DCIT(International Taxation), Chandigarh V. Sh.Daljit Singh, Khanna

ITA 320/CHANDI/2020

AI Insights

The case involves an appeal by the Department of Income Tax against the order of the CIT(A) which had deleted the addition of Rs. 1,96,32,000 made by the Assessing Officer (AO) on account of unexplained cash deposits in the NRO account of the assessee, Sh. Daljit Singh, and his father, Sh. Gurdev Singh. The Tribunal considered the detailed reasoning provided by the CIT(A) and the explanations given by the assessee regarding the source of the cash deposits, which were linked to a cancellation of a property agreement. The Tribunal found no merit in the Department's appeal and upheld the CIT(A)'s order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127805 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-01-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 08-09-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 131; 148; 201; 13

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , ‘ A ’ , C H A N D I G A R H B E F O R E SH R I A . D . J A I N , V I C E P R E S I D E N T & SH R I V I K R A M S I N G H Y A D A V , A C C O U N T A N T M E M B E R आयकर अपील सं./ ITA No. 3 2 0 / C H D / 2 0 2 0 नधा रण वष / Assessment Year : 2 0 1 1 - 1 2 The DCIT, (International Taxation) Chandigarh Vs. बनाम Sh. Daljit Singh, R/o # 863, Lalheri Road, Ward-2, Khanna, Punjab थायी लेखा सं./PAN NO: BEDPS5829B अपीलाथ /Appellant यथ /Respondent Hearing through video Conferencing नधा रती क ओर से/Assessee by : Sh. Tej Mohan Singh, Advocate राज व क ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr.DR स ु नवाई क तार%ख/Date of Hearing : 09.01.2023 उदघोषणा क तार%ख/Date of Pronouncement : 07.02. 2023 आदेश/Order Per A.D. Jain, Vice President: Th i s i s D e pa r t m e n t ’s a p p e a l fo r a sse s s me nt ye a r 2 0 11 -1 2 a ga in st t he C I T ( A )’ s o rd e r d a t e d 1 1. 02 . 2 02 0. 2. D u ri n g t h e co ur se o f he a r i n g , i t i s n o t i c e d t ha t t he re i s a d e l a y o f 12 8 da y s in f il i n g t he a p p e a l . T he D e pa r t m e nt , v i de i t s Re vi se d A pp l i c a ti o n be a ri ng N o. D CI T (I n t l. T a x a ti o n)/ I TA T /2 02 2- 2 3 / J ud l da t e d 1 4. 11 . 20 2 2, w hi l e su b m i t t i ng t h e d et a i le d rea so ni n g, h as re q ue st e d f or co nd ona t i o n o f de l a y a nd p r a y e d t ha t t h e a ppe a l m a y b e t re a t e d w i t hi n t i m e . Th e sa i d Re vi se d ap p l i ca t i on d a t e d 14. 1 1. 2 0 2 2 f or c on d o n a t i on i s r ep r od uc e d be l ow : - 2 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana 3 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana 3. W e h a v e c o n s i d e re d t he f a c t s a n d r e a s on i ng gi ve n i n t he D ep ar t me n t ’ s Re vi se d a p p li c a t i on d a t ed 14 . 1 1. 2 02 2 . In vi e w o f t h e de t ai l e d e xp la na t i o n g i v e n b y t he D e p a rt me n t, t h e de l a y o f 1 2 8 da ys in fi l in g t h e ap p e a l i s c on d o n e d . 4. T he re v i s e d G ro un d s o f a p p ea l t a ke n by th e D e pa rt m e n t r ea d a s un d e r : - 1 . W h e t h e r o n t h e f a c t s a nd c ir c u m s ta n c es o f t h e c a se , t h e L d . C IT ( A ) ha s e rr e d i n de l e t i n g th e a dd i t i o n of R s. 1 , 96 , 3 2, 0 0 0 / - on ac co un t o f un ex p l a i n ed C a s h d e p os i t e d b y t h e ass e s se e j oi nt l y w it h h i s f a t h e r 4 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana i gn o r in g t he i n d ep e nd e n t i nq ui ry c a r ri e d o u t i n t h e c as e ( su b s eq ue nt t o t he as se ssm e nt or d e r i n t he ca se o f G urd e v Si ng h). 2. Wh e t h e r o n t he f a c t s a nd c i r c um s t a n c e s o f t h e ca se , t he L d . C IT ( A ) h a s e rr e d i n h o l d i n g t h a t ev i d e nc e br o u gh t o n re c o r d by t h e AO as i rre l e v a n t ig no ri n g t h e f ac t t h at th es e e st ab l i sh e d t h a t ex p l a na t i on a nd e vi de nc e g i v e n b y th e as se ss e e w as cr e a t e d as a n af t er t h ou g h t an d di d no t r e p re se nt re a l i t y. 3. Wh e t h e r o n t he f a c t s a nd c i r c um s t a n c e s o f t h e ca se , t he L d . C I T (A ) h as e r re d i n re l yi n g o n as se ss e e' s e xp la na t i on , b as e d on c op i e s o f d o c um e nt s p r od u c e d by i gn or i n g t he f ac t s t h a t t he a s s es s ee c o u l d n o t pr o d uc e th e o ri g i na l o f t h e d o c u m en t s a nd th e do c u m en ts w e re u n re g i s t e re d a nd t he co nt e n t s o f do c u m en ts we re h e l d as n o n- re l i a b l e d ur i n g ass e s sm e n t pr o c e e d i ng s . 5. Th e f ac t s, as n ar ra t ed i n t h e a sse ss m e nt or d e r dat e d 3 1 . 12. 2 01 8 , a re a s f ol l ow s. 6. Th e A O re c e i ve d i n f or m a ti o n t h a t t h e ass e s se e , an N RI , d ur i n g t he ye a r, ha d de p o si te d R s. 1 . 95 C r or es i n c as h , i n h is N R O b an k a c c ou nt i n Ja mm u & K as h mi r B an k, K ha n n a h e l d j oi nt l y w i t h h i s fa t h e r, S hr i G ur de v S i n gh. T h e A O r e co r de d t h e fo l l ow i n g re a s o n s t o b e l i ev e e sc ap e m e n t o f i nc o m e, a nd r e o p e n e d t he c o mp l e t e d a ss e ss m e n t o f t h e a ss e s se e [ c o mp l et e d v i d e a s s es s m e n t or d e r da t e d 21 .2 . 20 1 3 ( A s se ss ee ’ s P a pe r B o o k (A P B ) 4- 5, p a ss e d u / s 1 4 3(3 ) o f t he Inco me Ta x A c t , 1 9 6 1 (h e re in a ft er ca l l ed ' t he A ct ' ) ]: . " T he A I R i n fo rm at i on wa s re c e i ve d i n t hi s o f f i c e f rom D D IT ( In v) II I L u dhi an a o n – 0 1. 0 7 . 20 1 4. A s p e r 5 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana i nf orm a ti o n a s se s see ha s m e nt i o ne d N R O b a nk ac c ou nt N o . 03 76 0 40 2 0 00 00 0 5 m a i n t a i ne d w i t h ] & K B a n k , O l d Sa b j i M an d i , G , T . R oa d , Kh an na, A s se s se e i s j o i n t h o ld e r o f hi s ac c o un t a lo ng w i t h hi s f at he r Sh. G ur d e v Si n g h, As pe r i nf or m a ti o n a s se ss ee ha s m ade c as h d e p osi t s of R s . 1 . 95 C r. d ur i n g F. Y . 20 10 - 11 i n th is a c c o u nt . T he s ou rc e o f ca sh de po si t s i t n o t v e r if i ab le an c as h de p o s i t s a re no t c om m e ns u r at e w i t h r e t u rn e d i n c o m e t hu s t ot al i ng a m o u n t o f Rs. 1. 9 5 C r , m ay be f ro m h i s un k n o w n sou rc e s o f i nc om e . V a ri o u s n o t i ce s i ss ue d t o as se ss e e an d i n r es po n s e o f t he s am e a s se ss e e ' s c ou ns e l a pp ea re d an d e x pl ai ne d t ha t ca sh d ep os i t s we r e re c e i v e d f r o m Sh . In de rj i t Si n gh S/ o S a m s h e r S in gh (S el l e r o f pr o pe rl y) a g ai nst t he c a nc el l a t i on o f a g r ee m e nt (a s p e r Pa nc ha ya t i Ma ns uk hi Ik ra rn am a, dat e d 0 5. 0 3. 20 10 ) . T he c an c e l l a t i o n w as re l at e d wi th th e e a rl i e r s a l e ag re em e nt b e t we e n ass e s se e a n d I n d er j i t Si ng h , R ep l y o f t h e as s e ss e e d u l y c o n si d e re d bu t no t ac c e p t a bl e as w i t hd ra wa l f r om b an k s of p a ym e nt s m ad e e a rl i e r a re n ot t he re on re sp e c t i v e dat e s. T h e re i s no c o nf i rm a t i on on r e c o rd f ro m t he s i d e o f Sh. In d e r j i t S i n gh S/ o S h am sh e r S i ng h . S o so u r c e s o f c as h de po si t s of R s. 1. 95 C r . i s n ot ve r i f ia bl e a n d ne e ds t o ta x. I am t he r e f o r e sa ti sf i ed t ha t t he s aid i nc om e ha s es c a p ed asse ssm e nt . In v i e w of t h e ab o v e f a ct s, I h a v e re a s on s t o b e l i eve t ha t i n c o m e a m o u nt i ng t o R s. 1. 9 5 C r h as e sca pe d t ax at i o n f or F. Y . 20 10- 11 re le v a n t t o A. Y . 201 1 - 1 2 an d t he c a s e ne e d s to be o pe ne d u / s 1 4 7 , In o rd er t o a s se ss th i s i n c o m e a nd t o a ss e s s a ny ot h er i n c om e c ha r g e a bl e t o ta x wh i c h h as e sc a p e d ass es sm e n t a n d w h ic h c om e s t o n o t i c e d u ri ng t h e c ou r s e o f pr oc e e di ng s s ub se qu e n t ly , p ro c e e d i n g s u/ s 1 4 7 a re r eq ui r e d t o be i n it i at e d by way of 6 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana i ss ue o f n ot i c e u / s 1 4 8 f o r t he a sse ssm e n t y e ar 20 11 - 12 . ” 7. Th e a ss e s se e st at e d be fo r e t h e A O , t h at t he c a s h depo s it o f R s. 1. 9 5 c ro re s h a d b e en as s es se d i n t h e ca s e o f t he a sse s s e e ’s fa th er S h r i G ur de v S in gh i n t h e sa m e a ss e s s me n t ye a r, i . e . , A . Y. 20 11 -1 2 , a n d t h a t t he s a m e i s su e w i t h th e sa m e a mo u nt o f d e p os i t a n d o f t h e sa me ac c ou n t c an no t be a s se ss e d a ga i n i n t h e n a m e o f t h e j o in t ho l d e r o f t h a t a c c o u n t , t ha t is, t he a ss e s see . 8. Th e A O fo un d th at in t he A ss es s me nt O r de r d a t ed 0 4. 0 3 . 20 1 6, f or a ss e s s me n t ye a r 2 0 11- 12, i n t h e ca se o f S h ri G ur d e v Si n g h, fa t h e r o f t h e a ss e s se e , t h er e w a s n o r e fe re nc e t o t h e c a s h de po sit s i s s ue s. T h e r e u po n , t he A O a s ke d t h e ass e s se e t o p r ov i de t h e d e t a i l s o f t he o r i g i n a l a gr ee m e n t w hi c h w a s ca nc e l l e d, f or w hi c h, a s s ta t e d by t he a s se s s ee , t he a ss e s se e ha d r e ce i v e d b a c k t h e a m o un t . In r es p o ns e , t h e a ss e ss e e st a t e d t ha t o n l y a p h ot o c op y o f t he P a nc ha y a t i M a ns u k hi A gre e me n t w a s a va i l a b l e w i t h h i m, a n d t he o r i gi n a l m i gh t be w i t h th e a ss e s se e i n F ra n c e ; a n d th at t h e o r i g i n a l I q r a r n a m a ha d b e e n dest ro y ed a t t h e t i m e o f en te r in g i n t o t he P an ch ay a ti M an s uk hi A g r e e me n t a nd o n l y a ph ot o c o p y o f it w a s av a i l a bl e . 9. Th e A O i ss ue d s u m mo n s u / s 13 1 o f t he A c t t o S hr i D e e pa k Be di , w ho w a s o ne o f t he w i t n e s se s o f b ot h t he a g r ee m e n t s. H e sub mi t t ed si mi l a r p h o t oc op ie s o f t h e a g r e e m e nt s. S t a t e m e nt s of S h ri G urd e v S i ng h , 7 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana fa t he r o f t he a s se s se e a n d S hri I nd e r j i t S i n gh , se ll e r o f t he la n d , w er e re c or de d. F r o m t h e se st a t e m en t s a n d th e do cu me nt s fu r ni sh e d by t h e a ss e s se e , t h e A O o bse rv ed ( pa r a 6 o f t h e a ss e s s m e n t or d er ) t ha t th er e w e re a l o t o f c o nt r a d i c t io ns. S h e ob se rv e d t h a t S hri I nd e r ji t S i ng h h a d st a te d t h a t w h en a n a m o un t o f Rs. 1 c ro r e w as re ce ive d, he w as al o n e , a nd t h a t s o m e a s so ci a t e o f S h. D a l j i t S i ng h ( t h e a ss e s se e ) h ad c o m e t o m a k e p a y m e nt . T he A O obs e r ve d t h a t how e ve r , t he d o cu m e n t s ub mi t t ed by th e a ss e s se e s ho w e d t h a t t he pa y m en t o f Rs. 1 c ror e h ad b e e n re c e i v e d b y S h r i I nde r j i t S i ng h i n t h e p r e s e n c e o f S a r v S hr i D ee p a k Be di , D a lj i t S i n g h, P a rg a t S i n g h a n d G ur de v S i n g h. T he A O o bse rv e d t ha t fur t he r, S hr i I nd e r j i t S i n gh ha d s t a t e d t h a t the s t a m p p a p e r s w e r e pu r c h a s e d b y S h r i D al j i t S i n g h fo r b o t h t h e a g r e e m en t s, b ut t he b a c k s i de o f t he a gr ee m e n t sh ow e d t h a t fo r t h e a g re e me nt , st am p pa pe r s w er e pu r c h a s e d b y Sh ri I nd e r ji t S i ng h, a s t h ey e xp l i c i t ly b or e hi s n a m e . T h e A O a l so o b s er ve d t ha t S h r i I nd e rj i t S i ng h ha d s t a t ed t h at e i t he r S hr i G ur de v S i n gh , f a t h er o f S h r i D a l j it S i ng h , o r h i s as soc i a t e s h a d re c ei v e d t he m o ne y, w h e re a s S hri G u r de v S in gh h a d s t a te d th at S h ri I n de rj i t S i ng h ha d d e p o si t e d t h e m o ne y i n t h ei r b a n k a c co un t a n d h ad g i v e n t he m t he r e c e i p t s. 10 . N o t in g t ha t ce rt a i n fa c ts g a ve r i s e t o su sp i c ion a g a i ns t t h e c on t e nt i o n s o f th e a ss es se e a n d th e r e pl y fi l e d b y hi m, t h e A O o bs e r v e d (p a ra 7. 1 o f t h e a ss e ss m e nt o r de r) t ha t f ir st ly , sinc e d u r i n g F . Y . 201 7- 18 (r e l e va nt t o A . Y . 201 8 -1 9, i n w h i ch ye a r, t h e a ss e s s me nt o rd er w a s 8 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana be i ng p a s se d) , t he Co l l ec t or r at e o f la n d si t ua t e d i n G ha n a u r i K a l a n , T eh si l D hu r i, D is t r ic t S a ng r u r , P un j a b (w he r e t h e la nd t o b e p ur ch as ed by S h ri D a lj i t S i n gh, a ss es s e e , w a s s i t ua te d ) w a s ( as st a t e d to h a ve be e n ga t he re d b y t h e A O ) R s. 7, 2 2, 5 0 0 / - pe r a c re , or , a pp r ox i ma t e l y , R s. 83 , 08, 7 50 / - for 11 . 5 a c re s, du r i ng F . Y . 2 00 9 - 1 0, i n w h ic h ye ar , t he a gr ee m e n t w a s e n t er e d i n t o by t h e a sse s s ee , t h e C oll e c t or R a t e w ou l d ha v e b e e n l e s s b y a t l e a st 2 5 %, i . e. , Rs. 62 , 31 , 5 6 3/- [ Rs. 83 , 08, 7 50 / - ( -) Rs. 2 0, 77 , 1 87 / -]. T h e A O o b se r ve d t h at t hi s b ei ng so, e ve n i f t he m ar ke t r at e w a s t hr e e t i m es m o re t ha n th e Co l l e c to r ra t e , t he la nd o u gh t t o ha ve be e n s o l d f or a p pr o xi m a te l y R s. 1. 8 7 C o r e s, w he re a s a cc or di ng t o t h e a g re e me nt s u b mi t t ed b y t h e a ss e sse e , t he l a nd w a s t o b e pu r c h a s e d a t t he r a t e o f Rs. 6. 11 c ro re s, w h i ch d id n o t se e m po s si b l e ; t h at t h e a ss e s se e g a v e a hu ge a m ou nt o f Rs. 2. 9 0 cr or e s, w her e a s t h e fa i r m a r k e t va l ue c ou l d a t b e s t be Rs. 1. 87 cr or es. 11 . Th e A O obs e r ve d ( pa r a 7. 2 o f t he a s se ss m e n t o rde r ) t h a t se c on d l y , t he a gr e e m e n t c o n ta i ne d a c l a u s e t h a t i f a pa r ty w en t a g a i n st t h e a gr ee m e n t, or ca nc e l l e d t he a g re e me n t , th e o th er p ar t y c o ul d f il e a c o ur t c as e a g a i ns t t h e e r ra nt p a r t y, o r, i t c ou l d c la i m dou b l e t he e ar ne st m o ne y, fo r v io la t i n g t he a g re e me n t ; an d t ha t h ow e v er, no c o u rt c a se w a s fi l e d by S h r i I n de r j i t S i n gh, a ga in st t h e as s e ss e e , r a t h er , h e r e t ur ne d t h e e nt i r e ea r ne st m on e y to th e a ss e s se e. 12 . Th e A O o bs e r v e d ( p ar a 7. 3 o f t h e a ss e ss m e n t o r de r ) t h a t t hi rd ly , a s p e r F E M A re g u l a t i on s a n d R BI i ns t ru ct i o n s, N RI s c a n-n ot pu rc ha se 9 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana a gr ic ul t ur al la n d i n In d i a w i t ho u t p e r mi ssi on ; t ha t t h e a s se s se e N RI h ad no t p ro d uc e d an y e v i d e n c e t h a t h e ha d t a ke n a ny pe rm i s si on t o pu rc ha se a gr ic ul t ur al l a n d; a n d t ha t h e n c e , t h e a g re e me n t e nt e r e d i n to by t he a ss e s se e w a s il l e g a l . 13 . Th e A O fu r t h e r o b s er v e d ( p a ra 7. 4 o f t h e a s se ssme nt o r d e r) t h at a s a va i l a b l e fr o m t h e p h ot o co pi es o f t he d o c u me n t s, a s fi le d by t h e a ss e s se e , a t t h e e n d o f t he a gr e e m e n t d a t e d 5 . 3 . 2 010, t h e n a me o f t h e se c on d p ar ty h ad b e e n t y p e d a s G u r d ev S i n g h, b ut t he si gn at o r y w a s D a lj i t S in g h . 14 . Th e A O ne x t o bs e r v ed ( p a r a 7. 5 o f t h e a s se ss m e nt or de r ) t h a t t h e ph ot o c o p i e s o f t he a gr e e me nt s, a s s u b mi t t ed by t h e a s s e ss e e, w e re no t re l i a b l e ; t h a t t h e a g re e m e n t da t ed 1 3 . 4 . 20 0 9 w a s ful l o f mi st a k e s ; t ha t t he re i n, i n fi g u re s, th e a m o un t w ri t t e n w as Rs . 1 , 00, 0 0, 00 0 / -, w he r e a s i n w or ds, i t w a s me n t i o n e d a s on e c o r e ni ne t y l a kh s ; th a t e v e n i n t h e P a nc h a y a t i M a n su k h i A g re e me nt , t he a mo u nt m e nt i o ne d i n fi gu r e s w a s Rs. 2, 9 0 , 00, 0 00 / - , b ut i n w or ds, it w a s w ri t te n a s t w o la k h s a nd n i n e t y t ho us a n d r u pe e s. 15 . It w a s th e n ob se rv e d b y t h e A O (p ar a 7. 6 o f t he a ss e s s me n t or de r) t ha t t h e s t a mp v a l ue m e nt io ne d in t he a g r e e m en t w a s Rs. 10 0 / - , b u t st a mp pa pe rs o f R s. 1 00 / - a r e n o t v a l id a n d t he m ini mu m st a mp v a l u e re q ui re d fo r l i t i g a t i on a g a i ns t no n- c o m m i t m e nt b y a pa r t y i s Rs . 3 0 0/ - . 10 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana 16 . It w a s a l so ob se rv e d b y t h e A O ( pa r a 7. 7. o f t he a s se ss m e nt o r d e r) t ha t S h ri In d e r j it S i ng h h ad s t a t ed t h a t no m e m be r o f an y P a nc h a y a t h ad i nt e r ve ne d i n t he c a nc el l a t i o n a gr e e m en t, as it w a s a m u t ua l a gr e e m en t no t t o e x e c u t e t he sa l e a g r e e m e nt a n d t h u s, n o si gna t ur e o f a ny P a nc h a y a t m e mb er on t he a gr e e me nt w a s r e qu i re d ; t h at h ow e v e r, t h e ve r y na m e o f t h e a g re e me nt w a s ‘ P a nc h a y at i M an su k hi A gr e e me n t ’ , w hi c h me a nt t h a t t he a s se ss e e ha d i nt e n t i o na ll y u sed t hi s m i s le a di n g na m e t o a ut h e n t i c at e t hi s d oc u m en t ; an d t h a t t o t h e c o nt ra ry , i n h i s st a te m e n t , S hr i G u r de v S i n g h h ad st a t e d t h at t h e r e w a s i nt e r ve nt i o n o f t he P a n c h a y a t. 17 . Th e A O fu r t he r o b se r v e d ( pa r a 7 . 8 o f th e a s se ssm e n t o r d er ) t ha t S hr i In d er j i t S i ng h ha d s t a te d t h a t h e ow n e d 57 b i gh a s o f ag ri c u l tu ra l l a n d; a n d t h a t h o w e v e r, su rp r i s i n gl y , h e h a d, vi d e t h e a gr e e m e n t , a gr e ed t o se l l o ff t h e w ho l e o f hi s l a n d. 18 . Th e A O la s t l y ob se r ve d (pa r a 7. 9 o f t h e a ss e ss me n t o r d e r) th at t h e c on t e nt i o n o f t h e l d . Co u n se l fo r th e as s e sse e , t ha t t h e o r i g i n a l a gr ee m e n t d a t e d 1 3. 4. 20 0 9 ha d be e n d e st r o y e d , ga v e ri s e t o mu c h sus pi ci on ; t h a t i n t h e s o - c a l l e d c a n c e l l at i o n ag ree m e n t , th i s f a c t h a d n o t be e n r e c o r de d; t h at n e i t he r o f th e p a r t i es h a d m a d e a ny s uc h s t a te m e n t t ha t t he a gr e e m e nt ha d be e n de s tr oy ed ; t h a t c on t r a ril y, S hr i G ur d e ev S i ng h , h i m se l f a s i gn a t or y t o b o t h t h e a gr e e m e nt s, ha d s ta t e d t ha t t h e or i gi na l d o c u m e n t s w er e w i t h hi s so n, D al j i t S i ng h; a n d t h a t o n t h e ot h e r 11 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana ha n d , S hri I n de rj i t S i n g h h a d m a i nt ai n e d t h a t t he or i g i n a l do c u me n t s a n d t he ca n c e l l a t i on d o cu me nt s ha d be en h a n de d ov er t o t h e pr op e r t y de a l e r , th e d e t a i ls o f w ho m h e d id n ot r e me m b e r . 19 . O n th e b as i s o f h e r ab o ve o bs er va t i o n s, th e A O he l d ( p a r a 8 o f t h e A sse s s m e n t O r de r) t h a t t he ca sh d ep osi t s a m o u n t i n g t o R s. 1 . 9 5 c ro r e w e re no t ex pl a i n a b le by t he a s ses se e . S h e , t he re f o re , ad de d ba c k th i s a mo u nt t o t h e i n c o m e o f t h e a s se sse e, as be i n g fr o m u n d i s cl o se d so u rc e s, un d er s ec t i on 6 8 o f th e A c t . 20 . By v ir t ue o f t h e i m p ug ne d O r de r, t h e l d. CI T ( A ) h a s d el e t e d t h e a dd i t i o n o f R s. 1, 96 , 3 2, 0 0 0/ - m a de b y t he A O . A gg ri e v e d, t he D e pa r t m en t i s i n a p pe a l be for e u s. 21 . Ch a l l e n gi ng t he i m pu gn e d o r d e r , t h e l d. D R h a s c on t e nd e d t ha t th e l d. CI T (A ) h a s e r r e d in d e l e t i ng t he a d di t i o n c or rec t l y m a de b y t h e A O ; t ha t w hi l e d o i n g s o , th e l d . C I T( A ) h a s g o ne w r on g i n h o ld i n g t h a t t he e vi de nc e b r ou ght o n r e c or d b y t he A O i s i r r e le v a n t, fa i l i ng t o c o ns i d e r t ha t s uc h e v i d e n c e r a t h e r e st a b l i s h e d t ha t t h e e xp la na t i o n a n d e vi de n c e gi v en b y t h e as se ss e e w a s, i n fa c t, c re a te d e v i d e n ce a n d m er el y a n a ft e r- t ho ug h t, a nd i t d i d n o t r ep re se nt t h e re al i t y; t ha t t h e l d . C IT (A ) e rr on e o u s l y r e l ie d o n t h e A ss e s se e’ s ex p l a na t i o n, ba se d on c o p ie s o f do c u me n t s p ro d u c e d b y t h e as s es se e , i g no ri ng t h at the a s se ss ee h a d fa i l e d t o p r od uc e t he d o c u m e nt s i n o r i g i n a l , t ha t th e d o cu me nt s w e r e 12 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana un r e g i s t e r e d a nd th at t h e c on t e nt s o f t he d o c u me n t s h a d be en he l d n o t re l i a b l e b y t h e A O . 22 . O n t h e o t h e r h a nd, t h e l d. c o u n se l for t he a s se ss e e ha s st r o n gl y su p p o rt ed th e i m p u g ne d O r d e r. I t ha s be e n c on t e nd e d t h a t t he l d . C IT (A ) ha s ri g h t l y d e l e t ed th e a d d i t i on w r on g l y ma d e by th e A ss e ss i n g O f fi c er ; t ha t t h i s h a s b ee n d one a ft e r du ly ta ki n g i n t o c o n si de ra t i o n t ha t t he s a m e ba n k a cc o u n t s t o od ex a mi ne d a n d a c c e pt ed i n t he c ase o f S h r i G u r d e v S i ng h , fa t he r o f t h e a ss e s se e , i n r e s pe c t o f t h e s am e ca sh d ep os i t s. I t h a s be e n c on te nd e d t h a t t h e O r d e r p a ss e d b y t he l d. C I T(A ) i s a w e ll - re a so n e d a n d d e ta i le d O rd e r , de al i n g w it h a ll a sp e ct s o f th e ma t t e r , re q ui ri ng n o i n te r f e r e n c e a t o u r h a nd s. I t h a s be e n co n t e nd e d t ha t a cc o r di ng l y, t he a p pe a l fi le d b y t he D e pa r t me n t b e d i s mi sse d a s be i ng w i t ho u t a ny me r i t w ha t s oe ve r. 23 . We ha ve h e a rd t h e pa r ti e s a n d ha v e p e r us e d t he ma t e ri al on re c o rd . T he f i r s t i ss ue i s a s t o w h e t he r t he l d. CI T ( A ) i s c or r e c t i n h ol di ng t h a t t he A O er r e d i n o b se r v i n g t ha t t h e re w as n o re f er enc e o f t he ca s h de p o s i t s is su e i n t he a ss e ss m e nt or de r d at e d 4 . 3 . 201 6, p a ss e d f or A . Y . 20 11 - 12 , i n t he c a s e o f t h e A ss ess ee ’s f at he r, S hr i G u r de v S i ng h, an d a s t o w h e t he r i n s uc h ass e s s m e n t o f th e A sse s se e ’ s fa th e r, no a d ve rs e v i e w ha d i nde e d be en t a k e n w i t h re ga rd t o t he c a s h d ep osi t o f R s. 1, 9 5, 00 , 0 00 /- . It r e m a i ns un di s pu te d th a t t h e Ba nk A c c o u nt i n w h i c h t he d e po si t s w e r e ma de w a s a n N RO A c c o un t h e l d j oi nt l y by t h e 13 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana A sse s se e’ s fa t he r, S hr i G u rd e v S i n g h , a s t h e f i rs t ac c o un t h ol de r, a n d t he A s se s se e , w hos e w a s th e se c o n d n a me a s j o in t acc o u nt h o l d e r. I t i s se e n t h at t h ou gh t h e c o m p l e t ed a s se ss me n t fo r A . Y . 20 11 - 12 i n t he c a s e o f S h r i G u r de v S i n gh , fa t he r o f t h e A sse s s ee w a s reop e n ed o n t he b a s i s o f in fo r m at i o n a b o ut ca sh d e p os i t s o f R s. 1 , 95, 0 0, 00 0 / -, no a d ve rs e vi e w w a s t a k e n w i t h re g a r d t o i t by t he A O , ha vi n g t a ki ng i nt o c o ns i d e r a t i on t he fa ct s t ha t t h e s our ce o f t hi s c a s h d ep os i t w a s th e r e c e ip t ba c k o f R s. 2. 9 0 c r o r e s, on a c co u nt o f c a n c e l l a ti on o f a g re e me nt d a t e d 1 3. 4. 2 0 09 be t w e en S hr i D a l j i t S i ng h ( A ss e s se e h e re i n ), so n o f S h r i G u rde v S i ng h , a nd S h. I nde rj i t S i ng h s on o f S h. S h a m s he r S in gh, re s id en t o f G ha nu r i K a la n , D is t r i c t S a ng r ur , P un ja b , th a t d ue t o c a n c e lla t i on o f th e s ai d a gr ee m e n t, a n a m o u nt o f R s. 1, 93 , 0 0 0/ - ha d b e e n r e cei ve d ba ck d u ri ng t he f i n a n c i a l y e a r 2 0 1 0 -1 1 , i . e . , Rs. 68 l ac s i n A pri l , 20 1 0, R s. 35 l a c s i n M a y, 2 01 0 , Rs . 30 l a c s i n J u n e , 2 01 0, R s . 10 l ac s i n A u g us t , 2 0 10 a nd R s. 5 0 l a cs up t o 3 1 s t D ec e mb er , 20 1 0; th at t he se a m o u n t s, a s pe r c l a i m o f S h r i G u r d e v S i n gh , w h i c h c l a i m ha d be en exa m i ne d by t h e A O , w e re d e p o si te d i n t he j oi nt a c c o u nt h e l d b y S hri G urd e v S in g h an d h i s so n , D a l j i t S i ng h (p r e s en t a s se sse e ); t h at t he re had a l s o b e e n w i t hd r aw a l s fr o m t he ot h e r ba nk o f S hr i G ur d e v S i ngh ; t ha t in s up po r t o f t h i s, S hr i G ur d e v S i n gh h a d f il e d re l ev a n t d o c u me n ts , w hi c h w er e pl a c e d o n r e co rd a nd w h i c h ha d b e e n e xa m i n e d a nd v er i f i ed b y th e A O ; t ha t A s se ss m e n t fo r a ss e s s m en t y e a r 20 10 - 11 i n th e c as e o f S h r i D a lj i t S i ng h ( pr e s e nt a ss e sse e ), s o n o f S h r i G ur de v S i n g h ha d be e n c o m p l e t ed 14 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana i n s c r u ti n y ; a n d t ha t al l t h e se d o c u m e n t s ha d a l so b e e n fi l e in t he a ss e s s me n t pr oc e ed in g s o f S hr i D a l ji t S i ng h (pr e s ent a ss e sse e) . 24 . A l l t h e a b o ve f ac t s w e re r ec o rd e d in a n O f fi c e N ot e fo r m i n g p ar t o f t h e a s se ss m e nt o rd e r d a t e d 4. 3. 2 0 16 , pa sse d fo r A . Y . 20 1 1- 1 2 , i n t h e c as e o f S h r i G u rd e v Si n g h, fat h e r o f t he a s se sse e . A c opy t he re o f h a s be e n fi le d be fo re u s a t p a g e s 6 a nd 7 o f t h e A ss es se e ’s P ap e r B o o k . In t he i m pu g ne d O r de r, i n p ar a 5. 7 t h e r e o f, t h e l d. CIT ( A ) h as re pr od u c ed t he s a i d O f fi c e N o t e . F or r e a d y re f e r e n ce , pa r a 5. 7 o f t he CI T( A ) ’s o r d e r i s re pr od u ce d h e re as w e l l : “ 5. 7 It i s se e n t h a t t he sa i d r ea so ns are a l s o pe r t a i n i n g t o t h e re o p e n i n g o n a c co un t of c a sh de p o s i t o f t he s am e NR O ac co unt . It w a s f u r th e r n ote d t ha t t h e as se s sm e n t o r de r of S h. G ur d e v S i n g h, a c op y of wh i c h th e o f f i c e no t e w a s su bm i t te d al so c l e a r l y st a t e s t h a t t he s ai d am ou nt o f R s.1. 93 C rs r e c e iv e d ba c k i n F Y 20 10 -11 de po s i t e d i n t he j o i n t b a n k ac c ou nt h e l d b y t h e a ss e s se e a n d hi s so n, e x a m i n e d du ri n g t h e a ss e s sm e nt o f S h. G u rde v Si n g h. T h e c op y of t he o f fi c e w a s not e s ubm i t t ed b y t he ap p e l l an t is al s o pl ac ed be l o w: O f f ic e N o te- T he n o ti c e u / s 1 4 8 o f t h e I. T . A c t, 196 1 wa s is su e d o n t h e ba s is o f i nf orm a ti o n th at t h e re is c as h de po s i t o f Rs. 5 0 l ac i n ba n k ac co un t N o. 03 76 0 4 0 2 00 00 0 0 5 wi t h J &K B a n k . D u ri n g t h e ass es sm e n t pr o c e e di n g s, it wa s f o u n d t h a t t he re w a s c as h de p o si t of Rs . 1 , 95, 0 0, 00 0/ - i ns t e a d o f 50 l ac. T hi s ac c o un t i s j o i nt l y h e l d by t he a sse ss e e a n d his so n S h. D al j i t S i n g h. T he so ur c e of c as h d ep os i t i s re c ei pt ba c k o f t he m o ne y am o u nt i ng t o R s . 2. 9 0 c ro re s o n a c c o u nt of c an ce l l a t i o n of ag re em e nt d a t ed 13 . 04. 2 00 9 b e t we e n h is so n S h . D al j i t Si ng h & S h. In d e r j e e t Si ng h S/ o S ham s h e r Si ng h , VP O G h an ur i 15 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana Ka la n, D ist t . S an g r ur (P b. ) . D ue t o c an c el l a t i on o f ab ov e ag re e m e n t a n am ou nt o f R s . 1, 9 3, 00 , 0 00 /- w as re c e i ve d b a c k a s u nde r du ri ng t he f i n an ci al y e ar 2 0 1 0 - 11. In A p ri l 20 1 0 = 6 8 L ac Ma y 20 1 0 = 3 5 l ac Ju n e 20 1 0 = 3 0 l ac Au gu st = 1 0 l ac U p t o 31 D ec 2 0 1 0 = 50 l ac wh ic h w e r e d e p osi t e d in t h e a bo v e j oi n t a cc o u nt a s pe r c l a i m o f t he a sse ss e e w h i ch ha s b ee n e x am i n e d. T he re a re al so w i t hd r a wa l f rom t h e o t he r b a nk of t he ass es se e . In su p p o rt o f t h i s, th e a ss e ss e e ha s f i l ed re l ev an t d o c um e nt s w hi c h ar e p la c e d o n r ec or d w hi c h ha v e be e n e x am i n e d an d v e ri f i e d . Th e c a se o f t h e ass es se e ' s s o n Sh . D ai j i t S in gh fo r A . Y . 201 0- 1 1 w as c om pl e t ed i n sc r u t i ny b y m y pr e de c e sso r. A l l t h e s e do c u m e n t s we re a lso fi l e d du ri n g t he as se ssm e nt pr o c e e d i n g s o f h i s so n . I n v i e w o f th e a bo v e , n o ad v e r se i nf e re n c e i s dra w n. ” 25 . Ev i d e n t l y , t he re fo r e , t he A O , w hi l e p a ss i n g t he a ss e ss m e nt o rd e r , l os t s i g h t o f t h e a fo re sa id O ff i c e N o t e . E l se , t h e re w a s no o c c a si o n f o r t he A O t o ha v e o b se r v e d i n pa ra 4 o f h er O r d e r , th at “ .... . T he re i s no re f er e n c e of c as h d ep o si t s i ss u e i n t h i s a sse s sm e n t o rd e r... ... ” . 26 . A s su c h , t h i s o bs e r va t i o n o f t h e A O w a s a r e s ult o f co mp le t e n o n- re a di ng o f t he ab o ve - s a i d O ffi ce N ot e f or mi ng p a r t o f t he a ss e s s m en t or d e r d a t e d 4. 3 . 2 0 16 , pa ss e d fo r A . Y . 2 011 -1 2 i n t he c a s e o f S hr i G ur de v S i ng h, fa t h e r o f t he as se ss e e . 16 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana 27 . Th e l d. CI T( A ), o n th e o t h e r ha nd, h as t a ke n due c o g ni z a n c e o f t hi s O ff i ce N ot e w hi l e d e l et i n g th e a d di ti o n m ad e by t he A ss e s si n g O ff i c e r . T h e l d. CI T( A ) h a s, i n p a r a 5. 8 o f t he Ord er un d e r A p p e a l , ob se r ve d t ha t t he pri n c i p a l de po sit h a s a l r e a d y b e en e x a mi n e d ( by t h e A O ) in t h e c as e o f S r hi G u r de v S in g h, fa th e r o f t h e a s s e ss e e, f or A . Y . 20 11 - 12 ; t ha t t h e O f fi c e N ot e c o n c e r ni ng t ha t A sse ss m e n t c le a rl y re fe r s t o t h e sa m e a mo u n t o f Rs. 1. 95 c or e s , w hi c h w as t he b as i s o f r e o p e n i n g o f t he as se ss m e nt ; a n d t ha t i n t h ose as s e ss m e nt pr oc e e d i n g s, t he pr o p o se d bu ye r o f th e l a n d, t he a gre e me n t r e l a ti n g t o w hi c h l a n d w a s c an c e l l e d (i . e . , S h ri In de r j i t S i n g h ) h i m se l f c er ti f i ed t h e so u r c e o f t h e sa i d c a sh . 28 . Th e ob se r v a ti on s m a d e b y t h e l d . CI T (A ) in p ar a 5 . 8 of t he i mp u gn e d or de r a re re pr od u c e d b e l o w , f or r e a d y re f er en ce : “ 5. 8 It i s t h e r e fo re se e n t h at t h e p ri nc i p l e de po sit ha s a l re ad y b e e n i n t h e c as e o f S h. G ur de v S i n g h f or t he AY 2 0 11 - 12 . T he of fi c e n ot e p e rt a i n i ng t o t he ass es sm e n t cl e a rl y re f e rs t o t h e s a m e " a m ou n t o f R s. 1. 95 C rs wh i c h i s t h e b a s is o f re op en in g o f ass es sm e n t . D ur i ng t h e co ur se of a ss e s sm e n t pr o c e e d i n g s al so t he s o u rc es o f t h e sa i d c a s h h a s be e n c e r t i f i e d b y th e b uy e r o r ra t he r t he p r op os e d bu y e r o f t h e ag re e m e nt w hi c h wa s c an c e l l e d. T h e m arg i n al i s su es re l a t e d t o r e c i p i en t be i ng a l o n e o r t he a m o un t b e i ng re c e i v e d o n b e h a l f of S h. G urd ev Si n gh ar e no t p a r ti c ul ar l y m a t er i a l t o th e e x p l a na ti o n of t he s o u rc e s o f c as h. T he ci r c l e ra t e o f t he p ro pe rt y al s o d o e s n ot ca rr y a n y p r im a r y m e an i n g i n t h i s c ase . It is c l e a r t h at th e p ri m a ry re q u i re m e n t o f a n e xp l a na ti o n o f t h e sa i d am ou nt w as b r o ug ht o n re c or d. A s a re su l t, t h e s ai d am o un t c a nn ot b e t r e at e d 17 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana as u n e x p la in ed u / s 6 8. T he a p pe l l a nt h as gr a n t e d re l ie f an d th e s ai d ad di t io n i s d e l e t e d. ” 29 . Be for e u s, t h e l d . D R ha s no t be e n a bl e t o s uc ce ss f ul l y c ha l l e n g e t he a f o r e sa i d w e l l ve r se d fi n d i n g s o f t he l d . CIT (A) . A c c ord in gl y, t he se fi n di ng s a r e h e r eb y c on f i r m e d . 30 . Th e l d. C IT (A ) i s a l s o c or r e c t i n o b s e rv i n g t h at t he ot h er i ss ue s ra i se d b y th e A O i n t h e a s s es s m e n t ord e r, i . e . , t he i ss u e p e r t a i n i n g t o t h e re c i p i e n t h av in g b e en a l o n e a t t h e t i me o f t he r e ce i pt o f th e a mo u n t, or t he a m ou nt h a v i n g be e n r e c e i v e d on b eh a l f o f S h r i Gur de v S i n gh , fa t h e r o f t h e a ss e s see , a n d t h e i s su e o f C i r cl e ra t e o f t he pr op e r t y , a re , at be st , m ar gi na l i ss u e s, h a v in g n o b ea r i n g on t he de c i si o n o f t he i ss ue s a t h a n d , i . e. , t he de po si t o f c as h . 31 . O t h er w i s e t o o , t h e r es p o ns e o f t h e a sse ss e e w i th r e g ar d t o t h e s e i ss ue s ha s no t b ee n a t al l r e b u t t e d b e fo re u s, m uc h l e s s, s u c c e s s fu l l y . T he p la us i b il i t y o f t h e a s s es se e ’s s ta n d h as b e e n exa m i n e d b y u s a n d i t ha s b e e n fo un d t o b e i n or de r, b e i n g se l f- e v i d e nt the re fr o m. 32 . Th e a s se s se e h a d e xpl a i n e d th e s ou rc e o f t h e c as h de po si t e d, t o b e re f un d o f a dv an ce gi v e n fo r p ur ch as e o f pr o p e rt y i n t he e a r l i e r y e a r s. T hi s so ur c e o f ca s h c ou l d ha ve b e e n e x a m i n e d b y t h e A O , in ca se o f a ny do ub t, by r e o p e n i n g t he ea r l i e r y e a r ass e s s m e n t . Thi s w a s n o t d o n e . M or e o ve r, S h. I n d e rj i t S i n g h, t he i n t e n d i n g s el l e r o f t h e ag ri c ul tu ra l l a n d, i n h i s s t a t e m e nt b e fo r e t he A O , c on f i r m ed t h e re t ur n o f t he 18 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana a dv a n ce a mo u nt . S hr i In d er j i t S i n g h ha d s t a t e d t ha t w h e n t he p a y m e n t w a s r e c e i v ed b y hi m, he r ec e i v e d i t a l on e a n d fr o m h i s sid e, t h e r e w a s no bo d y pr es e n t. T h e p a p e r o f t he a ss e ss e e w o u l d sho w h i s p r e s e nc e a n d t he p r e se nc e o f h i s fa t h e r a nd w i t ne ss e s . 33 . A p ro po s t he A O ’s do u bt w i t h re ga rd t o t h e p ur c ha s e o f t he st a mp pa p e r s, i n re sp on s e to Q u e s ti on N o . 26 a s ke d o f h i m b y t he A O , S hr i In d e r j i t S i ng h, i n te nd i n g se l l e r s t a t e d th a t i t w as t he a s se sse e S h. D a lj i t S i ng h , w ho ha d p ur ch as e d t h e st a m p p ap er s. S i mi l a r pa pe r s w er e pu r c h a s e d i n t h e n a me o f S hr i I nd e r j i t S i n g h, a s p er t h e s ta m p p a p e r s, w hi c h bor e hi s n a me . T h e n a m e o f t h e p ur c ha se r o f th e st a m p p a p e rs is i mm a te r ia l i n t he c a se o f R e a l E s t a t e , s uc h s ta m p pa p e r s be i ng n o r m a l l y pu r c h a s e d i n t he n a me o f t he se l l e r. 34 . S o f ar a s re ga rd s t he A O ’s d o u bt t ha t a s p e r Sh ri I n d e r j i t S i ng h , e i t h e r S hr i G u rd e v S i ng h, fa t h e r o f t h e a ss e ss e e , or hi s a ss oc i at e s, h a d re c e i v e d m o n e y, w he r e a s S h r i G ur d e v S i n g h h a d st a t ed t h at S hr i I n de rj i t S i ng h h a d d e p o si t e d t h e m o ne y i n t h e i r ac c o un t a nd h a d gi v e n t h e m t he re c e i p t s , t h e r e b u t t a l o n be ha l f o f t h e a ss e ss e e i s t h a t t h e f a c t u m o f re f un d w a s a d mi t t e d b y th e in te n d i n g s el l e r , S hr i I n d e rj i t S i ng h, a n d t ha t t he A O di d no t q u e s t i o n S h r i I n d e rj i t S i n g h conc e r n i ng t h e s ou r c e o f t h e r e fun d. 35 . A p ro po s t he A O ’ s c o n c er n re g ar di ng t h e C ol le c t or r at e , t h e a ss e s se e h a s m ai nt a i n e d t ha t t he s t a t e d s a l e o f l a nd a t a pp r ox . Rs. 1. 87 19 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana Cr or e w a s a me r e a s su mp t i on o f th e A O ; t h a t Co ll e c to r r a t e i s t h e m i n i m u m r a t e a t w hi c h l a n d i s t o be re g i s t e re d ; t hat i n t h e a b s en c e o f a ny ma t er i a l e v i d e n c e t o t h e c o n t r a ry, th e A O ca nn ot d o ub t a n a gr ee m e n t be t w ee n t w o p ar t i e s; t h a t i n t he pr e s en t c as e , n o c o n t r a r y e vi de nc e w a s b r o u g h t on r e c or d b y t h e A O , so a s t o d i s c a r d t h e a gr ee m e n t b et w e en th e p ar ti e s; a n d t ha t m or e o v e r t he va l u e o f t h e pr o p e r t y is a l w a ys hi g h e r t h a n t h e ci r c l e ra te . 36 . Re ga r di n g t he A O ’ s d o ub t t h a t e v e n t h o u gh t h e ag r ee m e n t w a s vi o la t e d , S hr i I n d e rj i t S i ng h d i d n ot fi l e a n y l i t ig at i on , r a t he r he re t ur ne d t h e e n t i re a m o u nt o f e a rn e s t mo ne y, it ha s be e n st a t e d t h a t S h r i In d e r j i t S i ng h w a n te d t o fr e e hi s la n d , w h ic h w a s th e re a so n w h y h e re f un d e d th e e nt i r e e ar ne st m on ey ; a n d th at n o se l le r w ou l d li k e t o b l o ck hi s l an d i n l i t i ga ti o n, a s c i v i l c a s es t a k e i n o r d i nat e l y l o n g pe r io ds o f t i me t o g e t se t t l e d . 37 . S o fa r a s re ga rd s t he A O ’ s o b se rv a t i o n t ha t N RIs c a n no t pu rc h a s e a gr ic ul t ur al la nd i n I n d i a w i th ou t R BI p e r mi s si on an d a s p e r F E M A , w he r e a s no R B I p e r mi ssi on w a s t a k e n f or p ur c h a se o f l a nd i n t h e p re se n t c as e, i t ha s b e e n st a t e d t h a t s in ce n o l an d w a s pu rc ha s e d a nd on l y a gr ee m e n t t o s e l l w as e nt e re d i nt o, w hi ch a g re e m e nt w a s c an ce l l e d l a t e r on , no RB I o r F EM A p er mi s si on w a s a p p l i c a bl e or re qu ir e d a n d , t he re fo re , pe r m i ss i o n w a s no t a p p l i e d fo r. 20 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana 38 . Co n ce rn i n g t he ob j ec t i o n t ha t t he o ri g i na l s o f th e d o c u me nt s w er e no t p ro v i d e d , a n d t h at i n t h e ag re e m e nt d a te d 5. 3 .201 0, t h e na m e t yp ed w a s o f S hr i G ur de v S i n gh , w h e r ea s t he a gr ee m e n t w a s sig ne d by S h . D a lj i t S i ng h, i t h a s be e n c o n te n d e d t h e t h a t t h e ori g in al doc u m e n t s h ad be e n de st ro ye d by t he a sse s s ee , D al j i t S i ng h, si nc e h e di d n ot w a n t t h e m t o be mi s u s ed ; t ha t p h o to co pi e s o f t he d oc u m e n t s w er e a v a i l a b l e an d t h e sa me w e r e a c k n ow l e dg e d b y a l l t he pa rt i es , i . e . , t he b u ye r , t he s e l l e r a nd t he w i t n e s se s ; a nd th a t it w a s i m m a t e r i a l w he t he r Gu r d ev S i ng h h a d si g n e d o r D a l j it S i n g h h a d d o n e s o , a s G u r d e v S i ng h w a s t he a s se ss ee ’ s fa t he r. 39 . S o fa r a s r e g a r ds t he A O ’ s o b j e c t i o n t ha t t he ag r e e m en t d a t e d 13 . 4. 20 20 w a s fu l l o f m i st a k e s i n f ig ur e s a nd w o rd s, t h e st a n d o f t h e a ss e s se e h a s b ee n t ha t a t ra ns a c t i o n, w h en a c k now le d ge d b y a l l t he pa r ti e s t o th e a g r ee m e n t , a nd t h a t t o o, be f or e t h e v e r y A O re c o rd in g t he st a te m e n t s , su c h e r ro r s a r e o f n o c on se q ue nc e . 40 . In r es p o ns e t o t h e A O ’ s obj e c t i on t h a t t he a g r ee m e nt i s o n a s t a mp pa p e r o f Rs. 1 0 0/ -, w h er e a s t he mi n i m u m a m o u n t sh ould be o f R s. 3 00 / - , a ga i n i t ha s b e e n st at e d t ha t t h e v al u e o f t he s t a mp p a pe r for a g r ee m e n t t o s e l l i s i mm a t e r i a l w he n t h e p a r t i e s t o t h e a gr e em e n t a c kn o w le d g e d t he t e r m s a n d c o n di t i o ns c on t a i n e d th e re i n , a n d th at e ve n i f an a gr e e m e nt t o se l l i s o n pl a i n p a p e r, t he sa m e i s v a l i d i n t h e e ye o f l a w . 21 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana 41 . Co n ce rn i n g th e A O ’s d ou bt t ha t S h r i I n de rj i t S in gh s t a te d t ha t n o M e mb er o f a n y P a nc ha ya t i n t e rv e n e d i n t he ca n ce l l a ti on a g r e e m e n t , on c e a g a i n , i t ha s b ee n s t a t e d t h a t w h e n t h e pa rt i es t o t h e ag re e me n t t o se l l a gr e e t o t h e c an ce l l a t i on o f th e a g r e e m en t , no i n te r v e n t i o n o f P a nc h y a t i s re qu ir e d , th er e b e i n g n o di sp ut e b e t w e en t h e p a r t i e s. 42 . To t he q u e s ti o n a s to w h y t h e s el l er , S h ri I nt er j it S i n g h a gr e e d t o se l l o f f h i s e nt i re a g ri cu l t u ra l l an d o f 5 7 bi gh a s, it ha s b ee n c o nt e nd ed t ha t t h i s i s en ti r e l y t he o u t l o o k o f t he s e l l e r a nd t he A O c a nn o t su p e r i mp o se hi s t h i nk i n g ov e r t h at o f th e o w n e r o f t he l a nd . 43 . Re ga r di n g t h e A O ’ s c o n c l u si on t ha t n o ne o f t h e pa r t i e s h ad s t a t ed t ha t t h e a g r e e m en t da t e d 13 . 4 . 20 0 9 ha d be e n d e s t ro ye d a nd S h r i G ur de v S i n g h h a d st a t e d t h a t t h e or i g i n a l d oc u m e n t w a s w i t h t he a ss e s se e , Sh ri D a l j it S i n g h , w he re a s t h e C ou ns e l o f t he as se s se e h a d st a te d t ha t t h e o r i gi n a l ag re e m e n t h a d be e n de st r o ye d , t he as se sse e su b mi t t ed t ha t S hr i G ur d e v Si n gh ha d ri g h tl y s t a t ed t h a t t he a gr ee m e n t w a s w i t h t h e as s e s se e , S h ri D al j i t S i ng h; t h at howe ve r , t he C ou ns e l , a ft e r v e ri fi c at i o n fr o m D a l j i t S i ng h, w h o w a s i n F ra n c e , h a d s t a t ed t h a t t he o r i gi n a l d oc u m e nt s h a d be e n de s t r o y e d ; t ha t t h e a ss es s ee h a d c or re ct l y st a t e d so, si nc e h e h ad t a k e n t h e or i g in al d o c u m e n ts a n d h a d de s t r o y e d t he m, s i n c e h e d i d not w a nt th e m t o be mi s u s ed ; a n d th at S hr i In t er ji t S i n gh h a d r i g h t l y st a t e d t h a t h e d i d n o t h av e t h e do c u me n t s. 22 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana 44 . N o ne o f t he a b o v e el a bo ra t e c a t eg or i c p o i n t -w i se re bu tt a l s o f t h e a ss e s se e , a s ma d e be fo r e an d c o n s i d e re d b y t he l d. C IT ( A ), h a s, to re - i t e r a t e , ev e n be en ch a l l e ng e d b e fo r e u s, m uc h l e s s su c c e ss f u l l y, on be h a l f o f t he D e p a rt m e n t. It h a s n o t be en e s t a b l i shed a s t o h ow t h e do ub t s r a i se d b y t h e A O (t e r m e d a s e v i d e n c e br o u gh t o n re c o r d b y t h e A O ) go t o p r ov e th at th e e x p l a na ti o n a n d e vi de nc e gi ve n b y t he A sse s se e w a s c r e a t e d e v i d e n c e , pr o d u ce d a s a n a ft e rt ho ug h t , n o t re p re se n t i n g r e a l i ty . F ur t he r, t h e D ep a r t me n t h as als o fa i l ed t o sh o w a s t o h o w t h e l d . C I T (A ) e r r e d i n re l y i n g o n t he A s se sse e ’ s ex pl an at i o n , pa r ti c u l a r l y w h e n t he c o nt e n t s o f t h e d oc u m en ts w ere no t p ro ve d t o b e i n- ge nu i n e or fa l s e. 45 . In vi ew o f t he a bo v e, fi n d in g n o e rr or w ha t so e ve r w it h t h e fi n di ng s r e c o r d e d b y t h e l d . C I T ( A ), t he s a m e a r e uph e l d . T he G rou nd s ra i se d by t h e D e p a rt me n t a r e , as su c h , fo u n d t o b e w i t h o u t me r i t a n d t he y a r e re j e c t e d. 46 . In t h e re s u l t , t he ap pe a l i s di s m i s se d . O r de r p ro n o u n c e d on 0 7. 03 . 2 02 3. Sd/- Sd/- (VIKRAM SINGH YADAV) ( A.D. JAIN ) Accountant Member Vice President Dated : 07.02.2023 “आर.के .” आदेश क त,ल-प अ.े-षत / Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकर आय ु 2त/ CIT 4. आयकर आय ु 2त (अपील)/ The CIT(A) 23 ITA No. 320/Chd/2020 – Sh. Daljit Singh, Ludhiana 5. -वभागीय त न7ध, आयकर अपील%य आ7धकरण, च9डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar