ITA--1004/2015. Case: PR. COMMISSIONER OF INCOME TAX (CENTRAL-2) Vs. VINITA CHAURASIA. Delhi High Court

Case Number:ITA--1004/2015
Party Name:PR. COMMISSIONER OF INCOME TAX (CENTRAL-2) Vs. VINITA CHAURASIA
Citation:NA
Judgement Date:May 18, 2017
Court:Delhi High Court
 
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* IN THE HIGH COURT OF DELHI AT NEW DELHI

  1. + ITA 1004/2015

    PR. COMMISSIONER OF INCOME TAX

    (CENTRAL-2) ..... Appellant

    Through: Mr. Dileep Shivpuri, Senior Counsel with Mr. Sanjay Kumar, Advocate.

    versus

    VINITA CHAURASIA ..... Respondent

    Through: Mr. Ajay Vohra, Senior Advocate Ms. Kavita Jha and Mr. Bhuwan Advocates.

    AND

  2. + ITA 1005/2015

    PR. COMMISSIONER OF INCOME TAX

    (CENTRAL-2) ..... Appellant

    Through: Mr. Dileep Shivpuri, Senior Counsel with Mr. Sanjay Kumar, Advocate.

    versus

    VINITA CHAURASIA Respondent

    Through: Mr. Ajay Vohra, Senior Advocate Ms. Kavita Jha and Mr. Bhuwan Advocates.

    CORAM:

    JUSTICE S. MURALIDHAR JUSTICE CHANDER SHEKHAR

    ITA Nos. 1004 of 2015 & 1005 of 2015 Page 1 of

    O R D E R % 18.05.2017

    Dr. S. Muralidhar, J. :

  3. These are two appeals under Section 260A of the Income Tax Act, („Act‟) by the Revenue directed against a common order dated 29th

    2015 passed by the Income Tax Appellate Tribunal („ITAT‟) in ITA

    3551/Del/2013 and 3343/Del/2013 for the Assessment Year („AY‟)

  4. The question urged by the Revenue in these appeals is whether the erred in law in setting aside the initiation of proceedings against Assessee under Section 153C of the Act. The further question whether the ITAT erred in deleting the following additions made Assessing Officer („AO‟): Rs. 16,42,68,522 as cash payments unaccounted sources; Rs. 39,65,106 on account of disallowance of of sinking funds; Rs. 29,73,830 on account of disallowance of security and Rs.65,70,747 on account of disallowance of commission.

  5. The background facts are that the Assessee filed her return of income the AY in question on 2nd August, 2010 declaring an income Rs.2,20,19,780 under the heads income from house property, short capitals gains and income from other sources. The assessment for the question was completed under Section 143(3) of the Act with the passing an assessment order dated 29th December, 2011 at a total income Rs. 21,22,88,069 against the return income of Rs. 2,20,19,780.

  6. On 19th June, 2009, a search and seizure operation was undertaken

    ITA Nos. 1004 of 2015 & 1005 of 2015 Page 2 of

    terms of Section 132 of the Act on the premises of Mr. Lalit Modi, estate broker. During the course of the search at his premises at L-48, Lajpat Nagar-II, New Delhi a document described as Annexure A-1 was found. The said document which is computer-generated, reads as under:

    Big Bazar In the name of Brand (name) Rent

    Vasant Sq Mall

    Pending rent From To No of Month

    01-10-2006 30-04-2009 31 891,15,757

    ch in favr of VSM MMS account-Suncity projects Pvt Ltd

    ch in favr of Suncity Projects Pvt Ltd

    Commission on sale 2% 65,70,747 65,70,747

    616,43,447

  7. The aforementioned document dated 18th May, 2009 contained the of the Assessee showing the area in the Vasant Square Mall as

    ITA Nos. 1004 of 2015 & 1005 of 2015 Page 3 of

    Mrs. Vinita

    Chaurasia R-sold% Pantaloon 7250

    S Area 39651.06 10.5 28,74,702 Monthly Rent @ 9285.71

    Total Cost 3285,37,354

    recd

    ch value 1642,68,832 164268832 0

    pdc value 1642,68,522 170225465 -59,56,943

    3285,37,354 334494297 -59,56,943 59,56,943

    Rent Calculated

    Amount paid 400,00,000 Paid (18,27

    29.8.08=2+1+1) 491,15,757 491,15,757

    Sinking Fund 3965106 ch in favr of VSM Sinking fund account-Suncity projects Pvt Ltd

    Maintenance Security 2973830

    Free Hold charges 12490084

    Ch required 194,29,019

    sq.ft. with the 'ch value Rs. 16,42,68,832' which incidentally was disclosed sale consideration for which the Assessee had purchased aforementioned area in Vasant Square Mall i.e. 39,651.06 sq.ft.

    the document also reflected as „Total Cost‟ a sum of Rs.32,85,37,354 the additional sum as „PDC Value‟ being Rs. 16,42,68,522.

  8. A questionnaire was sent to the Assessee in response to which she gave a reply on 7th December, 2011. She enclosed a confirmation from Mr. Modi clarifying that Annexure A-1 page 5 did not pertain to any transaction in respect of purchase of any space in either Big Bazar, Vasant Square and that it was just a draft proposal presumably by a broker. She pointed out that the property which she had purchased had been consideration which was higher than the prevalent circle rate.

  9. However, the AO was not satisfied with the said reply. The AO incidentally was the common AO for both Mr. Lalit Modi and the recorded the following satisfaction note for issuance of a notice Assessee under Section 153C of the Act:

    “30.6.2011 Satisfaction note for issue of notice u/S 153 C of the IT Act.

    Name of the Assessee Smt. Vinita Chaurasia PAN AAFPC4589D

    Search and seizure action under Section 132 of the I.T. Act was carried out on 19th June 2009 at the residential as well as business premises of Shri Lalit Modi at () Lajpat Nagar-II, New Delhi. During the course of pendency of assessment proceedings in the case of...

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