Sh Vishal Batra, Jalandhar V. The Income-tax Officer, Jalandhar

ITA 268/ASR/2012

• Counselvise Citation: 26820914 RSA 2012
• Duration Of Justice: 1 year(s) 9 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 14-03-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 11-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIK CHAND
• Assessee Lawyers: BHAGAT ITP
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER I.T.A. NO. 268 (ASR)/2012 ASSESSMENT YEAR: 2006-07 PAN: AANPB3784B SHRI. VISHAL BATRA, VS. INCOME TAX OFFICER, C/O-M/S BATRA SONS, 1(4), JALANDHAR 116, A, NAKODAR ROAD, JALANDHAR (APPELLANT) (RESPONDENT) APPELLANT BY: SH. M.R. BHAGAT, ITP RESPONDENT BY: SH. AMRIK CHAND, DR DATE OF HEARING: 14.03.2014 DATE OF PRONOUNCEMENT: 09.04.2014 ORDER PER BENCH 1) THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 25.04.2012 PASSED BY LEARNED CIT(A), JA LANDHAR, FOR THE ASSESSMENT YEAR 2006-07 ON THE FOLLOWING GROUNDS:- I. THE APPELLATE ORDER IS ILLEGAL, ARBITRARY PERVERSE AND NOT BASED ON PROPER APPRECIATION OF FACTS OF THE CASE AND THE LA W ON THE ISSUE INVOLVED. II. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ER RED IN NOT APPRECIATING THAT SMT. RITU BATRA ADVANCED LOAN OF RS. 2,30,000/- BY CROSSED CHEQUE WHICH WAS DEBITED TO HER BANK ACC OUNT AND CHARGED INTEREST OF RS. 3450/- THEREON. THE APPELLA NT HAD ESTABLISHED HER IDENTITY, PAYING CAPACITY AND GENUI NENESS OF THE TRANSACTION. THE ADDITION MADE BY INVOKING THE PROV ISIONS OF SECTION 68 OF THE ACT IS BAD IN LAW AND PRAYED TO B E DELETED 2 I.T.A. NO. 268 (ASR)/2012 ASSESSMENT YEAR: 2006-07 III. THE APPELLANT CRAVES LEAVE TO AMEND AND GROUND(S) O F APPEAL OR ADD ANY GROUND(S) OF APPEAL BEFORE THE APPEAL IS FI NALLY DISPOSED OFF. 2) THE FACTS RELATING TO THE ISSUE IN DISPUTE ARE T HAT A LOAN OF RS. 2,30,000/- WAS RAISED BY THE ASSESSEE THROUGH PAYEE S A/C CHEQUE FROM HIS WIFE RITU BATRA. SHE WAS ASSESSED TO INCOME TAX HAVING PAN AGEPB1399R. HER CAPITAL A/C FOR THE FINANCIAL YEAR 2001-02 TO 2005-06 ALONG WITH THE PHOTOCOPIES OF HER RETURN OF INCOME AND BANK ACCOUNTS WERE PLACED ON RECORD BEFORE THE ASSESSING OFFICER. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS ASKED TO G IVE DETAILS OF UNSECURED LOANS RAISED DURING THE YEAR AND CONFIRMA TIONS/SOURCES OF THE SAME. THE ASSESSEE FILED HIS REPLY ON 03.11.2008 AN D EXPLAINED THE SOURCE OF MONEY DEPOSITED IN HIS BANK ACCOUNT BY FI LING DOCUMENTARY EVIDENCE BEFORE THE ASSESSING OFFICER. AFTER PERUSI NG ALL THE DOCUMENTARY EVIDENCES, THE ASSESSING OFFICER WAS OF THE VIEW THAT THE DEPOSIT INTRODUCED IN THE NAME OF ASSESSEES WIFE I S NOTHING BUT ASSESSEES UNACCOUNTED MONEY AND THE ASSESSEE HAS N OT PROVED THE GENUINENESS AND CREDITWORTHINESS OF THE DEPOSIT TO THE SATISFACTION OF THE ASSESSING OFFICER. THE ASSESSING OFFICER REJECTED T HE EXPLANATION GIVEN BY THE ASSESSEE AND AMOUNTING TO RS. 2,30,000/-, IN TRODUCED IN THE NAME OF ASSESSEES WIFE, CHARGED AS INCOME OF THE ASSESS EE UNDER SECTION 68 OF 3 I.T.A. NO. 268 (ASR)/2012 ASSESSMENT YEAR: 2006-07 THE ACT ALONG WITH INTEREST THEREON @ 12 % PER ANN UM, AMOUNTING TO RS. 3,450/-, WHICH WAS ALSO DISALLOWED, AND ADDED T O THE RETURNED INCOME OF THE ASSESSEE. THE ASSESSING OFFICER COMPLETED TH E ASSESSMENT ON 08.12.2008, UNDER SECTION 143(3) OF THE ACT. 3) AGGRIEVED WITH THE ASSESSMENT ORDER DATED 08.12. 2008, THE ASSESSEE FILED AN APPEAL BEFORE THE LEARNED FIRST A PPELLATE AUTHORITY, WHO PARTLY ALLOWED THE APPEAL OF THE ASSESSEE BY UPHOLD ING THE ADDITION OF RS. 2,30,000/- AND INTEREST THEREON OF RS. 3,450/- MADE BY THE ASSESSING OFFICER. NOW, THE ASSESSEE BEING AGGRIEVED WITH THE IMPUGNED ORDER FILED THE PRESENT APPEAL. 4) AT THE TIME OF HEARING, MR. M.R. BHAGAT, AUTHORI ZED REPRESENTATIVE OF THE ASSESSEE, HAS FILED HIS WRITT EN SUBMISSION ALONG WITH SOME DOCUMENTARY EVIDENCE IN THE SHAPE OF SMAL L PAPER BOOK, CONTAINING PAGES FROM 1 TO 17, IN WHICH HE HAS ATT ACHED THE WRITTEN SUBMISSION; COPY OF CAPITAL ACCOUNT OF SMT. RITU BA TRA IN THE BOOKS OF M/S BATRA SONS, NAKODAR ROAD, JALANDHAR ALONG WITH A COPY OF HER PERSONAL CAPITAL ACCOUNT FOR THE PERIOD 01.04.2005 TO 31.03.2006; COPIES OF INCOME TAX RETURNS OF SMT. RITU BATRA FOR ASSESS MENT YEARS 2005-06 AND 2006-07 ALONG WITH COMPUTATION OF INCOME AND IT S ENCLOSURES; AND STATEMENT OF SMT. RITU BATRA, RECORDED BY THE ITO O N 05.06.2008. HE 4 I.T.A. NO. 268 (ASR)/2012 ASSESSMENT YEAR: 2006-07 STATED THAT THE CASE OF THE ASSESSEE MAY BE DECIDED AFTER GOING THROUGH THE WRITTEN SUBMISSION AND DOCUMENTARY EVIDENCE FIL ED BY HIM AND REQUESTED THAT THE ADDITION IN DISPUTE MAY BE DELET ED. 5) ON THE CONTRARY, LEARNED DR RELIED UPON THE IMPU GNED ORDER PASSED BY LEARNED FIRST APPELLATE AUTHORITY. 6) I HAVE HEARD BOTH THE PARTIES AND PERUSED THE RE LEVANT RECORDS AVAILABLE WITH ME AND I AM OF THE VIEW THAT SMT. RI TU BATRA, WIFE OF THE ASSESSEE, WHO HAD ADVANCED A LOAN OF RS. 2,30,000/- TO THE ASSESSEE WAS WORKING AS LIBRARIAN IN A.P.J. PUBLIC SCHOOL, JALAN DHAR AND HER SALARY FOR THE FINANCIAL YEAR 2004-05 WAS RS. 48,157/-. SHE WA S ALSO WORKING WITH M/S BATRA & SONS, THE ASSESSEE DREW TOTAL SALARY OF RS. 87,000/- DURING THE FINANCIAL YEAR 2004-05. SHE HAS BEEN FILING INC OME TAX RETURN REGULARLY. A SUM OF RS. 2,30,000/- WAS TRANSFERRED FROM HER ACCOUNT TO THE ACCOUNT OF ASSESSEE ON 18.02.2006. THE ASSESSIN G OFFICER RECORDED HER STATEMENT ON 05.12.2008 IN WHICH, SHE HAS CONFI RMED HAVING OPENED THE ACCOUNT IN ORIENTAL BANK OF COMMERCE, NAKODAR R OAD, JALANDHAR, AND STATED THAT SHE HAD GIVEN HER HUSBAND SOME AMOU NTS DURING THE YEAR UNDER CONSIDERATION WHICH WERE RETURNED BACK TO HER BY HER HUSBAND. THE ASSESSEE HAS FILED A COPY OF CAPITAL ACCOUNT OF SMT . RITU BATRA IN THE BOOKS OF M/S BATRA SONS, NAKODAR ROAD, JALANDHAR AL ONG WITH A COPY OF 5 I.T.A. NO. 268 (ASR)/2012 ASSESSMENT YEAR: 2006-07 HER PERSONAL CAPITAL ACCOUNT FOR THE PERIOD 01.04.2 005 TO 31.03.2006, COPIES OF INCOME TAX RETURNS OF SMT. RITU BATRA FOR ASSESSMENT YEARS 2005-06 AND 2006-07 ALONG WITH COMPUTATION OF INCOM E AND ITS ENCLOSURES; AND STATEMENT OF SMT. RITU BATRA, RECOR DED BY THE ITO ON 05.06.2008. IN ALL THE AFORESAID DOCUMENTS, SMT. RI TU BATRA HAS CONFIRMED THAT SHE HAD GIVEN THE AMOUNT IN DISPUTE TO HER HUSBAND THROUGH ACCOUNT PAYEE CHEQUE AND THE SAME HAS BEEN RETURNED TO HER. SHE HAS ALSO DISCLOSED HER SOURCE OF INCOME IN HER STAT EMENT RECORDED DURING THE ASSESSMENT PROCEEDING BEFORE THE ASSESSING OFFI CER. IN MY VIEW, THE ASSESSEE HAS ESTABLISHED THE IDENTITY OF CREDITOR, PAYING CAPACITY AND GENUINENESS OF THE TRANSACTION, WHICH IS REQUIRED U NDER SECTION 68 OF THE ACT. THEREFORE, THE ADDITION IN DISPUTE, AMOUNTING TO RS. 2,30,000/- AND INTEREST THEREON OF RS. 3,450/- HAS WRONGLY BEEN AD DED BY THE ASSESSING OFFICER AND UPHELD BY LEARNED FIRST APPELLATE AUTHO RITY AS INCOME UNDER SECTION 68 OF THE ACT. THE REVENUE AUTHORITIES HAVE NOT APPRECIATED THE EVIDENCE FILED BY THE ASSESSEE BEFORE THEM AND MADE THE ADDITIONS IN DISPUTE CONTRARY TO THE LAW AND FACTS ON THE FILE. THEREFORE, THE ADDITIONS IN DISPUTE ARE NOT SUSTAINABLE IN THE EYE OF LAW. A CCORDINGLY, I CANCEL THE IMPUGNED ORDER DATED 25.04.2012 PASSED BY LEARNED C IT(A), JALANDHAR, 6 I.T.A. NO. 268 (ASR)/2012 ASSESSMENT YEAR: 2006-07 AND DELETE THE ADDITIONS IN DISPUTE BY ACCEPTING TH E APPEAL FILED BY THE ASSESSEE. 7) IN THE RESULT, THE APPEAL FILED BY ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 9 TH APRIL, 2014 SD/./- (H.S. SIDHU) JUDICIAL MEMBER DATED: 9 TH APRIL, 2014 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: SHRI. VISHAL BATRA, C/O-M/S BATRA SON S, 116, A, NAKODAR ROAD, JALANDHAR 2. INCOME TAX OFFICER, 1(4), JALANDHAR 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.