Smt. Gurmeet Kaur Khurana, Moga V. ITO-Ward-6(3), Mohali

ITA 312/CHANDI/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 2070 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 25-10-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA DHAR
• Assessee Lawyers: ADITYA JAIN
• Keywords: Gift
• Section: 6; 69A

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “एकल सद यीय’, च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘SMC’ CHANDIGARH ीमती दवा संह, या#यक सद य BEFORE: SMT. DIVA SINGH, JM आयकर अपील सं./ ITA No. 312/CHD/2021 नधा रण वष / Assessment Year : 2012-13 Shri Gurmeet Kaur Khurana, KG Honda, Opposite Govt. Girls School, Bagha Purana, Moga. बनाम VS The ITO, Ward 6(3), Mohali. थायी लेखा सं./PAN No: AEFPK7799K अपीलाथ /Appellant यथ /Respondent नधा रती क! ओर से/Assessee by : Shri Aditya Jain, CA राज व क! ओर से/ Revenue by : Smt. Priyanka Dhar, Sr.DR स ु नवाई क! तार&ख/Date of Hearing : 02.06.2022 उदघोषणा क! तार&ख/Date of Pronouncement : 29.06.2022 आदेश/ORDER Th e p r e s e n t a p p e a l h a s b e e n f i l e d b y t h e a s s e s s e e w h e r e i n t h e c o r r e c t n e s s o f t h e o r d e r d a t e d 0 9 . 0 9 . 2 02 1 o f C I T( A ) ( N FA C i. e . N a t i o na l Fa c e le s s A p pe a l Ce n t re ) De lh i p e r t a i ni n g t o 2 0 1 2 - 1 3 a s s e s s me n t y e a r is a s s a i le d on t he f o ll o w i ng g r o u nd s : 1. On the facts and circumstances of the case the Ld. Commissioner of Income Tax (Appeals) has erred in upholding the assessment order not in violation of the principles of natural justice whereby no opportunity was provided to the assessee to present evidence and explanation during assessment proceedings due to service of the notices on wrong address. The Appellant prays that the order so passed be held as bad in law. 2. On the facts and in the circumstances of the case and in law, Ld. Commissioner of Income Tax Appeals erred in upholding the addition of Rs. 6.00.000.00 u/s 69A of the Income Tax Act. 1961 (the Act), when the assessee has provided evidence of the source of the payments. Appellant prays that the addition may be deleted and the tax levied be withdrawn. 3. The appellant craves leave to add, amend or delete any of the ground of appeal before the same in taken up for final disposal. ITA/312/CHD/2021 A.Y. 2012-13 Page 2 of 7 2 . B o t h t h e p a rt ie s w e re he a rd . 3 . Th e r e l e v a n t f a ct s o f t he c a s e are t h a t t he a s s es s e e h a d i nv e s t e d a n a mo u nt o f R s . 6 la c s fo r i mmo v a bl e pr o p ert y w i th M /s B a j w a D e v e lo pe rs Lt d . Th e in ve s t me n t w a s ma d e vide c a s h p a y me n t s . The t r a n s a c t io n wa s f la g g e d . I t w as n o t i c e d t h a t no t a x re tu rn wa s f i le d by t he a s se s se e . A c c or d in g l y , n o t i c e s e t c . we re i s s u e d t o t he a s se s s e e . 3 .1 I n re s p o ns e t he re t o , a re t u rn d e c l a r in g i nc o me o f R s .6 , 15 , 65 9 /- w a s fi l e d b y t he as s e s s e e . Th e A ss e ss in g O f fi ce r i n t he o r de r pas s e d u /s 1 4 3( 3 )/1 4 7 h e l d t h a t t he a ss e s s e e f a il e d t o e x p l a i n t he s a me . A c c or d in g l y , a d di t i o n of R s . 6 l a c s w a s ma d e . The t a b l e o f C ha r t o f p a y me nt s e x tr a c t e d i n t he a s s e s s me n t o r de r f o r t h e s a k e of c o mp l e t e ne s s is r e p r o d u ce d h e re u nde r : 3. As per the information received from the Deputy Director of Income Tax (Inv.), Mohali, the assessee has made following payments: Name Address Date Plot Address Mode of payment Amount Sh. Gurmeet Khuana S/o Sh.J.P.Singh # H.No. 2249-B,2 nd Floor, Mundi Co- operative Complex, Sector - 70, Mohali & 1014, Sector 50B, Chief Auditor Society Chd. 06.04.20 11 194 E33, 139 Acre- Hasanpur (Sector- 123) Sunny Enclave (Residential Plot) Kharar Cash 6,500/- 06.04.20 11 Cash 2,93,500/- 2 1.07.2011 Cash 1,25,000/- 26.1 1.20 11 Cash 1,75,000/- Total 6,00,000/- 4 . Th e a s s e s s e e a g g ri e v e d wi t h t he ad d it io n c a r r ie d th is i s s ue i n a p pe a l be f o re t h e F i r s t A p pe l la t e A u t ho r i t y . ITA/312/CHD/2021 A.Y. 2012-13 Page 3 of 7 4 .1 Wr i t t e n s u b mi s s io ns o f t h e a s s e ss e e a re e x t r a c te d in t he i mpu g n e d o rd e r. A s pe r t he re ply o n re c o r d , it is se e n t h a t it w a s c la i me d t h a t t h e a s se s se e had s hi ft e d he r re si de n ce he n ce d id n o t re ce i v e t h e n o t i ce s e t c. I t h a s be e n pl e a de d t hat t h o u g h i n he r r e p ly t o t he no t ic e d a te d 1 5 . 10 . 2 01 9 a n d 2 9 .1 0 .2 0 1 9 ma d e t o t h e A O w he n u l t i ma t e l y s he d id re ce iv e t he n o t i c e re q u i r in g t h a t s he f i le he r re t u r n . R e fe r r ing t o t he s a i d r e p l ie s a n d t h e c o ns e q u e nt fi li n g o f t h e r e t u r n, i t wa s p le a de d t h a t d e s pi te t he a v a i l a bi l it y o f c o r r e c t a d dre s s o f t h e a s se s se e , n o fu r t he r no t ic e s f o r a h e a r ing h a d b e e n re c e i ve d a t t he c o rr e c t a d d re s s o f t he a s s e s s e e . I t ha s be e n p l e a de d t ha t n o t i c e s p r e s u ma b ly k e p t b e i ng se nt t o t he o l d i nc o rr e c t a d d re ss b y t h e A O . A c c o rdi n g l y , l a c k o f o pp o r t u ni t y b e f o re t he A O w as p le a de d . 4 .2 I t w a s a l s o p le ade d t ha t t he a ss e s s e e is “an old retired lady, is not very technologically proficient and hence did not see the final notice sent via WhatsApp. 4 .3 A p a r t fr o m t ha t , o n me r i t s , t he fo ll o w i ng a rg u me n t s i nc o r po ra t e d i n th e o r de r a re a l s o s e e n t o h a ve be en a d v a n c e d : 9. On merits, the total addition is on account of payments made to M/s Bajwa Developers Ltd on account of purchase of immovable property. The total amount paid is Rs. 6,00,000.00 and the same are from accounted for sources of the assessee. 10. The assessee has made a payment of Rs. 3,00,000/- on 06.04.2011 (being two receipts of Rs. 6500/- and Rs. 2,93,500/-). The assessee has received a gift of Rs. 1,55,000.00 from her husband, Sh. Jatinder Pal Singh who had withdrawn the amount from his bank account on 03/04/2011, 04/04/2011, 05/04/2011 and 06/04/2011. A further gift of Rs. 1,20,000.00, was received by the assessee from her ITA/312/CHD/2021 A.Y. 2012-13 Page 4 of 7 son Sh. Kanwaldeep Singh, who has withdrawn the amount from his bank account on 04/04/2011, 05/04/2011 and 06/04/2011. The copies of both these bank account are enclosed for reference. The balance amount of Rs. 25,000/- was paid by the assessee out of her personal savings. 11. The second payment of Rs. 1,25,000/- was paid by the assessee on 21.07.2011. The amount was paid out of cash withdrawn by the assessee amounting to Rs. 3,50,000/- from her bank account on 20.07.2011. The copy of the bank loan account is enclosed herewith. 12. The third payment of Rs. 1.75,000/- was paid by the assessee on 26.11 2011 The amount was paid out of cash withdrawn by the assessee amounting to Rs 2.02.000/- from her bank account on 26 11.2011 The copy of the bank loan account is enclosed herewith. 13. That the assessee had sufficient cash in hand on all dates on which the payments for the purchase of the property were made and the source of the cash is fully explainable. 5 . Ho w e ve r , t he F irs t A p p e l l a te A u th o r i t y n o t c o nv in c e d w i t h t h e e x p l a n a t io n o f fe re d c o nf i r me d t he a d d i t i o n i n ap p e a l . The F ir s t A pp e l l a te A u t ho ri t y he ld tha t t h e A O o n t h e ba s i s o f ma t e ri a l a v a il a b le o n re c o r d w a s ju s t i fi e d t o ma k e t he a d d it io n . A d d r e s s i ng t he is s u e o n fa c t s , t he CI T( A ) c o n c l u d e d t he i s s ue a s u n d e r : “........The appellant during the course of appellate proceedings has filed certain details in the form of bank statements of SBI in her case as well as in the case of her husband Shri Jatinder Pal Singh. With these submissions in the form of bank statement the appellant is trying to justify the payments of Rs. 6,00,000/- as from accounted sources of the appellant. The entire payments of Rs. 6,00,000/- has been justifying as gift from husband Shri Jatinder Pal Singh amounting of Rs. 1,55,000/-, a gift of Rs. 1,20,000/- from her son Shri Kanwaldeep Singh, personal savings of Rs. 25,000/- and Rs. 3,00,000/- on two occasions out of withdrawal from her bank account maintained at SBI.-I do not agree with any of these submissions made by the appellant for the reason that these are mere bank statements submitted by the appellant without any corroborative evidence as to the existence of such cash either with the appellant or her husband/son. A basic question which arises in this transaction is that when the amount was entirely available in the bank accounts of the appellant and her son and husband's account then what prevented her to get the amount transferred by cheque to her accounts. The nexus of withdrawals from the bank accounts from all the 3 persons as well as payment to M/s Bajwa Developers is nowhere established by the appellant during the assessment proceedings and even during the appellate proceedings. The linking of withdrawal and payment is not established by the appellant when the appellant was not prevented from sufficient cause to produce of such evidences before the assessing authority or the appellate authority still she chose to remain silent for such crucial evidences which could have helped her cause. In my considered opinion the appellant has failed to ITA/312/CHD/2021 A.Y. 2012-13 Page 5 of 7 discharge the onus of establishing the ; genuineness of source effecting the payment to a third party. I, therefore, have no hesitation in holding that the appellant has failed to explain source of such cash payments and AO has rightly made the additions u/s. 69A of the Act. The ground of appeal No. 5 is, therefore, dismissed. 6 . A g g ri e v e d t he a s se s se e i s be f o re t he Tr i b u n a l. 7 . Th e ld . A R r e l y i ng u p o n t h e w r i t t e n s u b mis s i o n s e x t r a c t e d i n t h e o r de r s ub mi t t e d t h a t t h e e n t i re fa mi ly h a d po o le d i n t h e i r f u n ds a n d w it hd r a w n t he mo n e y fr o m t he ir ba n k a c c o u n t s f o r ma k in g t h e b o o k i n g . Th e b a n k s t a t e me n t i n s u p po r t a r e a v a i l a b le o n re co r d . He ma d e a s t a t e me nt a t B a r t h at t he a s s e s se e s ho wn t o b e ‘ Sh r i G u r me e t K h u r a n a ’ i s a c t ua l l y Mr s . G u r me e t K h u r a na ’ a n d i s re t i re d a s a Ma n a g e r o f S t at e B a n k o f I n d ia , Se c t o r - 8 an d S hr i Ja t i n de r P a l Si n g h i s he r hu s b a nd . I t w a s h is s t a t e me nt a t B a r t ha t S hr i Ja t in d e r P a l Si ng h, t he a s s e s se e ' s h u s ba nd h a s a l s o re t i re d a s C h ie f Ma na g er fr o m t he Z o na l Of fi c e , St a t e B a nk o f I nd i a , C ha n d i g a r h B r a nch. Th e s o n o f t he a s s e s s e e , i t w a s s u b mit t e d , w a s w o r ki n g a s an E ng in e e r i n a p r i v a te f i rm. Th e in ve s t me nt, it w a s s u b mit t e d, ha s be e n ma d e a ft e r w i t h dr a w i ng t h e fu nds i n c a s h f ro m t h e re s pe c t ive b a nk a c c o u n t s o f t he s e fa mi ly me mb e r s . I t w a s h i s s u b mi s s i o n t h a t t h e s o u r c e s o f f u n d s i n t he ha n d s o f t he as s e sse e h a ve b e e n e x p l a ine d . D o c u me n t s e s ta b l is hi n g t ha t th e p a yme n t s w e re fr o m w i t h dr a w a l s ma de o n t h e s t a te d d a te s fr o m t h e b a n k a c c o u n t s ma in t a i ne d b y t he a s se s s e e , he r s o n a n d hus b a nd , it w a s s u b mit t e d , h a d be e n f i le d be fo re t he CI T(A ). The c o p ie s o f t h e s a me , it w a s s u b mi t t e d , a g a in fi le d we re a v a ilab l e . Th e s e ITA/312/CHD/2021 A.Y. 2012-13 Page 6 of 7 w e re re fe rre d t o . Hi g h li g h t i ng t h e e v id e n ce o n r e c or d , i t w a s s u b mit t e d t h a t t h e s o n o f the a s s e s se e has ma d e t he w i t hd r a w a l s i n ca s h o n 4 t h , 5 t h and 6 t h A pr i l b y u s i ng hi s De b it C a r d w he re in t h e re w a s a l i mit o f R s .2 0 ,0 0 0 /- o n e ac h w i t hd r a w a l . A s a r e s u l t o f t h is , i t w a s s u b mi t t e d, mu l t i p le w i t hd r a w a l s o n t h e s a me d a t e h av e be e n ma de o n e a c h o f t he se d a t e s . S i mi l a r ly , t he h u s ba n d o f t he a s s e s se e h as a ls o ma d e v a r i o u s w i t hd r a w a l s b y u s i ng h i s D e b i t C a r d o n 4 t h 5 t h a nd 6 t h A p r i l b y ma k i ng mu lt ip l e w i t hd r a w a l s . S imi l a r ly , th e a s s e s s e e h e r se lf a l s o h as ma de w it hd r a w a l o n 2 0 t h Ju l y , 2 01 1 a n d 2 6 .1 1 .2 0 1 1 . Th e s e s pe c i fi c d a te s c o i nc id e wi t h th e p a y me nt s . Th e w i t h dr a w a l s , i t w a s s u b mi t t e d, ha v e n o t be e n dou b t e d . The a s s e s se e , i t w a s s u b mit t e d , a g r e e s t h a t t he p ay me nts w e re ma d e t o M /s B a jw a D e v e l o pe r s . A c c o rd i n g ly , i g n o r i ng t he se e v ide nc e s , t he a d di t i o n s u s t a in e d i s c o n t r a r y t o f ac t , t he a d d it io n , i t h a s b e e n ple a de d ma y b e de le te d . 8 . Th e l d. S r .D R r e l ie s u p o n t he i mpu g n e d o r de r. 9 . I h a ve he a r d t he s u b mi s s i o n s a n d p e r u s e d t he ma te r i a l o n r e c o r d. I n t he fac t s o f t he pre se nt c a s e q u a t he op po rt u n it y o f b e i ng he a r d, i t is s e e n t h a t t he re h a v e be e n la ps e s o n bo t h t he e n d s . H o we ve r , o n me r i t s , it i s s e e n t h a t t he de p os it o f R s .6 l a c s ma d e by t h e a s s e s s e e f ro m t h e s o u rc e s o f f u n ds s t a n d f u l ly a d d r e s s e d . C o pi e s o f t he s t a te me nt o f t h e ba n k a c co u nt s o f t he a s s e s se e a re a t p a g e s 1 & 2 f r om 0 1 .0 4 .2 0 1 1 t o 0 2 . 12 . 2 01 1 o f ITA/312/CHD/2021 A.Y. 2012-13 Page 7 of 7 A c c o u nt N o . 5 5 08 0 0 2 35 8 2 i n S B I ; a t p a g e 3 c o p y o f a ss e s se e ' s h u s b a n d ’ s A c c o u nt N o .1 0 8 8 30 8 5 5 76 , B r a nc h C o d e : 6 2 8 is a v a i l a b le fr o m 0 1 .0 4 . 20 1 1 t o 0 6 .0 4 . 20 1 1 a n d a t p a g e 4 c o py o f A c c o u nt N o . 55 0 6 2 93 3 3 8 9 o f S hr i K a n w a ld e e p Si n gh (s on o f t he a s s e s se e ) e v i de nc in g w i t hd r a w a l s fr o m S t a t e B a n k o f I n d i a a c c o u n t f o r t h e s p e c i fi c pe r io d i .e . 0 4. 0 4 .2 0 11 t o 06. 0 4. 2 0 11 a re s e e n . O n a c o ns i de r a t i o n t he re o f, I f in d no g oo d re a s o n le t a l o ne a re a s o n w h y t he e x pl a n at i o n o f fe re d d u l y s u pp o r t e d b y f a c t s s ho u l d n o t h a v e be e n a c ce p t e d . S a t i s f ie d by the e v i de nce o n r e c o r d o f t he F ir s t A ppe ll a te A u t h o r it y a l s o re lie d u p o n b e f o re t he I TA T s e t t in g a s i de t he o r d e r , t he a d di tio n s u s t a i ne d i s d ir e c te d t o b e de le te d . S a i d o r d e r w a s p r o n o u n c ed i n t he O p e n C o u r t a t t he t i me o f he a r in g it s e l f . 9 . I n t he re s u lt , t he a pp e a l o f t he a ss e s s e e i s a llo we d. O r d e r p r o n o u n c e d i n t h e O p e n C o u r t o n 2 9 t h J u n e , 2 0 2 2 . S d / - ( दवा संह ) (DIVA SINGH) या#यक सद य/Judicial Member “प ू नम” आदेश क! त,ल-प अ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant – 2. यथ / The Respondent3.आयकर आय ु /त/ CIT4.आयकर आय ु /त (अपील)/ The CIT(A)5.-वभागीय त न2ध, आयकर अपील&य आ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH 6.गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar