Satpal Singh Chhabra, Saharanpur V. DCIT, Saharanpur

ITA 4207/DEL/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74188 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 03-02-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 20-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Keywords: Unexplained cash credit; Income from undisclosed sources; Salary income; Additional evidence; Reasonable cause; Capital receipt; Reassessment proceedings
• Section: 147; 68; 148

Judgement Text

ITA NO.4207/DEL/2011 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : G : NEW DELHI BEFORE SHRI A.D. JAIN, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO.4207/DEL/2011 ASSESSMENT YEAR : 2007-08 SATPAL SINGH CHHABRA, CHHABRA COMPLEX, AMBALA ROAD, SAHARANPUR. PAN : ABIPC2348G VS. DCIT, SAHARANPUR. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY : NONE DEPARTMENT BY : S HRI SATPAL SINGH, SR. DR ORDER PER A.D. JAIN, JUDICIAL MEMBER: THIS IS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2007-08 EMANATI NG FROM THE ORDER DATED 25.07.2011, PASSED BY THE LD. CI T(A), MUZAFFARNAGAR, AGAINST THE CONFIRMATION OF THE ADDITION OF ` 80,00 0/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNPROVED SALE OF CAR, THE ADDI TION HAVING BEEN MADE U/S 68 OF THE IT ACT, AS UNEXPLAINED CASH CREDIT IN TH E ASSESSEES BANK ACCOUNT. 2. AS PER THE IMPUGNED ORDER, THE ASSESSEE INDIVIDUAL DE RIVES INCOME FROM SALARY, HOUSE PROPERTY AND INCOME FROM OTHER SOU RCES, BESIDES AGRICULTURAL INCOME. IN THE RETURN OF INCOME FILED, THE ASSESSEE DECLARED INCOME OF ` 1,18,127/- AND AGRICULTURAL INCOME OF ` 60,000/-. THE RETURN WAS PROCESSED U/S 143 (1) OF THE ACT. LATER, NOTICE U/S 148 OF THE ACT WAS ISSUED, ITA NO.4207/DEL/2011 2 AND THE ASSESSEE WAS ASKED TO JUSTIFY THE FOLLOWING CASH CR EDITS IN ITS BANK ACCOUNT:- 01.06.2006 : RS.15,000/- (CASH) 03.06.2006 : RS. 5,000/- (CASH) 04.09.2006 : RS.10,000/- (CASH) 05.12.2006 : RS.20,000/- (CASH) 18.01.2007 : RS.30,000/- (CASH) RS.80,000/- 3. THE ASSESSEE SUBMITTED THAT THE AMOUNTS IN QUESTION HAD BEEN RECEIVED OUT OF SALE OF OLD CAR TO ONE SHRI BHASIN. T HE ASSESSING OFFICER OBSERVED THAT DESPITE SEVERAL OPPORTUNITIES PROVIDED TH E ASSESSEE COULD NOT SUBMIT ANY EVIDENCE REGARDING THE SALE OF CAR AND RE GARDING THE AMOUNT RECEIVED FROM THE SALE OF CAR. ACCORDINGLY, THE ASSESSI NG OFFICER TREATED THE AMOUNT OF ` 80,000/- AS UNEXPLAINED CASH CREDITS U/S 68 OF THE ACT AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE. 4. BEFORE THE LD. CIT (A), ON TWO DATES THE ASSESSEE DID NOT APPEAR AND LATER FILED WRITTEN SUBMISSIONS. IT WAS CONTENDED THAT T HE AMOUNT OF ` 80,000/-, RECEIVED BY THE ASSESSEE FROM SHRI BHASIN, WAS EXEMPT FROM TAX AND WAS A CAPITAL RECEIPT. AN AFFIDAVIT FROM SHRI BH ASIN REGARDING THE PAYMENT AGAINST THE SALE OF OLD CAR, WAS FILED ALONG W ITH THE WRITTEN SUBMISSIONS. 5. THE LD. CIT (A) UPHELD THE ADDITION MADE BY THE ASSESSING OFFICER, OBSERVING THAT THE ASSESSEE HAD FAILED TO FILE ANY EVIDE NCE REGARDING THE ALLEGED SALE OF CAR, BOTH BEFORE THE ASSESSING OFFICER, AS WELL AS BEFORE HIM [THE CIT (A)]; THAT NO REASONABLE CAUSE HAD BEEN MADE OUT BY THE ASSESSEE FOR NOT SUBMITTING THE ADDITIONAL EVIDENCE FILED IN THE SHAPE OF THE AFFIDAVIT OF SHRI BHASIN BEFORE THE ASSESSING OFFICER AND THAT SO, THE SAME WAS NOT BEING ENTERTAINED. ITA NO.4207/DEL/2011 3 6. BEFORE US TOO, NONE HAS PUT IN APPEARANCE ON BEHAL F OF THE ASSESSEE. HOWEVER, WRITTEN SUBMISSIONS HAVE BEEN FILED BY SHRI D. S. JUNEJA, CA, WHICH ARE AS FOLLOWS:- TO THE MEMBERS, INCOME TAX APPELLATE NEW DELHI BENCH, NEW DELHI. REG: IN CASE OF SATPAL SINGH CHHABRA AMBALA ROAD, SAHARANPUR. FOR THE ASSESSMENT YEAR : 2007-08 APPEAL NO.4207/DEL-2011 U/S 143 (3)/147 WRITTEN SUBMISSION PAN-ABIPC2348G . RESPECTED SIR, IT IS RESPECTFULLY SUBMITTED AS UNDER:- THAT THE ASSESSEE HAS FILED THE RETURN AT RS.118127/- AN D AGRICULTURE INCOME AT RS.60000 ON 31/03/2008. THE RETURN WAS PRO CESSED U/S 143 (1) ON 30/06/2008. LATER ON NOTICE U/S 148 OF IT ACT WAS UNDER ISSUED TO THE ASSESSEE ON 09/06/2009. THE TWO REASON U/S 148 WAS RAISED I.E. ONE REASON WAS INVESTMENT TO THE PROPERTY AND THE SECOND REASON WAS SALE OF PROPERTY THROUGH POWER OF ATTORNEY. THE ASSESSE E HAS GIVEN PROPER REPLY AND THE LEARNED ASSESSING OFFICER WAS SATISFIED. THE COPY OF REASON IS ALSO BEING ENCLOSED. NOW THE LEARNED OF FICER MADE THE ADDITION OF RS.80,000 BEING THE CASH CREDITED IN BANK A/C WHICH WAS THE SALE PROCEED OF THE CAR. THE ADDITION MADE BY THE L EARNED OFFICER WAS NO JUSTIFIED. IN THE CASE OF RANBAXY LABORATORIES LIMITED VS. COMM ISSIONER OF INCOME TAX (DELHI HIGH COURT) (2011) 200 TAXMAN 2 004. IT WAS HELD THAT NO ADDITION COULD BE MADE IN RE-ASSESS MENT IF NO ADDITIONS IN RESPECT OF THE GROUNDS ON WHICH THE PROCEE DINGS U/S 147 WERE INITIATED HAS BEEN MADE BY THE A.O. THAT THE ADDITIONS OF RS.80000 IS BEING THE CASH CREDI T IN BANK A/C AS INCOME FROM UNDISCLOSED SOURCES AND COMPLETED THE ASS ESSMENT OF THE TOTAL INCOME OF RS.1,98,130. ALTHOUGH THE ASSESSEE HAS ALREADY FILED THE INCOME TAX RETURN DECLARING THE TOTAL INCOME OF RS.1,18,127. THAT THE ASSESSEE RECEIVED THE SALE PROCEEDS OF CAR OF RS.80000 IS EXEMPTED FROM TAX AND IS A CAPITAL RECEIPT. THE AFFIDA VIT OF MR. BHASIN HAS ALREADY BEEN ENCLOSED REGARDING THE PAYMENT AGAIN ST SALE OF OLD CAR. ITA NO.4207/DEL/2011 4 IT IS THEREFORE REQUESTED TO KINDLY CONSIDER THE ABOVE F ACTS AND ALLOW THE APPEAL OR IN THE ALTERNATIVE ANY OTHER SUITABLE RELIE F WHICH YOUR HONOUR MAY DEEM FIT AND THE SAME MAY BE GRANTED. SUBMITTED BY SD/- (D.S. JUNEJA) (CHARTERED ACCOUNTANT) PLACE: SAHARANPUR DATE: 21/01/2014. 7. AS PER THE AFORESAID WRITTEN SUBMISSIONS, THE ASSESSEE HAS SOUGHT TO RAISE A LEGAL ISSUE BEFORE US, I.E., SINCE NO ADDITION I N RESPECT OF THE REASONS ON WHICH THE COMPLETED ASSESSMENT WAS REOPENED, HAD BEEN MADE, NO ADDITION COULD BE MADE IN THE REASSESSMENT PROCEEDINGS. THIS IS A LEGAL PLEA GOING TO THE ROOT OF THE MATTER. THEREFORE, THE SAME IS ALLOWED TO BE TAKEN. HOWEVER, THE COMPLETE MATERIAL NOT BEING BEFORE US A ND NONE HAVING REPRESENTED THE ASSESSEE IN THE APPEAL PROCEEDINGS BEFO RE US, WE DEEM IT APPROPRIATE TO REMIT THIS MATTER TO THE FILE OF THE ASSESSING OFFICER TO BE DECIDED IN ACCORDANCE WITH LAW ON AFFORDING ADEQUAT E OPPORTUNITY TO THE ASSESSEE. SINCE THE MATTER IS BEING SO REMITTED, THE ASSESSEE SHALL ALSO BE AT LIBERTY TO PLACE BEFORE THE ASSESSING OFFICER, THE EVID ENCE FILED BEFORE THE CIT (A) IN THE SHAPE OF THE AFFIDAVIT OF SHRI BHASIN, CONFIRMING THE ALLEGED SALE OF CAR BY THE ASSESSEE TO SHRI BHASIN. THE ASSESSEE SHALL ALSO BE AT LIBERTY TO PRODUCE ANY OTHER EVIDENCE TO PROVE SUCH ALLEGED SALE OF CAR BY HIM TO SHRI BHASIN. NO DOUBT, THE ASSESSEE SHALL COOPERA TE IN THE REMAND PROCEEDINGS BEFORE THE ASSESSING OFFICER. ORDERED ACCORD INGLY. 8. IN THE RESULT, FOR STATISTICAL PURPOSES, THE ASSESSEES AP PEAL IS TREATED AS ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 12.02.201 4. SD/- SD/- [S HAMIM YAHYA ] [A.D. JAIN] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 12 TH FEBRUARY, 2014. ITA NO.4207/DEL/2011 5 DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.