Subhash Chand, Mathura V. I.T.O-1(3)($0, Mathura

ITA 158/AGR/2019

AI Insights

The case involves an appeal by the assessee, Subhash Chand, against the order of the CIT(A)-1, Agra, which confirmed the assessment made by the Income Tax Officer under sections 144/147 of the Income Tax Act. The assessment included deemed income from the purchase of immovable property and other income, totaling Rs. 6,90,000. The assessee contested the validity of the notice under section 148 and the additions made to his income, arguing that no actual money was exchanged in the property transaction and that similar cases involving his brothers were dropped. The tribunal found merit in re-evaluating the case, considering the outcomes of the assessee's brothers' cases, and remitted the matter back to the Assessing Officer.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114073 (ITAT-AGRA)
• Duration Of Justice: 4 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 11-09-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 13-05-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHILDENDRA SHRIVASTAVA
• Assessee Lawyers: M.M. AGRAWAL
• Keywords: Principle of natural justice; Deemed to accrue or arise in india
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, ‘SMC’: AGRA (Through Video Conferencing) BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.158/AGR/2019 [Assessment Year: 2009-10] Subhash Chand, Village Behata, Bahata Bangar, Shergarh, Tehsil Chatta, Mathura-281404 Vs The Income Tax Officer-1(3)(4) Aayakar Bhawan, Radhika Vuhar, Phase-I, National Highway-2, Mathura, Uttarpradesh-281001 PAN-BMPPC6789J Assessee Revenue Assessee by Sh. M.M. Agrawal, CA Revenue by Sh. Shildendra Shrivastava, Sr. DR Date of Hearing 13.09.2023 Date of Pronouncement 18.09.2023 ORDER PER SHAMIM YAHYA, AM, This appeal by the assessee is directed against the order of the Ld. CIT(A)-1, Agra, dated 21.06.2018 pertaining to Assessment Year 2009-10. 2. The grounds of appeal reads as under:- 1. (a) Because, in the facts and circumstances of the case, learned 'CIT (Appeals)', Agra failed to appreciate that the notice dated 31.03.2016 issued under section 148 of the 'Act' in the case of 'appellant' was wholly illegal, invalid and without jurisdiction. (b) Because, there was no valid 'reason to believe regarding escapement of income with the 'AO' and the reasons were recorded without due application of mind. The reasons recorded were no more than 'reason to suspect'. 2 ITA No.158/Agra/2019 (c) Because, without prejudice to aforesaid, on due consideration of the facts and circumstances of the case and submissions made, learned 'CIT (Appeals) failed to appreciate that though the purchase deed mentioned payment of consideration, there were enough evidence on record that the 'appellant' did not make any payment in respect of sale deed executed by his father in favour and his two brothers and thereby in not deleting addition of Rs. 570,000 made by the ‘AO’. (d) Because, learned 'CIT (Appeals) failed to appreciate that the similar proceedings initiated in the case of two brothers of 'appellant' by the Income tax Officer (1)(3), Mathura and the Income tax Officer 1(3)(5), Mathura in respect of same property were dropped by the respective assessing authority on finding that no consideration was paid for the purchase of property. (e) Because, learned 'CIT (Appeals) has erred in not deleting addition of Rs. 120,000 made by the 'AO' towards household expenses ignoring the fact that the 'appellant' was agriculturist and had no other source of income and he had to meet expense from agricultural activities only. 2. Because, the order under appeal is wrong, illegal, bad in law and against the principles of natural justice.” 3. Brief facts of the case are that the assessee has not complied with the notices of the Assessing Officer. Hence, the assessment was completed u/s 144/147 of the Act assessing the income at Rs.6,90,000/-. The assessed income for Rs.5,70,000/- is the assessee’s share of deemed income from purchase of an immovable property besides other income of Rs.1,20,000/-. 4. Against the above order, the assessee appealed before the Ld. CIT(A). The assessee pleaded that the assessee has not received notices. However, the ld. CIT(A) was not convinced. The assessee also submitted before the Ld. CIT(A) that no money was actually exchanged in the immovable property registration. The sale deed was made between the assessee’s father and the assessee and his two brothers and he submitted that they being illiterate persons made the deed; however, no actual money was paid to the father. The 3 ITA No.158/Agra/2019 Ld. CIT(A) was not convinced with the arguments of the ld. Counsel for the assessee and he confirmed the order of the Assessing Officer. 5. Against this order, the assessee is in appeal before us. We have heard both the parties and perused the records. 6. The Ld. Counsel for the assessee submitted that in the case of two brothers of the assessee who were similarly said to have given the amount to the father for the property, the Revenue has given notice but later on dropped the case. The ld. Counsel for the assessee submitted that the issue may be remitted back to the file of the Assessing Officer. Upon careful consideration, we agree with the proposition that the Assessing Officer may enquire about the position of the two brothers where notices are said to have been dropped. If that be so it will not be equitable that the assessee alone should be visited with the rigorous of deemed income. The Ld. DR did not have any objection to the above proposition. Hence, we remit this issue to the file of the Assessing Officer. The Assessing Officer shall consider the issue afresh considering our observation hereinabove and after giving the assessee due opportunity of being heard. 7. In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open court on 18.09.2023. Sd/- Sd/- [ANUBHAV SHARMA] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Delhi; 18.09.2023 f{x~{tÜ? f{x~{tÜ?f{x~{tÜ? f{x~{tÜ? Copy forwarded to: 4 ITA No.158/Agra/2019 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi