ACIT, CENTRAL CIRCLE- 25, NEW DELHI vs. MOHNISH MOHAN MUKKAR, NEW DELHI

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ITA 6939/DEL/2018Status: DisposedITAT Delhi23 November 2023AY 2010-11Bench: SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHRAMA (Judicial Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the AO for fresh verification of credit card payments directly from the bank. The AO is to confront the information to the assessee and decide afresh after providing an adequate opportunity of being heard.

What were the facts?

The Assessing Officer (AO) made an addition of Rs. 1,65,92,890/- on account of credit card payments made by the assessee, as no plausible explanation was provided. The assessee contended that no such expenditure was incurred.

What were the issues?

Whether the AO was justified in making an addition based on credit card payments without proper verification from the bank, and whether the CIT(A) erred in deleting the addition based on an incomplete remand report.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

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

Before: SH. N. K. BILLAIYA & SH. ANUBHAV SHRAMA

Hearing: 23/11/2023Pronounced: 23/11/2023

ORDER PER N. K. BILLAIYA, AM:

This appeal by the revenue is preferred against the order of the CIT(A)-29, New Delhi dated 06.08.2018 pertaining to A.Y.2010-11.

2.

The solitary grievance of the revenue is that the CIT(A) erred in deleting the addition of Rs.16592890/-.

3.

None appeared on behalf of the assessee inspite of several notices, therefore, we decided to proceed exparte.

4.

The DR was heard at length. Case records carefully perused.

5.

Briefly stated the facts of the case are that while scrutinizing the return of income the AO noticed that the assessee has made payment of Rs.16592890/- through credit card. The assessee was asked to explain the source of such payments and to explain the credit card payments amounting to Rs.16592890/-. On receiving no plausible reply the AO made the addition of Rs.16592890/-.

6.

Assessee challenged the addition before the CIT(A) and vehemently contended that he has not incurred any expenditure through credit card. On such contention the CIT(A) called for remand report. The AO submitted the remand report which read as under :-

“…..The American Express banking Corp was issued a letter on 15.03.2018 (Copy enclosed) to provide complete details of transaction of Rs.1,52,97,992/-made through credit card of Sh. Mohnish Mohan Mukkar. The Bank did not respond and consequently inspector of this circle was deputed on 20.03.2018 to bring details from American

Express Banking Corp, 8C, Delhi-Jaipur Expressway, DLF City II, Sector 24, Gurugram, Haryana. It is pertinent to mention that there is no branch of American Express Banking Corp in Delhi which can provide details of transaction. The manager Sh. Jai Gupta submitted (copy enclosed) that details will be provided within 2-3 working days time. It is very difficult to submit report in absence of bank details. As soon as the details are received, the report will be submitted...."

7.

On the basis of the aforementioned incomplete report the CIT(A) deleted the addition.

8.

We have given a thoughtful consideration to the findings of the CIT(A). In the interest of justice and fair play we deem it fit to restore the issue to the files of the AO. The AO is directed to verify the credit card payment from the concerned bank directly and confront information received, if any, to the assessee and decide the issue afresh after affording a reasonable and adequate opportunity of being heard to the assessee.

9.

In the result, the appeal of the revenue is allowed for statistical purpose.

10.

Decision announced in the open court on 23.11.2023.

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