Madan Gopal, PAtiala V. ITO, W-2, Patiala

ITA 1330/CHANDI/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6918 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2015-2016
• Appeal Filed On: 03-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KHANNA
• Section: 147; 10; 201; 13; 20

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , “ S M C ” , C H A N D I G A R H ी एन. के. सैनी, उपा य एवं ी संजय गग , या यक सद य B E F OR E SH R I N . K . SA I N I , V I C E P R E SI D E N T & SH R I S A N J A Y G A R G, J U D I C I A L M E M B E R आयकर अपील सं./ ITA No. 1330/C H D / 2 0 1 9 नधा रण वष / Assessment Year : 2 0 1 5 - 1 6 Sh. Madan Gopal, 1414, Guru Nanak Nagar, Near Gurbax Colony, Patiala बनाम The ITO, Ward-2, Patiala थायी लेखा सं./PAN NO: ABJPG7088G अपीलाथ&/Appellant ()यथ&/Respondent Hearing though video Conferencing नधा *रती क, ओर से/Assessee by : Shri Rakesh Cajla, Advocate राज व क, ओर से/ Revenue by : Sh. Ashok Khanna, Addl. CIT स ु नवाई क, तार0ख/Date of Hearing : 25.11.2021 उदघोषणा क, तार0ख/Date of Pronouncement : 07.12.2021 आदेश/Order P er S an jay G ar g, Ju d ic i a l Me mb er : T he p re s e n t ap pe a l ha s b e e n p r e f e r re d by t h e as s e s se e a g a i ns t t h e or d e r d a t e d 0 1. 0 7. 20 19 o f t he Co m m i s s io ne r o f In c o me T a x (A pp e a ls ) , P a ti a la [h e r e i na f te r r e fer re d to a s ‘CI T ( A ) ’] . 2. T he a s s e s s ee i n t h is a pp e a l h as t a ken fol l ow in g gr o un ds o f a pp e a l : - 1. T hat t h e or d er of t he L d. C IT ( A ) P at i al a is ba d in l aw an d aga i ns t t he f a c t s o f t he ca s e. ITA No. 1330-Chd-2019 Sh. Madan Gopal, Patiala 2 2. T hat t h e L d . C IT ( A p pe a l ) P a t i a l a i s not j us ti f i e d i n up hol di ng t he v a l i di t y o f n o t i c e f or r e -op e n i ng t h e as s e s sm ent u / s 14 7 of I. T . Ac t . T he r ea s ons r ec or d e d f or r e- op e n i n g t he as s es sm e nt no t ex i s t at al l . 3. T he n ot i ce u /s 1 4 8 was i s s ue d on t h e v a gu e r e as o ns ba s ed o n s ur m is e s an d c on j e ct ur e s . 4. T hat o n th e f ac t s & c i rc um s t a nc e s of th e c as e th e Wor t hy C IT i s not j us t i f i ed i n i g n or i n g t h e j u d gm e nt of t h e J u di c i al Ma g i s t r at e 1s t C l as s , Pat i al a, in wh ic h t he d at e of ad v a n c e m a de i s c le ar l y m e nt i o n e d 5. T he w or t hy CI T i s er r e d i n up ho ld in g t he ad d i t i on of R s . 1 627 0 0 0/ - wi t h o ut c o ns i d e r in g t he s u b m i s s i ons m ade be fo r e t he L d . A . O . a s w el l a s bef or e hi m . 6. T he a p pe ll an t cr a v e s l e av e t o ad d, a m e nd or de le t e an y o f gr ou nd (s ) o f a pp e a l b e f or e it i s f i na l l y h ear d . 3. A t t he ou t s e t, t h e L d. c o u ns e l fo r t h e as s e s s ee h as i n v it e d ou r a tt e n t i o n t o t h e c op y o f t he r ea s on s re c or d e d fo r re o pe n i n g o f t he a s s es s men t , t he c o n t e n t s o f w hi ch a re r e pr o d uc ed as un d er :- “Brief reasons for reopening the case U/s 148 of the Income- tax Act,1961 As per the information on record, the assessee namely Sh. Madan Gopal has given advance to a person in the F.Y. 2014- 15 relevant to A.Y. 2015-1 6 amounting to Rs. 10,00,000/-. The assessee have filed its return of income for the A. Y. 2016- 17 with returned income of Rs. 2,00,110/-. The assessee have failed to explain the source of the amount given. I, have, therefore, reasons to believe that an income of Rs. 10,00,000/- has escaped assessment within the meaning of provision of explanation 2(b) of section l47 of the Income-tax Act, 1961.” 4. T he L d . c o un se l f or th e as s e s s ee h a s s ub mi tt e d th a t t ho ug h t he A s s es s i ng o ff i c e r i s c on c e rne d a b ou t th e a s s e s s me nt o f i n co me r e l a t i ng t o t h e F . Y . 2 01 4- 1 5 r el ev an t t o t h e a s se ss me nt y e a r 20 1 5-1 6, w he re a s, ITA No. 1330-Chd-2019 Sh. Madan Gopal, Patiala 3 he h as r e f e r re d t o t he I n c o me T ax Re t u rn for as s e s sme n t y ea r 2 0 16 - 1 7. H e has fu rt h e r s u b mi t te d t ha t th e s ol e a l l e g a t i on le ve ll e d by t he A s s es s i ng o f fi c e r in t he re a s ons re c or de d i s t ha t th e a s s ess e e ha d a dv a n c e d Rs . 10 l a cs d ur i n g t h e F . Y . 201 4 -1 5 w h e re as , i n fa c t, t h e a s s es s e e di d no t a d va n c e t h e a mo u n t o f Rs . 1 0 la cs t o an y pe rs o n du r i n g t he F . Y . 2 014- 15 r el e va n t t o as s e s s me nt ye ar 2 01 5 - 16 . H e ha s f ur t h e r s ub m i tt e d t ha t, i n fa c t , th e a fo re s a i d a mo un t o f Rs. 10 la c s w a s a dv a n c e d i n F . Y . 20 1 2-1 3 r el at i ng to t he a ss e s s me nt y ea r 20 13 -1 4. Th e L d. C ou ns e l i n t h is re sp ec t h a s i nv i t e d o ur a tt e nt io n t o t he c o py o f t he ob j e c t i ons fi l e d to t he A s se s s i ng o ff i c er i n t h i s res p ec t, w h er e i n, i t ha s be e n poi nt ed o ut t h at n o a dv a n c e o f Rs . 10 l a cs w a s gi v en d uri ng t he re l ev an t ye a r an d t ha t t h e a for e s a i d a dva nc e o f Rs . 10 l a c s p er ta i ne d t o t he F . Y . 20 1 2-1 3. Th e L d. co u ns e l h as f ur t h e r i n vi ted our a t te nt i o n t o t he d oc u me n t s o f l i g at i o n o f t h e a s s e s s ee w i t h on e S h ri Bi k ra mj it S in gh, t o w ho m t h e a s s es se e al l e g e dl y ha d a d va n c e d a l o an o f R s . 10 la c s. A t pa g e N o . 2 0 o f t h e pa p e r bo ok , t he re i s a c o py o f th e l e ga l n ot i c e i s s ue d t o S h ri B i k r a m j i t S i ng h, w he r e i n, i n p a ra 2 , t he a ss e s s e e ha s me n t i on e d t ha t th e s a i d S hri B i kr a m j it S i ng h ha d t a k e n lo an of R s . 10 l a cs i n t he 1 s t w e ek o f J a n u ar y 20 1 3. T h e r e a f te r , a t p ag e N o. 23, t h er e i s a c op y o f t he c o m p l ai nt f i l e d in t he C ou r t o f J ud i c i a l M a gi s tra te Is t Cl a s s ( J M I C), w he re th e a s s e ss e e ha s me n t io ne d i n th e c o m p l a i n t tha t S hr i B i k ra mj it S i ng h ha d t a ke n lo a n o f Rs . 1 0 l a cs i n t h e fi r s t w eek o f J anu ar y 2 0 1 3. A t pa g e N o. 30, t h er e is a c op y o f t he or de r d a t e d 1 0 . 7. 201 7 o f t h e ITA No. 1330-Chd-2019 Sh. Madan Gopal, Patiala 4 J ud ic i a l M a g i s t ra te Is t Cl as s , P at i al a , w he re i n, i n pa r a 2 o f t he o r de r, t he fa c ts ha ve b e e n m en ti on e d t ha t S h ri B i k r a m j k it S i ng h h ad bo r row e d Rs . 10 l a cs i n th e fi rs t w ee k o f J a nu ar y 20 13 a n d in t he en d , a c c u se d ha s be e n c o n vi c t e d f o r ha vi n g co m mi t t ed a n o ffe n c e pu nis h a bl e u / s 13 8 o f t he N e g ot i a b le I ns t ru me n t A c t . 5. T he a f or e s ai d d oc u me nt s w er e p ro v i de d by t h e a sse s s e e t o t he A s s es s i ng o ffi c e r a l on g w i t h o b j e c t i o ns for t he re ope ni ng o f t he a s s es s men t . T he L d . Cou n se l ha s fu r t h er i n vi te d o ur a t t e nt i o n t o p a ge 13 o f t h e p a p er b o ok t o s ub m i t th a t t he A s s e s s i ng off i c e r ha s t o t a l l y i gn o r ed t he a fo r es a i d o bj ec t io ns o f t he as s e s s ee a nd di s mis s e d t he ob j e c t i ons o f t he a s s e ss ee by w ay o f a cr y pt i c o rd er b y obs e r v i n g t ha t t he a s s es s e e h a d n o t p ro ve d t he s ou rc e o f a dv a n c e in th e F . Y . 2 012 - 1 3. T he L d . C o u ns e l h a s fu rt h e r i n v i t e d o ur a t t e n t i o n to t h e c op y o f t he a pp r o va l g ra n t e d b y A d d l . C I T t o s u b mi t t h a t ev e n Ad d l. C I T ha s n ot a pp l i ed hi s m i n d w hi l e g i v i n g ap pro v a l f or re ope ni ng o f t he a ss e s s me n t a s t he s a me h as be e n gra nt e d in a me c h an i c a l ma n n er. 6. T he L d. D R re li e d on t h e fi nd i n gs of t h e a u t h or it i es be l o w . 7. We fi n d t ha t t h e a s se s s e e ha d f i l e d o bj e ct i o ns in t h i s c a s e a ga i ns t t he r e o pe n i n g o f t h e a s s es s me n t a lo ng w it h a mp l e e vi de nc e t h a t t he l oa n i n qu e s ti o n w a s a d va n c e d i n F . Y . 201 2- 1 3 r e l e va nt to t h e a s se s s me n t ye a r 2 0 13 - 1 4, w h er ea s , t he a s s e s s me nt ye a r i n v ol ve d i s as s e ss me nt y ea r 20 15- 1 6. T he r e i s n o e vi d e n c e t ha t t h e a s se s s e e had ad va n ce d a l o a n o f ITA No. 1330-Chd-2019 Sh. Madan Gopal, Patiala 5 Rs . 10 l a cs d ur i n g t he as s e s s me nt y e ar u nd e r c ons i de ra t i on . A s s e s s in g o f fi c e r d es pi t e d ul y pr ov i d e d w i t h t h e a fo re s a i d i nf or m at i on p ro c e e d e d t o re o pe n t h e as s e s s me nt a n d fr a m ed t he as s e s s me nt k n ow i n gl y o n w ron g fa c t s . In v ie w o f th is , t he r eo p e n i n g o f t h e a s s ess me n t i n t h is c as e is ba d i n l aw an d t he s a me is he re b y q ua s h ed . T he a pp e a l o f th e a s s ess e e s t a nds a ll o w e d. O r d e r p r o n o u n c e d o n 0 7 . 1 2 . 2 0 2 1 . Sd/- Sd/- (एन. के. सैनी / N.K. SAINI) (संजय गग / SANJAY GARG) उपा"य# /Vice President या$यकसद%य/ Judicial Member Dated : 07.12.2021 “आर.के .” आदेशक,( त4ल5पअ6े5षत/ Copy of the order forwarded to : 1. अपीलाथ&/ The Appellant 2. ()यथ&/ The Respondent 3. आयकरआय ु 7त/ CIT 4. आयकरआय ु 7त (अपील)/ The CIT(A) 5. 5वभागीय( त न9ध, आयकरअपील0यआ9धकरण, च;डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar