Ram Bhagat, Haryana V. ITO, Haryana

CO 203/DEL/2012

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7655 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 09-08-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2007-2008
• Appeal Filed On: 30-05-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMITABH K SINHA
• Assessee Lawyers: RAJESH GOEL; S C GOEL
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO.624/DEL/2012 624/DEL/2012 624/DEL/2012 624/DEL/2012 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2007 2007 2007 2007- -- -08 0808 08 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -1, 1,1, 1, NARNAUL. NARNAUL. NARNAUL. NARNAUL. VS. VS. VS. VS. SHRI RAM BHAGAT, SHRI RAM BHAGAT, SHRI RAM BHAGAT, SHRI RAM BHAGAT, S SS S/O SHRI JOHRI LAL AHIR, /O SHRI JOHRI LAL AHIR, /O SHRI JOHRI LAL AHIR, /O SHRI JOHRI LAL AHIR, V & PO DHANAUNDA, V & PO DHANAUNDA, V & PO DHANAUNDA, V & PO DHANAUNDA, TEHSIL & DISTRICT NARNAUL. TEHSIL & DISTRICT NARNAUL. TEHSIL & DISTRICT NARNAUL. TEHSIL & DISTRICT NARNAUL. PAN : BANPB3966Q. PAN : BANPB3966Q. PAN : BANPB3966Q. PAN : BANPB3966Q. (APPELLANT) (RESPONDENT) CROSS OBJECTION CROSS OBJECTION CROSS OBJECTION CROSS OBJECTION NO. NO. NO. NO.203/DEL/2012 203/DEL/2012 203/DEL/2012 203/DEL/2012 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2007 2007 2007 2007- -- -08 0808 08 SHRI RAM BHAGAT, SHRI RAM BHAGAT, SHRI RAM BHAGAT, SHRI RAM BHAGAT, S/O SHRI JOHRI LAL AHIR, S/O SHRI JOHRI LAL AHIR, S/O SHRI JOHRI LAL AHIR, S/O SHRI JOHRI LAL AHIR, V & PO DHANAUNDA, V & PO DHANAUNDA, V & PO DHANAUNDA, V & PO DHANAUNDA, TE TETE TEHSIL & DISTRICT NARNAUL. HSIL & DISTRICT NARNAUL. HSIL & DISTRICT NARNAUL. HSIL & DISTRICT NARNAUL. PAN : BANPB3966Q. PAN : BANPB3966Q. PAN : BANPB3966Q. PAN : BANPB3966Q. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -1, 1,1, 1, NARNAUL. NARNAUL. NARNAUL. NARNAUL. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI AMITABH K.SINHA, SR.DR. ASSESSEE BY : SHRI S.C.GOEL & SHRI RAJESH GOEL, ADVOCATES. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, V VV VP PP P : : : : IN THE REVENUES APPEAL, FOLLOWING GROUND IS RAISE D:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN LAW AND IN FACTS IN GIVING R ELIEF OF RS.16,29,964/- OUT OF TOTAL ADDITION OF RS.19,37,00 0/- MADE BY A.O. ON ACCOUNT OF UNEXPLAINED DEPOSITS IN BANK BY IGNORING THE FACTS AS DISCUSSED IN DETAIL IN THE AS SESSMENT ORDER. ITA-624/D/2012 & C.O.203/D/2012 2 2. THE FIRST GROUND IN THE ASSESSEES CROSS-OBJECTI ON READS AS UNDER:- THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND HAVING RIGHTLY CONCLUDED BOTH BY LEARNED A.O. A ND CIT(A) THAT THE ASSESSEE WAS ONLY AN AGRICULTURIST ALL THROUGH HIS LIFE, THE LEARNED CIT(A) HAS ERRED IN L AW AND ON FACTS IN SUSTAINING THE BALANCE ADDITION TO THE TUN E OF RS.3,07,036/-. THE SUSTAINED ADDITION MAY KINDLY B E ORDERED TO BE DELETED. 3. THE OTHER GROUNDS RAISED BY THE ASSESSEE IN HIS CROSS-OBJECTION ARE ONLY ARGUMENTS IN SUPPORT OF ABOVE GROUND NO.1. 4. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A N INDIVIDUAL WHO DERIVES INCOME FROM AGRICULTURE AND BANK INTEREST. ON THE BASIS OF INFORMATION COLLECTED BY THE INCOME TAX DEPARTMENT, IT CAME TO NOTICE THAT THE ASSESSEE HAS DEPOSITED ` 19,37,000/- IN GURGAON GRAMIN BANK SAVINGS BANK ACCOUNT NO.3105. THE ASSESSEE HAD NOT FILED ANY RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION, THEREFO RE, NOTICE UNDER SECTION 148 WAS ISSUED. DURING THE COURSE OF ASSES SMENT PROCEEDINGS, THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF DEP OSIT OF ` 19,37,000/- IN THE SAVINGS BANK ACCOUNT WITH GURGAO N GRAMIN BANK. IT WAS EXPLAINED BY THE ASSESSEE THAT IT IS OUT OF THE CAPITAL OF THE ASSESSEE WHICH WAS GENERATED OUT OF THE SAVINGS OF AGRICULTURAL INCOME. THE ASSESSING OFFICER DID NOT ACCEPT THE A SSESSEES CONTENTION AND MADE THE ADDITION OF ` 19,37,000/-. 5. BEFORE THE LEARNED CIT(A), THE ASSESSEE CLAIMED THAT DURING THE FINANCIAL YEAR 2001-02, THE ASSESSEE HAD SOLD THE L AND AND THE SALE PROCEEDS WERE DEPOSITED IN THE BANK ACCOUNT. HIS B ANK BALANCE AS ON 31 ST MARCH, 2002 WAS ` 16,29,964/-. THE ASSESSEE ALSO EXPLAINED THE ITA-624/D/2012 & C.O.203/D/2012 3 RECEIPT OF SOME MONEY AGAINST THE AGREEMENT TO SELL . SINCE THE FRESH EVIDENCE/EXPLANATION WAS SUBMITTED BEFORE THE LEARN ED CIT(A), HE FORWARDED THOSE EVIDENCES TO THE ASSESSING OFFICER AND CALLED FOR THE REMAND REPORT. IN THE REMAND REPORT, THE ASSESSING OFFICER DOUBTED THE GENUINENESS OF THE SALE AGREEMENT. THE CIT(A), AFTER CONSIDERING THE REMAND REPORT, ALLOWED PART RELIEF OF ` 16,29,964/- WITH THE FOLLOWING FINDING:- 6.2 EVEN IF THE GENUINENESS OF SALE AGREEMENT DATE D 25.02.2006 IS DOUBTED, CREDIT FOR THE BANK BALANCE OF RS.16,29,964/- AS ON 31.03.2002 REQUIRES TO BE GIVE N. NO CASE HAS BEEN MADE OUT BY THE AO THAT THE FUNDS IN THE BANK AS ON 31.03.2002 HAVE BEEN SPENT/INVESTED ELSEWHERE. BEING AGRICULTURIST IN A REMOTE CORNER OF THE BACKWARD DISTRICT OF NARNAUL, WHERE THE BANKING FAC ILITIES ARE SCARCE, CREDIT FOR CASH IN HAND NEEDS TO BE GIV EN WHILE ARRIVING AT THE UNEXPLAINED DEPOSITS, IF ANY, IN TH E BANK A/C. FROM THE FACTS OF THE CASE, IT IS EVIDENT THAT THE DEPOSITS IN THE BANK A/C DURING THE YEAR UNDER CONSIDERATION EMANATED FROM THE FUNDS IN THE EARLIER YEARS AND TH EREFORE NO ADDITION COULD HAVE BEEN MADE IN THE YEAR UNDER CONSIDERATION. HAVING REGARD TO THE FACTS OF THE C ASE, I DEEM IT FIT TO GIVE BENEFIT OF THE BANK BALANCE OF RS.16,29,964/- AS ON 31.03.2002 AS THE SOURCE FOR D EPOSITS IN THE BANK ACCOUNT DURING THE YEAR UNDER CONSIDERA TION. IN VIEW OF THE ABOVE, THE APPELLANT GETS A RELIEF O F RS.16,29,964/- AND THE GROUNDS OF APPEAL ARE PARTLY ALLOWED. 6. THE REVENUE, AGGRIEVED WITH THE RELIEF ALLOWED, IS IN APPEAL WHILE THE ASSESSEE, AGGRIEVED WITH THE SUSTENANCE OF ADDI TION OF ` 3,07,036/-, IS IN CROSS-OBJECTION. ITA-624/D/2012 & C.O.203/D/2012 4 7. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL PLACED BEFORE US. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDES AND THE FACTS OF THE CASE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LEARNED CIT(A). THE LEARNED DR AS WELL AS THE ASSESSING OF FICER HAS DOUBTED THE GENUINENESS OF THE SALE AGREEMENT. HOWEVER, WE FIND THAT LEARNED CIT(A) HAS NOT ALLOWED ANY RELIEF ON ACCOUNT OF AVA ILABILITY OF CASH AS PER SALE AGREEMENT. THERE IS NO DISPUTE THAT THE A SSESSEE HAD SOLD PART OF HIS AGRICULTURAL LAND DURING THE FINANCIAL YEAR 2001-02 AND SUCH SALE CONSIDERATION WAS DEPOSITED IN THE ASSESSEES BANK ACCOUNT. THE BANK BALANCE AS ON 31 ST MARCH, 2002 WAS ` 16,29,964/-. THIS BANK BALANCE WAS WITHDRAWN AND WAS REDEPOSITED DURING TH E ACCOUNTING YEAR RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDER ATION. THERE IS NO FINDING THAT THE ASSESSEE INVESTED THE ABOVE SUM OF ` 16,29,964/- AT ANY OTHER PLACE OR SPENT THE SAME. THE ASSESSEE HA D SUBSTANTIAL AGRICULTURAL INCOME YEAR AFTER YEAR WHICH WAS SUFFI CIENT TO TAKE CARE OF THE ASSESSEES HOUSEHOLD EXPENDITURE. IN VIEW OF T HE ABOVE, WE HOLD THAT LEARNED CIT(A) WAS JUSTIFIED IN ACCEPTING THE SOURCE FOR INVESTMENT IN THE BANK ACCOUNT TO THE EXTENT OF ` 16,29,964/-. 8. WITH REGARD TO THE CROSS-OBJECTION, IT WAS STATE D BY THE LEARNED COUNSEL FOR THE ASSESSEE THAT THE ASSESSEE HAD SOLD THE AGRICULTURAL LAND DURING THE ACCOUNTING YEAR RELEVANT TO THE ASS ESSMENT YEAR UNDER CONSIDERATION AND HAD RECEIVED THE SUM OF ` 1,43,000/-. HOWEVER, NO EVIDENCE IN THIS REGARD WAS PRODUCED EITHER BEFORE THE LOWER AUTHORITIES OR BEFORE US. THEREFORE, THE SAME HAS TO BE REJECTED. 9. THE ASSESSEE HAS ALSO CLAIMED THAT THE CREDIT FO R THE AGRICULTURAL INCOME SHOWN BY THE ASSESSEE SHOULD BE GIVEN. HOWE VER, WE FIND THAT AGRICULTURAL INCOME SHOWN BY THE ASSESSEE IS AROUND ` 1,50,000/- PER ANNUM. IN OUR OPINION, THAT MUCH AMOUNT WOULD BE R EQUIRED BY THE ASSESSEE FOR HOUSEHOLD EXPENSES, THEREFORE, NO FURT HER CREDIT FOR ITA-624/D/2012 & C.O.203/D/2012 5 AGRICULTURAL INCOME CAN BE GIVEN FOR EXPLAINING THE DEPOSIT IN THE ASSESSEES BANK ACCOUNT. IN VIEW OF THE ABOVE, WE UPHOLD THE ORDER OF LEARNED CIT(A) AND DISMISS THE REVENUES APPEAL AS WELL AS ASSESSEES CROSS-OBJECTION. 10. IN THE RESULT, THE APPEAL OF THE REVENUE AS WEL L AS THE CROSS- OBJECTION OF THE ASSESSEE IS DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 9 TH AUGUST, 2012. SD/- SD/- ( (( (RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESID VICE PRESID VICE PRESID VICE PRESIDENT ENT ENT ENT DATED : 09.08.2012 VK. COPY FORWARDED TO: - 1. REVENUE : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -1, 1,1, 1, NARNAUL. NARNAUL. NARNAUL. NARNAUL. 2. RESPONDENT : SHRI RAM BHAGAT, SHRI RAM BHAGAT, SHRI RAM BHAGAT, SHRI RAM BHAGAT, S/O SHRI JOHRI LAL AHIR, S/O SHRI JOHRI LAL AHIR, S/O SHRI JOHRI LAL AHIR, S/O SHRI JOHRI LAL AHIR, V & PO DHANAUNDA, V & PO DHANAUNDA, V & PO DHANAUNDA, V & PO DHANAUNDA, TEHSIL & DISTRICT NARNAUL. TEHSIL & DISTRICT NARNAUL. TEHSIL & DISTRICT NARNAUL. TEHSIL & DISTRICT NARNAUL. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR