Sh. Sukhjeet Singh Walia, Bathinda V. The Income-tax Officer, Bathinda

ITA 167/ASR/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7732 (ITAT-AMRITSAR)
• Duration Of Justice: 3 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-07-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 13-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GHULAM MUSTAFA
• Keywords: Gift; Opportunity of being heard; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. T. S. KAPOOR, ACCOUNTANT MEMBER AND SH. N. K. CHOUDHRY, JUDICIAL MEMBER I.T.A NO. 167/(ASR)/2014 ASSESSMENT YEAR: 2009-10 PAN: AANPW9863C SUKHPALJEET SINGH WALIA MODEL TOWN, BATHINDA. VS. INCOME TAX OFFICER, WARD-1 (1), BATHINDA. (APPELLANT) (RESPONDENT) APPELLANT BY : SH. TARUN BANSAL (ADV.) RESPONDENT BY: SH. GHULAM MUSTAFA (D. R.) DATE OF HEARING: 24.08.2017 DATE OF PRONOUNCEMENT: 31.10.201 7 ORDER PER T. S. KAPOOR (AM): THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORD ER OF LD. CIT(A), BATHINDA DATED 16.12.2013 FOR ASST. YEAR: 2009-10. 2. THE ASSESSEE HAS TAKEN VARIOUS GROUNDS OF APPEAL , HOWEVER THE CRUX OF GROUNDS OF APPEAL IS THE ACTION OF LD. CIT( A) BY WHICH HE HAS CONFIRMED THE AN ADDITION OF RS.12,84,600/- WHICH T HE ASSESSING OFFICER HAD MADE ON ACCOUNT OF DEPOSITS WITH ICICI BANK. 3. AT THE OUTSET, THE LD. AR INVITED OUR ATTENTION TO APPLICATION FILED BY HIM UNDER RULE 29 FOR FILING OF ADDITIONAL EVIDE NCES IN RESPECT OF VARIOUS ADDITIONS SUSTAINED BY LD. CIT(A). THE LD. AR SUBMITTED THAT ASSESSEE WAS ALSO HAVING AGRICULTURE INCOME AS PER THE INCOME TAX RETURNS FILED BY ASSESSEE AND THE AGRICULTURE INCOM E WAS UPTO RS.3 LACS ITA NO. 167(ASR)/2014 ASSESSMENT YEAR: 2009-10 2 IN THE EARLIER YEARS AND SUBSEQUENT YEARS. HOWEVER THE ASSESSING OFFICER RESTRICTED THE CLAIM OF AGRICULTURE INCOME TO RS.70 ,000/- ONLY ON THE BASIS OF TWO J FORMS FILED BY ASSESSEE. IT WAS SU BMITTED THAT AGRICULTURE INCOME WAS TO TUNE OF RS.6458245/- AND ASSESSEE HAD SHOWN ALL J FORMS TO ASSESSING OFFICER BUT AS SAMPLE FILED ONLY TWO J FORMS. HE SUBMITTED THAT THE OTHER COPIES OF OTHER J FORMS AVAILABLE WITH THE ASSESSEE ARE PLACED AT P. B. PAGE 5 TO 7 AND HE FUR THER SUBMITTED THAT IN EARLIER YEARS AND IN SUCCEEDING YEAR, THE ASSESSING OFFICER HAD ACCEPTED THE AGRICULTURE INCOME TO THE TUNE OF RS. 3 LACS AN D THEREFORE IT WAS PRAYED THAT THIS ADDITIONAL EVIDENCE MAY BE CONSIDE RED FOR DECIDING THE AGRICULTURE INCOME OF THE ASSESSEE. AS REGARDS THE GIFT OF RS.3,89,000/- RECEIVED FROM FATHER SHRI DARSHAN SINGH, THE LD. AR SUBMITTED THAT LD. CIT(A) DID NOT ACCEPT THE CONTENTIONS OF ASSESSEE ON THE BASIS THAT BROTHER A ND FATHER OF THE ASSESSEE WERE ENGAGED IN TRANSPORTATION BUSINESS AN D THEY TWO HAD RAISED LOANS FOR PURCHASE OF VEHICLES AND THEY HAD THEIR OWN LIABILITIES. THE LD. AR SUBMITTED THAT BOTH FATHER AND SON ARE P ARTNERS IN M/S BIR BHOLA CARRIERS BATHINDA AND THE COPY OF BALANCE SHE ET ALONGWITH COMPUTATION OF INCOME AND COPY OF INCOME TAX RETURN S WAS PLACED IN P.B. PAGE 8 TO 24. IT WAS SUBMITTED THAT THE GIFT O F RS. 3,89,000/- WAS RECEIVED BY ASSESSEE AFTER WITHDRAWAL FROM THE CAPI TAL ACCOUNT AND THEREFORE THIS ADDITIONAL EVIDENCE IS VERY IMPORTAN T TO DECIDE THE ISSUE UNDER APPEAL AND THIS ADDITIONAL EVIDENCE IS ALREAD Y AVAILABLE WITH THE DEPARTMENT. ITA NO. 167(ASR)/2014 ASSESSMENT YEAR: 2009-10 3 AS REGARDS THE ADDITION OF RS. 3 LACS WHICH THE AS SESSEE HAD CLAIMED TO HAVE RECEIVED FROM SHRI AMRINDER CHAHAL, THE LD. AR SUBMITTED THAT DURING ASSESSMENT PROCEEDINGS ITSELF THE ASSESSEE VIDE LETTER PLACED AT P.B. PAGE 39 HAD EXPLAINED THAT TH E BROTHER-IN-LAW OF ASSESSEE SHRI SUKHJOT GREWAL HAD GIVEN THE SAME AS GIFT ON HIS VISIT TO INDIA IN JAN. 2008. AND HAD FILED CONFIRMATION AND IN THIS RESPECT OUR ATTENTION WAS INVITED TO P.B. PAGE 39 TO 43 WHERE C OPY OF LETTER ALONGWITH COPY OF PASSPORT OF SHRI SUKHJOT GREWAL AND AMRINDE R CHAHAL ALONGWITH COPIES OF IMMIGRATION STAMPS ON THE PASSPORT WAS PL ACED. THEREFORE HE ARGUED THAT THE FINDINGS MADE BY THE AUTHORITIES BE LOW THAT NO EVIDENCE WAS FILED IS TOTALLY INCORRECT. IN VIEW OF THE ABOV E, IT WAS PRAYED THAT THE MATTER MAY BE SET ASIDE TO THE FILE OF ASSESSING OF FICER TO VERIFY THESE DOCUMENTS AND TO DECIDE THE ISSUE AFRESH. 4. THE LD. DR HOWEVER RELIED ON THE ORDERS OF AUTHO RITIES BELOW. 5. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH OUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT ASSESSING OFFICER HA D MADE AN ADDITION OF RS.12,84,600/- ON ACCOUNT OF DEPOSITS IN THE BANK A CCOUNT OF ASSESSEE. THE ASSESSEE EXPLAINED THE SAME TO BE PARTLY OUT OF AGRICULTURE INCOME AND PARTLY OUT OF GIFTS RECEIVED FROM FATHER, BROTH ER AND BROTHER IN LAW. THE LD. CIT(A) DID NOT ACCEPT THE AGRICULTURE INCOM E OF THE ASSESSEE TO BE OF RS. 3 LACS EVEN WHEN THE ASSESSEE HAD DECLARED A GRICULTURE INCOME OF RS. 3 LACS IN ASSESSMENT YEAR 2008-09 AND ALSO THE SAME FIGURE WAS DECLARED IN ASSESSMENT YEAR 2010-11. HOWEVER IN THE YEAR UNDER ITA NO. 167(ASR)/2014 ASSESSMENT YEAR: 2009-10 4 CONSIDERATION, THE ASSESSING OFFICER RESTRICTED THE SAME TO BE RS.70,000/-. THE LD. AR HAS SUBMITTED THAT BY MISTA KE, THE ASSESSEE COULD NOT FILE THE TOTAL J FORMS BUT THE RETURNS FILED BY ASSESSEE DURING PROCEEDINGS AND SUCCEEDING YEAR ARE AVAILABLE AS PE R THE INCOME TAX RECORD AND THEREFORE WE DEEM IT APPROPRIATE TO REMI T THIS ISSUE BACK TO THE OFFICE OF THE ASSESSING OFFICER WHO SHOULD CONS IDER THE EARLIER AND SUCCEEDING YEARS AND ALSO J FORMS FOR ARRIVING AT THE FIGURE OF AGRICULTURE INCOME. AS REGARDS THE EXPLANATION OF ASSESSEE REGARDING R S.3,89,000/- WHICH HAS BEEN CLAIMED TO HAVE BEEN RECEIVED FROM T HE FIRM IN WHICH HE ALONGWITH HIS FATHER AND BROTHER WERE PARTNERS, TH E LD. AR HAS FILED THE COPY OF BALANCE SHEET ALONGWITH COMPUTATION OF INCO ME OF THE SAID FIRM AND HAS CLAIMED THAT THE AMOUNT FOR GIVING GIFT TO THE ASSESSEE WAS WITHDRAWN FROM THE FIRM. THE ABOVE SAID DOCUMENTS R ELATING TO FIRM ARE AVAILABLE WITH THE DEPARTMENT AND COPY OF WHICH IS AVAILABLE IN P.B. PAGE 8 TO 24 AND THEREFORE THE CONTENTION OF THE ASSESSE E CAN BE VERIFIED FROM THESE DOCUMENTS TO ARRIVE AT THE CONCLUSION AS TO W HETHER THE SAID PERSONS HAD WITHDRAWN THE AMOUNTS FROM THE FIRM FOR MAKING GIFT TO THE ASSESSEE. AS REGARDS THE EXPLANATION REGARDING RS. 3 LACS, T HE AUTHORITIES BELOW HAS MADE A FINDING THAT NO EVIDENCE WAS PROVI DED TO THEM DURING ASSESSMENT PROCEEDINGS, HOWEVER THE COPY OF LETTER PLACED AT P.B. PAGE 39 TO 43 CLEARLY DEMONSTRATE THAT ASSESSEE HAD FILE D COPY OF PASSPORT OF SHRI SUKHJOT GREWAL AND AMRINDER CHAHAL ALONGWITH T HIER PROVE ITA NO. 167(ASR)/2014 ASSESSMENT YEAR: 2009-10 5 IMMIGRATION STAMPS THIER VISIT TO INDIA AND ALONGWI TH A CONFIRMATION WAS ALSO FILED AS IS APPARENT FROM COPY OF LETTER DATED 11 TH AUGUST, 2011 PLACED AT P.B. PAGE 39. THE ASSESSEE AGAIN SUBMITTE D HIS STAMP VIDE LETTER DATED NIL IN RESPONSE TO LETTER OF ASSESSING OFFICER DATED 7 TH DECEMBER, 2011. FOR THE SAKE OF COMPLETENESS, THE R ELEVANT PARAGRAPH OF THE LETTER IS REPRODUCED BELOW: 2. THAT THE ASSESSEE RECEIVED A GIFT OF RS. 3 LAC S (RUPEES THREE LACS ONLY) FROM S. AMRINDER CHAHAL & SMT. SUKHBIR KAUR G REWAL IN JANUARY, 2008 ON THEIR VISIT TO INDIA FROM THE UNITED STATES OF AMERICA. THEY ARE ASSESSEES BROTHER & SISTER IN LAW SETTLED IN THE U SA. HE WAS WORKING AS A DENTIST OVER THERE AND HIS INCOME IN APPROX US$10 000/- PER MONTH. THEY HAVE PAID THE GIFT FROM THEIR INCOME & A COPY OF THEIR LETTER DATED 11 TH AUGUST, 2011 HAS ALREADY BEEN FILED. THEREFORE FROM THE ABOVE, WE FIND THAT AUTHORITIES BELOW HAS WRONGLY NOTED THE FACTS AND THEREFORE THIS ISSUE AL SO NEEDS RE ADJUDICATION BY THE ASSESSING OFFICER. IN VIEW OF T HE ABOVE FACTS AND CIRCUMSTANCE, THE FILE IS REMITTED BACK TO THE ASSE SSING OFFICER WHO SHOULD DECIDE THE ISSUES UNDER APPEAL AFRESH AFTER TAKING INTO THE ACCOUNT THE ADDITIONAL EVIDENCES AND AFTER AFFORDIN G A REASONABLE OPPORTUNITY OF BEING HEARD. 6. IN VIEW OF THE ABOVE, THE APPEAL FILED BY ASSESS EE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31.10.2017 SD/- SD/- (N. K. CHOUDHRY) (T. S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 31.10.2017. /GP/SR. PS . ITA NO. 167(ASR)/2014 ASSESSMENT YEAR: 2009-10 6 COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER