Appeal details
Counselvise Citation
[2016] 132 COUNSELVISE.COM (IT) 5950 (ITAT-INDORE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 month(s) 29 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
20-06-2016
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
DB
Next Hearing Date
08-05-2017
Assessment Year
2010-2011
Appeal Filed On
22-03-2016
Judgement Text
SHRI ADIYTA PANDEY V. ITO4 (1) INDORE / I.T.A. NO.2 66 /IND/2016/A.Y.:10-11 PAGE 1 OF 9 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER SHRI ADITYA PANDEY 252/15 NANDA NAGAR, INDORE V. ITO 4(1) INDORE / APPELLANT / RESPONDENT . . /. PAN: ATAPP 2925 J / APPELLANT BY SHRI RAM GILADA, ADVOCATE / RESPONDENT BY SHRI MOHD. JAVED, SR. D.R. / DATE OF HEARING 08 - 05 - 2017 ' / DATE OF PRONOUNCEMENT 1 5 - 05 - 2017 / O R D E R PER O.P. MEENA, ACCOUTANT MEMBER. 1. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-22, NE W DELHI HOLDING CONCURRENT JURISDICTION OF CIT(A) 1 INDORE , CAMP A T INDORE [IN SHORT THE CIT(A)] DATED 08-12-2015 PERTAINING TO ASSES SMENT YEAR 2010- 11, WHICH IN TURN HAS ARISEN FROM THE ORDER DATED 0 1-03-2013 PASSED BY THE ITO 4(1) INDORE (IN SHORT THE AO ) UNDER SECT ION 143 (3) OF INCOME TAX ACT,1961 ( IN SHORT THE ACT). THE ASSE SSEE HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- . . /. I.T.A. NO.266 /IND/2016 ,- - / ASSESSMENT YEAR: 2010-11 SHRI ADIYTA PANDEY V. ITO4 (1) INDORE / I.T.A. NO.2 66 /IND/2016/A.Y.:10-11 PAGE 2 OF 9 1. THAT THE AUTHORITIES BELOW HAVE GROSSLY ERRED IN MA KING THE ADDITION OF RS. 15, 81, 500/-AND SUSTAINING TO THE EXTENT OF RS.12, 14, 000/- 2. THAT THE ADDITION SUSTAINED OF RS.12, 14, 000/-IS I LLEGAL, WRONG AND BAD IN LAW 2. SUCCINCTLY, FACTS AS CULLED OUT FROM THE ORDERS OF LOWER AUTHORITIES ARE THAT THE ASSESSEE IS A SALARIED EMPLOYEE. DURIN G THE YEAR UNDER CONSIDERATION, HE RECEIVED SALARY OF RS.1, 62, 980/ -FROM SUZLON INFRASTRUCTURE SERVICES LTD, INDORE. AN AIR INFORMA TION RECEIVED REFLECTED CASH DEPOSIT OF RS. 7,00,000/-ON 10-02-20 10, RS. 7,58,000/- ON 11-02-2010, AND RS. 1,23,500/- ON 11-03-2010 AGGRE GATING TO RS. 15,81,500/-IN THE SAVINGS BANK ACCOUNT MAINTAINED W ITH BANK OF INDIA, INDORE, STANDING IN THE JOINT NAME OF THE ASSESSEE WITH HIS FATHER SHRI RAJENDRA PANDEY, IN WHICH THE ASSESSEE HAS BEEN SHO WN AS FIRST NAMED HOLDER. IT WAS EXPLAINED BY WAY OF AN AFFIDAVIT FRO M THE FAMILY MEMBERS THAT THE CASH DEPOSITS IN THE SAVING BANK ACCOUNT P ERTAINED TO SHRI RAJENDRA PANDEY, FATHER OF THE ASSESSEE, AND THE AS SESSEE HAS NO CONNECTION WITH THE CASH DEPOSITS MADE IN THIS BANK ACCOUNT. HOWEVER, AFTER EXAMINATION TO THE FAMILY MEMBERS, THE AO CON CLUDED THAT THEORY ADVANCED BY THE ASSESSEE IS COOKED UP STORY HENCE, THE SAID SUM WAS ADDED AS UNDISCLOSED INCOME OF THE ASSESSEE. SHRI ADIYTA PANDEY V. ITO4 (1) INDORE / I.T.A. NO.2 66 /IND/2016/A.Y.:10-11 PAGE 3 OF 9 3. BEING, AGGRIEVED THE ASSESSEE CARRIED THE MATTER BE FORE CIT (A). DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASS ESSEE FILED WRITTEN SUBMISSIONS IN WHICH IT WAS CLAIMED THAT THE CASH D EPOSIT MADE IN JOINT BANK ACCOUNT WITH THE APPELLANTS FATHER ,SHRI RAJE NDRA PANDEY, ARE OUT OF SALE PROCEEDS RECEIVED ON SALE OF THE ANCESTRAL LAND BEARING SURVEY NUMBER 55/2 AT VILLAGE RAMPURIA, TEHSIL- MANPUR, DI ST. INDORE. IT WAS CLAIMED THAT THE TOTAL SALE CONSIDERATION WAS RS. 2 8, 95, 177/-, OUT OF WHICH RS. 19, 52, 177/- WAS RECEIVED IN CASH AND AN AMOUNT OF RS. 9,43,000/- WAS RECEIVED BY CHEQUES. THE COPY OF THE AFFIDAVIT AS NOTARIZED IN SEPTEMBER 2012 WAS ALSO FILED. THE SAI D AFFIDAVIT WAS SIGNED BY SHRI RAJENDRA PANDEY (FATHER OF THE ASSES SEE), SMT. SHANTI BAI (GRANDMOTHER OF THE ASSESSEE), SHRI SATISH PANDEY, AND SHRI GIRISH PANDEY (UNCLES OF THE ASSESSEE). ONE PLAIN PAPER AG REEMENT TO SELL HAS ALSO BEEN FILED IN WHICH IT IS MENTIONED THAT THE A GREEMENT TO SELL HAS BEEN MADE ON 27-12-2009 AND RS. 51, 000/-HAS BEEN R ECEIVED. THE RATE MENTIONED IS RS. 480 000/-PER BIGHA, WHICH TRANSLAT ES TO RS. 28, 95, 177/-FOR 1.546 RAKBA* 4,80,000/- I.E. (0.526 HECTAR ES OR 6.140 BIGHA). THE LD. CIT (A) OBSERVED THAT THE MATTER IS 5 YEARS OLD AND ONE SALE DEED FOR 1.360 RAKBA HAS BEEN FILED IN WHICH SALE C ONSIDERATION IS MENTIONED AT RS. 13, 60, 000/-. THAT LEAVES 0.166 R AKBA ONLY, HOW SAME COULD BE SOLD FOR BALANCE AMOUNT OF RS. 15, 35, 177 /- (28, 95, 177-13, 60, 000). THE AGREEMENT WAS REGISTERED ON 08-02-201 0, BUT DOES NOT SHRI ADIYTA PANDEY V. ITO4 (1) INDORE / I.T.A. NO.2 66 /IND/2016/A.Y.:10-11 PAGE 4 OF 9 MENTION DATES OF PAYMENT OF RS. 13, 60, 000/-.THE C OMMISSIONER OF INCOME-TAX (APPEALS) FURTHER OBSERVED THAT WHERE TH E MAJOR PORTION OF SALE PROCEEDS OF LAND BELONGING TO APPELLANTS GRAN DFATHER AND HAVING 4 HEIRS I.E. APPELLANTS FATHER, HIS 2 UNCLES, AND HI S GRANDMOTHER HOW THE MAJOR SHARE WAS GIVEN TO APPELLANTS FATHER. AS PER THE APPELLANT, HE WAS GIVEN RS. 15.81 LAKHS IN CASH, WHICH COMES TO 55% O F THE TOTAL SALE PROCEEDS. THEREFORE, IN THE ABSENCE OF REGISTERED S ALE DEEDS FOR FULL AMOUNT AND THE REASONS MENTIONED ABOVE, THE CIT (A) HELD THAT SINCE THE EVIDENCE OF RS. 13, 60, 000/-AS IN FILE AND THE RE WERE 4 OWNERS, ONE FOURTH OF THE SAID AMOUNT I.E. AN AMOUNT OF RS. 3, 40, 000/-CAN AT BEST BE TREATED FROM THE SAID SOURCES. ACCORDINGLY, THE ADD ITION OF RS. 3,40,000/-WAS DELETED AND BALANCE ADDITION OF RS. 1 2, 14, 000/-WAS SUSTAINED. 4. BEING, AGGRIEVED THE ASSESSEE FILED THIS APPEAL BEF ORE THE TRIBUNAL. THE LD. A.R. SUBMITTED THAT THE AMOUNT OF RS. 15,81,500/- WAS MADE OUT OF SALE PROCEEDS OF RS. 28,95,177/- OF AGRICULTURAL LAND MEASURING RAKABA 1.526 (HECTARES) AT VILLAGE RAMPU RIA AS PER AGREEMENT TO SALE DTD. 31-12-2009. THE LEARNED COUN SEL TOOK US THROUGH THE AGREEMENT TO SALE DTD. 31-12-2009 ENTERED IN TO BY SHRI RAJENDRA PANDEY, (FATHER OF THE ASSESSEE), SHRI SATISH PANDE Y, SHRI GIRISH PANDEY, ALL UNCLE OF THE ASSESSEE, AND SMT. SHANTI BAI PAND EY, GRAND-MOTHER OF THE ASSESSEE IN FAVOUR OF SHRI VISHNU PATIDAR S/O H UKUM CHAND OF BADA SHRI ADIYTA PANDEY V. ITO4 (1) INDORE / I.T.A. NO.2 66 /IND/2016/A.Y.:10-11 PAGE 5 OF 9 BAZAR @ 480,000 PER BIGHA, OF 6.0316 OF BIGHA LAND FOR A TOTAL CONSIDERATION OF RS. 28, 95,177/- . THE COPY OF AGR EEMENT TO SALE ARE PLACED AT PAGE NO 2 TO 4 OF PAPER BOOK. THIS TOTAL CONSIDERED IS ALSO MENTIONED IN AGREEMENT TO SALE IS AT RS. 28,95,177/ - (PB-1-4). A COPY OF SAUDA PAWATI DTD. 27-12-2009 IS PLACED AT PAGE NO 5 OF PAPER BOOK WHICH ALSO SHOWS RATE OF RS. 4,80,000/- PER BIGHA L AND TO BE SOLD ADMEASURING 6.036 BIGHA. OUT OF TOTAL LAND ADMEASUR ING 1.360 HECTARES WAS REGISTERED THROUGH REGISTERED SALE DEEDS DATED 08-10-2010 ( COPY PLACED AT PAGE NO 33 TO44 OF PAPER BOOK) FOR APPARE NT CONSIDERATION OF RS. 13,60,000/- IN FAVOUR OF VISHNU PATIDAR AND BAL ANCE LAND ADMEASURING OF 0.166 HECTARES WAS REGISTERED THROUG H REGISTERED SALE DEEDS DATED 08-10-2010 IN FAVOUR OF SHRI DHEERAJ S/ O VISHNU PATIDAR FOR TOTAL SALE CONSIDERATION OF RS. 1,66,000/- ( COPY P LACED AT PAGE NO 21 TO 32). THE SAID TOTAL LAND WAS SOLD FOR RS. 28,95,177 /- OUT OF WHICH SALE CONSIDERATION OF RS. 9,43,000/- WAS RECEIVED BY CHE QUES AND BALANCE OF RS. 19,52,177/- WAS RECEIVED IN CASH. THE AMOUNT O F SALE CONSIDERATION WAS SHOWN IN REGISTERED SALE DEEDS AT RS. RS. 15,26 ,000/- ( 13,60,000+ 1,66,000). THE TOTAL LAND OF LAND OF 6.036 BIGHA WA S SOLD @ 4,80,000/- PER BIGHA, OF WHICH TOTAL COMES TO RS. 28,95,177/- THERE SAID RATE CAN BE VERIFIED FROM THE LOCAL AREA PERSONS. THE CO-OWN ERS OF LAND HAVE RECEIVED PAYMENT OF RS.7,43,000/- BY CHEQUE NO. 288 600 WHICH WAS DEPOSITED ON 15-02-2010 IN BANK ACCOUNT OF SHRI SA TISH PANDEY WITH SHRI ADIYTA PANDEY V. ITO4 (1) INDORE / I.T.A. NO.2 66 /IND/2016/A.Y.:10-11 PAGE 6 OF 9 PNB BANK( PB 13) , AND RS. 2,00,000/- BY CHEQUE NO. 2286 WHICH WAS DEPOSITED ON 23-03-2010 IN BANK ACCOUNT WITH AXIS B ANK (PB-16) OF SHRI SAGAR PANDEY S/O SHRI SATISH PANDEY. THE BALAN CE AMOUNT WAS RECEIVED IN CASH OUT OF WHICH CASH OF RS. 15,81,500 /- WAS DEPOSITED DURING THE PERIOD FROM 10-02-2010 TO 11-03-2010 IN THE JOINT BANK ACCOUNT OF THE ASSESSEE WITH HIS FATHER SHRI RAJEND RA PANDEY. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, A STATEMENT WAS A LSO RECORDED FROM THE ASSESSEE WHEREIN HE HAS CATEGORICALLY STATED TH IS FACTS. THE FATHER OF THE ASSESSEE WERE ALSO EXAMINED UNDER SECTION 31 OF THE ACT, BY THE AO WHEREIN HE HAS STATED THESE FACTS. HENCE, IT WAS CO NTENDED THAT THE EXPLANATION OF THE ASSESSEE IS BONAFIDE AND MAY BE ACCEPTED. 5. ON THE OTHER HAND, THE LD. SR. D.R. RELIED ON THE O RDERS OF LOWER AUTHORITIES. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS OF BOTH THE PAR TIES AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. THE RECIT AL OF AGREEMENT TO SALE DTD. 31-12-2009(PB-2 TO 4) READ WITH SAUDA PAW ATI DTD. 31-12- 2009(PB-5) AND AFFIDAVIT DTD. 28-12-2012 OF SMT. SH ANTI BAI, SHRI RAJENDRA PANDEY, SHRI SATISH PANDEY, AND SHRI GIRIS H PANDEY (PB- 6TO10) SHOWED THAT CO-OWNERS OF ANCESTRAL AGRICULTU RAL LAND SITUATED AT VILLAGE RAMPURIA, HAVE ENTERED IN TO AN AGREEMENT T O SALE OF THE SAID AGRICULTURE LAND ADMEASURING 6.03 BIGHA( 1.526 HEC TARES ) LAND @ RS. 4,80,000/- PER BIGHA FOR TOTAL CONSIDERATION COMES TO RS. 28, 95, 177/- SHRI ADIYTA PANDEY V. ITO4 (1) INDORE / I.T.A. NO.2 66 /IND/2016/A.Y.:10-11 PAGE 7 OF 9 WITH SHRI VISHNU HUKAM CHAND PATIDAR AS PER THE AM OUNTS AS WELL AS AND RATES OF LAND RS. 4,80,000/- PER BIGHA MENTIONE D THEREIN. AS PER DETAILS MENTIONED IN AGREEMENT TO SALE , THESE PER SON HAVE RECEIVED RS. 51,000/- CASH IN LIEU OF TOKEN OF ACCEPTANCE O F AGREEMENT TO SALE ON 31-12-2009 AND RS. 2 LAKH BY WAY OF CHEQUE BEARING NO. 612988 DTD. 31-12-2009 AND RS. 2 LAKH BY WAY OF CASH ON 31-12-2 009. THIS AGRICULTURAL LAND WAS ULTIMATELY SOLD TO SHRI VISHN U PATIDAR S/O SHRI HUKUM CHAND AND SHRI DHEERAJ PATIDAR SON OF SHRI VI SHNU PATIDAR BY WAY OF REGISTERED SALE DEEDS DTD. 08-10-2010. THE L AND ADMEASURING 1.360 HECTARES LAND WAS REGISTERED IN THE NAME OF V ISHNU (PB33-44) IN WHICH CONSIDERATION WAS DISCLOSED AT RS. 13,60,000/ - IN THE REGISTERED SALE DEED AND BALANCE LAND ADMEASURING 0.166 HECTAR ES REGISTERED IN THE NAME OF SHRI DHEERAJ S/O VISHNU PATIDAR FOR A CONSI DERED OF RS. 1,66,000/- AS MENTIONED IN REGISTERED SALE DEED. TH E SALE CONSIDERATION OF RS. 7,43,000/- AND RS. 2,00,000/- WAS RECEIVED B Y CHEQUE WHICH WAS DEPOSITED IN THE BANK ACCOUNT OF SHRI SATISH PANDE Y AND SHRI SAGAR PANDEY S/O SHRI SATISH PANDEY AND BALANCE OF RS. 19 ,52,177 WAS RECEIVED IN CASH OUT OF WHICH RS. 15,81,500/- WERE DEPOSITED IN THE JOINT BANK ACCOUNT OF THE ASSESSEE WITH HIS FATHER SHRI R AJENDRA PANDEY DURING PERIOD FROM 10-02-2010 TO 11-03-2010 WHEREAS REGISTERED SALE DEEDS WAS EXECUTED ON 08-02-2010. WE FURTHER FIND T HAT THE AO HAS EXAMINED SHRI RAJENDRA PANDEY (FATHER OF THE ASSESS EE) UNDER SECTION SHRI ADIYTA PANDEY V. ITO4 (1) INDORE / I.T.A. NO.2 66 /IND/2016/A.Y.:10-11 PAGE 8 OF 9 131 OF THE ACT ON 08-01-2013 (PB-48-58) WHEREIN SHR I RAJENDRA CATEGORICALLY STATED THAT THE LAND WAS SOLD FOR RS. 28,95,177/- OUT OF WHICH AN AMOUNT OF RS. 19,52,177/- WAS RECEIVED IN CASH. THEREFORE, CONSIDERING THESE FACTS AND DOCUMENTARY EVIDENCE AN D CIRCUMSTANTIAL EVIDENCE SUGGEST THAT THE EXPLANATION OFFERED BY TH E ASSESSEE IS APPEARS TO BE GENUINE. THE LD. CIT (A) TREATED THE SUM OF R S. 13,60,000/- MENTIONED IN REGISTERED SALE DEED FOR LAND OF 1.360 HECTARES LAND ONLY AND CALCULATED THE ONE FOURTH SHARE IN THE HANDS OF THE ASSESSEE`S FATHER, BEING 4 CO-OWNERS OF LAND AND ACCEPTED THE EXPLANAT ION TO THAT EXTENT. ACCORDINGLY, LD. CIT (A) HAS TREATED RS. 3,40,000/- IN THE CASE OF THE ASSESSEE AS EXPLAINED OUT OF RS. 15,81,500/-. WE FI ND THAT THE ENTIRE CHEQUE AMOUNT OF RS. 9,43,000/- WAS DEPOSITED IN TH E BANK ACCOUNT OF SHRI SATISH PANDEY AND HIS SON SHRI SAGAR PANDEY. T HIS SHOWS ALTHOUGH THE LAND SO SOLD BELONGED TO THREE BROTHERS NAMELY SHRI RAJENDRA, SATISH AND GIRISH AND THEIR MOTHER SMT. SHANTI BAI. HOWEVE R, SALE CONSIDERATION IS APPEARS TO HAVE BEEN DIVIDED IN 1/ 3 RD RATIO AMONG THREE BROTHERS IGNORING THE SHARE OF MOTHER. AS WE FIND T HAT THE SALE CONSIDERATION OF RS. 9,43,000/- WAS CREDITED IN THE BANK ACCOUNT OF SHRI SATISH PANDEY AND HIS SON SAGAR, ONE FAMILY. MEANIN G THEREBY , 1/3 RD SHARE OF SHRI SATISH PANDEY. IF WE CONSIDERED THIS 1/3 RD SHARE, THEN TOTAL AMOUNT OF SALE CONSIDERATION WOULD COME TO RS. RS. 28,29,000/- WHICH IS ALMOST EQUAL TO SALE CONSIDERATION OF RS. 28,95 ,177/- AS CLAIMED BY SHRI ADIYTA PANDEY V. ITO4 (1) INDORE / I.T.A. NO.2 66 /IND/2016/A.Y.:10-11 PAGE 9 OF 9 THE ASSESSEE AND REFLECTED IN AGREEMENT TO SALE DTD . 31-12-2009. THEREFORE, THE CLAIM OF THE ASSESSEE THAT CASH AMOU NT OF RS. 15,81,500/- WAS DEPOSITED IN THE BANK ACCOUNT WITH HIS FATHER S HRI RAJENDRA PANDEY BEING SHARE OF HIS FATHER IS APPEARS TO BE GENUINE. CONSIDERING THE EVIDENCES IN FORM OF AGREEMENT TO SALE DTD. 31-12-2 009, WHEREIN SALE CONSIDERATION IS MENTIONED AT RS. 28,95,177/- AND S AME IS SUPPORTED BY SAUDA PAWATI , AND ULTIMATE EXECUTION OF REGISTERED SALE DEEDS IN FAVOUR OF BUYERS WHO HAVE ENTERED IN TO AGREEMENT TO SALE AND THE PERIOD OF CASH DEPOSIT BEING SAME WHEN SALE DEEDS REGISTERED WAS EXECUTED IN THE NAME OF PERSONS WHO HAVE ENTERED IN TO AGREEMENT T O SALE, AND AFFIDAVIT OF THE ALL CO-OWNERS OF LAND, WE FIND THA T CLAIM OF THE ASSESSEE IS REASONABLE AND RELIABLE. WE ARE, THEREFORE, OF THE CONSIDERED OPINION THAT THE AMOUNT IN QUESTION PERTAINED TO SALE CONSI DERATION RECEIVED BY THE FATHER OF THE ASSESSEE. IN VIEW OF THESE FACTS AND CIRCUMSTANCES, WE DIRECT THE AO TO DELETE THE ADDITION OF RS. 12,41,0 00/- SUSTAINED BY THE CIT(A) IN THE CASE OF THE ASSESSEE. THIS GROUND OF APPEAL IS THEREFORE, ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS AL LOWED. 8. THE ORDER PRONOUNCED IN THE OPEN COURT ON 15.5.2017 SD/- SD/- ( C.M. GARG) JUDICIAL MEMBER ( O. P. MEENA) ACCOUNTANT MEMBER DATED: 15TH MAY, 2017. OPM
