Commissioner Of Income Tax, Faridabad v. M/S Hukam Chand & Sons

-1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 133 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Hukam Chand & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. 1.This order shall dispose of a bunch of following nine appeals as according to the learned counsel for the assessee, common questions of law are involved therein:- However, in order to understand the controversy fully, the facts are being extracted from ITA No. 133 of 2007. 2.This appeal has been preferred by the revenue underSection 260A of the Income Tax Act, 1961 (in short “the Act”) againstthe order dated 28.4.2006 passed by the Income Tax AppellateTribunal, Delhi Bench “F”, New Delhi (hereinafter referred to as “theTribunal”) in ITA No. 813/Del/1999, relating to the assessment year1987-88. The appeal was admitted on 30.4.2007 for determination ofthe following substantial questions of law:- “(i)On the facts and circumstances of the case, whetherthe Hon'ble ITAT was right in upholding the order ofthe CIT(A) deleting the additions on account ofunexplained investment of Rs.9,31,827/- made by theassessee in money-lending business as per theseized documents? (ii)Without prejudice to ground No. (i) above, whetherthe Hon'ble ITAT is right in holding that addition on account of investments would tantamount to doubleaddition without specifying as to how this interestincome has been taxed earlier?” 3.Briefly stated, the facts necessary for adjudication asnarrated in the appeal are that in February, 1988, a search underSection 132(1) of the Act was conducted in the case of the assesseesimultaneously with the other group cases. Subsequent to the search,the assessee HUF who is engaged in the business of money lendingfiled its return of income for the assessment years 1979-80 to 1989-90.The assessments were completed by the Assessing Officer makingseveral additions in each year. The Commissioner of Income Tax(Appeals) [in short “the CIT(A)”] set aside the said assessments beingmade on estimate basis and directed the Assessing Officer to makethe assessments afresh on the basis of material available on record.The Assessing Officer repeated the additions as made originally and thesame were set aside by the CIT(A) with the similar direction as givenearlier. The Assessing Officer, however, again framed the freshassessments on the same lines against which the appeals werepreferred before the CIT(A). During the pendency of the appeals beforethe CIT(A), the Government announced Kar Vivad Samadhan Scheme(KVSS) and the assessee opted the said scheme by moving anapplication and settled the dispute for the assessment years 1979-80 to1985-86. The Assessing Officer vide order dated 26.3.1993 had madean addition of Rs.9,31,827/- for the assessment year 1987-88 onaccount of unexplained investment in money lending business. Onappeal, the CIT(A) deleted the said addition vide order dated 15.12.1998 holding that it would tantamount to double addition. Feelingaggrieved, the department took the matter in appeal before the Tribunal,who vide order dated 28.4.2006 dismissed the appeal and upheld theorder of the CIT(A). Hence, the present appeal by the revenue. 15.12.1998 holding that it would tantamount to double addition. Feelingaggrieved, the department took the matter in appeal before the Tribunal,who vide order dated 28.4.2006 dismissed the appeal and upheld theorder of the CIT(A). Hence, the present appeal by the revenue. 4.Learned counsel for the revenue submitted that the CIT(A)as well as the Tribunal while setting aside the order of the AssessingOfficer had adjudicated the matter by relying upon certain documentsand calculations which were produced by the assessee before the saidappellate authority without affording any opportunity or asking forremand report from the Assessing Officer. The attention of the Courtwas drawn to the observations made in para 33 of the order of theTribunal where it was noted that certain details had been furnished bythe assessee to show that notional income from interest had accrued tothe assessee for the years in which the assessee had taken the benefitof KVSS. According to the learned counsel, as there was no amount ofnotional interest under the KVSS during the year the benefit of whichwas available to the assessee for adjustment in the years in question,the CIT(A) as well as the Tribunal had erred in holding that addition ofthe amounts as made by the Assessing Officer would amount to doubletaxation. 5.We have given our thoughtful consideration to thesubmissions of learned counsel for the revenue. The CIT(A) as well asthe Tribunal had adjudicated the appeal by holding that the assesseeaccepted the amounts for the earlier years under the KVSS on accountof notional interest and the same were available for adjustment in theyears in question. However, the details of the material which was ITA No. 133 of 2007 produced by the assessee had not been referred to. In the absence ofany specific discussion with regard to the material in the order of KVSSpassed by the designated authority thereunder, it is consideredappropriate to allow these appeals and remand the matter to the CIT(A)to decide the same afresh after referring to the relevant material forcoming to the conclusion that addition which had been made by theAssessing Officer would amount to double taxation. 6.The appeals stand disposed of accordingly. (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL)ACTING CHIEF JUSTICE ITA No. 133 of 2007 -6- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 467 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Vijay Kumar & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. For orders, see ITA No. 133 of 2007 (Commissioner of Income Tax, Faridabad v. M/s Hukam Chand & Sons). (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE ITA No. 133 of 2007 -7- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 297 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Vijay Kumar & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. For orders, see ITA No. 133 of 2007 (Commissioner of Income Tax, Faridabad v. M/s Hukam Chand & Sons). (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE ITA No. 133 of 2007 -8- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 277 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Hukam Chand & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. For orders, see ITA No. 133 of 2007 (Commissioner of Income Tax, Faridabad v. M/s Hukam Chand & Sons). (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE ITA No. 133 of 2007 -8- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 277 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Hukam Chand & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. For orders, see ITA No. 133 of 2007 (Commissioner of Income Tax, Faridabad v. M/s Hukam Chand & Sons). (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE ITA No. 133 of 2007 -9- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 276 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Vijay Kumar & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. For orders, see ITA No. 133 of 2007 (Commissioner of Income Tax, Faridabad v. M/s Hukam Chand & Sons). (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 271 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Hukam Chand & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. For orders, see ITA No. 133 of 2007 (Commissioner of Income Tax, Faridabad v. M/s Hukam Chand & Sons). (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 135 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Hukam Chand & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. For orders, see ITA No. 133 of 2007 (Commissioner of Income Tax, Faridabad v. M/s Hukam Chand & Sons). (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 132 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Mani Rattan & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. For orders, see ITA No. 133 of 2007 (Commissioner of Income Tax, Faridabad v. M/s Hukam Chand & Sons). (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 88 of 2007 (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 132 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Mani Rattan & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. For orders, see ITA No. 133 of 2007 (Commissioner of Income Tax, Faridabad v. M/s Hukam Chand & Sons). (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 88 of 2007 Date of Decision: 11.7.2011 Commissioner of Income Tax, Faridabad Versus M/s Mani Rattan & Sons ....Appellant. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL,ACTING CHIEF JUSTICE. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. For orders, see ITA No. 133 of 2007 (Commissioner of Income Tax, Faridabad v. M/s Hukam Chand & Sons). (AJAY KUMAR MITTAL) JUDGE July 11, 2011gbs (ADARSH KUMAR GOEL) ACTING CHIEF JUSTICE