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Income Tax Appellate Tribunal, DELHI BENCH “SMC-2”, NEW DELHI
Before: SHRI H.S. SIDHU
Date of Hearing: Date of Hearing: 03 Date of Hearing: Date of Hearing: 03 03.11111111.2015 03 .2015 .2015 .2015 .2015 Date of Order : 06. Date of Order : 06.11111111.2015 Date of Order : Date of Order : 06. 06. .2015 .2015 ORDER ORDER ORDER ORDER This appeal by the Assessee is directed against the Order of the Ld. Commissioner of Income Tax (Appeals)-XXV, New Delhi dated 27.5.2014 pertaining to assessment year 2005-06.
The Assessee has raised the following issues:-
The Worthy Commissioner of Income Tax (A) has confirmed the addition made by the ACIT, Central Circle-25, New Delhi to the extent of Rs. 3,14,000/-.
Further, the Appellant craves for the right to raise additional grounds of appeal during the course of hearing. Detailed submissions shall be made during the appelalte proceedings.
3. The brief facts of the case are that the original return of income was filed by the assessee in 2005 declaring total income of Rs. 2,42,500/- and the same was processed u/s. 143(1). A search operation was conducted on 10.2.2010 in Sudhir Group of cases. Sh. Rahul Seth is a partner of M/s Sudhir Engg. Co., M/s Power Concept and Electron Energy Systems which are engaged in Assebling and Trading of DG set. The group is headed by Shri Sudhir Seth and is in the area of assembly of DG sets since more than a decade. The group has in the receipt period ventured into real estate sector. No surrender of undisclosed income was made in the group either during or post search proceedings. Notice u/s. 153A dated 1.11.2010 was issued which was duly served on the assessee. In response to notice u/s. 153A return declaring income of Rs. 2,78,500/- was filed on 17.2.2011 as against original return of income of Rs. 2,42,500/-. First statutory notice u/s. 143(2) and 142(1) alongwith questionnaire were issued on 15.3.2011 for hearing on 4.4.2011. In response thereto assessee’s representative appeared and filed the details. After going through the details and documents, AO completed the assessment u/s. 143(3) r.w.s. 153A of the Income Tax Act, 1961 and assessed the income at Rs. 7,06,260/- by making the additions vide his order dated 23.12.2011.
4. Aggrieved with the aforesaid assessment order, assessee appealed before the Ld. CIT(A), who vide impugned order dated 27.5.2014 has partly allowed the appeal of the assessee.
Against the aforementioned impugned order dated 27.5.2014, assessee is in appeal before the Tribunal.
Ld. Counsel of the assessee during the course of hearing has stated that a similar addition of Rs. 62,000/- of identical nature was made in the assessment year 2010-11 that being year of search in the case of the assessee which addition was upheld by the Ld. CIT(A) vide his order dated 27.5.2014. The assessee being aggrieved by the said order preferred an appeal before the Tribunal and the Tribunal was pleased to examine the said issue and relying its decision in the case of Kritika Seth vs. ACIT & Ors. Decided in etc. passed on 14.8.2015. The Tribunal in assessee’s own case deleted the addition of Rs. 62,000/- and in view of the aforesaid, assessee stated that the issue in question is fully covered by the order of the Tribunal dated 14.8.2015, copy of which he filed at the time of hearing with the Paper Book and he draw my attention towards Para no. 19 at Page No. 11 and requested that the addition in dispute being similar and identical in nature may be deleted.
6.1 On the contrary, Ld. DR relied upon the order of the authorities below.
I have heard the rival contentions in light of the material produced, especially the order of the revenue authorities alongwith the order dated 14.8.2015 of the ITAT in the case of Kritika Seth vs. ACIT & Ors. Decided in etc.. The relevant portion of the aforesaid order of the Tribunal is reproduced below:-
“19. In of Shri Rahul Seth, the assessee has taken the following ground:
“The Worthy CIT(A) has confirmed the addition made by the ACIT, CC-25, New Delhi to the extent of Rs. 4,37,000/-”
In of Kritika Seth, we have dealt with this issue of unexplained cash from para 15 to 16. Consistent with the view taken therein, we delete this addition and allow the appeal of the assessee.”
After perusing the aforesaid order, I am of the considered view that the addition in dispute is exactly the similar addition made in the case of the assessee for the assessment year 2010-11 which has been finally deleted by the ITAT in the aforesaid order dated 14.8.2015. Respectfully, following the precedent as aforesaid, I delete the addition in dispute and decide the issue in favour of the assessee.
In the result, the appeal filed by the Assessee is allowed.
Order pronounced in the open court on 06/11/2015.