT(A) is bad in law and on the facts of the case; and 3. That the Appellant craves leave to add, alter, amend or withdraw any of the grounds of appeal at any time before or at the time of hearing of the appeal.
The brief facts of the case are that the assessee filed the return declaring income of Rs. 47,31,544,/- on 22.10.2007. However, the assessee also filed revised return of income on 27-01-2009 declaring income of Rs19,18,873/-, which was processed u/s 143(1) of the IT Act 1961. The case was selected for scrutiny under CASS-AIR category. Accordingly, notices u/s 143(2) & u/s 142(1) were issued from time to time and served upon the assessee. In response to above statutory notices, the AR of the assessee appeared from time to time and filed the necessary details as called for in respect of sources of investments made in Mutual Funds and shares have been furnished by the assessee which have been examined with reference to the details and documents as per record and furnished during the course of assessment proceedings. During the course of assessment proceedings, it was noticed by the AO that in the original return of income, the assessee had declared an income of Rs 47,31,544./- which included Short Term Capital gain Income of Rs 47,31,554/- from sale of shares/units bf mutual funds, which was revised to Rs.19,18,873/-, in the revised return of income. It has been explained by the assessee that due to, wrong understanding of law entire capital gain of Rs. 47,31,554/- was returned under the head 'Short Term Capital Gain u/s 111A and that there were 'certain clerical calculation errors which also required revision. AO observed that since the assessee could not filed any evidence in respect of his contentions and the assessee himself has disclosed this as STCG in the original return, the whole amount of Short term capital gain of Rs. 47,31,554/- (rounded off to Rs. 47,31,550/-) was assessed as STCG income by completing the assessment u/s. 143(3) of the I.T. Act, 1961 on 27.11.2009.
Aggrieved with the assessment order, assessee appealed before the Ld. CIT(A) who vide impugned order dated 18.3.2015 has held that the AO has correctly concluded in the assessment order that the assessee failed to file any evidence in respect of his contentions in support of revised return and dismissed the appeal of the assessee.
Against the order of the Ld. CIT(A), assessee is in appeal before the Tribunal.
During the hearing, Ld. Counsel of the assessee stated that Ld. CIT(A) has erred in confirming the returned income of Rs. 47,31,554/- as against the revised income of Rs. 19,18,873/-. Ld. Counsel further stated that original return of income was filed on 22.10.2007 declaring assessable income of Rs. 47,31,554/- and later it was noticed that due to wrong understanding of law, the entire capital gain of Rs. 47,31,554/- was returned under the head STCG u/s. 11A of the I.T. Act. It was further contention that there was certain clerical / calculations errors also which require revision. Therefore, the assessee re- 3 calculated his assessable income and filed a revised return at Rs. 19,18,873/-.
Ld. Counsel for the assessee also filed a Paper Book containing pages 1 to 93 having various documentary evidences i.e. copy of the order AO and the CIT(A); copy of original ITR(3) and raised computation of income; copy of letter dated 27.8.2009 filed before the DCIT alongwith copy of statement of SB A/c No. 701211207 ICICI Bank, CP, New Delhi; copy of letter dated 4.9.2009 alongwith enclosures; copy of letter dated 4.9.2009 alongwith analysis of transactions in 701211207 ICICI Bank, CP, New Delhi; copy of letter dated 18.9.2009 filed before DCIT alongwith supporting enclosures; copy of letter dated 18.11.2009 filed before the DCIT, alongwith supporting enclosures; copy of list evidences filed before the CIT(A); copy of written arguments filed before CIT(A); list of evidences submitted during the assessment proceedings; copy of reasons for filing revised return of income; copy of statement of mutual fund investments; list of securities transferred from Share holdings to Caterpillar account No. 101433; copy of Remand Report dated 13.10.2010 of the DCIT; copy of written submissions on behalf of assessee to Remand Report dated 13.10.2010; computation of wealth for the AY 2007-08; copy of transactions statement with NSDL; copy of statement of holdings with NSDL Bonanza Portfolio Ltd; statement of computation of short term capital gains; statement of shares allotted during the year ended 31.3.2007; statement of account with JV Capital Securities Pvt. Ltd.; statement of account of VN Sahni (Indl) and VN Sahni (HUF); copy of letter dated 24.8.2010 filed before the CIT(A); copy of judgment dated 6.2.2009 of Delhi High court in the CIT vs. Nalwa Investment Ltd; copy of registered will of Late. Sh. Vishwa Nath Sahni etc.
On other hand, Ld. DR has relied upon the orders of the authorities below and stated that the order of the Ld. CIT(A) is a well reasoned and the same does not need any interference on our part.
I have heard both the parties and perused the records, especially the orders of the revenue authorities and Paper Book filed by the assessee having various assessment and appellate proceedings documents/ evidences. I find that both the revenue authorities has observed that the assessee has failed to file any evidence in respect of his contentions in support of the revised return and on this account the revised return was not taken into account by the AO as well as by the Ld. CIT(A). However, it was the contention of the Ld. Counsel of the assessee that due to wrong understanding of law, the entire capital gain of Rs. 47,31,554/- was returned under the head “Short Term Capital Gain u/s 111A” of the I.T. Act, 1961 and there was certain clerical / calculations errors also which require revision. Therefore, in the interest of justice, I remit back the issues in dispute to the file of the AO to decide the issue in dispute on the basis of the revised return which has been filed by the assessee, as per law, after giving adequate opportunity of being heard to the assessee and the Assessee is also 5 directed to produce the relevant evidences/documents to substantiate his claim with regard to Revised Return and fully cooperate with the AO.
In the result, the Appeal of the Assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 13/10/2016.