Shri Harneet Singh Dua, Ludhiana V. ITO-Ward-2(5), Ludhiana

ITA 107/CHANDI/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8690 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-03-2021
• Assessment Year: 2010-2011
• Appeal Filed On: 29-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KHANNA CIT
• Assessee Lawyers: SANJEEV GARG
• Keywords: Principle of natural justice

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH SMC CHANDIGARH !', # BEFORE: SMT. DIVA SINGH, JM ./ ITA NO. 107/CHD/2020 / ASSESSMENT YEAR : 2010-11 SHRI HARNEET SINGH DUA, HOUSE NO. 582, GURUDWARA KALGHIDHAR ROAD, FIELD GANJ, LUDHIANA. VS THE ITO, WARD 2(5), LUDHIANA. ./ PAN NO: AGHPD3488L / APPELLANT / RESPONDENT ! ' / ASSESSEE BY : SHRI SANJEEV GARG, ADVOCATE # ! ' / REVENUE BY : SHRI ASHOK KHANNA, ADDL. CIT $ % ! &/ DATE OF HEARING : 16.03.2021 '()* ! &/ D ATE OF PRONOUNCEMENT : 23.03.2021 HEARING CONDUCTED VIA WEBEX $%/ ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE WHEREIN THE CORRECTNESS OF THE ORDER DATED 27.11.20 19 OF CIT(A)-1, LUDHIANA PERTAINING TO 2010-11 ASSESSMENT YEAR IS ASSAILED ON THE FOLLOWING GROUNDS : 1. THAT THE ORDER OF CIT(APPEALS) IS AGAINST THE FACTS , CIRCUMSTANCES OF THE CASE AND AGAINST THE LAW. 2. THAT EVIDENCE AND SUBMISSION WERE NOT TAKEN INTO AC COUNT PROPERLY BY THE CIT(A). 3. THAT PROPER OPPORTUNITY AND TIME WAS NOT GIVEN BY THE C1T(A). 4. THAT THE RULES OF NATURAL JUSTICE HAS BEEN VIOLATED . ITA 107/CHD/2020 A.Y. 2010-11 PAGE 2 OF 5 5. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUND OF APPEAL BEFORE THE APPEAL IS FINALLY HEARD OR DISPOSED OFF. 2. ON THE DATE OF HEARING I.E. 08.03.2021, THE ASSE SSEE HAD SOUGHT AN ADJOURNMENT. HOWEVER, IN GROUND NO. 3 IT WAS DEEMED APPROPRIATE TO ADJOURN THE APPEAL DIRECTING THE ASSESSEE TO ARGUE THE SAID GROUND ON THE NEXT DATE OF HEARING. ON THE NEXT DATE I.E. 11.03.2021, LD. SR.DR SOUGHT TIME. THE LD. AR SUBMITTED THAT AFFIDAVIT OF SHRI PUPINDER PA L SINGH IS AVAILABLE. THE SAID AFFIDAVIT WAS NOT AVAILABLE ON THE DATE, THE APPEAL WAS FIXED FOR HEARING BEFORE THE CIT(A) AS T HE CONCERNED PERSON HAD GONE OUT OF STATION. THIS FAC T, IT WAS SUBMITTED, HAD BEEN INFORMED TO THE LD. CIT(A) ALSO . ACCORDINGLY, IT WAS SUBMITTED THAT A REMAND BE DIRE CTED. 2.1 HOWEVER, THE LD. SR.DR WANTED TIME TO ASCERTAIN THE FACTS. ACCORDINGLY, THE APPEAL WAS ADJOURNED ON THE ORAL REQUEST OF THE DR. 3. THE PARTIES WERE HEARD ON THE NEXT DATE. 4. THE RELEVANT FACTS OF THE CASE ARE THAT THE ASSE SSEE WHO WAS PROPERTY DEALER STATED TO BE DERIVING INCOME FR OM COMMISSION ETC. WAS REQUIRED TO EXPLAIN THE DEPOSIT OF RS. 8 LACS IN HIS BANK ACCOUNT MAINTAINED WITH THE PUNJAB NATIONAL BANK. ITA 107/CHD/2020 A.Y. 2010-11 PAGE 3 OF 5 4.1 A PERUSAL OF THE RECORD SHOWS THAT THE ASSES SEE IS FOUND TO HAVE SUBMITTED THAT THE SAID AMOUNT CONSTI TUTED RS. 8 LACS FROM ONE OF HIS CLIENT NAMED AS SHRI PUPIND ER PAL SINGH. 4.2 ON A READING FROM THE ORDER, IT IS SEEN THAT IT HAD BEEN STATED THAT MR. PUPINDER PAL SIGH S/O S. IQBAL SINGH R/O VILLAGE KULIANWAL JAMALPUR, LUDHIANA ENTERED INTO A GREEMENT FOR PURCHASE OF ONE HOUSE SITUATED AT HOUSE NO. B-1 -1106 AT VRINDAVAN ROAD, CIVIL LINES LUDHIANA FROM MR. SATIS H KUMAR S/O CHAMAN LAL R/O B-1-1106 VRINDAVAN ROAD, CIVIL L INES, LUDHIANA. THE BUYER OF THE PROPERTY MR. PUPINDER P AL SINGH PAID A SUM OF RS. 8,00,000/- TO THE ASSESSEE AS AN ADVANCE MONEY FOR THE SAID DEAL VIDE AGREEMENT DATED 04.07. 2019. 4.3 THE SAID DEAL, IT IS SEEN, IT WAS ARGUED DID NOT FRUCTIFY. IT HAS BEEN STATED AS PER RECORD THAT THE DEAL GOT CANCELLED ON 15.07.2009 AND CANCELLATION AGREEMENT EXECUTED EVID ENCING THIS FACT ON THE BACK SIDE OF AGREEMENT DEED WAS RE LIED UPON BEFORE THE AO. 4.4 THE FACTS REFERRED TO ARE AS ARGUED BEFORE TH E LD. CIT(A). IT IS SEEN THAT IT HAS BEEN URGED THAT THE SELLER O F PROPERTY MR. SATISH KUMAR HAS REFUNDED THE ENTIRE AMOUNT OF RS . 8,00,000/- TO THE ASSESSEE [AS AN INTERMEDIARY]. THE BUYER OF THE PROPERTY S. PUPINDER PAL SINGH, IT HAS BEEN STATED INSTRUCT ED THE ITA 107/CHD/2020 A.Y. 2010-11 PAGE 4 OF 5 ASSESSEE TO KEEP THE MONEY WITH HIM FOR ANOTHER PRO PERTY DEAL IN THE SAME AREA. THE ASSESSEE DEPOSITED THE AMOUNT IN HIS SAVING BANK ACCOUNT. 4.5 IT IS SEEN FROM THE RECORD AS ARGUED BEFORE T HE LD. CIT(A), SHRI PUPINDER PAL SINGH IS AN AGRICULTURIST AND OWNED 287 KANAL [APPROX 34.5 ACRE] OF AGRICULTURE LAND AT VILLAGE KULAINWAL DISTRICT LUDHIANA AND IN AMRITSAR DISTT A PPENDIX II]. HIS OTHER FAMILY MEMBERS ALSO OWN MORE THAN 30 ACRES OF AGRICULTURE LAND. HIS J FORMS FOR SALE PROCEEDS OF AGRICULTURE CROP JUST PRECEEDING A FEW DAYS OF MAKING ADVANCE F OR DEAL FOR A SUM OF RS.1273414/-ARE ALSO BEING PLACED ON RECOR D [APPENDIX III]. COPY OF THE BANK A/C OF THE ASSESSE E HAS BEEN PLACED ON RECORD AS PER APPENDIX IV BEFORE THE TAX AUTHORITIES. 4.6 IN THE SAID BACKGROUND, AFFIDAVIT OF MR. PUPIND ER PAL SINGH TO CONFIRM THE FACTS ABOUT AFORESAID TRANSACTION BECAME CRUCIAL. IT HAD BEEN URGED THAT MR. PUPINDER IS AWA Y FROM LUDHIANA FOR THE TIME BEING. THE RECORD SHOWS THAT THE LD. COMMISSIONER GAVE TIME TO THE ASSESSEE TO FILE THE AFORESAID AFFIDAVIT OF SHRI PUPINDER PAL SINGH. ON THE DATES MENTIONED IN THE IMPUGNED ORDER, THE SAID AFFIDAVIT, IT IS SE EN WAS NOT FILED. 5. IN THE SAID BACKGROUND THE LD. AR HAS CANVASSE D THAT SHRI PUPINDER PAL SINGH REMAINED OUT OF STATION AND THE ITA 107/CHD/2020 A.Y. 2010-11 PAGE 5 OF 5 AFFIDAVIT IS AVAILABLE. IN THE CIRCUMSTANCES, IT W AS HIS LIMITED REQUEST THAT THE MATTER MAY BE REMANDED BACK TO THE FILE OF THE CIT(A) FOR A DECISION ON MERITS. 6. CONSIDERING THE FACTS, THE LD. SR.DR HAD NO OBJE CTION TO THE SAID PRAYER. 7. I HAVE HEARD THE SUBMISSIONS AND PERUSED THE MAT ERIAL ON RECORD. IN THE FACTS AS SET OUT HEREIN ABOVE IN THE IMPUGNED ORDER AND CONSIDERING THE PRAYER OF THE PA RTIES BEFORE THE BENCH, IT IS DEEMED APPROPRIATE TO REMAN D THE ISSUE BACK TO THE FILE OF THE CIT(A) TO TAKE INTO CONSIDE RATION THE AFFIDAVIT OF SHRI PUPINDER PAL SINGH AND THEREAFTER PASS AN ORDER IN ACCORDANCE WITH LAW. SAID ORDER WAS PRONOU NCED AT THE TIME OF VIRTUAL HEARING ITSELF IN THE PRESENCE OF THE PARTIES VIA WEBEX. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 23 RD MARCH,2021. SD/- ( !' ) (DIVA SINGH) # / JUDICIAL MEMBER ' ( / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. / CIT 4. ( )/ THE CIT(A) 5. , , / DR, ITAT, CHANDIGARH 6. / GUARD FILE / BY ORDER, / ASSISTANT REGISTRAR