Manjeet Singh, Kurukshetra V. ITO, W-5, Yamunanagar

ITA 1110/CHANDI/2019

AI Insights

The case involves an appeal by Shri Manjeet Singh against the order of the Commissioner of Income Tax (Appeals) - 4, Ludhiana, which confirmed an addition of Rs. 23 lakhs to his income for the assessment year 2007-08. The addition was initially made by the Assessing Officer due to unexplained cash deposits of Rs. 43 lakhs in the assessee's bank account. During the appellate proceedings, it was demonstrated that a portion of these deposits was from the sale proceeds of land jointly owned by the assessee and his brothers, who were in police custody at the time and could not provide confirmation. The Tribunal accepted the additional evidence provided, including affidavits from the assessee's brothers, and deleted the addition of Rs. 23 lakhs, confirming the source of the remaining Rs. 20 lakhs as explained.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127852 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 11 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-07-2023
• Assessment Year: 2007-2008
• Appeal Filed On: 08-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, “A” CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.1110/CHD/2019 नधा रण वष / Assessment Year : 2007-08 Shri Manjeet Singh, Ward No.1, Gobind Puri, Ladwa, Kurukshetra. बनाम The ITO, Ward - 5, Yamuna Nagar. थायी लेखा सं./PAN NO: DLAPS8914M अपीलाथ /Appellant यथ /Respondent नधा रती क! ओर से/Assessee by : Shri Vibhor Garg, CA राज व क! ओर से/ Revenue by : Shri Manveet Singh Sehgal, Sr.DR स ु नवाई क! तार&ख/Date of Hearing : 20.07.2023 उदघोषणा क! तार&ख/Date of Pronouncement : 21.07.2023 आदेश/ORDER Per Sanjay Garg, Judicial Member: T h e p r e se n t a p pe a l h a s be e n p r e f e r r e d b y t h e a s se sse e a ga i n s t t he o r de r d a te d 1 4 . 0 6 .2 0 1 9 o f t he C o m m i s s i on e r o f I n c o m e Ta x ( A p p e a l s ) - 4 , L u d h ia n a [ i n s h o r t ‘ t h e C IT( A ) ’ ] p e r ta i n i n g t o 2 0 0 7 - 0 8 a s se s s m e n t y e a r . 2 . T h e a s s e s s e e i n t h i s a p pe a l h a s c o n te s te d t he c o n f i r m a t i o n o f a d d i t i o n o f R s . 2 3 l a c s o u t o f t o t al a d d i t i o n o f R s . 4 3 l a c s m a d e b y t h e A s se s s i n g O f f i c e r ( i n s h o r t ‘t h e A O ’ ) . ITA No.1110/CHD/2019 A.Y. 2007-08 Page 2 of 4 3 . T h e b r i e f f a c t s o f t h e ca se a r e t h a t t h e A O f o und t h a t t h e r e wa s a ca s h d e p o s i t o f R s . 4 3 l a c s i n t he b a n k a c c o u n t o f t h e a s s e s se e . A s t h e a s se s se e d i d n o t f u r n i s h s a t is f a c t o r y e x p l a n a t i o n r e g a r d i n g t h e s o u r c e o f d e p o s i t , t he A O m a d e t he a d d i t i o n o f t h e a f o r e sa i d a m o u n t o f R s . 4 3 l a c s a s un e x p la i ne d i n c o m e o f t he a s s e s s e e . 4 . D u r i n g t h e a p p e l l a te p r o c e e d i n g s , t h e a s se s se e fu r n i s h e d a d d i t i o na l e v i d e nc e s i n t he f o r m o f S a l e D e e d d a te d 2 3 . 0 5 . 2 0 0 6 p l e a d i n g t h a t t h e a s se s se e a l o n g w i t h h i s b r o t h e r s Sh r i B a l w i n d e r S i n g h a n d S h r i L a k hw i n d e r S i n g h h a d s o l d t h e i r j o i n t l y o w n e d l a n d f o r R s . 6 0 l a c s a n d t ha t t h e b a n k d e p o s i ts w e r e o u t o f t he sa l e p r o ce e d s o f t h e l a n d s o l d b y th e m . Th e l d . C I T( A ) c a l l e d f o r a re ma n d re p o r t i n r e s p e c t o f th e e v i d e n c e s f u r n i s h e d b y t h e a s se s se e f r o m t h e A O . Th e l d . C I T( A ) h e l d t h a t t h e a s s e s se e ' s s ha r e i n t h e s a i d j o i n t l a n d w as 1 / 3 r d , t h e r e f o r e , h e de l e t e d t h e a d d i t i o n o f 1 / 3 r d o f t h e s a l e a m o u n t a m o u n t i n g t o R s. 2 0 l a c s . , h o w e ve r , h e c o n f i r m e d t h e a d d i t i o n o f t h e r e m a i n i n g a m o u n t o f R s . 2 3 l a c s o b se r v i n g t h at t he a s s e s se e h a d f a il e d t o f i l e c o n f i r m a t i o n f r o m h i s br o t h e r s t ha t t h e s a le p r o c e e d s o f t h e i r p a r t s w e r e a l s o d e p o s i ted i n a s s e s se e ' s a c c o u n t . 5 . T h e l d . C o u n se l f o r t h e a s s e s s e e , b e f o r e u s ha s s ub m i t t e d t h a t b o t h t he b r o t h e r s o f t h e a s s e s se e w e r e i n po l ic e c u s t o d y ITA No.1110/CHD/2019 A.Y. 2007-08 Page 3 of 4 f r o m t h e m o n t h o f J u l y , 2 0 0 6 . T h e l d . C I T( A ) h a s a ls o ta k e n n o t e o f t h e o r d e r o f t h e S e s s i o n s J u d g e d a te d 2 3 . 1 0. 2 0 1 6 i n t h i s r e s p e c t . Th e l d . C o u n s e l f o r t h e a s se s se e h a s f u r t he r s u b m i t t e d t ha t s i n c e h i s b r o t h e r s w e r e i n j a i l , t h er e f o r e , t he c o n f i r m a t i o n s f r o m h i s b r o t h e r s c o u l d n o t b e f i l e d b e f o r e t h e l d . C I T( A ) , h o w e v e r , t h e fa c t s we r e t ha t s i n c e h i s b r o th e r s w e r e i n c u s t o d y , t h e r e f o r e , t h e i r p a r t o f s a l e c o n s i d e ra t i on w a s d e p o s i te d , w i t h th e i r c o n se n t , i n a s s e s se e ' s a c c o u nt . Th e l d . c o u n s e l ha s a l so p l a ce d re l i a n c e u p o n t he a f f i d a v i ts o f S h r i B a l w i n d e r S i n g h a n d S h r i L a k h w i n d e r S i n g h , c o p i e s of w h i c h h a v e be e n p l a c e d a t p a ge 1 8 - 1 9 o f t h e P a p e r B o o k , wh e r e b y t h e y h a ve c o n f i r m e d t h a t t h e i r p a r t o f s a l e c o n s id er a t i o n w a s d e p o s i te d i n t o th e S a v i n g B a n k A c c o u n t o f t h e a s se sse e a n d t h a t t h e s o u r ce o f d e p o s i t wa s o u t o f t h e sa l e p r o ce e d s o f t he s a i d l a n d . 6 . C o n s i d e r i n g t h e a b o ve s u b m i s s i o n s a l o n g w it h t he e v i d e n ce s f u r n i sh e d , i t i s p r o ve d o n r e c o r d t h a t the j o i n t la n d w a s s o l d o n 2 3 . 0 5 . 2 0 0 6 b y t h e a ss e s s e e a n d h i s br o th e r s f o r a n a m o u n t o f R s . 6 0 l a c s . F u r t h e r , t h a t b o t h t h e b r o t he r s o f t he a s s e s se e w e r e i n p o l i c e c u s t o d y fr o m t h e m o n t h o f Ju l y , 2 0 0 6 . B o t h o f t h e b r o th e r s h a ve c o n f i r m e d t h a t t h e i r sh a re o f s a l e c o n s i d e ra t i o n w a s d e p o s i t e d , un d e r t he c i r c u m s t a n c es , i n a s s e s se e ' s a c c o u n t . I n v i e w o f t h i s , t h e s o u r c e o f t h e c a s h d e p o s i t s s t o o d e x p l a i n e d . Th e a d d i t i o n s m a d e / c o n f ir m e d b y ITA No.1110/CHD/2019 A.Y. 2007-08 Page 4 of 4 t h e l o w e r a u t h o ri t i e s b e i n g n o t s u s t a i na b l e a re h e re b y o r de re d t o b e d e l e te d . 7 . I n t h e re s u l t , a p p e a l o f t he a s se ss e e s t a n d s a l lo w e d . O r d e r p r o n o u n c e d i n t h e O p e n C o u r t o n 2 1 s t J u l y , 2 0 2 3 . Sd/- ( VIKRAM SINGH YADAV) लेखा सद य/ Accountant Member Sd/- ( SANJAY GARG) या यक सद य/ Judicial Member “Poonam.” आदेशक! त,ल-पअ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु /त/ CIT 4. -वभागीय त न2ध, आयकर अपील&य आ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar