Ganga Ram Sharma, Shamli V. ITO, Ward-1(4), Muzaffarnagar

ITA 2944/DEL/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6828 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 25-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: EKTA VISHNOI
• Keywords: Competent authority
• Section: 142(1); 143(2); 69A; 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 2944/DEL/2018 ASSESSMENT YEAR: 2010-11 GANGA RAM SHARMA SHAMLI C/O D.K. GUPTA, ADVOCATE, 21-GHER KHATTI, NEW MANDI, MUZAFFARNAGAR, UTTAR PRADESH. PAN NO. AFNPS0463F VS ITO WARD 1(4) MUZAFFARNAGAR. APPELLANT RESPONDENT ASSESSEE BY SHRI DEEPAK KUMAR GUPTA, ADV. REVENUE BY MS. EKTA VISHNOI, SR. DR ORDER THIS APPEAL FILED BY THE ASSESSEE AGAINST THE IMPU GNED ORDER DATED 27.03.2018 PASSED BY THE LD. CIT(APPEALS)-MUZ AFFARNAGAR IN RELATION TO ASSESSMENT YEAR 2010-11 ON THE FOLLOWIN G GROUNDS: 1. THAT THE LD. CIT(A) ERRED IN CONFIRMING ADDITION OF RS. 5,06,300/- AS UNEXPLAINED CASH DEPOSIT U/S 68 OF TH E IT ACT, 1961. 2. THAT THE ADDITION AS MADE IS ARBITRARY, UNCALLED FO R AND VERY EXCESSIVE. 3. THAT CASH DEPOSIT MADE IN BANK ACCOUNT IS FULLY EXPLAINABLE. ASSESSEE FILED EVIDENCE OF CASH IN HA ND AND OLD BALANCE. 2 ITA NO . 2944/DEL/2018 4. THAT CIT(A) ERRED IN NOT CONSIDERING CASH IN HAND W HICH WAS RECEIVED ON SALE OF PROPERTY IN THE PREVIOUS ASSESSMENT YEAR OF RS. 5,94,000/- PROPERTY SOLD DAT ED 12.08.2008 RS. 3,21,000/- AND DATED 19.07.2008 RS. 2,73,000/- WAS NOT PROPERLY CONSIDERED BY THE CIT(A ), WHEREAS COPIES OF SALE DEED WERE FILED BEFORE THE I TO AND CIT(A). 5. THAT AS ON 31.03.2009 OPENING BALANCE OF RS. 2,56,0 00/-, RS. 1,04,078/- WAS IN BANK AND RS. .1,51,922/- WAS CASH IN HAND ADDITION OF RS. 2,56,000/- WRONGLY MADE. T HIS FACT SPECIALLY MENTIONED IN CASH FLOW CHART. 6. THAT ANY OTHER GROUNDS OF APPEAL SHALL BE SUBMITTED AT THE TIME OF HEARING. 2. I HAVE HEARD THE BOTH PARTIES AND PERUSED THE RE LEVANT RECORD AVAILABLE WITH ME ESPECIALLY THE ORDER PASSE D BY THE REVENUE AUTHORITY ALONG WITH THE ONE SMALL PAPER BO OK FILED BY THE ASSESSEE CONTAINING PAGE 1 TO 30 IN WHICH TH E ASSESSEE HAS ATTACHED WRITTEN SUBMISSION BEFORE ITAT DATED 15.12.2018, WRITTEN SUBMISSION FILED BEFORE ITO DAT ED 30.10.2018, REPLY OF NOTICE U/S 142(1) FILED BEFORE ITO DATED 19.02.2017, PHOTOCOPY OF THE BANK ACCOUNT, PHOTOCOP Y OF SALE DEED DATED 19.07.2008, PHOTOCOPY OF SALE DEED DATED 12.08.2008, CASH DEPOSIT CHART IN BANK AND NOTICE U /S 148 OF THE INCOME TAX ACT, 1961. 3. I AM OF THE VIEW THAT ON THE INFORMATION REGARDI NG DEPOSIT OF CASH WAS RECEIVED BY THE ASSESSING OFFICER AND A SSESSING OFFICER ASKED THE ASSESSEE TO EXPLAIN THE SOURCE OF THIS INVESTMENT VIDE QUERY LETTER. ASSESSEE HAS FAILED TO FURNISH ANY SATISFACTORY EVIDENCE AND EXPLANATION REGARDING THE SAME. 3 ITA NO . 2944/DEL/2018 THE AO ISSUED A NOTICE U/S 148 AFTER GETTING THE AP PROVAL FROM THE COMPETENT AUTHORITY NOTICE DATED 23.03.2017 WHI CH WAS DULY SERVED UPON THE ASSESSEE. IN RESPONSE TO THE SAME, ASSESSEE FILED HIS RETURN OF INCOME FOR AY 2010-11 ON 16.08.2017 DECLARING INCOME OF RS. 59,210/-. AO AL SO ISSUED NOTICE U/S 143(2) ON 16.08.2017 WHICH WAS DULY SERV ED UPON THE ASSESSEE. AFTER THAT AO ALSO ISSUED NOTICE U/S 142(1) ON 07.09.2017 IN RESPONSE TO THE SAME, AUTHORIZED REPRESENTATIVE OF THE ASSESSEE APPEARED AND FILED R EQUIRED DETAILS AND DOCUMENTS. COUNSEL FOR THE ASSESSEE SU BMITTED BEFORE THE AO THAT THE ASSESSEE WAS A RETIRED 89 YE ARS OLD PERSON AND AMOUNT DEPOSITED IN HIS SAVING BANK ACCO UNT FROM THE SALE CONSIDERATION OF THE PROPERTY ON BEHALF OF HIS WIFE AND SONS THROUGH POWER OF ATTORNEY DURING THE YEAR UNDE R CONSIDERATION. BUT THE AO HAS NOT ACCEPTED THE EXP LANATION OF THE ASSESSEE AND MADE THE ADDITION OF RS. 6,79,920/ - U/S 68 OF THE IT ACT, 1961 AND COMPLETED THE ASSESSMENT VI DE ORDER DATED 14.12.2017 U/S 143(3)/147 OF THE ACT. 4. AGGRIEVED BY THE ASSESSMENT ORDER DATED 14.12.20 17 ASSESSEE FILED AN APPEAL BEFORE THE LD. FIRST APPEL LATE AUTHORITY WHO VIDE IMPUGNED ORDER DATED 27.03.2018 PARTLY ALLOWED THE APPEAL OF THE ASSESSEE AND SUSTAINED TH E ADDITION OF RS. 5,06,300/- U/S 69A OF THE ACT. ASSESSEE AGG RIEVED BY THE IMPUGNED ORDER DATED 27.03.2018 FILED THE PRESE NT APPEAL BEFORE THE TRIBUNAL. 4 ITA NO . 2944/DEL/2018 5. AFTER HEARING THE BOTH PARTIES AND PERUSING THE RELEVANT RECORD AVAILABLE WITH ME ESPECIALLY THE ORDER PASSE D BY THE REVENUE AUTHORITIES ALONG WITH THE DOCUMENTARY EVID ENCE FILED BY THE ASSESSEE IN THE SHAPE OF THE PAPER BOOK IN W HICH THE ASSESSEE HAS FILED THE COPIES OF PHOTOCOPY OF BANK ACCOUNT, PHOTOCOPY OF SALE DEED DATED 19.07.2008 AND COPY OF SALE DEED DATED 12.08.2008 AND CASH DEPOSIT CHART IN BANK. I HAVE PERUSED THE ALL DOCUMENTARY EVIDENCES PRODUCED BY T HE ASSESSEE AND I AM OF THE VIEW THAT SHRI GANGA RAM S HARMA ASSESSEE IS NOW AT ABOUT 90 YEARS OLD AND LIVING AL ONG WITH HIS SERVANT AND HAS TO KEPT CASH IN HAND FOR THE PURPOS E OF UNAVOIDABLE OLD AGE PROBLEMS AND DISEASES. THIS PL EA OF THE ASSESSEE HAS NOT BEEN ACCEPTED BY THE REVENUE AUTHO RITY BELOW. IN MY VIEW THIS IS TOTALLY WRONG AND UNSUST AINABLE IN THE FACTS AND CIRCUMSTANCES OF THE ASSESSEE BEING 9 0 YEARS OF AGE. I HAVE PERUSED THE SALE DEED DATED 19.07.2008 AND 12.08.2008 AND I AM OF THE CONSIDERED VIEW THAT EXP LANATION OF THE ASSESSEE REGARDING ADDITION IN DISPUTE SHOUL D HAVE BEEN ACCEPTED BY THE REVENUE AUTHORITY BELOW. I ACCEPT THE SAME AND DELETE THE ADDITION IN DISPUTE BY ACCEPTING THE APPEAL FILED BY THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (H.S. SIDHU) JUDICIAL MEMBER 5 ITA NO . 2944/DEL/2018 DATED: 24/10/2019 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 23.10.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 24.10.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS 24.10.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 24.10.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 24.10.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 24.10.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 24.1 0.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 6 ITA NO . 2944/DEL/2018