Smt. Neeru Gugnani, Rohtak V. ITO, Rohtak

ITA 2060/DEL/2014

• Counselvise Citation: 206020114 RSA 2014
• Duration Of Justice: 1 year(s) 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 26-10-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 07-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 142(1)

Judgement Text

1 IN THE INCOME TAX APPELATE TRIBUNAL DELHI BENCH SMC-2: NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 2060/DEL/2014 A.Y. : 2006-07 NEERU GUGNANI, VS. ITO, WARD 2, 1039/23, DLF COLONY, AAYAKAR BHAWAN, ROHTAK ROHTAK (PAN : AAQPG6825M) (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. ARUN KUMAR JAIN, ADV. DEPARTMENT BY : SH. SUJIT KUMAR, SR. DR DATE OF HEARING : 26-10--2015 DATE OF ORDER : 26-10-2015 O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-ROHTAK, DATED 13.2.2014 PERTAINING TO ASSESSMENT YEAR 2006-07. 2. THE GROUNDS OF APPEAL READ AS UNDER:- 1. THE ORDER OF THE LD. CIT(A) IS AGAINST FACTS AND IS BAD IN LAW. 2. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ORDER OF THE LD. AO IN MAKING AN ADDITION OF RS. 9,50,000/- TO THE INCOME OF THE APPELLANT. 2 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER O R FORGO ANY GROUND FO APPEAL AT THE TIME OF ITS HEARING. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS FILED THE ORIGINAL RETURN DECLARING INCOME OF RS. 1,28,160/- ON 18-07-2006. LA TER ON THE CASE WAS TAKEN UP FOR SCRUTINY UNDER CASS AND NOTICE U/S 143(2) DAT ED 29-06-2007 WAS ISSUED AND DULY SERVED UPON THE ASSESSEE. IN RESPONSE TO TH IS SHRI M.P.GUGNANI,ADVOCATE AND HUSBAND OF THE ASSESSEE ATTENDED THE ASSESSMENT PROCEEDINGS. AS PER THE CASS DETAILS THE ASSESSEE HAD MADE CASH DEPOSITS TO THE TUNE OF RS. 35,02,640/- IN HER INDUSIND BANK ACCOUNT DURING THE YEAR UNDER CONSIDERATION. THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE I,T.ACT, 1961 ON 25-12 -2008 AT A TOTAL INCOME OF RS.10,78,160/- AS THE SOURCE OF CASH DEPOSITS OF RS. 9,50,000/- REMAINED UNEXPLAINED. AGGRIEVED BY THE ORDER OF THE A.O., AS SESSEE WENT IN APPEAL BEFORE LD. CIT(A), WHO VIDE ORDER DATED 31-12-2009 DISMISSED THE APPEAL OF THE ASSESSEE. AGAIN, AGGRIEVED WITH THE ORDER OF LD. C IT(A), ASSESSEE FURTHER PREFERRED APPEAL BEFORE ITAT, NEW DELHI. THE ITAT IN ITA NO. 636/ DEL/2010 DATED 23-07- 2010 REMITTED THE MATTER TO THE FILE OF AO WITH THE DIRECTION TO HAVE DETAILED ENQUIRY INTO THE GENUINENESS OF THE TRANSACTION BY CALLING THE WITNESSES IN WHOSE PRESENCE THE AGREEMENT WAS SIGNED. THE ITAT FURTHER DIR ECTED THE AO TO CALL THE LEGAL HEIRS OF SHRI BIJENDER PAL SINGH AND TO LOOK INTO THE CIRCUMSTANCES UNDER WHICH THE TRANSACTION WAS CANCELLED AND MONEY WAS REFUNDE D BACK BY THE ASSESSEE TO SHRI BIJENDER PAL SINGH. KEEPING IN VIEW THE ORDER OF ITAT, NOTICE U/S 143(2) OF THE ACT WAS ISSUED TO THE ASSESSEE ON 27-06-2011 FIXING T HE CASE FOR 19-07-2011. IN RESPONSE TO THIS NOTICE SHRI M.P.GUGNANI, ADVOCATE AND HUSBAND OF THE ASSESSEE FILED A WRITTEN REPLY DATED 19-07-2011 OF THE ASSSES SEE. AGAIN THE ASSESSEE WAS ASKED SOME INFORMATION BY THE AO VIDE NOTICE U/S. 142(1) DATED 1.11.2011 AND 3 ASSESSEE AGAIN REPLIED THE SAME ON 8.11.2011. FURTHE R, A NOTICE DATED 7.12.2011 WAS ISSUED TO THE ASSESSEE U/S. 142(1) AND ASSESSSE E REPLIED THE SAME VIDE REPLY DATED 16.12.2011. ON GOING THROUGH THE REPLIES, THE AO OBSERVED THAT STATEMENT OF THE WITNESSES SHRI MAHENDER PAL SINGH AND SHRI S UNIL KUMAR JAIN WERE RECORDED TO ESTABLISH THE GENUINENESS OF THE TRANSACTION ENT ERED INTO BY SMT, NEERU GUGNANI WITH SHRI BIJENDER PAL SINGH FOR SALE OF PROPERTY 1 039123, DLF COLONY, ROHTAK. MEANWHILE SUMMONS WERE ALSO ISSUED TO SHRI TRIBHUVA N SON AND LEGAL HEIR OF SHRI BIJENDER PAL SINGH S/O THAKUR JAGMAL SINGH VILLAGE S AMAR GOPAL PUR, ROHTAK ON 01-12-2011 & 14-12-2011 FOR 08-12-2011 AND 20-12-2011 RES PECTIVELY. IT WAS FURTHER OBSERVED BY THE AO THAT SHRI TRIBHUVAN, TH E LEGAL HEIR OF SHRI BIJENDER PAL SINGH ATTENDED THE OFFICE ON 16-12-2011 IN RESPONSE TO THE SUMMONS ISSUED. HIS STATEMENT WAS RECORDED. IN HIS STATEMENT HE HAS CATE GORICALLY DENIED OF HAVING TRANSACTION ENTERED INTO BY HIS FATHER SHRI BIJENDE R PAL SINGH WITH SMT.NEERU GUGNANI ON 30-06-2005 FOR THE PURCHASE OF SO CALLED PLOT NO.1039/23 AT DLF COLONY, ROHTAK. HE FURTHER REVEALED THAT HIS FATHER WAS SUFFERING FROM LEVER DISEASE AND WAS ADMITTED IN SHRI GANGA RAM HOSPITAL, NEW DE LHI FOR THE PERIOD OF 18 MONTHS PRIOR TO HIS DEMISE. COPY OF DEATH CERTIFICA TE OF SHRI BIJENDER PAL SINGH HAS ALSO BEEN FILED BY SHRI TRIBHUVAN WHICH IS PLACED O N RECORD. SHRI BIJENDER PAL ACCORDING TO HIS SON EXPIRED ON 25-12-2007. SHRI TR IBHUVAN WAS SHOWN THE COPY OF THE AGREEMENT DATED 30-06-2005 ENTERED INTO BY ASSE SSEE WITH SHRI BIJENDER PAL FOR THE SALE OF PLOT AT DLF COLONY, ROHTAK AND WAS ALSO SHOWN AGREEMENT FOR CANCELLING THE SAID DEAL ENTERED ON 15-11-2007. HE A GAIN CATEGORICALLY STATED THAT THE SIGNATURES OF HIS FATHER SHRI BIJENDER PAL SING H ON BOTH THE AGREEMENTS ARE FAKE AND DOES NOT MATCH WITH THE ACTUAL SIGNATURE OF HIS FATHER. COPY OF TWO IDENTITY CARDS OF SHRI BIJENDER PAL SINGH BEARING HIS SIGNAT URE WAS FILED BY SHRI TRIBHUVAN 4 WHICH IS PLACED ON RECORD. KEEPING IN VIEW THE ABO VE FACTS AND CIRCUMSTANCES AND MATERIAL AVAILABLE ON RECORD AO OBSERVED THAT IT IS QUITE EVIDENT THAT THE SAID TRANSACTIONS REGARDING SALE OF PROPERTY BY THE ASSE SSEE TO SHRI BIJENDER PAL SINGH IS A CONCOCTED STORY WOVEN TO FIT INTO THE SCHEME OF T HING SO AS TO COVER UP HER UNACCOUNTED MONEY IN THE GARB OF CASH DEPOSITS MADE INTO THE BANK ON DIFFERENT DATES DURING THE YEAR UNDER CONSIDERATION. AO COMPL ETED THE ASSESSMENT VIDE HIS ORDER DATED 22.12.2011 PASSED U/S. 143(3) OF THE I.T. AC T, AND TREATED THE SUM OF RS.9,50,000/- DEPOSITED IN THE ABOVE SAID BANK ON D IFFERENT DATES AS UNEXPLAINED AND ADDED BACK TO THE INCOME OF THE ASSESSEE AS INC OME FROM UNDISCLOSED SOURCES. 4. AGGRIEVED WITH THE AFORESAID ASSESSMENT ORDER, ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO VIDE IMPUGNED ORDE R 13.2.2014 HAS DISMISSED THE APPEAL OF THE ASSESSEE. 5. AT THE TIME OF HEARING, LD. COUNSEL FOR THE AS SESSEE DRAW MY ATTENTION TOWARDS THE AGREEMENT DATED 30.6.2005 MADE BETWEEN SMT. NEERU GUGNANI, W/O SHRI MAHINDER PAL GUGNANI, S/O SHRI NIHAL CHAND WHICH IS AT PAGES 2 & 3 OF THE PAPER BOOK. HE STATED THAT THESE DOCUMENTS PRO VED THAT ASSESSEE HAS RECEIVED RS. 15 LACS FROM SH. BIJENDER PAL SINGH, S/O THAKUR JAGMAL SINGH ON THE SALE OF PROPERTY IN DISPUTE, BUT DUE TO SOME REASONS THIS A GREEMENT COULD NOT BE MATERIALIZED AND BOTH THE PARTIES CANCELLED THIS AG REEMENT VIDE CANCELLATION DEED DATED 15.11.2007 AND RETURNED THE SAID MONEY TO SH. B IJENDER PAL SINGH. THE SAID 5 CANCELLATION DEED IS ALSO ATTACHED AT PAGE NOS. 4 TO 7 OF THE PAPER BOOK. THEREFORE, HE REQUESTED THAT THE ADDITION IN DISPUTE MAY BE DELETED. 6. ON THE OTHER HAND, LD. DR RELIED UPON THE ORDER S OF THE AUTHORITIES BELOW AND OPPOSED THE REQUEST OF THE ASSESSEES COUNSEL. 7. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE OR DERS PASSED BY THE REVENUE AUTHORITIES ALONGWITH RELEVANT RECORDS AVAILABLE WI TH THE APPEAL FILED. I ALSO PERUSED THE AGREEMENT DATED 30.6.2005 IN WHICH THE ASSESSEE HAS RECEIVED RS. 15 LACS FROM SH. BAJINDER PAL SINGH ON ACCOUNT OF SALE OF PROPERTY AND LATER ON DUE TO SOME REASONS CANCELLED THE SAID AGREEMENT VIDE CANC ELLATION DEED DATED 15.11.2007 AND RETURNED BACK THE MONEY IN DISPUTE TO SH. BAJINDER PAL SINGH. BEFORE ME THE ASSESSEE HAS ATTACHED ALL THE DOCUMEN TARY EVIDENCES IN THE SHAPE OF PAPER BOOK CONTAINING PAGES 1 TO 22 IN WHICH HE HAS ATTACHED THE BANK STATEMENT OF INDUSIND BANK, COPY OF AGREEMENT DATED 30.6.2005 AT PAGES 2 & 3; COPY OF CANCELLATION DEED DATED 15.11.2007 AT PAGE 4; COPY OF SALE DEED AT PAGES 5 TO 9; COPY OF DEATH CERTIFICATE OF SH. BAJINDER PAL SINGH AT PAGE NO. 10. ON PERUSING THE AFORESAID DOCUMENTARY EVIDENCES FILED BY THE ASSESSEE IN THE SHAPE OF PAPER BOOK, I AM OF THE CONSIDERED VIEW THAT ASSESSE E HAS EXPLAINED THE SOURCE OF INCOME. I FURTHER FIND THAT IN COMPLIANCE OF THE E ARLIER TRIBUNALS ORDER DATED 6 30.7.2010 THE WITNESSES OF THE AGREEMENT FOR THE SA LE OF PROPERTY HAS ALREADY BEEN EXAMINED BY THE AO AND THEY HAVE ADMITTED THAT ASSE SSEE HAS RECEIVED RS. 15 LACS FROM SH. BAJINDER PAL SINGH WHO DIED ON 25.12.2007, ON ACCOUNT OF SALE OF PROPERTY. IN THE FACTS AND CIRCUMSTANCES OF THE PR ESENT CASE, THE ADDITION OF RS. 9,50,000/- MADE BY THE AO IS NOT SUSTAINABLE IN THE EYES OF LAW AND HAS BEEN WRONGLY ADDED WITHOUT CORROBORATING ANY EVIDENCE IN CLUDING THE EVIDENCES PRODUCED BY THE ASSESSEE WHICH IS ALSO CONTRARY TO LAW AND FACTS OF THE CASE. THEREFORE, THE ADDITION IN DISPUTE IS NOT SUSTAINABL E AND IS HEREBY DELETED. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26/10/2015 . SD/- [H.S. SIDHU] JUDICIAL MEMBER DATE: 26/10/2015 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4.CIT (A) 5. D R, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES 7