Sh. Charan Singh, Panchkula V. ITO, W-1, Pamchkula

ITA 1164/CHANDI/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2148 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 27-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AMITOZ SINGH
• Keywords: Capital asset; Cost of acquisition; Set aside
• Section: 2(14); 22

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 1164/CHD/2019 / ASSESSMENT YEAR : 2012-13 SHRI CHARAN SINGH, S/O SHRI MAGHI RAM, VILLAGE DHAMALA TEHSIL KALKA, DISTT. PANCHKULA. VS. ! THE ITO , WARD-1, PANCHKULA ' # ./ PAN NO: DHIPS7987A '$/ APPELLANT &' '$ / RESPONDENT HEARING THROUGH VIDEO CONFERENCING ()*+ /ASSESSEE BY : SH. AMITOZ SINGH, CA *+ / REVENUE BY : SMT. MEENAKSHI VOHRA, ADDL. CIT , -*) .# /DATE OF HEARING : 22.10. 2020 /0 *) .# / DATE OF PRONOUNCEMENT : 22.10.2020 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 14.06.2019 OF THE COMMISSIONER OF INCOM E TAX(APPEALS)-4, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED FOLLOWIN G GROUNDS OF APPEAL:- 1. THE ID. AO IS WRONG IN MAKING AN ADDITION U/S 68 OF RS. 11,00,000/- ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS IN THE BANK ACCOUNT BY IGNORING THE FACT AND NOT TAKING IN TO ITA NO. 1164-CHD-2019- SHRI CHARAN SINGH, PANCHKULA 2 CONSIDERATION THE PLEA ON RECORD THAT THE ASSESSEE' S BROTHER HAVE ALSO WITHDRAWN SIMILAR AMOUNTS FROM BANK IN COMPARISON TO THE ASSESSEE AND THE SAME WERE NEVER DEPOSITED BACK IN ASSESSEE'S BROTHER ACCOUNT, THEREBY REQUISI TE CASH IN HAND WAS AVAILABLE WITH THE ASSESSEE TO EXPLAIN SUC H CASH DEPOSITS. 2. THE ID. AO IS WRONG IN MAKING AN ADDITION OF RS . 54,24,444/- ON ACCOUNT OF LONG TERM CAPITAL GAIN ON SALE OF AGR ICULTURAL LAND, IGNORING THE FACT THAT THE AGRICULTURAL LAND IN QUESTION IS A RURAL AGRICULTURAL LAND, NOT A CAPITAL ASSET WITH IN THE DEFINITION OF SECTION 2(14) OF THE INCOME TAX ACT, 1961. 3. WITHOUT PREJUDICE TO ABOVE, LD. AO IS WRONG IN MAKING AN ADDITION OF RS. 54,24,444/- ON ACCOUNT OF LONG TERM CAPITAL GAIN ON SALE OF AGRICULTURAL LAND BY CONSIDERING A PRESUMPTIVE FIGURE OF COST OF ACQUISITION OF MEAGER RS. 10,000/- PER BIGHA. 4. IN VIEW OF ABOVE & SUCH OTHER GROUNDS, WHICH MA Y BE TAKEN AT THE TIME OF HEARING, THE APPEAL MAY PLEASE BE ALLOW ED & JUSTICE RENDERED. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE IMPUGNED ORDER OF THE CIT(A) TO SU BMIT THAT THE SAME IS AN EX-PARTE ORDER PASSED BY THE LD. CIT(A). 4. THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESS EE HAS BEEN THAT NO PROPER OPPORTUNITY OF HEARING HAS BEEN GIVEN BY THE LD. CIT(A). INVITING OUR ATTENTION TO THE IMPUGNED ORDER OF THE LD. CIT(A), THE ASSESSEE HAS POINTED OUT THAT SO FAR AS THE ISSUE R ELATING TO THE DEPOSIT OF CASH IN THE BANK ACCOUNT OF THE ASSESSEE WAS CONCER NED, THE AMOUNT WAS ITA NO. 1164-CHD-2019- SHRI CHARAN SINGH, PANCHKULA 3 DEPOSITED OUT OF THE CASH WITHDRAWALS FROM THE ACC OUNT OF THE BROTHER OF THE ASSESSEE. IT HAS BEEN FURTHER SUBMITTED THAT THE SAID WITHDRAWALS WERE MADE FOR PURCHASE OF ANOTHER CAPITAL LAND JOIN TLY BY ALL THE BROTHERS, HOWEVER, SINCE THE ENTIRE AMOUNT WAS NOT USED AND ONLY PART OF LAND WAS PURCHASED, THEREFORE, THE REMAINING AMOUNT WAS DEPOSITED INTO THE ACCOUNT OF THE ASSESSEE. FURTHER, WITH REGARD TO THE GROUND NOS. 2 & 3, THE LD. COUNSEL HAS PLEADED THAT SUBMISSIONS MADE BY THE ASSESSEE HAVE NOT BEEN PROPERLY CONSIDERED AND FURTHER THE LD. CIT(A) HAS MADE CERT AIN OBSERVATIONS REGARDING NON PRODUCTION OF SOME DOCUMENTS, WHEREAS , NO OPPORTUNITY OF HEARING WAS GRANTED TO THE ASSESSEE IN THIS RES PECT. 5. THE LD. COUNSEL, THEREFORE, HAS SUBMITTED THAT T HE MATTER BE RESTORED TO THE FILE OF THE CIT(A) FOR ADJUDICATION AFRESH BY WAY OF A SPEAKING ORDER. 6. THE LD. DR HAS ALSO NOT OBJECTED TO THE ABOVE CO NTENTION OF THE ASSESSEE. 7. IN VIEW OF THIS, THE IMPUGNED ORDER OF THE CIT(A ) IS SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE CIT(A) WI TH A DIRECTION TO GIVE PROPER AND REASONABLE OPPORTUNITY FOR HEARING TO TH E ASSESSEE AND TO ITA NO. 1164-CHD-2019- SHRI CHARAN SINGH, PANCHKULA 4 CONSIDER THE EVIDENCES RELIED UPON BY THE ASSESSEE AND THEREAFTER TO DECIDE THE APPEAL AFRESH IN ACCORDANCE WITH LAW. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22.10.2020. SD/- SD/- ( . . / N.K. SAINI) ( / SANJAY GARG) !'# /VICE PRESIDENT $% / JUDICIAL MEMBER DATED : 22 .10.2020 .. 2*&)3454) / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. &' '$ / THE RESPONDENT 3. , 6) / CIT 4. , 6) ( )/ THE CIT(A) 5. 47 &)8 , . 8 , 9:;< / DR, ITAT, CHANDIGARH 6. ;= - / GUARD FILE 2 , / BY ORDER, > / ASSISTANT REGISTRAR