The Income-tax Officer, Jalandhar V. Sh. Arvinder Pal Singh, Jalandhar

ITA 304/ASR/2013

• Counselvise Citation: 30420914 RSA 2013
• Duration Of Justice: 9 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 27-02-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 08-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANAND M CHOPRA
• Keywords: Unexplained cash credit; Unexplained investment; Business income; Business expenditure; Income from undisclosed sources; Additional evidence; Corroborative evidences; Assessment record
• Section: 80C; 143(3); 142(1); 234B; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 PAN: ASYPS0389N THE INCOME TAX OFFICER, VS. SH. ARVINDER PAL SING H, WARD-III(1), JALANDHAR 197-DEFENCE COLONY, JALAN DHAR (APPELLANT) (RESPONDENT) APPELLANT BY: SH. MAHAVIR SINGH, SR. DR RESPONDENT BY: SH. ANAND M. CHOPRA, CA DATE OF HEARING: 27.02.2014 DATE OF PRONOUNCEMENT: 28.02.2014 ORDER PER BENCH 1. THE REVENUE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 14.02.2013 PASSED BY LEARNED CIT(A), JA LANDHAR, FOR THE ASSESSMENT YEAR 2009-10 ON THE FOLLOWING GROUNDS: I. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE LEARNED COMMISSIONER OF INCOME TAX-(APPEALS) HAS ER RED IN DELETING THE ADDITION OF RS. 23,09,500/- MADE BY TH E A.O. ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS IN THE BANK AC COUNT OF THE ASSESSEE IGNORING THE FACT THAT THERE WERE NO WITHD RAWAL FROM ASSESSEE BANK ACCOUNT FOR THE PURPOSE OF BUSINESS EXPENSES WHEREAS ASSESSES CLAIMED THAT CASH DEPOSITS REPRESE NTING BUSINESS RECEIPTS. 2 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 II. IT IS PRAYED THAT THE ORDER OF THE LEARNED COMMISSI ONER OF INCOME TAX(APPEALS) BE SET-ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. III. THE APPELLANT REQUESTED FOR LEAVE TO ADD OR AMEND O R ALTER THE GROUND OF APPEAL BEFORE THE APPEAL IS HEARD AND DIS POSED OF. 2. THE FACTS NARRATED BY THE REVENUE ARE THAT THE A SSESSEE IN THE STATUS OF INDIVIDUAL FILED HIS RETURN OF INCOME OF RS. 1,88,290/- ON 30.03.2010 WHICH WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) ON 05.09.2010. THE C ASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY BY ISSUING A NOTICE UNDER SECTION 143(2) OF THE ACT ON 03.09.2010, WHICH WAS SERVED ON 08.09.2010. THE ASSESSING OFFICER ISSUED A QUESTIONNAIRE ALONG WITH THE NOTIC E UNDER SECTION 142(1) OF THE ACT ON 06.06.2011. IN RESPONSE TO THE SAME, THE AUTHORIZED REPRESENTATIVE APPEARED AND FURNISHED INFORMATION. THE ASSESSING OFFICER EXAMINED THE DETAILS FURNISHED BY THE ASSES SEE AND WAS OF THE VIEW THAT THE ASSESSEE IS DOING BUSINESS OF CONSUL TANCY FOR OVERSEAS VISA AND HAS SHOWN INCOME UNDER THE HEAD INCOME F ROM BUSINESS/PROFESSION. THE ASSESSING OFFICER RECEIVE D INFORMATION THROUGH THE ANNUAL INFORMATION RETURN FILED BY TH E STANDARD CHARTERED BANK THAT THERE WERE CASH DEPOSITS IN SAVING BANK A CCOUNT OF THE ASSESSEE, DURING THE YEAR UNDER CONSIDERATION, AT R S. 16,32,000/-. THE 3 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 ASSESSEE, VIDE QUESTIONNAIRE DATED 06.06.2011, WAS ASKED TO GIVE THE DETAILS OF BANK ACCOUNTS BEING MAINTAINED BY HIM AN D THE SOURCES OF CREDIT ENTRIES IN THESE ACCOUNTS. IN RESPONSE TO T HE SAME, THE ASSESSEE VIDE REPLY DATED 17.10.2011, STATED THAT BESIDES SA VING BANK ACCOUNT NUMBER 71510027082 WITH STANDARD CHARTERED BANK, HE WAS ALSO HAVING A SAVING BANK ACCOUNT WITH PUNJAB NATIONAL BANK BEA RING ACCOUNT NO. 1549000100127033 AND A CURRENT ACCOUNT WITH PUNJAB AND SIND BANK (A/C NO. 2293 IN THE NAME OF M/S ARORA ENTERPRISES) . THE ASSESSEE WAS AGAIN ASKED, VIDE ORDER SHEET ENTRY DATED 01.11.201 1 TO EXPLAIN THE SOURCES OF CREDIT ENTRIES IN THE BANK ACCOUNTS MAIN TAINED ALONG WITH SUPPORTING EVIDENCE. HE FILED HIS REPLY ON 03.11.20 11, THE RELEVANT PORTION OF WHICH IS BEING REPRODUCED BELOW: 5. THAT THE CREDIT ENTRIES IN S/B ACCOUNT REPRESEN T THE BUSINESS RECEIPTS ON WHICH AN ESTIMATED INCOME OF ABOUT RS. 18000/- P ER MONTH AS EARNED, HAS BEEN CALCULATED. I AM NOT MAINTAINING THE BOOKS OF ACCOUNTS BUT HAVE DECLARED THE PROFIT ABOVE THAN 5% ON THE GROSS RECE IPTS/SALE IN ACCORDANCE WITH THE SEC. 44AF OF THE INCOME TAX ACT . THE NATURE OF MY BUSINESS INCLUDES CONSULTANCY TO THE ABROAD GOING S TUDENTS ON EDUCATION VISA OR OTHERWISE AND THE AMOUNT PAID BY THEM FOR M EETING EXPENSES RELATING TO THE REQUISITE EXPENSES FOR PREPARING TH E FILE AS PER THE REQUIRED FORMALITIES, IS DEPOSITED IN THE BANK AND SUBSEQUENTLY WITHDRAWN FOR THE PURPOSE AS AND WHEN NEEDED. 3. ON THE SAME DATE I.E. 03.11.2011, VIDE ORDER SHE ET ENTRY, THE ASSESSEE WAS ASKED TO FURNISH THE JUSTIFICATION OF BUSINESS INCOME SHOWN 4 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 VIS--VIS DEPOSITS MADE IN STANDARD CHARTERED BANK, PUNJAB NATIONAL BANK AND PUNJAB AND SIND BANK AND THE PROCEEDINGS W ERE ADJOURNED FOR 11.11.2011, WHICH WAS AGAIN ADJOURNED TO 17.11.2011 AT THE REQUEST OF THE COUNSEL OF THE ASSESSEE. ON 17.11.2011, NOBODY ATTENDED THE PROCEEDINGS, THEREAFTER, A DETAILED SHOW-CAUSE NOTI CE WAS ISSUED TO THE ASSESSEE ON 25.11.2011. THE CONTENTS OF THE NOTICE DATED 25.11.2011, ARE REPRODUCED AS UNDER: KINDLY REFER TO THE PROCEEDINGS RESTING WITH THE U NDERSIGNED CONCERNING YOUR INCOME TAX ASSESSMENT FOR THE ASSESSMENT YEAR 2009-10. VIDE QUESTIONNAIRE DATED 06.06.2011, YOU WERE RE QUESTED TO FURNISH DETAILS OF BANK ACCOUNTS, BEING MAINTAINED BY YOU, ALONG WITH SOURCES OF DEPOSITS MADE IN THESE ACCOUNTS, ALONG W ITH SUPPORTED EVIDENCE. AS PER YOUR REPLIES FILED ON 17.10.2011 A ND 03.11.2011, YOU WERE MAINTAINING FOLLOWING THREE BANK ACCOUNTS:- I. SAVING BANK ACCOUNT NUMBER 1549000100127033 WITH PUNJAB NATIONAL BANK, DEFENCE COLONY, JALANDHAR. II. SAVING BANK ACCOUNT NO. 71510027082 WITH STANDARD CHARTERED BANK, JALANDHAR. III. CURRENT ACCOUNT 2293 IN THE NAME OF M/S ARORA ENTER PRISES IN PUNJAB AND SIND BANK, G.T. ROAD. IT WAS FURTHER STATED THAT CREDITS IN SAVING BANK A CCOUNT REPRESENTED BUSINESS RECEIPTS ON WHICH INCOME OF RS. 18,000/- P ER MONTH HAS BEEN EARNED AND THAT IN THE ABSENCE OF BOOKS OF ACCOUNT, PROFIT ABOVE 5% HAD BEEN DECLARED IN ACCORDANCE WITH SECTION 44AF OF TH E INCOME TAX ACT. AS PER YOUR RETURN OF INCOME, INCOME FROM BUSINESS HAS BEEN TAKEN AT RS. 2,24,860/-. 5 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 YOUR REPLY VIS--VIS CREDIT ENTRIES IN BANK ACCOU NTS HAVE BEEN EXAMINED AND IT IS NOTICED THAT MOST OF THE DEPOSIT S IN BANK ACCOUNTS ARE ON ACCOUNT OF CASH AND MOST OF THE WITHDRAWALS ARE FOR REPAYMENT OF LOAN, PAYMENTS AT RETAIL STORES ETC. THESE ACCOUNTS , PARTICULAR SAVING BANK ACCOUNT WITH STANDARD CHARTERED BANK AND PUNJAB NAT IONAL BANK, DO NOT REFLECT ANY PAYMENTS MADE FOR MEETING THE BUSINESS EXPENSES. IN VIEW OF THE ABOVE OBSERVATIONS, YOU ARE HEREBY REQUESTED TO EXPLAIN AS TO WHY THE DEPOSITS IN THESE BANK ACCOUNTS BE NO T TREATED AS YOUR INCOME FROM UNDISCLOSED SOURCES. FOR THE ABOVE, YOUR CASE IS FIXED FOR 02.12.2011 AT 11:00 A.M. NOTICE U/S 142(A) IS ENCLOSED FOR COMPLIANCE. PLEASE NOTE THAT IN CASE OF NON- COMPLIANCE OR NON-FURNISHING OF INFORMATION AND SUP PORTING EVIDENCE, THE ASSESSMENT IN YOUR CASE WOULD BE COMPLETED ON T HE BASIS OF MATERIAL AVAILABLE ON RECORD. 4. IN COMPLIANCE OF THE SAID NOTICE, NEITHER THE AS SESSEE NOR THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE APPEARED NOR FILED ANY APPLICATION FOR ADJOURNMENT WHICH SHOWS THAT THE AS SESSEE IS NOTHING TO SAY IN THE MATTER AND THE ASSESSING OFFICER HAS GIV EN HIS FINDINGS IN PARA NOS. 3.4 TO 3.7 AND 4 TO 6 AT PAGE NOS. 3 TO 7, WHI CH ARE REPRODUCED AS UNDER: 3.4 THE ASSESSEE MADE CASH DEPOSITS IN HIS THREE BANK ACCOUNTS AS UNDER: SL. NO. NAME OF THE BANK ACCOUNT NUMBER CASH DEPOSITS 1. STANDARD CHARTERED BANK 71510027082 16,32,000/- 2. PUNJAB NATION BANK 1549000100127033 1,92,000/- 3. PUNJAB AND SIND BANK 2293 4,85,500/- 6 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 TOTAL 23,09,500/- 3.5 THE ASSESSEE HAS BEEN TIME AND AGAIN ASKED TO FURNISH THE SOURCES OF THESE CASH DEPOSITS, WITH SUPPORTING EVI DENCE. AS PER PROVISIONS OF SECTION 69 OF THE ACT, THE ONUS TO EX PLAIN THE SOURCES OF ACQUISITION OF AMOUNT DEPOSITED IN HIS BANK ACCOUNT IS ONLY HIM ONLY. THE REPLY FURNISHED BY THE ASSESSEE IS NOT SUPPORTE D BY ANY EVIDENCE. 3.6 IN THE LIGHT OF FACTS OF THE CASE, THE FOLLOWI NG POINTS EMERGE IN THE CASE. THE ASSESSEE OWNED AND DEPOSITED CASH OF RS. 23,09, 500/- IN HIS BANK ACCOUNTS WITH STANDARD CHARTERED BANK, PUNJAB NATIONAL BANK AND PUNJAB AND SIND BANK. THE ONUS TO EXPLAIN THE SOURCES OF THE SAID DEPOSITS HAS NOT BEEN DISCHARGED BY HIM . THE ONLY EXPLANATION FURNISHED BY THE ASSESSEE REGA RDING THESE DEPOSITS, AS PER HIS REPLY DATED 03.11.2011, IS THA T THE CREDITS REPRESENTED HIS BUSINESS RECEIPTS, ON WHICH ESTIMAT ED INCOME OF RS. 2,24,860/- HAD BEEN DECLARED IN THE RETURN OF I NCOME FILED. THERE WERE TOTAL DEPOSITS OF RS. 23,09,500/- IN THE SE ACCOUNTS. THE ASSESSEE HAS NOT SUBSTANTIATED THAT HOW HIS NET INC OME FROM THESE DEPOSITS COMES TO RS. 2,24,860/- ONLY. THE ASSESSEE HAD NOT MAINTAINED ANY BOOKS OF ACCOUN T. THEREFORE, VERACITY OF HIS INCOME AT RS. 2,24,860/- CANNOT BE MADE. A PERUSAL OF THESE ACCOUNTS SHOW THAT MOST OF THE D EPOSITS WERE IN CASH WHEREAS WITHDRAWALS HAD BEEN MADE FOR REPAYMEN T OF LOANS OF ICICI BANK(HOUSING LOAN), GE MONEY, PAYMENTS MAD E AT DIFFERENT RETAIL STORES VIZ. KAPSONS FASHION, PYRAM ID MEGA STORE, MEENA BAZAR, WOODLAND, WILL LIFESTYLE AND NEWTONS A RCADE ETC. MOST OF THESE PAYMENTS WERE ON ACCOUNT OF HIS PERSO NAL EXPENSES AND AS PER NARRATION GIVEN AGAINST DEBIT ENTRIES OF THESE BANK ACCOUNTS, NO EXPENSE RELATING TO THE BUSINESS HAD B EEN MADE THROUGH DEBIT TO THESE ACCOUNTS. EVEN CASH WITHDRAW ALS FROM THESE ACCOUNTS WERE NOT MUCH, WHICH COULD HAVE BEEN UTILI ZED FOR THE BUSINESS EXPENDITURE. THEREFORE, TOTAL CREDITS IN T HESE ACCOUNTS REPRESENT THE INCOME OF THE ASSESSEE. THE ASSESSEE WAS GIVEN AMBLE OPPORTUNITY TO EXPLAIN THE SOURCES OF THESE DEPOSITS IN HIS BANK ACCOUNT. HE HAS FAILE D TO ATTEND THE 7 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 OFFICE OR FURNISH ANY EXPLANATION ON 17.11.2011 AND IN RESPONSE TO SHOW CAUSE NOTICE DATED 25.11.2011, WHEREIN HE WAS SPECIFICALLY ASKED TO EXPLAIN AS TO WHY THE DEPOSITS IN THE BANK ACCOUNTS BE NOT TREATED AS HIS INCOME FROM UNDISCLOSED SOURCES. HIS SILENCE ON THE MATTER MEANS HIS ACCEPTANCE TO THE FACT THAT HE WAS HAVING INCOME FROM UNDISCLOSED SOURCES, WHICH HAD BEEN DEPOSITED IN HIS BANK ACCOUNT. IN HIS EARLIER REPLY DATED 01.11.2011, THE ASSESSEE STATED THAT HE WAS IN THE BUSINESS OF GIVING CONSULTATIONS TO THE STUDENTS FOR STUDIES IN ABROAD AND IN HIS REPLY DATED 03.11.2011 , HE HAS CLAIMED THAT HIS PROFIT WAS ABOVE 5% OF GROSS RECEIPTS IN A CCORDANCE OF SECTION 44AF OF THE ACT. THE CASE OF THE ASSESSEE, IN VIEW OF BUSINESS BEING CARRIED OUT BY HIM, IS NOT COVERED B Y THE PROVISIONS OF SECTION 44AF WHICH IS APPLICABLE TO THE RETAILS TRADERS. FURTHER, THE NATURE OF CREDITS/DEBITS IN THE BANK ACCOUNT IT SELF SHOW THAT THE CREDIT ENTRIES IN BANK ACCOUNTS WERE NOT HIS GROSS RECEIPTS OF THE YEAR AND HARDLY ANY DEBIT WAS UTILIZED FOR THE BUSI NESS EXPENSES. THE ASSESSEE HAD NOT LED ANY EVIDENCE TO SHOW THAT TOTAL RECEIPTS OF HIS BUSINESS HAD BEEN CREDIT IN THESE BANK ACCOUNTS . EVEN IF FOR ARGUMENTS SAKE, IT IS ADMITTED THAT THE CREDITS REP RESENTED HIS GROSS RECEIPTS, THERE ARE NO EXPENSES RELEVANT TO THE BUS INESS, FROM THESE ACCOUNTS WHICH WOULD HAVE REDUCED HIS INCOME FROM T HE RECEIPTS. THE ASSESSEE HAS NOT DECLARED THE INTEREST EARNED F ROM HIS SAVING BANK ACCOUNT IN HIS RETURN OF INCOME, WHICH CLEARLY SHOWS HIS INTENTION TO HIDE THE SAID BANK ACCOUNTS. 3.7 CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, DISCUSSION MADE ABOVE AND THE LEGAL REQUIREMENT, THE UNSUBSTAN TIATED AND UNSATISFACTORY EXPLANATION OF THE ASSESSEE IS HEREB Y REJECTED. THEREFORE, IT IS HELD THAT THE ASSESSEE HAS FAILED TO EXPLAIN THE NATURE AND SOURCES OF ACQUISITION OF CASH AGGREGATING TO RS. 23,09,500/-, DEPOSITED IN HIS BANK ACCOUNTS AND THE EXPLANATION FURNISHED BY HIM IS UN SATISFACTORY. ACCORDINGLY, THE SUM OF RS. 23,09,500/- IS HELD TO BE HIS UNEXPLAINED INVESTMENT AND ASSESSED AS HIS INCOME FOR THE FINAN CIAL YEAR 2008-09 RELEVANT TO THE ASSESSMENT YEAR 20009-10. THE ASSESSEE HAS FURNISHED INACCURATE PARTICULAR S OF HIS INCOME TO THE TUNE OF RS. 23,09,500/-. THEREFORE, PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT ARE BEING INITIATED SEPARATELY . 8 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 4. INTEREST FROM SAVING BANK ACCOUNT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSE E EARNED INTEREST ON HIS SAVING BANK ACCOUNTS AS UNDER, WHIC H HAS NOT BEEN DECLARED IN THE RETURN OF INCOME FILED:- STANDARD CHARTERED BANK 5380/- PUNJAB NATIONAL BANK 246/- TOTAL 5626/- THE INTEREST FROM SAVING BANK ACCOUNTS IS CHARGEA BLE TO TAX AND THE ASSESSEE HAS FAILED TO DECLARE THE SAME IN HIS RETU RN OF INCOME. ACCORDINGLY, AN ADDITION OF RS. 5,626/- IS MADE ON THIS ACCOUNT. THE ASSESSEE HAS CONCEALED PARTICULARS OF HIS IN COME TO THE TUNE OF RS. 5,626/- ON THIS ACCOUNT. THEREFORE, PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT ARE BEING INITIATED SEPARATE O N THIS ACCOUNT. 5. DEDUCTION U/S 80C IN HIS RETURN OF INCOME, THE ASSESSEE HAS CLAIME D DEDUCTION U/S 80C AT RS. 36,567/- WHICH INCLUDES DEDUCTION ON ACC OUNT OF TUITION FEE OF CHILDREN AT RS. 14,120/-. THE ASSESSEE WAS ASKED TO FURNISH EVIDENCE IN RESPECT OF THE SAID CLAIM. HOWEVER, HE HAS NOT FILE D ANY EVIDENCE IN RESPECT OF TUITION FEE PAID. THE SAME IS ACCORDINGL Y DISALLOWED. THE ASSESSEE HAS FURNISHED INACCURATE PARTICULARS OF HIS INCOME TO THE TUNE OF RS. 14,120/-. THEREFORE, PENALTY PRO CEEDINGS U/S 271(1)(C) OF THE ACT ARE BEING INITIATED SEPARATELY ON THIS A CCOUNT. 6. THE ASSESSEE HAS FAILED TO ATTEND PROCEEDINGS ON 02.12.2011, IN RESPONSE TO NOTICE U/S 142(A) OF THE ACT DATED 25.1 1.2011. THEREFORE, PENALTY PROCEEDINGS U/S 271(1)(B) OF THE ACT ARE BE ING INITIATED SEPARATELY. 9 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 IN VIEW OF ABOVE DISCUSSION, INCOME OF THE ASSESSEE IS COMPUTED AS UNDER: RETURNED INCOME 1,88,290 ADD:- UNEXPLAINED CREDITS IN BANK ACCOUNTS (PARA3) 23,09,500 INTEREST FROM SAVING BANK ACCOUNT (PARA 4) 5,626 DISALLOWANCE OF DEDUCTION U/S 80C (PARA 5) 1 4,120 TOTAL ASSESSED INCOME RS. 25,17,536/- TAX ON ABOVE RS. 6,60,262 SURCHARGE RS. 66,026 EDUCATION CESS RS. 21,786 INTEREST U/S 234A RS. 44,886 INTEREST U/S 234B RS. 2,46,873 TOTAL TAX PAYABLE RS.10,39,836/- LESS:- ALREADY CHARGED U/S 143(1) RS. 4,256/ - BALANCE TAX PAYABLE RS. 10,35,580/- PENALTY NOTICE U/S 271(1)(C) OF THE INCOME TAX AC T, 1961 HAS BEEN SEPARATELY ISSUED, FOR CONCEALING PARTICULARS OF IN COME, AS DISCUSSED IN PARA 3, 4 & 5. PENALTY NOTICE U/S 271(1)(B) OF THE INCOME TAX ACT, 1961 HAS BEEN SEPARATELY ISSUED, FOR NON-COMPLIANCE, AS DISCUSSED IN PARA 6. ASSESSED. ISSUE REQUISITE DOCUMENTS TO THE ASSESSEE . THE ASSESSING OFFICER COMPLETED THE ASSESSMENT O N 05.12.2011 UNDER SECTION 143(3) OF THE ACT. 5. AGGRIEVED WITH THE ASSESSMENT ORDER DT. 05.12.2011 , THE ASSESSEE FILED ANY APPEAL BEFORE THE LEARNED FIRST APPELLATE AUTHORITY, WHO VIDE IMPUGNED ORDER DATED 14.02.2013, PARTLY ALLOWED THE APPEAL FILED BY THE 10 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 ASSESSEE. NOW, THE REVENUE BEING AGGRIEVED WITH THE IMPUGNED ORDER DATED 14.02.2013 , FILED THE PRESENT APPEAL. 6. AT THE TIME OR HEARING, LEARNED DR RELIED UPON T HE ORDER PASSED BY THE ASSESSING OFFICER AND STATED THAT THE ASSESS EE REMAINED NON- COOPERATIVE BEFORE THE ASSESSING OFFICER AND FILED THE ADDITIONAL EVIDENCE BEFORE THE LEARNED FIRST APPELLATE AUTHORI TY WHICH HAS WRONGLY BEEN ACCEPTED BY HIM. HE REQUESTED THAT THE ORDER O F THE ASSESSING OFFICER MAY BE UPHELD AND THE IMPUGNED ORDER MAY BE CANCELLED. 7. ON THE CONTRARY, LEARNED COUNSEL FOR THE ASSESSE E STATED THAT THE ASSESSEE IN THIS CASE IS ENGAGED IN THE BUSINESS OF CONSULTANCY FOR OVERSEAS STUDENT VISA OF DIFFERENT COUNTRIES SPECI ALLY STUDENT VISA FOR DIFFERENT COUNTRIES LIKE U.K., AUSTRALIA ETC. IN ST UDENT VISA CASES STUDENT COMES TO THE CONSULTANT FOR GETTING HIS/HER STUDENT VISA FOR STUDY ABROAD. HE HAD TO PAY ADMISSION FEE & REGISTRATION FEES OF THE COLLEGE, CONSULTANCY CHARGES, VISA FEE OF THE COUNTRY CONCER NED AND OTHER CHARGES DEPENDING ON THE DESIRED COUNTRY AND THE DO CUMENTS REQUIRED BY THE VISA COUNSELLOR AND THEN RECEIVE MONEY FROM STU DENT IN ADVANCE. THE MONEY IS RECEIVED IN ADVANCE FROM THE STUDENT T O PAY FOR COLLEGE/UNIVERSITY FEES TO THE CONCERNED CONSULATE, PURCHASE OF AIR TICKET 11 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 AND FEES FOR THE CONSULTANCY. THE ASSESSEE HAD MAIN TAINED THREE BOOKS OF ACCOUNT DURING THE YEAR UNDER CONSIDERATION, WHICH WAS DISCLOSED BY THE ASSESSEE TO THE ASSESSING OFFICER. KEEPING IN VIEW THE ACCOUNT OF THE ASSESSEE, ONE CAN EASILY COME OUT WITH THE OPINION THAT CASH IS DEPOSITED AND WITHDRAWN FROM THESE ACCOUNT VERY OFTEN. DEPOSI TS OF CASH TO THESE ACCOUNTS ARE SOURCED FROM INCOME OF THE ASSESSEE RE CEIVED FROM CONSULTANCY FROM STUDENT CASH RECEIVED FROM THE SP OUSE OF THE ASSESSEE, ADVANCE RECEIVED FROM THE STUDENT/CLIENTS FOR VARIO US EXPENSES ON THEIR BEHALF. THE ASSESSEE IS A REGULAR INCOME TAX ASSESS EE SINCE 2003. HE IS HAVING INCOME FROM HOUSE PROPERTY AND BUSINESS. BUT UNFORTUNATELY ALL THESE FACTS WERE NOT PROPERLY PRESENTED BEFORE LEAR NED ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS AND THE COUNSEL O F THE ASSESSEE DID NOT APPEAR BEFORE THE LEARNED ASSESSING OFFICER FOR THE REASON BETTER KNOWN TO HIM. DUE TO THE NEGLIGENCE ON THE PART OF THE AS SESSEES COUNSEL, THE ASSESSEE HAD TO SUFFER MENTAL AS WELL AS PHYSICAL H ARASSMENT. LEARNED COUNSEL FOR THE ASSESSEE STATED THAT DUE TO THE NEG LIGENCE OF THE COUNSEL FOR THE ASSESSEE, ASSESSEE SHOULD NOT HAVE BEEN SUF FERED. HE FURTHER STATED THAT THE ASSESSEE THROUGH HIS EARLIER COUNSEL COULD NOT PRODUCE NECESSARY EVIDENCE, AS REQUIRED BY THE ASSESSING OFFICER, BUT AFTER CHANGING THE 12 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 COUNSEL, THE ASSESSEE FILED HIS APPEAL BEFORE THE L EARNED FIRST APPELLATE AUTHORITY AND FILED AN APPLICATION UNDER RULE 46A O F THE INCOME TAX RULES, 1962. THE LEARNED FIRST APPELLATE AUTHORITY AFTER OBTAINING THE COMMENTS FROM THE ASSESSING OFFICER HAS ADMITTED TH E ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND RIGHTLY DELETED THE ADDITION IN DISPUTE. HE HAS STATED THAT THE ASSESSEE HAS FILED ALL DOCUM ENTARY EVIDENCE BEFORE THE LEARNED FIRST APPELLATE AUTHORITY AS WELL AS BE FORE THIS BENCH FOR PERUSAL. HE REQUESTED THAT THE IMPUGNED ORDER PASSE D BY THE LEARNED FIRST APPELLATE AUTHORITY MAY BE UPHELD BY DISMISSING THE APPEAL FILED BY THE REVENUE. 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT RECORDS AVAILABLE WITH US, ESPECIALLY THE ORDERS PASSED BY THE REVENUE AUTHORITIES AND THE EVIDENCE FILED BY THE ASSESSEE IN THE SHAPE OF PAPER BOOK AND OUR FINDINGS ARE AS UNDER: 8.1 WE HAVE EXAMINED THE ASSESSMENT ORDER DATED 05 .12.2011 AND WE ARE OF THE VIEW THAT THE ASSESSEE FILED HIS RETU RN OF INCOME ON 30.03.2010 DECLARING AN INCOME OF RS. 1,88,290/- WH ICH WAS PROCESSED BY THE ASSESSING OFFICER UNDER SECTION 143(1) OF TH E ACT ON 05.09.2010. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY BY ISSUING A NOTICE 13 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 UNDER SECTION 143(2) OF THE ACT ON 03.09.2010 AND D ETAILED QUESTIONNAIRE ALONG WITH THE NOTICE UNDER SECTION 142(1) OF THE A CT WAS ALSO ISSUED TO HIM. IN RESPONSE TO THE SAME, SH. NARESH CHAWLA, AD VOCATE, ATTENDED THE PROCEEDINGS FROM TIME TO TIME AND FURNISHED INFORMA TIONS BEFORE THE ASSESSING OFFICER. THE ASSESSEE IS DOING BUSINESS O F CONSULTANCY FOR OVERSEAS VISA AND HAS SHOWN INCOME UNDER THE HEAD INCOME FROM BUSINESS/PROFESSION. THE ASSESSING OFFICER, ON THE INFORMATION, FOUND THAT DURING THE YEAR UNDER CONSIDERATION THERE WERE CASH DEPOSITS IN SAVING BANK ACCOUNT OF THE ASSESSEE, AMOUNTING TO RS. 16,32,000/-. THE ASSESSEE, VIDE QUESTIONNAIRE DATED 06.06.2011, WAS ASKED TO GIVE THE DETAILS OF BANK ACCOUNTS BEING MAINTAINED BY HIM AN D THE SOURCES OF CREDIT ENTRIES IN THESE ACCOUNTS. THE ASSESSEE HIM SELF DISCLOSED BEFORE THE ASSESSING OFFICER ABOUT THE OTHER BANK ACCOUNTS MAINTAINED BY HIM. THE ASSESSING OFFICER AGAIN ASKED THE ASSESSEE, VID E ORDER SHEET ENTRY DATED 01.11.2011 TO EXPLAIN THE SOURCES OF CREDIT E NTRIES IN THE BANK ACCOUNTS MAINTAINED ALONG WITH SUPPORTING EVIDENCE. IN RESPONSE TO THIS QUERY, HE FILED HIS REPLY ON 03.11.2011, THE RELEVA NT PORTION OF WHICH IS UNDER: 5. THAT THE CREDIT ENTRIES IN S/B ACCOUNT REPRESEN T THE BUSINESS RECEIPTS ON WHICH AN ESTIMATED INCOME OF ABOUT RS. 18000/- P ER MONTH AS EARNED, 14 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 HAS BEEN CALCULATED. I AM NOT MAINTAINING THE BOOKS OF ACCOUNTS BUT HAVE DECLARED THE PROFIT ABOVE THAN 5% ON THE GROSS RECE IPTS/SALE IN ACCORDANCE WITH THE SEC. 44AF OF THE INCOME TAX ACT . THE NATURE OF MY BUSINESS INCLUDES CONSULTANCY TO THE ABROAD GOING S TUDENTS ON EDUCATION VISA OR OTHERWISE AND THE AMOUNT PAID BY THEM FOR M EETING EXPENSES RELATING TO THE REQUISITE EXPENSES FOR PREPARING TH E FILE AS PER THE REQUIRED FORMALITIES, IS DEPOSITED IN THE BANK AND SUBSEQUENTLY WITHDRAWN FOR THE PURPOSE AS AND WHEN NEEDED. 8.2 AFTER GIVING THE REPLY DATED 03.11.2011, THE A SSESSING OFFICER AGAIN ASKED THE ASSESSEE TO FURNISH THE JUSTIFICATI ON OF BUSINESS INCOME SHOWN IN THE AFORESAID BANK ACCOUNTS AND ADJOURNED THE PROCEEDINGS MANY TIMES BUT NEITHER THE ASSESSEE NOR HIS AUTHORI ZED REPRESENTATIVE APPEARED. LASTLY, THE ASSESSING OFFICER COMPLETED T HE ASSESSMENT DUE TO THE LACK OF EVIDENCE AND NON-COOPERATION BY THE ASS ESSEE AND MADE ADDITION IN DISPUTE VIDE ASSESSMENT ORDER DATED 05. 12.2011 PASSED UNDER SECTION 143(2) OF THE ACT. 8.3 WE ARE OF THE VIEW THAT THE ASSESSING OFFICER HAS NOT CLEARLY WRITTEN IN HIS ORDER THAT WHETHER HE HAS SENT NOTIC E DIRECTLY TO THE LEARNED COUNSEL FOR THE ASSESSEE IN THE ASSESSMENT PROCEEDI NGS OR NOT. IN THE CASE OF THE ASSESSEE, SH. NARESH CHAWLA, ADVOCATE, REMAI NED NON-COOPERATIVE IN THE ASSESSMENT PROCEEDINGS ON BEHALF OF THE ASSE SSEE. AS PER RECORD, IT HAS BEEN MENTIONED THAT THE ASSESSING OFFICER HAD I SSUED A DIRECT NOTICE TO THE ASSESSEE INFORMING THAT THE ASSESSEES COUNS EL HAS NOT RESPONDING 15 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 TO THE PROCEEDINGS AND DIRECTED THE ASSESSEE TO APP EAR IN PERSON OR THROUGH HIS COUNSEL. WHATEVER THE INFORMATIONS FURN ISHED BY THE ASSESSEE, HAS BEEN EXAMINED BY THE ASSESSING OFFICE R AND COMPLETED THE ASSESSMENT ON THE BASIS OF INFORMATIONS AND UNFORTU NATELY THE ADDITION IN DISPUTE HAS BEEN MADE BY THE ASSESSING OFFICER WITH OUT ANY EFFORTS TO SERVE THE ASSESSEE IN THE ABSENCE OF HIS COUNSEL. B UT THE LAW HAS PROVIDED ANOTHER OPPORTUNITY TO THE ASSESSEE BY FILING THE A PPEAL AGAINST THE ASSESSMENT ORDER BY ENGAGING ANOTHER COUNSEL SH. AN AND CHOPRA, CA, WHO THOROUGHLY EXAMINED THE CASE OF THE ASSESSEE AN D DO NEEDFUL IN THE CASE OF THE ASSESSEE BY FILING THE APPLICATION UNDE R RULE 46A OF THE INCOME TAX RULES, 1962, WHICH THE LEARNED FIRST APP ELLATE AUTHORITY HAS ACCEPTED AFTER ADOPTING THE PRESCRIBED PROCEDURE UN DER THE LAW AND DELETED THE ADDITION IN DISPUTE. 8.4 IT IS VERY MUCH RELEVANT THAT THE ASSESSEE FIL ED HIS EVIDENCE INCLUDING COPIES OF LETTER OF OFFERS TO THE STUDENT S FROM OVERSEAS SCHOOLS/COLLEGES, COPY OF INCOME TAX RETURN OF HIS WIFE. SMT. PARVINDER ARORA AND LIST OF STUDENTS FROM WHOM ADVANCES WERE RECEIVED AND COPY OF CASH ACCOUNTS. ALL THESE DOCUMENTS HAVE BEEN FIL ED BY THE ASSESSEE IN THE SHAPE OF ADDITIONAL EVIDENCE. LEARNED CIT(A) FO RWARDED THE SAME TO 16 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 THE ASSESSING OFFICER FOR HIS COMMENTS WITH THE DIR ECTION TO MAKE INQUIRY BY CALLING THE ASSESSEES BOOKS OF ACCOUNT AND OTHER MATERIALS IN CONNECTION WITH THE ISSUE INVOLVED IN THE APPEAL AN D LEARNED CIT(A) FIXED THE APPEAL ON 21.11.2012 BEFORE HIM. 8.5 IN COMPLIANCE OF THE ORDER OF CIT(A) FOR GETTI NG THE COMMENTS FROM THE ASSESSING OFFICER AND MAKING THE INQUIRY, THE ASSESSING OFFICER SENT A LETTER TO THE ASSESSEE ON 16.11.2012 AND ASK ED MANY QUESTIONS FROM THE ASSESSEE AND CALLED VARIOUS DOCUMENTARY EV IDENCE FOR SUBSTANTIATING THE CLAIM OF THE ASSESSEE. THE SAME WAS FILED BY THE ASSESSEE AS PER DIRECTION OF THE ASSESSING OFFICER. THE ASSESSING OFFICER THOROUGHLY EXAMINED THE DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE ON THE ISSUE IN DISPUTE AND SENT HIS REPORT NO. 6152 D ATED 21.01.2013. FOR THE SAKE OF CONVENIENCE, THE CONTENTS OF THE SAID REPOR T IS REPRODUCED BELOW: A QUESTIONNAIRE DATED 16.11.2012 WAS ISSUED BY ME TO THE ABOVE NOTED ASSESSEE WHICH WAS SERVED ON THE ASSESSEE BY HAND A S WELL AS BY POST. THE RELEVANT QUERIES RAISED ARE REPRODUCED BELOW SI R: IN ORDER TO ADJUDGE THE ADMISSIBILITY AND GENUINENE SS OF THE ADDITIONAL EVIDENCE, YOU ARE REQUIRED TO FURNISH THE FOLLOWING INFORMATION/DOCUMENTS:- 1. EVIDENCE THAT YOU HAVE PAID THE UNIVERSITY/COLLE GE FEE OF THE CONCERNED STUDENTS FROM WHOM YOU HAVE CLAIMED TO HA VE RECEIVED CASH PAYMENTS: 17 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 2. EVIDENCE THAT YOU HAD SOME AFFILIATION WITH THE UNIVERSITY/COLLEGE ABROAD TO WHOM YOU HAD REFERRED THE STUDENTS FOR ST UDIES. 3. DETAILS OF CONSULTANCY CHARGES AND FEE RECEIVED BY YOU WITH RELEVANT DOCUMENTS/VOUCHERS. 4. PRODUCE THE STUDENTS/PARENTS OF THE STUDENTS FOR THEIR EXAMINATION TO ESTABLISH THAT THEY HAVE PAID THE REQUISITE FEE/CON SULTANCY CHARGES TO YOU WITH SOURCE OF THEIR FUNDS UTILIZED. 5. AS IS SEEN FROM THE RECORDS, YOU HAVE NOT COMPL IED WITH THE OPPORTUNITY ALLOWED TO YOU BY THE THEN A.O. FIXING THE HEARINGS IN YOUR CASE ON 17.11.2011 & 02.12.2011 AND ACCORDINGLY YOU FAILED TO SUPPLY VARIOUS INFORMATION AS REQUIRED BY THE A.O. REASONS AS TO WHY YOU FAILED TO AVAIL OF VARIOUS OPPORTUNITY ALLOWED TO YOU BY T HE THEN A.O. TO FURNISH NECESSARY EVIDENCE. ALSO PLEASE EXPLAIN AS TO WHY A ND AS TO WHO HAS PROMPTED YOU TO FURNISH ADDITIONAL EVIDENCE NOW BEF ORE LEARNED CIT(A) AND WHO PREVENTED YOU NOT TO FURNISH THE SAME DURIN G THE COURSE OF THE ORIGINAL ASSESSMENT. PLEASE CLARIFY. IN REPLY TO THE SAID QUESTIONNAIRE, THE ASSESSEE HA S FURNISHED A WRITTEN REPLY ALONG WITH VARIOUS DOCUMENTS. IN BRIEF THE AS SESSEES REPLY AND THE RESULT OF MY ENQUIRIES MADE IN THIS REGARD THROUGH INSPECTOR ARE DISCUSSED AS UNDER:- 1. IT IS CONTENDED THAT THE ASSESSEE WAS ACTING AS A CONSULTANT FOR VISA ABROAD SPECIFICALLY STUDENT VISA OF AUSTRALIAN UNIV ERSITY. THAT AS PER THE FEMA GUIDELINE ONLY THE PERSON WHO IS GRANTED VISA IS ELIGIBLE TO MADE PAYMENT IN FOREIGN CURRENCY. THAT DUE TO THIS RESTR ICTION THE ASSESSEE COULD NOT MAKE DRAFT IN FAVOUR OF THE FOREIGN UNIVE RSITY/COLLEGE FROM HIS OWN ACCOUNT AND HENCE THE ASSESSEE ASKED THE STUDEN T TO MAKE DD IN FAVOUR OF CONCERNED COLLEGE DIRECTLY OR THROUGH FFM C. 2. THE ASSESSEE HAD ENTERED INTO AGREEMENT WITH VA RIOUS COLLEGES OF AUSTRALIA FOR RECOMMENDING STUDIES TO THEM AND HE H AS SUPPLIED COPIES OF FEW SUCH AGREEMENTS. THAT THE ASSESSEE WAS AVAIL ING THE SERVICES OF CAMBRIDGE EDUCATION SERVICE PVT. LTD. AND RIGHT CHO ICE READY FOR THE PURPOSE. HE HAS FILED CONFIRMATION BOTH THE SAID CO NCERNS IN THIS RESPECT. 18 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 INSPECTOR OF THIS OFFICE WAS DEPUTED TO CONDUCT ENQ UIRIES IN THIS REGARD AND TO RECORDS THE STATEMENTS OF THE AUTHORIZED PER SONS OF THE ABOVE NOTED CONCERNS. THE INSPECTOR HAS SUBMITTED HIS REP ORT AND HAS RECORDED THE STATEMENTS OF THE AUTHORIZED PERSONS OF THESE T O CONCERNS WHEREIN THEY HAVE SUBMITTED THAT THEY WERE RENDERING SERVIC ES TO THE ASSESSEE FOR THE ABOVE NOTED PURPOSES. 3. THE ASSESSEE HAS FILED DETAILS OF CONSULTANCY C HARGES RECEIVED FROM VARIOUS STUDENTS DURING THE YEAR UNDER CONSIDERATIO N. COPIES OF THE RECEIPTS ISSUED BY THE ASSESSEE IN TOKEN OF HAVING RECEIVED THE CONSULTANCY CHARGES HAVE ALSO BEEN FILED. ORIGINAL RECEIPTS PRODUCED BEFORE ME HAVE ALSO BEEN EXAMINED. 4. THE ASSESSEE HAD ENGAGED SOME OTHER COUNSEL TO REPRESENT HIS CASE BEFORE THE A.O. BUT HIS CASE WAS NOT PROPERLY PRESE NTED BY THE THEN COUNSEL AND THAT IT WAS NOT KNOWN TO THE ASSESSEE T HAT HIS CASE WAS NOT PROPERLY BEING HANDLED BY HIS PREVIOUS COUNSEL. THE ASSESSEE HAS ALSO FILED AN AFFIDAVIT IN THIS RESPECT. THAT ON RECEIPT OF THE ORDER OF ASSESSMENT, THE ASSESSEE HAS ENGAGED ANOTHER PROFES SIONAL FRO REPRESENTING HIS CASE. IT IS FINALLY STATED BY THE ASSESSEE THAT THE PROCEDURES ADOPTED BY THE ASSESSEE IN THE LINE OF T HIS BUSINESS ARE ADOPTED BY ALL OTHER BUSINESS PEOPLE OF THE SAME LI NE AND IT WAS JUST NEGLIGENCE ON THE PART OF THE ASSESSEES COUNSEL TH AT THE FACTS WERE NOT PROPERLY PRESENTED BEFORE THAT THEN A.O. THE STATEMENT OF THE ASSESSEE WAS ALSO RECORDED B Y ME WHEREIN HE HAS FURNISHED THE DETAILS OF HIS BUSINESS ACTIVITIES. T HE DETAILS OF CASH IN HAND AVAILABLE WITH THE ASSESSEE AS ON 1 ST DATE OF THE FIN. YEAR 2008-09 HAS ALSO BEEN FILED. IN HIS STATEMENT THE ASSESSEE, SH. ARVINDER PAL SINGH HAD TOLD THAT THE STUDENTS AND OTHER EXPENSES MADE ON B EHALF OF VARIOUS STUDENTS ALTHOUGH PROPER BOOKS OF ACCOUNT WERE NOT MAINTAINED BY THE ASSESSEE. ORIGINAL LEDGER WAS PRODUCED BY HIM BEFOR E ME, COPIES OF WHICH ARE RETAINED BY ME AND PLACED IN THE ASSESSME NT FOLDER. FROM THE RECEIPT FURNISHED BY THE ASSESSEE AND TH E ENQUIRIES MADE BY ME THROUGH THE INSPECTOR OF THIS OFFICE AS WELL AS FROM THE DOCUMENTS/LEDGER PRODUCED BY THE ASSESSEE BEFORE ME , IT APPEARS THAT THE PREVIOUS COUNSEL OF THE ASSESSEE HAS NOT PRESENTED THE ASSESSEES CASE 19 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 BEFORE THE THEN A.O. IN AN APPROPRIATE MANNER. ACCO RDINGLY, IT IS SUBMITTED THAT THE APPEAL OF THE ASSESSEE MAY KINDL Y BE DECIDED ON MERITS. THE ASSESSMENT RECORDS, WHEREIN VARIOUS DOCUMENTS SUPPLIED BY THE ASSESSEE STATEMENTS RECORDED DURING THE REMAND PROC EEDINGS AND FRESH ORDER SHEET PREPARED IN RESPECT OF THE REMAND PROCE EDINGS ARE PLACED, IS SUBMITTED FRO YOUR KIND PERUSAL SIR. 8.6 LEARNED FIRST APPELLATE AUTHORITY EXAMINED THE REPORTS OF THE ASSESSING OFFICER AND HAS GIVEN HIS FINDINGS IN PAR A NOS. 10 TO 12 AT PAGE NOS. 11 TO 13, THE SAME ARE REPRODUCED AS UNDER: 10. I HAVE CAREFULLY CONSIDERED THE WRITTEN SUBMI SSIONS, ASSESSMENT ORDER, REPORTS OF A.O. AND MATERIAL ON RECORDS. 11. AS FAR AS THE ADMISSION OF ADDITION EVIDENCE I S CONCERNED, IT IS CLEAR FROM THE ASSESSMENT ORDER AND ALSO THE REPORT OF A.O. THAT DURING THE ASSESSMENT EXCEPT FOR SOME EXPLANATION WHICH WE RE NOT ENTIRELY RELEVANT, NOTHING WAS FILED BY THE ASSESSEE. IT HAS COME OUT FROM THE REPORT OF A.O. AND IS CLEAR FROM THE ASSESSMENT ORD ER THAT THE COUNSEL OF ASSESSEE WHO APPEARED BEFORE A.O. DURING ASSESSMENT HAD NOT PRESENTED THE CASE IN A PROPER MANNER FOR WHICH THE ASSESSEE COULD NOT BE PENALIZED. AFFIDAVIT TO THIS EFFECT IS ALSO FILED T HE ASSESSEE BEFORE A.O. DURING REMAND PROCEEDINGS. THERE IS NO OPPOSITION F ROM A.O. FOR ADMISSION OF MATERIAL EVIDENCES FILED IN THE SHAPE OF ADDITIONAL EVIDENCE WHICH ARE VITAL TO THE DECISION OF THE ISSUES IN HA ND. IN VIEW OF THIS ADDITIONAL EVIDENCES ARE ADMITTED UNDER RULE 46(1)( B) OF THE I.T. ACT. 12. I HAVE ALSO GONE THROUGH THE CASE RECORDS AND FIND APART FROM FILING VARIOUS AGREEMENTS WITH COLLEGES FROM AUSTRA LIA RECOMMENDING THE STUDENTS TO THEM, THE ASSESSEE WAS ALSO AVAILING TH E SERVICES OF M/S CAMBRIDGE EDUCATION SOCIETY AND RIGHT CHOICE STUDY FOR THE PURPOSE. THE RELEVANT DOCUMENTS ARE FILED AND ARE ON RECORDS OF A.O. THE A.O. AS PER REPORT HAS ALSO CONDUCTED INQUIRIES THROUGH THE INSPECTOR WHO RECORDED THE STATEMENTS OF THE AUTHORIZED PERSONS O F THESE TWO CONCERNS 20 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 WHO ADMITTED TO HAVE PROVIDED THEIR SERVICES TO THE ASSESSEE. DETAILS OF CONSULTANCY CHARGES RECEIVED AND THE RECEIPTS THERE OF WERE ALSO FILED. THE STATEMENT OF ASSESSEE WAS ALSO RECORDED BY THE A.O. AND A LEDGER ACCOUNT FOR ADVANCES TAKEN WAS ALSO PRODUCED BEFORE THE A.O., THOUGH PROPER BOOKS OF ACCOUNTS WERE NOT MAINTAINED. IT WA S ALSO EXPLAINED THAT IN THIS LINE OF BUSINESS THE MODUS OPERANDI OF VARI OUS CONSULTANTS IS SIMILAR. INDIVIDUAL ACCOUNTS OF STATEMENT ARE ALSO ON RECORDS. AS FAR AS EXPENSES INCURRED ARE CONCERNED THEY WERE MADE IN T HE NEXT YEAR AND THE DETAILS ARE FILED. IN VIEW OF THE ABOVE, IT IS HELD THAT THE BUSINESS ACTIVITY OF ASSESSEE IS FOUND TO BE GENUINE AND THE ADVANCES RECEIVED AS EVIDENCED BY THE EXAMINATION OF A.O. AND THE MATERI AL ON RECORDS CANT BE TREATED AS INCOME OF ASSESSEE. CONSIDERING ALL T HE DISCUSSION AS ABOVE, THE ADDITION OF RS. 23,09,500/- IS HEREBY DE LETED. GROUND NO. 1 STANDS DISPOSED OFF. GROUND NO. 2 RELATES TO DENIAL OF DEDUCTION OF R S. 14,120/- CLAIMED UNDER SECTION 80C OF I.T. ACT FOR NON-FURNI SHED OF EVIDENCE OF PAYMENT OF THE TUITION FEES. IT IS SEEN THAT SUCH E VIDENCE IS STILL NOT FURNISHED HENCE IN ABSENCE OF THE SAME THE DEDUCTIO N AS CLAIMED CANT BE ALLOWED AND THE ACTION OF A.O. IN DISALLOWING THE D EDUCTION UNDER SECTION 80C OF THE I.T. ACT FOR RS. 14,120/- IS UPH ELD. 8.7 WE HAVE THOROUGHLY GONE THROUGH THE WRITTEN SU BMISSION FILED BY THE ASSESSEE AS WELL AS THE DOCUMENTARY EVIDENCE FILED BY HIM BEFORE THE LEARNED FIRST APPELLATE AUTHORITY ALONG WITH TH E REMAND REPORT OF THE ASSESSING OFFICER, REPRODUCED ABOVE, AND WE ARE OF THE CONSIDERED VIEW THAT DUE TO THE NEGLIGENCE OF THE COUNSEL, THE ASSE SSEE COULD NOT REPRESENT HIS CASE PROPERLY BEFORE THE ASSESSING OFFICER AND IN THE APPELLATE PROCEEDINGS, HE HAS PRODUCED ALL THE RELEVANT DOCUM ENTARY EVIDENCES WHICH INCLUDES COPIES OF LETTER OF OFFERS TO THE ST UDENTS FROM OVERSEAS 21 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 SCHOOLS/COLLEGES, COPY OF INCOME TAX RETURN OF HIS WIFE SMT.. PARVINDER ARORA AND LIST OF STUDENTS FROM WHOM ADVANCES WERE RECEIVED AND COPY OF CASH ACCOUNTS. THE ASSESSING OFFICER MADE INQUIR IES ON THE DOCUMENTS FILED BY THE ASSESSEE AND SENT A REPORT DATED 21.01 .2013 AND HAS NOT RAISED ANY OBJECTION ON THE ADMISSION OF ADDITIONAL EVIDENCE BECAUSE HE FELT THAT THE CASE OF THE ASSESSEE IS VERY MUCH GEN UINE. EVEN A SINGLE OBJECTION HAS NOT BEEN RAISED BY THE ASSESSING OFFI CER ON THE VERSION MADE BY THE ASSESSEE IN HIS REMAND REPORT DATED 21. 01.2013. LEARNED FIRST APPELLATE AUTHORITY HAS ALSO RIGHTLY APPRECIA TED THE EVIDENCE FILED BY THE ASSESSEE IN THE SHAPE OF ADDITIONAL EVIDENCE AN D DELETED THE ADDITION IN DISPUTE BY PASSING A WELL REASONED ORDER ON THE BASIS OF SIMILAR LINE OF BUSINESS. THE ASSESSING OFFICER AS WELL AS THE LEAR NED FIRST APPELLATE AUTHORITY HAS HELD THAT THE BUSINESS ACTIVITY OF TH E ASSESSEE IS FOUND TO BE GENUINE. THE LEARNED FIRST APPELLATE AUTHORITY WAS OF THE VIEW THAT THERE IS NO EVIDENCE ESTABLISHING THE CASH DEPOSIT IN THE BA NK ACCOUNTS OF THE ASSESSEE AS INCOME OF THE ASSESSEE FROM UNDISCLOSED SOURCES AND DELETED THE ADDITION IN DISPUTE. 8.8 KEEPING IN VIEW THE AFORESAID FACTS AND CIRCUM STANCES EXPLAINED ABOVE, WE ARE OF THE CONSIDERED VIEW THAT THE LEARNED FIRST 22 I.T.A. NO. 304(ASR)/2013 ASSESSMENT YEAR: 2009-10 APPELLANT AUTHORITY HAS PASSED A WELL REASONED ORDE R ON THE BASIS OF EVIDENCE PRODUCED BY THE ASSESSEE AND THUS, THE SAM E REQUIRES NO INTERFERENCE. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS DISMISSED AND WE UPHOLD THE IMPUGNED ORDER DATED 14.02.2013 P ASSED BY LEARNED CIT(A), JALANDHAR. 9. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH FEBRUARY, 2014 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 28 TH FEBRUARY, 2014 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: SH. ARVINDER PAL SINGH, 197-DEFENCE COLONY, JALANDHAR 2. INCOME TAX OFFICER, WARD-III(1), 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.