SMT AJIT KAUR , RANCHI V. ITO WD-1(1), RANCHI

ITA 191/RAN/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8720 (ITAT-RANCHI)
• Duration Of Justice: 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 12-06-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: CHANDAN DAS
• Keywords: Unexplained cash credit
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH SMC RANCHI BEFORE SHRI S.S, GODARA , JUDICIAL MEMBER ITA NO. 191 /RAN / 2018 ASSESSMENT YEAR: 20 13 - 14 ITA NO.192/RAN / 2018 ASSESSMENT YEAR: 2013 - 14 SMT. AJIT KAUR / V/S . INCOME TAX OFFICER, WARD - 1 ( 1 ), RANCHI / APPELLANT .. / RESPONDENT / BY APPELLANT NONE / BY RESPONDENT SHRI CHANDAN DAS, JCIT - DR / DATE OF HEARING 11 - 01 - 2019 / DATE OF PRONOUNCEMENT 8 - 0 4 - 2019 / O R D E R TH ESE ASSESSEE S TWO APPEAL S FOR ASSESSMENT YEAR 20 13 - 14 , ARISE AGAINST THE COMMISSIONER OF INCOME - TAX (APPEALS) - RANCHI S SEPARATE ORDER S BOTH DATED 16 - 03 - 2018 PASSED IN CASE NO S . CIT(A), RANCHI/10580/2016 - 17 AND CIT(A), RANCHI/10606/2016 - 17 , INVOLVING PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. HEARD THE LEARNED DR. CASE FILE S PERUSED. 3. CASE CALLED TWICE NONE APPEARS AT THE ASSESSEES BEH EST. I THEREFORE PROCEED EX PARTE AGAINST THE ASSESSEE. THE CASE IS NOW TAKEN UP FOR ADJUDICATION ON MERITS. ITA NO S . 191 & 192/RAN/18 AJIT KAUR PAGE 2 4. IT EMERGES AT THE OUTSET THAT THE ASSESSEE HERSELF IN FORMER AND LEGAL HEIR OF THE TAX PAYER OF LATE SARDAR PRATAP SINGH. THE CIT(A)S IDENTI CAL FINDINGS UPHELD THE ASSESSING OFFICERS ACTION ADDING CASH DEPOSITS OF RS. 5 LAKHS EACH READS AS FOLLOWS: - [ 5 ] THE APPELLANT STATED THAT A DEVELOPMENT AGREEMENT DATED 25.04.2014 WAS SIGNED WITH M / S. RAJ CONSTRUCTION & DEVELOPERS WHEREIN IT WAS MENTIO NED THAT RS.52,00,0001 - WAS PAID TO THE FOUR VENDORS NAMELY SARDAR PRATAP SINGH, SMT. AJIT KAUR, SARDAR HARMEET SINGH, SARDAR RAMJEET SINGH, AMOUNTING RS. 52 LAKHS OF WHICH RS. 13,00,000 / - PERTAINED TO EACH PARTY. FURTHER IT WAS MENTIONED IN THE DEED THAT THE THESE PARTIES EARLIER ENTERED INTO DEVELOPMENT AGREEMENT IN AUGUST 2012 WITH 'SINGH CONSTRUCTION', SWAM VILLA, NIWARANPUR, CHUTIA, RANCHI FOR CONSTRUCTION OF THE BUILDING WHEREIN ADV ANCES WERE PAID TO THE PARTIES. IT WAS FURTHER MENTIONED IN THE DEED THAT SINGH CONSTRUCTION WOULD ENTER INTO SEPARATE AGREEMENT W ITH THE OWNERS FOR THE CHEDULE OF REFUND AND OTHER TERMS. [5.1] THE APPELLANT FURTHER STATED THAT SMT. AJIT KAUR AND SARDAR PRATAP SINGH HAD JOINTLY RECEIVED RS. 36,00.0001 - FROM M / S. SINGH CONSTRUCTION WHICH WAS UTILIZED FOR PURCHASE O F PROPERTY VIDE DEED NO. 8725 ' DATED 01.07.2012. RS.26,00,000 / - WAS CREDITED IN TH E BANK ACCOUNT OF ASSESSEE OF CORPORATION BANK A/C. NO . 0457 /SB/01/004137 ON 04.07.2012 AND RS. 10,00,0001 - IN CASH ON 04.07.2012. IT IS FURTHER MENTIONED IN THE DEED THAT SINGH CONSTRUCTION WILL ENTER INTO SEPARATE AGREEMENT WITH THE OWNERS FOR THE SCHEDULE OF REFUND AND OTHER TERMS. [5.2] THE LD. ASSESSING OFFI CER HAS STATED THAT HE HAD DEPUTED AN INSPECTOR ATTACHED TO HIS OFFICE TO CONDUCT ENQUIRY WITH RESPECT OF PAYMENT RECEIVED FROM SINGH CONSTRUCTION. THE LD. ASSESSING OFFICER HAS NOTED THAT THE INSPECTOR OF INCOME TAX IN HIS REPORT SUBMITTED THAT THE BUIL DER HAS PAID RS. 52,00,000/ - TO THE PARTIES AS MENTIONED IN THE DEED OF WHICH RS. 26.00,000 / - PERTAINED TO SRR.T. AJIT KAUR & SARDAR PRATAP SINGH. THE INSPECTOR OF INCOME - TAX GATHERED AGREEMENT BETWEEN SARDAR PRATAP SINGH, SMT. AJIT KAUR, SARDAR HA RMEET SINGH, SARDAR RAMJEET SINGH AND M/S. SINGH CONSTRUCTION CONTAINING M/S. SINGH CONSTRUCTION AGREED TO GET BACK THEIR ADVANCE AMOUNT FROM THE FIRST PARTY MEMBERS AMOUNTING TO RS.52,00,000 / - . HENCEFORTH, THE APPELLANT WAS SHOWCAUSED TO EXPLAIN THE S OURCE OF RS.10,00,000 / - . THE APPELLANT IN HIS SUBMISSION STATED T HAT RS. 5,00.000 / - PERTAINED TO SRI SARDAR PRATAP SINGH & ~5,00,0001 - PERTAINED TO HER. HENCE RS. 5 LAKHS WAS ADDED TO THE INCOME OF THE APPELLANT AS UNEXPLAINED CASH CREDIT. [5.3] I HAVE CON SIDERED THE SUBMISSIONS OF THE APPELLANT AND HAVE PERUSED THE ASSESSMENT ORDER. SINCE ALL THE GROUNDS ARE ON COMMON ISSUE, THEY ARE TAKEN UP FOR DISPOSAL TOGETHER. IT IS NOTED THAT THE APPELLANT AND THREE OTHER MEMBERS VIZ SARDAR PRATAP SINGH JEET. SRI HA RMEET SINGH AND SRI ITA NO S . 191 & 192/RAN/18 AJIT KAUR PAGE 3 RAJMEET SINGH ALONGWITH SRI ARUN KUMAR PURCHASED A LAND ADMEASUING 13 KAIHAS OUT WHICH THE APPELLANTS AND THE SHARE OF SARDAR PRATAP SINGH JECT, SRI HARMEET SINGH AND SRI RAJMEET SINGH WAS 2.5 KATHAS WHILE SRI ARUN KUMAR PURCHASED 3 KATHAS FOR A TOTAL COST OF RS.1 ,26,00,000 / - . OUT OF THE ABOVE, RS. 25,00,000 / - - WAS PAID BY SRI ARUN KUMAR AND THE BALANCE RS.1,01,00,000/ - WAS PAID BY THE APPELLANT IN THE FOLLOWING MANNER: - NAME TOTAL PAYMENT (RS.) FROM SINGH ESTATE BUILDER (RS.) CASH (RS.) SARDAR PRATAP SINGH SMT. AJIT SINGH 36,00,000/ - 26,00,000/ - 10,00,000/ - (RS5,00,000/ - E A CH) HARMEET SINGH 33,00,000/ - 14,00,000/ - 19,00,000/ - RAJMEET SINGH 32,00,000/ - 13,00,000/ - 19,00,000/ - [5.4] WITH REGARD TO THE CASH DEPOSITS MADE IN THE BANK ACCOUNT THE APPELLANT, DURING THE COURSE OF THE APPELLATE PROCEEDINGS STATED THAT SHE HAD RAISED CASH LOANS FROM FRIENDS AND RELATIVES. THE APPELLANT STATED THAT THE LAND IN QUESTION WAS A DISPUTED LAND FOR WHICH SUIT PROCEEDINGS WERE GOING ON FOR THE LAST 35 TO 40 YEARS WITH BIRLA INSTITUTE OF TECHNOLOGY, MESHRA (BIT MESHRA). VIDE RESOLUTION LAND WAS OFFERED TO THE APPELLANT AND THREE OTHER C O - OWNERS ( SUPRA). THE APPELLANT AND OTHER THREE C O - OWNERS ENTERED INTO AN AGREEMENT WITH SINGH ESTATE BUILDERS WHO PAID RS. 52,00,000 / - . BALANCE AMOUNT OF RS. 48,00,000/ - WAS RAISED IN CASH BY THE APPELLANT AND THE THREE C O - OWNERS. [5.5] I FIND THAT THE APPELLANT, AT THE TIME OF ASSESSMENT PR OCEEDINGS WAS NOT ABLE TO IDENTIFY THE SOURCE OF CASH DEPOSITS IN THE BANK ACCOUNT. EVEN DURING THE COURSE OF THE APPELLATE PROCEEDINGS, THE APPELLANT COULD NOT ESTABLISH THE SOURCE OF CASH. THOUGH IT WAS CLAIMED THAT THE CASH WAS ARRANGEDFROMFRIENDSAND RELATIVES,NO IDENTITY/CREDITWORTHINESS/GENUINENESS WAS PROVED. THERE IS NO IOTA OF EVIDENCE TO SHOW THAT THE AMOUNT OF CASH DEPOSIT WAS EXPLAINED CASH LOANS FROM FRIENDS AND RELATIVES. [5.6] IN CASES WHERE THE ASSESSEE DISCHARGES THE INITIAL ONUS OF ESTABLISHING THE IDENTITY AND CREDITWORTHINESS OF THE CREDIT PROVIDER AND THE GENUINENESS OF THE TRANSACTION. BE IT ONE OF LOAN OR SUBSCRIBING TO SHARE CAPITAL. THE ONUS SHIFTS TO THE REVE NUE TO SHOW THE CONTRARY. WHERE. FOR INSTANCE. AN ASSESSEE FURNISHES THE COMPLETE DETAILS OF THE ENTITY LIKE ITS CERTIFICATE OF INCORPORATION, PAN NUMBER, INCOME TAX RETURNS, BANK ACCOUNTS, NAMES AND ADDRESSES OF THE DIRECTORS AND SO ON, THE COURTS HAVE I NSISTED ON THE ASSESSING OFFICER TO MAKE A PROPER ENQUIRY TO EXAMINE THE IDENTITY AND CREDITWORTHINESS OF SUCH COMPANIES AND THE GENUINENESS OF THE TRANSACTIONS IN QUESTION. WHERE THE ASSESSING OFFICER FAILS TO MAKE SUCH AN ENQUIRY, A COURT MIGHT DELETE TH E ADDITIONS MADE BY THE ASSESSING ITA NO S . 191 & 192/RAN/18 AJIT KAUR PAGE 4 OFFICER. THE INSTANT CASE, HOWEVER, IS OF A DIFFERENT NATURE. NO EVIDENCE HAS BEEN PROVIDED BY THE APPELLANT. UNDER THE CIRCUMSTANCES, IT HELD THAT THE LD. ASSESSING OFFICER RIGHTLY TAXED THE AMOUNT AS INCOME OF THE APPELL ANT. GROUNDS OF APPEAL ARE DISMISSED . 5. IT IS THUS CLEAR THAT THE ASSESSE E HEREIN HAS FAILED TO EXPLAIN SOURCE OF IMPUGNED CASH DEPOSITS OF RS. 5,00,000/ - EACH IN SUPPORT OF HER PLEA THAT THE IMPUGNED SUM HAD COME FROM HER FRIENDS AND RELATIVES. THERE IS NO EVEN A SINGLE NAME OF SUCH FRIEND AND RELATIVE SUBMITTED EITHER IN ASSESSMENT OR IN LOWER APPELLATE PROCEEDINGS. I THEREFORE FIND NO REASON TO INTERFERE WITH THE FINDINGS OF THE LD. CIT(A) IN BOTH THE CASES. 6 . TH ESE TWO ASSESSEES APPEAL S ARE DISMISSED . ORDER PRONOUNCED ON 8/4/19 . SD/ - (S.S. GODARA ) JUDICIAL MEM BER * PP /SR.PS DATED/ - 8 / 0 4 /201 9 / COPY OF ORDER FORWARDED TO: - 1. /APPELLANT - SMT. AJIT KAUR C/O D.P.PAUL,C.A, 718 NABIN MITRA ROAD, BURDWAN COMPOUND, LALPUR, RANCHI - 834001. 2. /RESPONDENT - ITO WARD - 1 (1), 4 TH FLOOR, CENTRAL REVENUE BUILDING, ANNEX BUILDING, 5A MAIN ROAD, RANCHI - 834001. 3. / CONCERNED CIT 4. - / CIT (A) 5. , / DR, ITAT, RANCHI 6. / GUARD FILE. BY ORDER/ , SR. PRIVATE SECRETARY/P.S ITAT RANCHI