Hira Singh, Mandi V. Addl. CIT, Mandi

ITA 1403/CHANDI/2010

• Counselvise Citation: 140321514 RSA 2010
• Duration Of Justice: 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 21-11-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 13-12-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAI SHREE SHARMA
• Assessee Lawyers: R R THAKUR
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHE B CHANDIGARH BEFORE MS SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO.1403/CHD/2010 ASSESSMENT YEAR :2007-08 PAN:AJOPS8165M SH. HIRA SINGH, PROP. VS. ADDL. COMMR. OF INCOME- TAX, LABH SINGH HIRA SINGH, RANGE, MANDI. MANDI. (APPELLANT) (RESPONDENT) ASSESSEE BY: SH. R.R. THAKUR, DEPARTMENT BY: SMT. JAISHREE SHARMA, DR DATE OF HEARING:21.11.2011 DATE OF PRONOUNCEMENT:24.11.2001 ORDER PER MEHAR SINGH, AM THE PRESENT APPEAL FILED BY THE ASSESSEE IS DIRECT ED AGAINST THE ORDER OF THE LD. CIT(A), SHIMLA, DATED 26/10/2010, PASS ED UNDER SECTION 250(6) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED T O IN SHORT THE ACT), FOR THE ASSESSMENT YEAR 2007-08, WHERE THE ASSESSEE HA S RAISED FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LD. CIT(A), HAS ERRED IN DISMISSING TH E APPEAL OF THE APPELLANT WITHOUT GOING THROUGH THE FACTS AND CIRCU MSTANCES OF THE CASE. 2. THAT THE LD. CIT(A), HAS ERRED TO CONFIRM THE AD DITION OF RS.40,00,000/- MADE BY THE ASSESSING OFFICER RAISED AS A LOAN BY THE APPELLANT FROM THE N.R.I. ACCOUNT NO.0148000103205242 AT DELHI OF SMT. KAMALJIT KAUR WHO PREPARED A D.D. NO.09110001 DATED 10.04.2006 FROM P UNJAB NATIONAL BANK, NEW DELHI PAYABLE AT MANDI (HP) WITH OUT GOING THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. TH E ADDITION IS LIABLE TO BE DELETED. 3. THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE AMOUNT OF RS.4,80,000/- INTEREST PAID TO THE CREDITOR SMT. KA MALJEET KAUR 2 WHICH WAS WRONGLY ADDED IN THE INCOME OF THE APPELL ANT BY THE ASSESSING OFFICER. THE ADDITION IS LIABLE TO BE DEL ETED. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE FILED HIS RETURN OF INCOME AT RS.4,00,911 ON 29.10.2007 FROM THE SAL E AND PURCHASE OF CASTROL LUBRICANT OIL. THE MAIN ISSUE INVOLVED IN T HIS CASE IS THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE RAISED A LO AN OF RS.40,00,000/- FROM HIS SISTER WHO IS AN NRI AND MAINTAINS A/C NO.0148 00103205242 ( AN NRE A/C) IN PUNJAB NATIONAL BANK, KIRTI NAGAR, NEW DELH I. IT WAS STATED THAT THE SAID NRI SISTER HAD GIVEN POWER OF ATTORNEY IN FAVO UR OF HER FATHER SH. SANTOKH SINGH. THE A.O. CALLED UPON THE ASSESSEE TO PRODUCE SH. SANTOKH SINGH, THE POWER OF ATTORNEY HOLDER OF THE SISTER O F THE ASSESSEE , WHO COULD NOT BE PRODUCED AS HE HAD GONE OUT OF INDIA. THE CH EQUE WAS ISSUED BY SMT.KAMALJEET KAUR, WHO WAS IN INDIA AT THE TIME OF PREPARATION OF D.D. THE ASSESSING OFFICER ADDED THE AMOUNT OF RS.40,00, 000/- IN THE INCOME OF THE ASSESSEE BY HOLDING THAT THE TRANSACTION WAS NO T GENUINE. AGGRIEVED BY THE ORDER OF THE A.O., THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A), WHO CONFIRMED THE ADDITION MADE BY THE A.O. HE FURTHER UPHELD THE DISALLOWANCE OF INTEREST DEBITED AT RS.4,80,000/- ALSO. NOW, AG GRIEVED THE ASSESSEE IS IN APPEAL BEFORE THIS BENCH. 3. IN THE COURSE OF PRESENT APPELLATE PROCEEDINGS, THE LD. COUNSEL FOR THE ASSESSEE, HAS FILED AN APPLICATION DATED 14.11.2001 OF THE ASSESSEE, WHICH IS REPRODUCED HEREUNDER: SUB: HEARING IN THE CASE OF SHRI HIRA SINGH PROP. LABH SINGH HIRA NER CHOWK, DISTT MANDI (H.P) ITA NO.1403/CHD/2 010 CASE FIXED FOR HEARING ON 21.11.2011 PERMISSION TO FILE ADDITIONAL EVIDENCE BEFORE THE HONOURABLE INCOME TA X APPELLATE TRIBUNAL UNDER RULE-29 OF INCOME TAX APPE LLATE TRIBUNAL RULES, 1963 --- RESPECTFULLY, IT IS SUBMITTED THAT THE CAPTIONED CA SE IS FIXED FOR HEARING BEFORE THE HONBLE INCOME TAX APPELLATE TRI BUNAL, B- BENCH ON 21.11.2011, THE CREDITOR SMT. KAWALJIT KAU R CAME TO 3 INDIA FEW DAYS BACK WHO HAS GIVEN AN AFFIDAVIT FOR THE ADVANCE OF RS.40,00,000/- TO THE APPELLANT WHICH IS THE REQ UIRED EVIDENCE IN THE CASE. A CERTIFICATE FROM THE BANK R EGARDING SUBMISSION OF AMOUNT OF RS.53,47,199/- FROM ABROAD IS ATTACHED HEREWITH. THE COPY OF BANK A/C FROM 25.12 .2004 TO 10.4.2006 IS ALSO ENCLOSED. THE CREDITOR SMT. KAWAL JIT KAUR WILL ALSO BE HERE IN INDIA IN THE END OF DECEMBER, 2011, CAN BE EXAMINED IN THE CASE WHO COULD NOT BE PRODUCED ON A CCOUNT OF OUTSIDE INDIA BEFORE THE ASSESSING OFFICER AT THE TIME OF COMPLETION OF ASSESSMENT. IT IS, THEREFORE, REQUEST ED THAT THESE DOCUMENTS MAY KINDLY BE ALLOWED TO BE PRODUCED IN T HE CASE UNDER RULE 29 OF THE INCOME TAX APPELLATE TRIBUNAL RULE, 1963. YOURS FAITHFULLY, SD/- (HIRA SINGH) PROP. LABH SINGH HIRA SINGH CASTROL & LUBRICANTS DEALERS NER CHOWK, DISTT. MANDI (HP) 3.1. FURTHER, THE AFFIDAVIT SUBMITTED BY SMT. KAWAL JEET KAUR IS ALSO REPRODUCED HEREUNDER: AFFIDAVIT I KAWALJEET KAUR D/O SH. SANTOKH SINGH, R/O H.N.127 /6, SAMKHETER MUHALLA MANDI TOWN MANDI, H.P. AT PRESENT R/O 102 S OI 11 MOOBAN, PHAKAMAS, SOI SUANLUANG, PATTANAKARN ROAD, BANGKOK, THAILAND 10250, DO HEREBY BY SOLEMNLY AFFIRMS ON OATHS AS UN DER: 1. THAT THE DEPONENT IS RESIDING AT H.NO.127/6, SAMKHE TER MUHALLA MANDI TOWN MANDIU H.P. AT PRESENT R/O 102 S OI 11, MOOBAN, PHAKJAMAS, SOI SUANLUANG, PATTANAKARN ROAD, BANGKOK, THAILAND 10250, FROM THE LAST 30 YEARS. 2. THAT I HAVE OPENED BANK A/C NO.0148000103205242 IN PUNJAB NATIONAL BANK, 80, NEW DELHI, TILAK NAGAR DELHI ON 25 TH DECEMBER, 2004. 3.2. THE LD. COUNSEL FOR THE ASSESSEE, FILED THE NE W/ADDITIONAL EVIDENCE, VIDE APPLICATION DATED 14.11.2001, IN THE SHAPE OF AFFIDAVIT AND OTHER SUPPORTING DOCUMENTS THERETO. HE ALSO STATED THAT T HE DEPONENT SMT. KAWALJEET KAUR IS VISITING INDIA IN THE MONTH OF DE CEMBER, SHE CAN BE PRODUCED FOR EXAMINATION BEFORE THE A.O. ACCORDINGL Y, HE REQUESTED THAT THE CASE OF THE ASSESSEE MAY BE RESTORED BACK TO THE FI LE OF THE A.O. FOR FURTHER INVESTIGATION AND VERIFICATION IN THE MATTER WITH A VIEW TO ADVANCE THE CAUSE OF JUSTICE.. 4 4. THE LD. DR, ON THE OTHER HAND, DID NOT RAISE A NY OBJECTION TO THE REQUEST OF THE ASSESSEES COUNSEL FOR RESTORATION O F THE CASE TO THE FILE OF THE A.O. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT MATERIAL PLACED ON RECORD. THE LD. COUNSEL FOR THE ASSESSEE, PLEADED FOR RESTORING THE ISSUE BACK TO THE FILE OF THE A.O., AS THE DEPO NENT SMT. KAWALJIT KAUR, IS VISITING INDIA IN THE MONTH OF DECEMBER AND, HENCE, CAN BE PRODUCED BEFORE THE A.O. FOR THE PURPOSE OF VERIFICATION AND INVES TIGATION IN THE MATTER. IN VIEW OF THE NEW/ADDITIONAL EVIDENCE FURNISHED BY TH E ASSESSEE AND CONSIDERING THE SUBMISSION MADE BEFORE THE BENCH, W E CONSIDER IT FAIR AND REASONABLE TO RESTORE THE ISSUE, IN DISPUTE, TO T HE FILE OF THE ASSESSING OFFICER, FOR DECIDING THE SAME AFRESH, IN ACCORDAN CE WITH LAW AND AFTER AFFORDING PROPER AND REASONABLE OPPORTUNITY OF BEIN G HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO PRODUCE THE DEPONE NT AS INTENDED. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24TH TH NOVEMBER, 2011. SD/- SD/- (SUSHMA CHOWLA) (MEHAR SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: TH NOVEMBER, 2011 /SKR/ COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT: HIRA SINGH, 2. THE RESPONDENT: ADDL. CIT, MANDI (HP) 3. THE CIT(A) 4. THE CIT 5. THE DR, INCOME-TAX DEPARTMENT, CHANDIGARH. 5