KAMAL SINGH KHATANA, KOTPUTLI V. JCIT, Alwar

ITA 239/JPR/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9691 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 10-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROSHANTA MEENA JCIT DHK
• Keywords: Unexplained cash credit
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 239/JP/2015 ASSESSMENT YEARS : 2011-12. KAMAL SINGH KHATANA S/O SHRI DEENA RAM KHATANA, VILLAGE, KALYANPURA KALA TEHSIL KOTPUTLI. CIRCLE-6, JAIPUR. CUKE VS. JOINT COMMISSIONER OF INCOME TAX RANG-1,ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. ASXPK 7236 M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MAHENDRA GARGIEYA (ADVOCATE) JKTLO DH VKSJ LS@ REVENUE BY : SMT. ROSHANTA MEENA (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 17.02.2017 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 03. 03.2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF LD. COMMISSIONER OF INCOME TAX (A), ALWAR, DATED 06/01/ 2015 PERTAINING TO THE ASSESSMENT YEAR 2011-12. THE ASSESSEE HAS RAISED F OLLOWING SOLITARY GROUND, WHICH READS AS UNDER: 1. THE LD. AO HAS ERRED IN MAKING ADDITION OF RS. 321 3900/- ON ACCOUNT OF UNEXPLAINED CASH DEPOSIT IN BANK U/S 69A , AND CIT(A) HAS ERRED IN CONFIRMING THE SAME. 2. BRIEFLY STATED THE FACTS ARE THAT THE CASE OF TH E ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT UNDER SECTIO N 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 2 ITA NO. 239/JP/2015 SHRI KAMAL SINGH KHATANA. 24/2/2014. WHILE FRAMING THE ASSESSMENT, THE ASSES SING OFFICER OBSERVED THAT THERE WERE CASH DEPOSITS OF RS. 33,89,100/- IN THE SAVING S BANK ACCOUNT HELD BY THE ASSESSEEE IN THE ICICI BANK AND STATE BANK OF INDIA ON VARIOUS DATES. THE ASSESSING OFFICER FINDING THAT THE EXPLANATION OF THE ASSESEE IS NOT ACCEPTABLE MADE ADDITION ON ACCOUNT OF UNEXPLAINED CASH CREDITS UNDER SECTIO N 69A OF THE ACT. HENCE, HE COMPUTED THE INCOME OF RS. 37,87,680/- AGAINST THE DECLARED INCOME OF RS.5,73,780/-. AGGRIEVED BY THIS, THE ASSESEE PREFE RRED AN APPEAL BEFORE LD. CTT (A), WHO ALSO REJECTED THE APPEAL OF THE ASSESSEE AND CONFIRMED THE ADDITION OF RS. 32,13,900/-. 3. ONLY EFFECTIVE GROUND IN THIS APPEAL IS AGAINST CONFIRMATION OF ADDITION OF RS. 32,13,900/-. 3.1 THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ADDITION IS MADE ON THE BASIS OF CASH DEPOSIT IN THE BANK ACCOUNT OF THE AS SESSEE. HE SUBMITTED THAT THE AUTHORITIES BELOW HAVE FAILED TO APPRECIATE THE FAC T THAT THE ASSESSEE FURNISHED SUFFICIENT EVIDENCE TO PROVE THAT THE MONEY BELONGI NG TO FIRM NAMELY M/S NATIONAL STONE CRUSHER AND THE AMOUNT WAS UTILIZED FOR PAYME NT OF ELECTRICITY BILL PERTAINING TO THE SAID FIRM. HE SUBMITTED THAT MERELY BECAUSE THE ASSESSEE COULD NOT FURNISH THE CONFIRMATION FROM THE SAID FIRM SHOULD NOT BE T HE BASIS TO FASTEN LIABILITY OF TAX ON THE ASSESSEE. HE DREW OUR ATTENTION TO PAPER BO OK PAGE NOS. 21 TO 32, WHERE THE COPIES OF ELECTRICITY BILLS ARE ENCLOSED. HE A LSO DREW OUR ATTENTION TO BANK STATEMENT TO SUPPORT THE CONTENTIONS THAT THE MONEY WAS BELONGING TO THE FIRM AND SAME WAS UTILIZED FOR BUSINESS PURPOSES OF THE FIRM . THIS EXPLANATION OF THE 3 ITA NO. 239/JP/2015 SHRI KAMAL SINGH KHATANA. ASSESSEE WAS NOT ACCEPTED BY THE AO. EVEN THE AO D ID NOT MAKE ANY INQUIRY IN THIS RESPECT. 3.2 ON THE CONTRARY, LD. DEPARTMENTAL REPRESENTATIV E OPPOSED THE SUBMISSIONS. HOWEVER, ON A SPECIFIC QUERY WHETHER ANY INQUIRY WA S MADE WITH THE FIRM, LD. D/R CONCEDED THE FACT THAT EXCEPT NOTICE UNDER SECTION 131(6), NO OTHER STEP WAS TAKEN. 3.3 WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED TH E MATERIAL AVAILABLE ON RECORD. DURING THE COURSE OF HEARING, IT WAS NOTIC ED THAT ASSESSING OFFICER HAS NOT CONDUCTED ANY ENQUIRY IN RESPECT OF PAYMENT OF ELEC TRICITY BILLS PERTAINING TO FIRM NAMELY M/S NATIONAL STONE CRUSHER. EXPLANATION OF THE ASSESSEE IN RESPECT OF THE BANK DEPOSITS IS THAT THESE WERE THE SALE PROCEEDS OF THE FIRM WHICH WERE DEPOSITED IN THE BANK ACCOUNT OF THE ASSESSEE AND WAS UTILIZE D FOR THE PAYMENT OF ELECTRICITY BILLS FOR THE SAID FIRM. IT IS ALSO CONTENDED THAT THE ASSESSEE WAS MERELY ACTING AS AN AGENT OF THE FIRM. BOTH THE RESPECTIVE REPRESEN TATIVES OF THE PARTIES AGREED UNDER THIS FACTS THE AO MAY BE DIRECTED TO MAKE INQ UIRY AND VERIFICATION IN RESPECT OF THE CLAIM OF THE ASSESSEE. AFTER CONSIDERING TH E TOTALITY OF THE FACTS, WE DEEM IT PROPER TO SET ASIDE THE IMPUGNED ORDER AND RESTORE THE ASSESSMENT TO THE FILE TO THE ASSESSING OFFICER FOR MAKING DE-NOVO ASSESSMENT. N EEDLESS TO SAY, THAT THE ASSESSING OFFICER WOULD GRANT SUFFICIENT OPPORTUNIT Y TO THE ASSESSEE FOR FURNISHING THE EVIDENCE. THE ASSESSEE IS DIRECTED TO COOPERATE IN THE ASSESSMENT PROCEEDINGS. THE AO IS FURTHER DIRECTED TO MAKE INQUIRY FROM THE PARTNERS OF THE FIRM NAMELY M/S NATIONAL STONE CRUSHER WITH REGARD TO DEPOSITS OF T HE CASH INTO THE BANK ACCOUNT OF THE ASSESSEE AND PAYMENT OF ELECTRICITY BILLS. THE GROUND RAISED IN THE APPEAL IS 4 ITA NO. 239/JP/2015 SHRI KAMAL SINGH KHATANA. ALLOWED FOR STATISTICAL PURPOSES. THE GROUND RAISE D IN THIS APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL FOR THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 03.03.201 7. SD/- SD/- HKKXPUN ( DQY HKKJR ) ( BHAGCHAND ) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 03/03/2017. P/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SHRI KAMAL SINGH KHATANA, TEHSIL - KOTPUTLI, DISTT-JAIPUR. 2. THE RESPONDENT- JOINT COMMISSIONER OF INCOME TAX RANG-1, ALWAR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 239/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR