INCOME TAX OFFICER, WARD 4(1), AMRITSAR V. SH. NARINDER KUMAR , AMRITSAR

ITA 236/ASR/2017

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 4240 (ITAT-AMRITSAR)
• Duration Of Justice: 5 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 01-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: MANPREET SINGH DUGGAL
• Keywords: Peak credit
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No. 236/Asr/2017 Assessment Year: 2010-11 I.T.O., Ward-4(3), Amritsar Vs. Sh. Narinder Kumar, H.No. 121, Gali No. 2, Near Railway Station, Beas, Amritsar [PAN: AMQPK 2839P] (Appellant) (Respondent) Appellant by : Sh. Narinder Kumar, Assessee Respondent by: Sh. Manpreet Singh Duggal, Sr. DR Date of Hearing: 09.05.2022 Date of Pronouncement: 23.06.2022 ORDER Per Anikesh Banerjee, JM: The instant appeal was filed by the Revenue against the order passed by the Ld. Commissioner of Income Tax (Appeals)-2, Amritsar [in brevity the CIT(A)], bearing Appeal No. 102/2013-14 dated 27.02.2017 u/s 250(6) of the Income Tax Act, 1961 [in brevity the Act], in respect of Assessment Year 2010-11. The impugned order was generated as per the order of the ld. Income Tax Officer, Ward-4(3), Amritsar [in brevity the AO], the order passed u/s 143(3) of the Act dated 28.03.2013. 2. Brief fact is that the assessee had deposited cash in Bank A/c Bearing No. 597010042573 in ING Vysya Bank, G.T. Road, Jalandhar amount of ITA No. 236/Asr/2017 ITO v. Narinder Kumar 2 Rs.97,58,500/-and another Bank A/c No. 597011003661 in ING Vyasya Bank amount of Rs. 62,49,000/- and in A/c No. 686104000003728 with IDBI Bank amount of Rs. 62,31,900/-. The assessee deposited total cash of Rs.2,22,39,400/- in three Bank accounts. The Assessing Authority added back the full amount as deposited of cash from undisclosed source, i.e., unexplained cash credit. The assessee declared that he is employee of Mr. Ram Kripal Yadav and working in M/s Raj Kripal Exim P. Ltd. with Head Office at Jamuna Nagar. He was collecting the cash on behalf of his company and deposited in his bank account and issued the Draft to parties as per direction of employer. Accordingly, the full amount was not his own it is his employer’s fund. 3. The assessee filed an appeal before the ld. CIT(A), the ld. CIT(A) considering the issue and observing the bank accounts added back the peak credit which was amount of Rs.17,29,261/-. Accordingly, the assessee got the relief amount of Rs.205,10,139/-. 4. Aggrieved, the assessee filed an appeal before us. 5. The ld. DR vehemently argued and relied on the order ld. CIT(A). In his argument learn dear requested to confirm the addition amount of rupees 2,05,10,139/-. 6. The ld. counsel of the assessee relied on order of the ld. CIT(A) order is extracted as follows (pg. 26 to 27 of impugned order): “The peak credit balance of the merged said three bank accounts of the appellant in the IDBI and ING Vyasya Bank is worked out as above at Rs. 18,02,061/- on 26.03.2010. The total income of the assessee declared in the return of income was Rs.169,350/- which included the commission of Rs.72,800/- which the appellant claimed to have been charged @ 1% by him from other parties/companies for colleting cash and orders from their customers/small traders on their behalf. However because the addition ITA No. 236/Asr/2017 ITO v. Narinder Kumar 3 on account of peak credit proceeds on the fundamental premise that the money deposited or withdrawn from the bank accounts belonged to the appellant, then there is no question that the appellant will earn commission out of transactions of his own money. Either the commission income or the peak credit balance alone should be added. Therefore the commission income declared by the appellant in his return of income at Rs 72,800/- shall be reduced from the peak credit balance worked out at Rs 20,93,099/- on 26-03-2010 and the addition of the balance amount of Rs 18,02,061 - 72,8001= Rs 17,29,261/- is confirmed. Reliance is placed on the decision of hon’ble ITAT, Kolkata in the case of Sh Pramod Sharma, Kolkata vs DCIT, CC-VII, Kolkata in ITA No. 515 (Kol) of 2009 dated 14-10-09 The appellant gets relief of Rs (2,22,39,400 - 17,29,261) = Rs 205,10,139/-.” 7. We have heard the rival submissions and considered the documents available on the record. The assessee was filed an affidavit and the certificates in relation to proof as employee of a company. The ld. CIT(A) allowed the peak credit against the assessee. The fact is that in different verification it is proved that the assessee worked on behalf of Mr. Ram Kripal Yadav who is related with the M/s Ram Kripal Exim Pvt. Ltd. During the assessment proceedings at the time of verification the employer was never be cross examined by the any of the revenue authority and no deposition was taken from the employer. The assessee himself declared & mentioned that he was not the beneficiary of the said cash deposited in bank accounts. The matter should be thoroughly verified. The employer should be cross verified. The payment of draft from assessee’s bank account should be under scanner of the Assessing Authority. The detailed discussion was not made both the Revenue Authorities. Accordingly, the issue was sent back to the ld. AO for further verification in denavo and assessee should be allowed reasonable opportunity for his case. ITA No. 236/Asr/2017 ITO v. Narinder Kumar 4 8. The appeal is disposed in the following directions mentioned above, and the ground of the assessee is allowed for statistical purposes. 9. In the result, the appeal of the Revenue is allowed for statistical purposes. Order pronounced in the open court on 23.06.2022 Sd/- Sd/- (Dr. M. L. Meena) (Anikesh Banerjee) Accountant Member Judicial Member *GP/Sr. PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT(A), (4) The CIT concerned (5) The Sr. DR, I.T.A.T (6) The Guard File True Copy By Order