Nirmal Singh, Bahadurgarh V. ITO, W-6, Patiala

ITA 1597/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1513 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 24-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MADIT SRIVASTAVA
• Assessee Lawyers: N K SAINI ITP
• Keywords: Income from undisclosed sources

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, SMC, CHANDIGARH , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 1597/CHD/2018 / ASSESSMENT YEAR : 2010-11 SHRI NIRMAL SINGH, S/O TARA CHAND, HOUSE NO. 64, STREET NO. 3,VILLAGE MEHMADPUR JATTAN, NEAR HIRA COLONY (BAHADURGARH) DISTT. PATIALA VS. THE ITO, WARD-6, PATIALA ./PAN NO: ACYPS3228G / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI N.K. SAINI, ITP ' ! / REVENUE BY : SH. MADIT SRIVASTAVA, SR.DR # $ % /DATE OF HEARING : 10.06.2019 &'() % / DATE OF PRONOUNCEMENT : 10.06.2019 / ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 30.10.2018 OF THE COMMISSIONER OF INCO ME TAX (APPEALS), PATIALA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE SOLE DISPUTE RAISED IN THIS APPEAL RELATES T O THE ADDITION OF RS. 18.43 LACS MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS WHICH WAS FOUND DEPOSITED IN THE ACCO UNT OF THE ASSESSEE. THE ASSESSING OFFICER TREATED THE SAID DEPOSIT AS UNEXPLAINED INCOME OF THE ASSESSEE. ITA NO. 1596-CHD-2018- SH. NIRMAL SINGH, PATIALA 2 3. IN APPEAL BEFORE THE CIT(A), IT WAS EXPLAINED T HAT, IN FACT, THE SAID AMOUNT WAS DEPOSITED BY THE ASSESSEE IN HIS AC COUNT AFTER RECEIVING THE SAME FROM ONE SHRI RAJINDER SINGH. THE ASSESSEE FURTHER EXPLAINED THAT, IN FACT, THE ASSESSEE INTENDED TO SEND HIS SON TO AUSTRALIA ON STUDY VISA, FOR WHICH THE ASSESSEE HAD TO SHOW HIS CREDITWORTHINESS FOR WHICH THE TEMPORARY DEPOSITS WERE MADE IN THE BANK ACCOUNT AFTER ARRANGING THE SAME FROM SHRI RAJINDER SINGH, WHO IS A PRIVATE FINANCER. THE ASSESSEE TOOK THE HELP OF SHRI MUNISH KUMAR AND VINOD KUMAR WHO INTRODUCED THE ASSESSEE TO SHRI RAJIDNER SINGH. THE ASSESSEE IN THIS RESPECT FILED THE FACTUAL EVIDENCE IN THE SHAPE OF AFFIDAVITS OF THE CONCERNED PERSONS AND ALSO BANK ACCOUNT STATEMENTS OF SHRI RAJINDER SINGH TO PROVE THE WITHDRAWALS OF THE SAID AMOUNT F ROM HIS ACCOUNT WHICH WAS FURTHER DEPOSITED IN THE ASSESSEES ACCOU NT. THE LD. CIT(A) CALLED FOR THE REMAND REPORT FROM THE ASSESSING OFF ICER IN THIS RESPECT, SHRI RAJINDER SINGH APPEARED BEFORE THE ASSESSING OFFICER AND CONFIRMED THAT HE HAD GIVEN THE AFORESAID AMOUNT TO THE ASSES SEE AFTER WITHDRAWING THE SAME FROM HIS BANK ACCOUNT WHICH WA S FURTHER DEPOSITED BY THE ASSESSEE IN HIS SAVING ACCOUNT. HE ALSO CONFIRMED THAT HE WAS INTRODUCED TO THE ASSESSEE BY SHRI MUNISH KU MAR AND SHRI VIOND KUMAR. THE LD. CIT(A), HOWEVER, CONFIRMED THE ADDIT IONS MADE BY THE ASSESSING OFFICER ON THE GROUND THAT ONE OF THE MID DLEMAN SHRI VINOD KUMAR DID NOT ACCEPT THE SUMMONS AND EVEN TOLD THE CONCERNED INSPECTOR, WHO HAD GONE THERE TO DELIVER THE SUMMO NS, THAT HE HAD NOTHING TO DO WITH THE AFORESAID TRANSACTION. ITA NO. 1596-CHD-2018- SH. NIRMAL SINGH, PATIALA 3 4. I HAVE HEARD THE RIVAL CONTENTIONS AND HAVE ALSO GONE THROUGH THE RECORD. IN THIS CASE, THE CONCERNED PERSON NAMELY SHRI RAJINDER SINGH HAS PERSONALLY APPEARED AND CONFIRMED THAT HE HAD P AID THE AMOUNT OF RS. 18.43 LACS TO THE ASSESSEE. HE HAS ALSO CONFIRM ED / PROVED THE AFORESAID FACT BY PRODUCING THE BANK ACCOUNT STATEM ENT. FURTHER, THE AMOUNT WAS PAID BACK TO HIM BY THE ASSESSEE AFTER WITHDRAWING THE SAME FROM HIS BANK ACCOUNT AFTER A SHORT SPAN OF TI ME. THE ASSESSEE HAS ALSO EXPLAINED THE REASONS FOR GETTING THE SAID SHO RT TERM LOAN WHICH SEEMS TO BE PLAUSIBLE. MERELY BECAUSE SHRI VINOD K UMAR HAS NOT TURNED UP, MAY BE BECAUSE OF HIS OWN CERTAIN APPREHENSION S, HOWEVER, THE ASSESSEE, IN MY VIEW, HAS BEEN ABLE TO PROVE THE S OURCE OF DEPOSITS AS WELL AS REASON FOR THE DEPOSITS AND UNDER THE CIRCU MSTANCES IT DOES NOT APPEAR TO BE THE UNACCOUNTED INCOME OF THE ASSESSE E. IN VIEW OF THIS, I DO NOT FIND ANY JUSTIFICATION O N THE PART OF THE LOWER AUTHORITIES IN MAKING THE IMPUGNED ADDITION A ND THE SAME IS ACCORDINGLY ORDERED TO BE DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING SD/- ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 10.06.2019 .. ITA NO. 1596-CHD-2018- SH. NIRMAL SINGH, PATIALA 4 '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR