Late Shri Manjoor Ali, Thr. L.H. & Widow Smt. Khatoon, C/o G.Mehta & Co. PARAS, 127, Hari Marg, Civil Lines, Jaipur-302006, Jaipur V. Income Tax Officer Ward-3(4), Jaipur, Ward-3(4), Jaipur

ITA 265/JPR/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7223 (ITAT-JAIPUR)
• Duration Of Justice: 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 27-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROSHANTA MEENA JCIT LD DR DHK
• Assessee Lawyers: G M MEHTA FCA LD
• Keywords: Unexplained investment; Depreciation
• 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 BENCHES SMC, JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA, AM VK;DJ VIHY LA -@ ITA NO. 265/JP/19 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2014-15 LATE SHRI MANJOOR ALI THROUGH L/H & WIDOW SMT. KHATOON, C/O G. MEHTA & CO. PARAS 127 HARI MARG, CIVIL LINES, JAIPUR-302 006. VS. I.T.O, WARD 3(4), JAIPUR LFKK;H YS[KK LA -@THVKBZVKJ LA-@ PAN/GIR NO.: ADUPA8999B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI G.M MEHTA, FCA, LD.AR JKTLO DH VKSJ LS @ REVENUE BY : SMT. ROSHANTA MEENA, JCIT, LD.DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 16/04/2019 MN?KKS 'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 23/04/2019 VKNS'K@ ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE EX PARTE ORDER OF LD.CIT(A)-22, ALWAR DATED 29/01/2019 FOR THE A.Y 2014-15 IN THE MATTER OF AN ASSESSMENT ORDER PASSED U/S. 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ADDITION OF RS.4,95,661/- MADE ON PURCHASE OF CAR. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. ITA NO.265/JP/19 LATE SH. MANJOOR ALI L/H SMT. KHATOON 2 4. THE FACTS IN BRIEF ARE THAT THE ASSESSEE, LATE SH. MANJOOR ALI (EXPIRED ON 02.05.2017) HAD BOUGHT A CAR FOR RS.13,12,381/- IN MAY, 2013 FOR THE USE IN HIS PROFESSION TO EARN JOB INCOME. THE AO ACCEPTED THE DECLARED JOB INCOME, BUT MADE ADDITION OF RS.4,95,661/- TREATING IT AS HIS UNEXPLAINED INCOME IN PURCHASE OF CAR. 5. BY THE IMPUGNED EX PARTE ORDER, THE LD.CIT(A) CONFIRMED THE ACTION OF THE AO. 6. THE LD.AR ARGUED THAT THE ASSESSEE WAS ASSESSED FOR THE LAST MORE THAN 30 YEARS. AT PARA(2) AT PAGE NO.(2) OF ORDER APPEALED AGAINST, LD.AO ALSO ADMITTED THAT HE IS REGULARLY FILING HIS ITRS. BESIDES JOB INCOME, ASSESSEE HAD AGRICULTURAL INCOME FROM 57 BIGHAS OF IRRIGATED LAND IN DISTT. HANUMANGARH. HOWEVER, WHILE ACCEPTING ASSESSEES CURRENT YEARS INCOME AS HIS TOTAL SAVINGS, THE LD.AO DID NOT ALLOW BENEFIT OF HIS EARLIER YEAR S SAVINGS OR DEPRECIATIONS. 7. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND FOUND THAT THE AO MADE ADDITION OF RS.4,95,661/- FOR PURCHASE OF CAR AS PER FOLLOWING DETAILS: S.NO . SOURCE OF PURCHASE OF CAR AMOUNT (RS.) 1 LOAN FROM UNION BANK OF INDIA 6,00,000/ - 2 CURRENT YEAR S INCOME(JOB INCOME) 2, 16,720/ - 3 UNEXPLAINED INVESTMENT 4,95,661/ - 4 PURCHASE PR ICE OF CAR 13,12,381/ - ITA NO.265/JP/19 LATE SH. MANJOOR ALI L/H SMT. KHATOON 3 8. IN MAKING/SUSTAINING ADDITION OF RS.4,95,661/- LD.AO/CIT(A) IGNORED THE FACT THAT IT A NON-ACCOUNT CASE IN WHICH BESIDES JOB INCOME, ASSESSEE HAD AGRICULTURAL INCOME FROM 57 BIGHAS OF IRRIGATED LAND IN DISTT. HANUMANGARH. THE NET AGRICULTURAL INCOME DECLARED AND ACCEPTED BY THE DEPARTMENT FOR THREE YEARS STOOD AS UNDER:- S.NO. ASSTT. YEARS AGRL. INCOME (RS.) 1 A.Y 2012 - 13 1,87,513/ - 2. A.Y 2013 - 14 2,67,992/ - 3 A.Y 201 4 - 15 2,84,863/ - 9. ASSESSEE WAS ASSESSED FOR LAST MORE THAN 30 YEARS, BUT NO BENEFIT OF PAST SAVINGS FROM PROFESSIONAL AND AGRICULTURAL INCOME WAS ALLOWED IN TREATING RS.4,95,661/- AS UNEXPLAINED INCOME. 10. CONSIDERING THE AGRICULTURAL AND OTHER INCOME AS OFFERED BY THE ASSESSEE AND WHICH HAS BEEN ACCEPTED BY THE DEPARTMENT, I FIND NO MERIT IN MAKING THE ADDITION OF RS.4,95,661/- AS UNEXPLAINED INVESTMENT BY THE AO FOR PURCHASE OF A CAR. ACCORDINGLY, I DIRECT THE AO TO DELETE THE SAME. GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 11. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD APRIL, 2019. SD/- JES'K LH 'KEKZ (RAMESH C SHARMA) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 23 RD APRIL, 2019 ITA NO.265/JP/19 LATE SH. MANJOOR ALI L/H SMT. KHATOON 4 *PP/SPS VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- LATE SHRI MANJOOR ALI THROUGH L/H & WIDOW SMT. KHATOON, C/O G. MEHTA & CO. PARAS 127 HARI MARG, CIVIL LINES, JAIPUR-302 006. 2. IZR;FKHZ @ THE RESPONDENT-THE I.T.O, WARD 3(4), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 265/JP/19) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR