Deep Chand Sharma, Solan V. ITO, Shimla

ITA 23/CHANDI/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2332 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 07-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J S NAGAR
• Section: 68; 144; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI SHRI T.R.SOOD, ACCOUNTANT MEMBER ANDMS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 23/CHD/2013 ASSESSMENT YEAR : 2009-10 DEEP CHAND SHARMA V THE I.T.O. WARD 1 S/O LATE SHRI SHAD RAM SHIMLA VILLAGE TOURTY P.O: MANGAL, TEHSIL ARKI DISTT. SOLAN AKBPS 9974 JURISDICTION (APPELLANT) (RESPONDENT) APPELLANT BY SHRI HARRY RIKHY RESPONDENT BY: SHRI J.S. NAGAR DATE OF HEARING : 17.4.2013 DATE OF PRONOUNCEMENT: 29 .4.2013 O R D E R PER T.R.SOOD, A.M THIS APPEAL IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A), SHIMLA DATED 12/10/2012. 2. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOLLO WING EFFECTIVE GROUND: THAT THE LD. CIT(A), SHIMLA IS NOT JUSTIFIED IN UP HOLDING THE ORDER OF THE ASSESSING OFFICER REGARDING THE ADDITI ON OF RS. 29,00,000/- MADE ON ACCOUNT OF UNEXPLAINED CASH CR EDITS IN 2 BANK U/S 68 OF THE INCOME-TAX ACT, 1961 AS THE APPE LLANT IS A LIC AGENT AND THE SAID MONEY BELONGED TO HIS CLIENT POLICY HOLDERS WHICH WAS SUBSEQUENTLY DEPOSITED IN THE LIC OFFICE. THIS ADDITION BEING UNJUSTIFIED AND UNCALLED FOR DE SERVES TO BE DELETED. 3. AFTER HEARING BOTH THE PARTIES, WE FIND THAT DUR ING ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER ON THE BASIS OF AIR INFORMATION NOTED THAT ASSESSEE DEPOSITED A SUM OF RS. 29 LAKHS IN THE SAVING BANK ACCOUNT WITH STATE BANK OF PATIALA VILLAGE BAG AHA, P.O. KANDHAR, TEHSIL ASRKI, DISTRICT SOLAN. THIS AMOUNT WAS ADDED TO THE INCOME OF THE ASSESSEE IN ASSESSMENT ORDER PASSED U /S 144 OF THE ACT. ON APPEAL, THE ADDITION WAS CONFIRMED BY THE LD. CI T(A). 4. BEFORE US, LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ASSESSEES CASE WAS MISHANDLED BY VARIOUS COUNSELS AND PROPER REPRESENTATION COULD NOT BE MADE. IN FACT, NO CASH WAS DEPOSITED IN THE ACCOUNT AND ONLY SOME BANK TRANSACTIONS WERE AC CEPTED BY THE ASSESSEE. IN FACT THESE MONEYS WERE TAKEN FROM VAR IOUS CLIENTS FOR MAKING INSURANCE POLICIES AND THE MONEY IS IN TURN HAS BEEN TRANSFERRED TO THE ACCOUNT OF LIC. THE MONEY HAD T O BE REMITTED ELECTRONICALLY THROUGH RTGS AND THE CLIENTS ACCOUNT DID NOT HAVE THAT FACILITY I.E. WHY MONEY WAS ROUTED THROUGH THE ACCOUNT OF THE ASSESSEE. IN THIS REGARD, CERTAIN PAPERS HAVE BEEN FILED BEFORE US WITH A PRAYER TO ADMIT THE SAME AS ADDITIONAL EVIDE NCE. THE LD. COUNSEL IN THESE CIRCUMSTANCES MADE A PRAYER THAT A DDITIONAL EVIDENCE MAY BE ADMITTED AND THE MATTER MAY BE REST ORED TO BE FILE OF THE ASSESSING OFFICER. 3 5. ON THE OTHER HAND, THE LD. DR STRONGLY RELIED UP ON THE ORDER OF THE ASSESSING OFFICER AND CIT(A). 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS CAREFUL LY. IT SEEMS THAT SUFFICIENT OPPORTUNITY HAS NOT BEEN GIVEN TO T HE ASSESSEE TO EXPLAIN THE DETAILS AND MAY BE CASE HAS BEEN MISHAN DLED BY THE ORIGINAL COUNSEL OF THE ASSESSEE. THE ADDITIONAL E VIDENCE FILED BEFORE US SHOWS THAT THE MONEY IS RECEIVED FROM CLI ENTS FOR THE PURPOSE OF MAKING LIC POLICIES AND HAS BEEN REMITTE D TO THE LIC THROUGH RTGS. THEREFORE, IN OUR OPINION, IN THE IN TEREST OF JUSTICE, THE FACTS ARE REQUIRED TO BE EXAMINED AGAIN AND ACC ORDINGLY WE SET ASIDE THE ORDER OF LD. CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF ASSESSING OFFICER WITH A DIRECTION TO PROVIDE SUFFI CIENT OPPORTUNITY AND REEXAMINE THE WHOLE ISSUE. THE ASSESSEE IS ALS O DIRECTED TO FULLY COOPERATE IN THE ASSESSMENT PROCEEDINGS. 7. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF APRIL, 2013. SD/- SD/- (SUSHMA CHOWLA) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 29 TH APRIL, 2013 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR TRUE COPY BY ORDER ASSISTANT REGISTRAR 4