TMI Blog2020 (2) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... become academic and as such not been argued in the face of the fact that the assessment order is not sustainable on ground of invalid/no approval obtained u/s 153D of the Act. - Decided against revenue - ITA No.5800/Del./2015 - - - Dated:- 31-1-2020 - Shri Kuldip Singh, Judicial Member And Dr. B.R.R. Kumar, Accountant Member For the ASSESSEE : Shri Bhupesh Kumar Dhingra For the REVENUE : Shri Saras Kumar, Senior DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER Appellant, ACIT, Central Circle 15, New Delhi (hereinafter referred to as the Revenue ) by filing the present appeal sought to set aside the impugned order dated 20.08.2015 passed by the Commissioner of Income-tax (Appeals)-XXVI, New Delhi qua the assessment year 2009-10 on the grounds inter alia that :- 1. Whether on the facts and in the circumstances of the case learned CIT(A) is right in holding that approval obtained u/s 153D of the I.T. Act from Addl. CIT of the Range was invalid under the law? 2. Whether on the facts and in the circumstances of the case the learned CIT(A) is right in holding that notice u/s 143(2) was not served in time? 3. Whether on the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me vide letter dated 23.12.2010 but subsequently Smt. Abha Bansal claimed that she is unable to produce the bank statement. Assessee also shown his helplessness to produce Smt. Abha Bansal as he has not cordial relations with her. Second summon was issued to Smt. Abha Bansal for her personal appearance on 27.121.2010 but she did not appear. Then a letter was written to ITO, Ward 1(1), Gurgaon who has informed vide letter dated 27.12.2010 and sent the downloaded copy of return from AST module which shows that the assessee has declared income of ₹ 7,42,400/-. Return shows that Smt. Abha Bansal has no creditworthiness to lent such huge amount of ₹ 5,00,00,000/-. Therefore, it is held that neither the assessee has proved the identity and creditworthiness of his creditor nor has he produced the genuineness of the transaction. Consequently, amount of ₹ 5,00,00,000/- is held to be unexplained cash credit entry added to the income of the assessee u/s 68 of the Act. 3. AO also made addition of ₹ 3,50,00,000/- u/s 69A of the Act. AO further made addition of ₹ 44,16,000/- as unexplained income u/s 69A of the Act. AO further made addition of ₹ 80,4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made the entire assessment proceedings null and void and drew our attention towards facts recorded by the AO as to effecting service of Smt. Abha Bansal u/s 131 of the Act in para 2 of the assessment order which is extracted for ready perusal as under :- During the year under consideration the assessee has received loan of ₹ 5,00,00,000/- on 05.02.2009 from Smt. Abha Bansal. The assessee was asked to explain the same vide letter F.No.AAFPD2778P/CC-17/ACIT/153A/942 dated 24.11.2010. The assessee replied that Smt. Abha Bansal has given loan out of selling her property worth ₹ 50-60 Crores. The assessee vide letter dated 09.12.2010 stated that he has returned back ₹ 4.80 crore and ₹ 20.00 Lacs is outstanding liability. The assessee vide letter dated NIL submitted on 14.12.2010 gave details of Smt. Abha Bansal. Again the assessee vide letter dated 15.12.2010 offered the PAN of Smt. Abha Bansal. The Inspector of this charge was deputed to make enquiries. The inspector reported that Smt. Abha Bansal was not available at the given address. After receiving new address from the assessee summons u/s 131 was issued and Smt. Abha Bansal was asked to su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e second summon to Smt. Abha Bansal for her personal appearance on 27.12.2010 on which date she did not appear. Then on 27.12.2010, ITO, Ward 1(1), Gurgaon sent the copy of the return downloaded from AST Module wherein Smt. Abha Bansal has declared income of ₹ 7,42,400/- which shows that she has no creditworthiness of lending such a huge amount of ₹ 5,00,00,000/-. Then AO proceeded to make the assessment. 11. When the AO himself issued second notice for procuring personal appearance of Smt. Abha Bansal on 27.10.2010 and received a letter from the ITO concerned along with copy of return of Smt. Abha Bansal showing declared income of ₹ 7,42,400/- on 27.12.2010, it is very surprising that as to how he has obtained the approval u/s 153D on 24.12.2010, particularly when investigation was going on with the AO. It shows that the entire exercise of obtaining mandatory approval u/s 153D by the AO is an ante-dated thus a sham approval given by the Addl. Commissioner of Income-tax without applying his mind, which is apparent from the approval dated 24.12.2010, available at page 262 of the paper book, is extracted as under for ready perusal :- OFFICE OF THE ..... X X X X Extracts X X X X X X X X Extracts X X X X
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