ITO, New Delhi V. Sh. Ravinder Kumar, New Delhi

ITA 3476/DEL/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69569 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 31-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAVINDER KUMAR IN PERSON
• Keywords: Gift; Income from undisclosed sources

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER I.T.A. NO. 3476/DEL/2013 ASSESSMENT YEARS: 2009-10 ITO VS. SH. RAVINDER KUMAR WARD 45(2), H. NO. 12, KRISHNA VIHAR ROOM NO. 205, D BLOCK, WEST NAJAFGARH, CIVIL CENTRE, NEW DELHI.-110043 NEW DELHI.-110002 PAN: ANNPK2549N (APPELLANT) (RESPONDENT) C.O. NO. 194/DEL/2013 (IN I.T.A. NO. 3476/DEL/2013) ASSESSMENT YEARS: 2009-10VS. SH. RAVINDER KUMAR VS. ITO H. NO. 12, KRISHNA VIHAR WARD 45(2), WEST NAJAFGARH, ROOM NO. 205, D BLOCK, NEW DELHI.-110043 CIVIL CENTRE, NEW DELHI.-110002 PAN: ANNPK2549N (APPELLANT) (RESPONDENT) REVENUE BY : SHRI NEEHAR RANJAN PANDEY, SR. DR. ASSESSEE BY : SHRI. RAVINDER KUMAR, ASSESSEE IN PERSON. ORDER PER DIVA SINGH, JM. : THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AG AINST THE ORDER DATED 14.03.2013 OF CIT (APPEALS) XXX, NEW DELHI, P ERTAINING TO 2009-10, ON THE FOLLOWING GROUNDS: 1. ALLOWING RELIEF OF RS.14,60,000/- OUT OF TOTAL ADDITION OF RS.15,60,000/- MADE BY THE AO AS UNEXPLAINED CASH DEPOSIT IN HIS B ANK ACCOUNT BY 2 HOLDING THAT THE ASSESSEE BESIDES INCOME FROM SALAR Y ALSO EARNED INCOME FROM SALE OF AGRICULTURAL LAND, SALE OF CATTLE AND SALE AGRICULTURAL PRODUCE WHEREA NO SUCH RECEIPT/INCOME WAS DECLARED/CLAIMED OR ADMITTED BY THE ASSESSEE EITHER BEFORE THE AO OR AT THE APPELLATE S TAGE. 2. IGNORING THE MATERIAL FACT THAT THE ASSESSEE FAI LED TO OFFER ANY SATISFACTORY EXPLANATION WITH REGARD TO THE CASH CREDITS OF RS.1 5,60,000/-. 2. THE C.O. FILED BY THE ASSESSEE IS IN SUPPORT OF THE IMPUGNED ORDER. THE RELEVANT FACTS AVAILABLE ON RECORD, SHOW THAT T HE ASSESSEE DECLARED, AN INCOME AT RS.2,49,351/-. THE SAME WAS PROCESSED U/S 143(1) AT RS.1,63,640/- AND IN THE SCRUTINY ASSESSMENT ADDIT ION OF RS. 15,60,000/- WAS MADE IN THE FOLLOWING MANNER: DURING THE ASSESSMENT PROCEEDINGS, FROM THE RECORD S, IT HAS BEEN REVEALED THAT SH. RAVINDER KUMAR HAD DEPOSITED RS.15,60,000/- IN CASH ON 12/03/2009 WITH M/S PUNJAB NATIONAL BANK, NAJAFGARH, NEW DELHI AND WAS ASKED TO EXPLAIN THE SOURCE OF DEPOSITS OF RS.15,60,000/-. IN THIS REGARD, IT IS SUBMITTED THAT THE WHOLE AMOU NT OF RS.15,60,000/- HAS BEEN GIVEN BY HIS FATHER SH. SUNDER LAL VILLAGE AND P.O. JAKHOLA, TEHSIL KOSLI DISTT. REWARI. THE STATEMENT OF SHRI SUNDER LAL OF THE ASS ESSEE HAS BEEN RECORDED IN WHICH HE STATED THAT HE IS AN AGRICULTURIST AND HAS GIVEN GIFT OF RS.15,60,000/- IN CASH TO HIS SON SH. RAVINDER SHARMA OUT OF (1) RS.8 ,75,000/- SALE OF LAND OF AT VILLAGE AND P.O. KOSLI, REWARI 8,75,000/- ON 9.3.20 09 IN CASH (2) RS.5,10,000/- OUT OF AGRICULTURE PRODUCE IN CASH & (3) OUT OF SAL E OF 3 BUFFALOES IN CASH. FATHER OF THE ASSESSEE WAS ASKED TO GIVE THE EVIDENCE OF S ALE OF THE ABOVE SAID PROPERTY/AGRICULTURE PRODUCE AND BUFFALOES. HE HAS UNABLE TO SHOW ANY EVIDENCE OF THE SALE OF AGRICULTURE LAND AND BUFFALOES HAD S TATED THAT THEY ARE SOLD IN THE MARKET TO THE PRIVATE PARTIES. AS REGARDS, THE SALE OF LAND AT TEHSIL KOSLI DISTT. REWARI HE HAS FILED A COPY OF SALE DEED OF LAND IN FAVOUR OF SMT. UMED DEVI & LILO DEVI. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A SSESSEE WAS GIVEN SUFFICIENT OPPORTUNITY TO PRODUCE THE PURCHASER OF THE LAND AND GIVE THE INCOME TAX PARTICULARS OF THE PURCHASES. HOWEVER HE DID NO T COME FORWARD TO PRODUCE THE PURCHASERS OF LAND AND TO GIVE ANY EVIDENCE OF SALE OF AGRICULTURE PRODUCE AND BUFFALOES. AS THE ASSESSEE HAS FAILED TO PRODUCE THE PURCHASE RS OF LAND AND TO GIVE ANY EVIDENCE OF SALE OF AGRICULTURE PRODUCE AND BUF FALOES, HENCE IN THE ABSENCE OF SAME, IT IS PRESUMED THAT THE CASH DEPOSITS IN THE BANK ARE NOTHING BUT ASSESSEES INCOME FROM THE UNDISCLOSED SOURCES WHICH ADDED TO THE INCOME OF THE ASSESSEE. WITH THE ABOVE REMARKS, TOTAL INCOME OF THE ASSES SEE IS COMPUTED AS UNDER:- INCOME AS PER ORDER U/S 143(1) : RS.1,63,640/- 3 ADD: INCOME FROM UNDISCLOSED SOURCES : RS.15,60,00 0/- TOTAL INCOME : RS.17,23,640/- 3. IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY Q UA THE GROUNDS RAISED THE CIT (A) CONSIDERING THE ARGUMENTS AND STATEMENT OF FACTS AVAILABLE ON RECORD CAME TO THE FOLLOWING CONCLUSION: 3. I HAVE DISCUSSED THE MATTER WITH THE AR, READ H IS WRITTEN SUBMISSIONS AND GROUNDS OF APPEAL, STATEMENT OF FAC TS AND VERIFIED THE EVIDENCES AND ASSESSMENT ORDER OF THE AO VERY CAREF ULLY. THERE IS ONLY ONE DISPUTE OF CASH DEPOSIT OF RS.15,60,000/- WHICH IS DEPOSITED IN BANK ACCOUNT BY THE APPELLANT DURING THE F.Y. 2008-09. T HE AR EXPLAINED THAT THE APPELLANT HAD SOLD LAND OF 7/8 ACRES AT THE COS T OF RS.8,75,000/- AND DEPOSITED THE SALE PROCEED IN HIS BANK ACCOUNT. THE APPELLANT IS SCHOOL TEACHER IN HARYANA GOVERNMENT. HIS VILLAGE IS IN RE MOTELY LOCATED PLACE AWAY FROM MUNICIPALITY OR NEARBY CITY. HE HAD PRODU CED A CERTIFICATE FROM LOCAL SARPANCH WITH HIS AGRICULTURAL INCOME FR OM LAND OF 13.5 ACRES IS ABOUT RS.5 TO 6 LAKH PER ANNUM. DURING THE YEAR, THE APPELLANT HAD SOLD THREE BUFFA LOES AMOUNTING TO RS.1,75,000/-. HE HAD ALSO SOLD 280 QUINTAL OF WHEA T AND 130 QUINTAL MUSTARD. HE HAD FILED AFFIDAVIT DATED 09.11.2011 TO THIS EFFECT. HE HAD FILED XEROX COPY OF LAND RECORD IN HIS POSSESSION S INCE THE APPELLANT IS SCHOOL TEACHER AND HAVING AGRICULTURE LAND IN REMOT E AREA AND THE SALE PROFIT ARE ESTIMATED. I MAKE AN ADDITION OF RS.1 LA KH TO THE INCOME OF THE APPELLANT OUT OF RS.15,60,000/- ADDED BY THE AO. TH E BALANCE OF AMOUNT OF RS.14,60,000/- RELIEF IS GIVEN TO THE APPELLANT. 4. AGGRIEVED BY THIS THE REVENUE IS IN APPEAL BEFOR E THE TRIBUNAL. THE LD. SR. DR PLACED HEAVY RELIANCE ON THE ASSESSMENT ORDER. THE ASSESSEE PRESENT IN PERSON RELYING UPON THE IMPUGNED ORDER C ONTENDED THAT THE ENTIRE FACTS WERE BEFORE THE AO, WHO DESPITE THIS MADE THE ADDITION WHICH HAD RIGHTLY BEEN DELETED BY THE LD. CIT (A). IT WAS AL SO HIS SUBMISSION THAT THE CIT (A) HAS UNFORTUNATELY SUSTAINED, THE ADDITION O F RS.1 LAC WHICH ADDITION THE ASSESSEE IS NOT CONTESTING FURTHER AS, THE COST OF LITIGATION WILL FAR EXCEED THE RELIEF SOUGHT SO ULTIMATELY THE ADDITION SUSTAI NED IS ACCEPTED. 4 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON A CAREFUL CONSIDERATION OF THE SAME, WE ARE OF THE VIEW THAT QUA THE OWNERSHIP OF THE LAND THERE IS NO DISPUTE THAT SPECIFIC PIECE OF AGRICULTURAL LAND WAS OWNED BY THE ASSESSEES FA THER SHRI SUNDER LAL. THE FACT THAT THE SAID LAND SITUATED AT TEHSIL KOSLI DI STT. REWARI, WAS SOLD TO SMT. UMED DEVI & LILO DEVI IS EVIDENCED FROM THE ASSESSM ENT ORDER ITSELF AS COPY OF THE SALE DEED OF THE SAID LAND WAS FILED, B Y THE ASSESSEE BEFORE THE AO. THE INSISTENCE ON THE PART OF THE AO TO PRODUCE THE PURCHASER IS NOT FOUND SUPPORTED BY ANY COGENT REASON AS THE NAMES A ND PARTICULAR OF THE PURCHASERS WERE KNOWN TO THE AO AS THEY WERE MENTIO NED IN THE SALE DEED ITSELF AND DULY NOTED IN THE ORDER BY THE AO HIMSEL F. THE AGRICULTURAL INCOME OF SH. SUNDER LAL FATHER OF THE ASSESSEE HAS BEEN E STIMATED BY THE LD. CIT (A). THE FACT THAT THE FATHER HAD NO BANK ACCOUNT I N WHICH HE COULD DEPOSIT THE SALE PROCEEDS OF HIS LAND MEASURING 7 KANAL OUT OF THE 57 KANAL STATED TO BE OWNED BY HIM HAS NOT BEEN REBUTTED BY THE REVENU E. IN THE ABSENCE OF ANY REBUTTAL ON FACTS AND ON CONSIDERATION OF THE M ATERIAL AVAILABLE ON RECORD, WE FIND NO GOOD REASON TO INTERFERE WITH TH E FINDING ARRIVED AT IN THE IMPUGNED ORDER. BEING SATISFIED WITH THE REASONING AND FINDING OF THE LD. CIT (A) THE DEPARTMENTAL GROUND IS DISMISSED. THE C .O. FILED ON BEHALF OF THE ASSESSEE AS SUCH BECOMES INFRUCTUOUS. 5 6. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMIS SED AND C.O. IS DISMISSED AS INFRUCTUOUS. 7. THE SAID ORDER WAS PRONOUNCED IN THE PRESENCE OF THE PARTIES IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 8. AS PRONOUNCED IN THE OPEN COURT ON 6/12/2013. SD/- SD/- (T. S. KAPOOR) (DIVA SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 6/12/2013 *AK VERMA/R. NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR