Amandeep Singh, Ludhiana V. ITO, W-1, Jagraon

ITA 1116/CHANDI/2019

AI Insights

The case revolves around an appeal by Shri Amandeep Singh against the order of the Commissioner of Income Tax (Appeals)-3, Ludhiana, which confirmed the addition of Rs. 6,95,000 to the assessee's income. The addition was initially made by the Assessing Officer (AO) under sections 144 and 147 of the Income Tax Act, due to non-compliance by the assessee in explaining the source of cash deposits totaling Rs. 30,75,000 in his bank account. The assessee contended that these deposits were from exempt agricultural income and withdrawals from his bank. The CIT(A) granted partial relief, reducing the addition to Rs. 7,05,000, which the assessee appealed against. The Tribunal, after considering the submissions and evidence, including agricultural income records and cash flow statements, concluded that the assessee had sufficiently explained the source of the deposits, leading to the allowance of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127468 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 13-06-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 08-08-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 148; 144

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘A’ CHANDIGARH BEFORE: SHRI A.D.JAIN, VICE PRESIDENT AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 1116/CHD/2019 नधा रण वष / Assessment Year : 2010-11 Shri Amandeep Singh, S/o Shri Amarjit Singh, VPO Sidhwan Bet, Tehsil-Jagraon, Ludhiana. VS The ITO, Ward-1, Jagraon. थायी लेखा सं./PAN /TAN No: EJTPS6154P अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : None (written submission) राज व क ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr.DR तार ख/Date of Hearing : 14.06.2023 उदघोषणा क तार ख/Date of Pronouncement : 19.06.2023 आदेश/ORDER PER VIKRAM SINGH YADAV,A.M. Th i s i s a n ap pea l file d by the a ssessee against the orde r of l d. CI T( A)-3, L udhi ana da te d 01 .05. 2019 w he re in the asse ssee has take n the foll owing g rounds of appeal: “1. That the Commissioner of Appeals-3 has erred in laws and facts in confirming the addition of Rs. 6,95,000 in cash deposit, specially when it was income from agriculture which is exempt income and non taxable which was well explained to the CIT Appeals and Assessing Officer that there is only agriculture income and cash is also deposited out of the withdrawals from the bank and Cash in hand. The learned CIT Appeals ignored the correct facts and thus the addition of Rs. 6,95,000 deserves to be deleted. The amount of Rs. 7,05,000 has been wrongly confirmed by the CIT(A] as the balance amount of Rs. 30,75,000 minus Rs. 23,80,000 is Rs. 6,95,000. ITA 1116/CHD/2019 A.Y.2010-11 Page 2 of 7 2. That the appellant craves leaves to add or amend any grounds of appeal before appeal is heard and finally disposed off.” 2. None ha s appear e d on behalf of the asse ssee , howe ve r, a writte n sub miss ion ha s be en re ce ived from the ld. AR Mr.B .K. Kha nna sub mitti ng tha t t he appe al may be decided ta king into con side ra tion the writ ten su b mis sions s o file d on be half of the asse ssee . 3. The l d. DR is hea rd an d the ma ter ial a vailab le on re cord duly e xa mi ned. 4. Briefly t he facts of the case ar e that the AO was in receipt of infor ma ti on that the assesse e has de posited cas h a mou nti ng t o Rs.30 ,75 ,00 0 /- in his S avi ng B ank A ccount main tai ned wit h Oriental Ban k of Co mmer ce and therea fter, infor ma tion w as sought from the asse ssee . Howev er, the re was no resp on se and the reafte r notice u/s 148 wa s iss ued. I n response to the notice, there w as no com pl ian ce on the par t of the assesse e a nd the reafte r, notices u/s 142 (1) we re issue d fro m ti me to ti me . A gain there wa s n o co mp lia nce on the part of the asse ssee . The reafte r, the AO co mple te d the assessme nt procee dings and passe d the order u/s 144 re ad w i th 147 o f the Act. As per the AO, sin ce the a ssesse e could not expla in the sour ce of ca sh deposits, the de posi ts so ma de in the ba nk accounts re main unexpla ined and sa me were accor dingly tre ate d ITA 1116/CHD/2019 A.Y.2010-11 Page 3 of 7 as "income from other sources" an d brought to tax in the ha nd s of the assesse e. 5. Being aggrie ve d, the asse ssee ca rrie d the matte r in appea l be fore the ld. CI T( A). Be fore the ld. CI T( A) be sides fil ing the sub mi ssi ons on me rit, the assesse e also move d an applica ti on seeking ad missio n of additiona l evide nce for the r eason t ha t he was un dergoi ng the me dical tre atme nt at t he ti me of issu an ce of noti ce u/s 148 of the Act and as a re sult, he could not attend to the asse ss ment proce eding s. The a ddi tional e vidences so sub mitte d by the asse ssee were ad mitte d by the l d CI T(A) a nd there after ta king into c onsidera ti on the re mand r eport a nd the rejoinder subm it ted by the assesse e, the ld. CI T( A ) ha s p as se d the impug ne d orde r where in out of addition of Rs.30 ,75 ,00 0/- made by the AO , the a ssessee was gra nte d relief to the e xte nt of Rs.23,8 0,0 00 /- a nd the re ma ini ng addition of Rs.7, 05,0 00 /- w as sustaine d. 6. Agai nst the sai d find ings an d th e direction s of the ld. CI T(A), the a sse ss ee is in a ppe al be fore us . 7. In his written su b missions, the ld . AR h as re lied o n the sub miss ions mad e before the ld CI T( A) regar ding receipts fro m the a gricult ure produce wh ich we re not correctl y a pprecia te d b y the ld CI T(A). I t wa s fu rther sub mitte d th at the re were total deposits of Rs. 30 ,75, 000 /- dur ing the ye ar un der conside ra tion ITA 1116/CHD/2019 A.Y.2010-11 Page 4 of 7 and there we re withd raw als t o the e xte nt of Rs.1 5,10,0 00/- whic h we re wrongly con side red a s Rs .10 ,80,00 0 /- by the AO. There after, refe rring to each of the tran sac tions in the asse ssee ’s bank a ccount, it was s ub mitt ed that out of deposits of Rs.9,50 ,00 0 /- on 07.04. 2009, the Re ve nue ha s a cce pte d the su m of Rs.5 lacs as pe r the remand re port. Fu rther, regardi ng the deposit of Rs.15 lacs on 1 9.0 2.20 10, it wa s sub mi tte d that the sa me has bee n ac cepted by the Re venue. The reafte r, re ferring to with dra wal of Rs.22,00 0 /- on 23.05 .20 09, Rs.1, 50,0 00 /- on 18.06.2 009 , Rs.3 lac s on 3 0.06. 2 009, Rs . 5 la cs on 01 .07 .20 09, Rs. 4 ,30 ,000 /- on 27.11. 200 9, Rs. 8000 /- on 09. 01.2010 , an d Rs. 1, 00,00 0 /- on 27 .02.20 10, it wa s sub mitte d that as on 27.02.2 010 , t he assesse e wa s ha ving cash in ha nd a mo unting to Rs.15,1 0,0 00 /- a nd out of sai d c ash in han d, the asse ssee has deposite d Rs. 25,000 /- o n 1 9.0 3.2 010, Rs. 3 lacs on 20 .03 .20 10, Rs. 3 la cs on 22. 03.2010 . I t wa s, acco rdingl y, su bmitte d th at the cash so deposi ted a mountin g to Rs.7 ,05 ,00 0 /- i s out of the ea rlie r wit hdr awa ls made by the assesse e from the sa me bank account a nd wh ich were ava ila b le with t he ass essee at the rele vant poi nt of ti me. I t wa s, accordingl y, su b mitted that all the tran sactions a re from the e xpl aine d source of income a nd there fore, no ad dition is re quir ed in the insta nt ca se and accordi ngl y, the asse ssee may be grante d nece ssar y relief by ITA 1116/CHD/2019 A.Y.2010-11 Page 5 of 7 dele ting the add ition of Rs .7, 05,0 00 /- so ma de by the AO an d conf ir med by the ld. CI T( A). 8. The ld . DR is he ard wh o has re lie d on the order of the lowe r au thorities. It was submitted that the AO i n the re ma nd procee dings ha s given app rop ria te oppor tun ity t o the asse ssee where in the relevant doc ume nta tions we re exa mine d and cash deposit a mo untin g to Rs .20 lac s w as found e xp la ined by the AO . Furt he r, in hi s s tate ment, the as sesse e had confir me d th at he was earni ng Rs. 3,80 ,00 0 /- fro m his a gricult ura l acti vities and hence , the sa me was a ls o conside red genui ne and there fore , o ut of Rs.30, 75,000 / -, Rs.23, 80, 000 / - was found exp lained by the AO an d w hic h ha s bee n rightly considere d by the l d. CI T(A ). It was, accor dingly, sub mi tted tha t the ma tte r h a s been dul y examine d by the lowe r au thorities and a ssesse e does not de se rve any furthe r reli ef and the refore, the a ppe al so filed by the asse ssee to be d is misse d. 9. We have he ard t he riva l su bmissions an d perused the materia l av ailable on re cor d. We h ave a lre ady noted the find ings of the AO in the rema nd p rocee di ngs a nd the reafte r, the findin gs of the ld. CI T(A ) wherein the ld. CI T(A ) has dul y take n into cons ideration the re mand repor t so sub mi tte d b y the AO a nd has gra nte d relief to the asse ssee to the e xte nt of Rs.23 ,80,00 0 /-, however, it is re le vant to note tha t the a ssessee has also file d a ITA 1116/CHD/2019 A.Y.2010-11 Page 6 of 7 rejoinder d uring the appella te pro ce edings wh ich has ap parently not been a ppre ci ated a nd con side re d by the l d. CI T(A) . I n hi s rejoinder, the assesse e ha s sub mitte d that he is a pure agricul tur ist and as per usual p ractice , the re were two cr ops whic h we re grow n dur ing the ye ar and whi ch were subseq ue nt ly sold and the AO has onl y con side r ed the fi gure o f Rs.3 ,80 ,000 /- from on ly one cr op w herea s the asse ssee ha s g rown tw o crop s duri ng the ye ar and sa me is e vid ent fro m For m- J submi tte d by the asse ssee . I t was sub mi tted tha t the AO has not consi dere d J- For m of R s.1 ,53, 608 /- da ted 04.04. 200 9, J-For m of Rs.3,08 ,60 6 /- d ated 06 .04 .2009 , tota ling to Rs.4 ,62,21 4/- Furt he r, the asse sse e has al so sub mitted J-For ms o f Rs .53 ,153 /- date d 14. 10 .2009, Rs.1 ,0 9, 033 /- date d 01.11 .20 09 , Rs.2,74 ,28 7 /- d a te d 3.1 1.2 009 . It was sub mit ted tha t w here these J-F or ms a re take n into conside ra tion, the income fr o m agricul ture p rod uce a mounts t o Rs. 8,9 8,6 87 /- as a gainst the figure of R s.3 ,80 ,000/- con sidere d by the AO. Regarding the rema ini ng a mou n t of Rs .1, 76,313 /-, it was sub mi tte d tha t the sa me were out of earlier withdra wa ls as e viden t from the Cas h Flow State me nt a nd which, we find, has a lso bee n e xplaine d by the ld. AR as p a rt of hi s writte n sub mission s. Th e J For ms so sub mitte d b y the asse ssee are part of re cor ds a nd have not bee n disp uted by the Re ve nue . We, the refore , find that the asse ssee has duly expl ai ned the source of c ash depos it in h is ban k ITA 1116/CHD/2019 A.Y.2010-11 Page 7 of 7 account from h is agric ulture prod uce as we ll a s e arlie r with dra wal s an d, the refore , the addi tion of Rs. 7 ,05, 000 /- so sustaine d by the ld. C I T( A) is he reby d irected to the de le te d. 10. In the result, the appeal of the as se ssee is allowe d. Order pronoun ced in the open C ourt on 19 .06.20 23. Sd/- Sd/- आकाश द प जैन !व#म %संह यादव (AAKASH DEEP JAIN) (VIKRAM SINGH YADAV) उपा(य) / VICE PRESIDENT लेखा सद+य/ ACCOUNTANT MEMBER “Poonam” आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2. 灹瀄यथ牸/ The Respondent 3. आयकर आयु猴/ CIT 4. िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड榁 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar