Mr. Gurpreet Singh, Ludhiana V. ITO, W-7(1), Ludhiana

ITA 1608/CHANDI/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5333 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 27-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA KANTA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH , . '.., # $, %& BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ./ ITA NO. 1608/CHD/2017 / ASSESSMENT YEAR : 2011-12 MR. GURPREET SINGH, S/O MR.RURH SINGH, BAREWAL, FATEHGARHAWANA, LUDHIANA THE ITO, WARD 7(1), LUDHIANA ./PAN NO: EIWPS9038A / APPELLANT /RESPONDENT ! /ASSESSEE BY : SH. GAURAV SHARMA, CA ' ! / REVENUE BY : SMT. CHANDRAKANTA, SR.DR # $ % /DATE OF HEARING : 10.12.2018 &'() % / DATE OF PRONOUNCEMENT : 28.01.2019 %'/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 29.9.2017 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4 , LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN THE FOLLOW ING GROUNDS OF APPEAL: 1. THAT ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE , THE ORDER OF LEARNED CIT(A) IS BAD IN LAW. 2. THAT THE WORTHY COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN UPHOLDING THE ACTION OF T HE ASSESSING OFFICER IN CONFIRMING THE ADDITION OF RS. 14,00,000/- MADE BY HIM ON ARBITRARY AND ESTIMATED BASIS. ITA NO. 1608/CHD/2018- MR. GURPREET SINGH, LUDHIANA 2 3. THAT THE WORTHY COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN UPHOLDING AN ADDITION OF RS. 10,00,000/- WHICH WAS CLAIMED BY THE APPELLANT AS THE PART PAYMENT FOR THE PURCHASE OF PROPERTY IN THE YEAR 2005. 4. THAT THE WORTHY COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN UPHOLDING THE ABOVE ADDITI ON OF RS. 10,00,000/- EVEN AFTER THE FACT THAT THE APPELLANT HAS FURNISHED VARIOUS EVIDENCES REGARDING PART PAYMENT MADE IN THE YEAR 2005, THE SOURCE OF SUCH PAYMENT AND THE PROOF OF SUCH SOURCE . 5. THAT THE WORTHY COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN UPHOLDING THE ADDITION OF RS. 4,00,000/- BY REJECTING THE SOURCES GIVEN IN THE CA SH FLOW STATEMENT OF THE APPELLANT. 6. THAT THE WORTHY COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN UPHOLDING AN ADDITION OF RS. 4,00,000/- BY FOCUSING ON ONLY PART OF THE SOURCES GIVEN IN THE CASH FLOW STATEMENT AND IGNORING VARIOUS OTHER SOURCES GIVEN THEREIN. 7. THAT BOTH THE ABOVE ADDITIONS MADE BY THE ASSESSING OFFICER ARE ON THE BASIS OF PREPONDERANCE OF PROBABILITIES SURMISES AND CONJECTURES. 8. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROUNDS OF APPEAL BEFORE THE APPEAL IS FINALLY HEAR D OR DISPOSED OFF. 3. BRIEF FACTS RELATING TO THE ISSUE ARE THAT THE A SSESSEE IN THE YEAR 2010- 11 PURCHASED CERTAIN LAND ALONGWITH OTHER THREE PER SONS. THE REGISTERED SALE CONSIDERATION OF THE LAND WAS ABOUT RS. 1.11. CRORES. THE ASSESSEE HAD 1/4 TH SHARE IN THE AFORESAID PROPERTY AND, THUS, CLAIMED THAT HE HAD PAID 1/4 TH PART OF THE SALE CONSIDERATION. THE ASSESSEE CLAIM ED THAT THE ENTIRE CONSIDERATION WAS PAID IN THREE INSTALLMENTS. THE F IRST INSTALLMENT WAS OF RS. 40 LACS, OUT OF WHICH RS. 10 LACS WAS THE SHARE OF THE ASSESSEE THAT WAS PAID FOR THE FINANCIAL YEAR 2005-06, THE SECOND IN STALLMENT WAS OF RS. 35 ITA NO. 1608/CHD/2018- MR. GURPREET SINGH, LUDHIANA 3 LACS OUT OF WHICH THE ASSESSEE HAD CONTRIBUTED RS. 8.75 LACS WHICH WAS PAID IN THE FINANCIAL YEAR 2009-10 AND THE THIRD IN STALLMENT WAS OF RS. 33.37 LACS OUT OF WHICH THE ASSESSEE CONTRIBUTED RS. 9,09,375/- WHICH WAS PAID IN THE FINANCIAL YEAR 2011-12. THE ASSESS ING OFFICER ADMITTED THE SOURCE OF INCOME SO FAR AS THE SECOND INSTALLMENT W AS CONCERNED, HOWEVER, HE DISALLOWED THE ENTIRE FIRST INSTALLMENT ON THE G ROUND THAT THE ASSESSEE HAD FAILED TO SUBSTANTIATE THE SOURCES OF THE INVES TMENT AND EVEN HE DID NOT ADMIT THE CONTENTION OF THE ASSESSEE THAT THE FIRS T INSTALLMENT WAS PAID IN THE YEAR 2005. SO FAR AS THE AMOUNT PAID IN THE THIRD INSTALLMENT WAS CONCERNED, THE ASSESSING OFFICER ADMITTED PAYMENT OF RS. 5.09 LAC S REGARDING WHICH THE SOURCES WAS EXPLAINED, HOWEVER, HE DISALLOWED RS. 4 LACS ON THE GROUND THAT THE ASSESSEE HAD FAILED TO DISCLOSE THE SOURC E OF AFORESAID AMOUNT. HE THEREFORE, TREATED THE AFORESAID AMOUNT FOR RS. 10 LACS + RS. 4 LACS AS UNEXPLAINED INCOME OF THE ASSESSEE AND IMPOSED TAXE S THEREUPON. 4. IN APPEAL, THE LD. CIT(A) CONFIRMED THE FINDING S SO ARRIVED BY THE ASSESSING OFFICER. 4. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE IDENTICAL ISSUE INVOLVED IN THE CASE OF BROTHER OF THE ASSESSEE, WHO IS ALSO AS CO-OWNER OF THE LAND IN QUESTION, IS PENDING BEF ORE THE ASSESSING OFFICER. THE LD. COUNSEL HAS FURTHER RELIED UPON TH E CERTAIN EVIDENCES TO PROVE THE SOURCE OF THE INVESTMENT. HE, THEREFORE, HAS SUBMITTED THAT ISSUE IN THE PRESENT CASE BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR EXAMINATION AFRESH IN THE LIGHT OF THE DOCUMENTS SU BMITTED BY THE ASSESSEE. THE LD. DR HAS NOT OBJECTED TO THE SAME. ITA NO. 1608/CHD/2018- MR. GURPREET SINGH, LUDHIANA 4 5. IN VIEW OF THIS, THE ORDERS OF THE LOWER AUTHORI TIES ARE HEREBY SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR DECISION AFRESH ON THIS ISSUE AFTER CONSIDERING TH E SUBMISSIONS AND THE RELEVANT EVIDENCE AND DOCUMENTS FURNISHED BY THE AS SESSEE. NEEDLESS TO SAY THAT THE ASSESSING OFFICER WILL GIVE PROPER OPP ORTUNITY TO THE ASSESSEE TO PRESENT HIS CASE. IN VIEW OF THE, THE APPEAL OF THE ASSESSEE IS TREAT ED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28.01.2019 SD/- SD/- ( ' . . , # $ / B.R.R. KUMAR) %& / ACCOUNTANT MEMBER ( / SANJAY GARG ) / JUDICIAL MEMBER DATED : 28.01.2019 .. '+ ,- .- / 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