Smt.Asha Arora, Chandigarh V. Income Tax Officer Ward-4(2), Chandigarh

ITA 440/CHANDI/2015

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9996 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 16-04-2019
• Assessment Year: 2006-2007
• Appeal Filed On: 27-04-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VANDANA V MOHITE
• Keywords: Unexplained cash credit; Additional evidence; Set aside
• Section: 148

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH A CHANDIGARH , . '.. . # $, %& BEFORE: SH. SANJAY GARG, JUDICIAL MEMBER & DR. B.R.R.KUMAR, ACCOUNTANT MEMBER ITA NO. 440/CHD/2015 ASSESSMENT YEAR : 2006-07 SMT. ASHA ARORA, W/O SHRI SOHAN LAL ARORA, 2009, SECTOR 15-C, CHANDIGARH. THE ITO, WARD 4(2), CHANDIGARH. PAN NO: AAVPA7127K APPELLANT RESPONDENT ! ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE ' ! REVENUE BY : SMT. VANDANA V.MOHITE, SR.DR # $ % DATE OF HEARING : 16.04.2019 &'() % DATE OF PRONOUNCEMENT : 28.05.2019 %'/ ORDER PER SANJAY GARG, JUDICIAL MEMBER : THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 13.01.2015 OF THE COMMISSIO NER OF INCOME TAX (APPEALS)-2, [HEREINAFTER REFERRED TO AS CIT(A)], CHANDIGARH. THE ASSESSEE IN THIS APPEAL HAS TAKEN T HE FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEAL S) HAS ERRED IN LAW IN UPHOLDING THE ISSUANCE OF NOTICE UNDER SECTION 148 OF THE ACT AND FRAMING OF ASSESSMENT THEREAFTER IN A MUCH AS THERE HAS BEEN NO ESCAPEMENT OF INCOME WARR ANTING ISSUANCE OF NOTICE UNDER SECTION 148 OF THE ACT AND AS SUCH THE ASSESSMENT F RAMED IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 2. THAT WITHOUT PREJUDICE TO THE ABOVE, THE LD. COM MISSIONER OF INCOME TAX(APPEALS) HAS FURTHER ERRED IN UPHOLDING THE ADDITION OF RS.5,00, 000/-ON ACCOUNT OF ALLEGED ITA-440/CHD/2015 A.Y. 2006-07 PAGE 2 OF 5 UNEXPLAINED CREDIT IN UTTER DISREGARD OF THE EXPLAN ATIONS RENDERED WHICH IS ARBITRARY AND UNJUSTIFIED. 3. THAT IN ANY CASE, NO ADDITION IS CALLED F OR IN THE HANDS OF THE ASSESSEE AS THE ENTIRE AMOUNT FOR DEPOSIT IN THE BANK ACCOUNT AND EVEN INV ESTMENT IN PROPERTY BELONGS TO THE HUSBAND OF THE ASSESSEE DR. SOHAN LAI ARORA AND ASS ESSEE IS JUST A BENAMIDAR AND AS SUCH THE ADDITION UPHELD IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 4. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF THE CASE AND IS, THUS, UNTENABLE. 2. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT AS PER INSTRUCTIONS OF HIS CLIENT, H E DOES NOT PRESS GROUND NOS. 1 AND 3 OF THE APPEAL. THE SAME ARE, THEREFORE, DISMISSED AS NOT PRESSED. 3. GROUND NO. 4 IS GENERAL AND DOES NOT REQUIRE ANY SPECIFIC ADJUDICATION. 4. NOW WE ARE LEFT WITH GROUND NO. 2 OF THE ASSESSE E'S APPEAL. THE ASSESSEE VIDE GROUND NO. 2 OF THE APPE AL HAS AGITATED THE ACTION OF THE LOWER AUTHORITIES IN MAKING/UPHOLDING THE ADDITION OF RS. 5 LACS INTO TH E ACCOUNT OF THE ASSESSEE ON ACCOUNT OF ALLEGED UNEXPLAINED C ASH CREDITS IN HER BANK ACCOUNT. 5. DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSEE COULD NOT EXPLAIN SATISFACTORILY TO THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS AO) ABOUT THE SOURCE OF DEPOSIT OF R S. 5 LACS IN HER BANK ACCOUNT WITH STATE BANK OF PATIALA. THE A O, ITA-440/CHD/2015 A.Y. 2006-07 PAGE 3 OF 5 THEREFORE, ADDED THE AFORESAID AMOUNT OF RS. 5 LACS INTO THE INCOME OF THE ASSESSEE AS UNEXPLAINED CASH CREDITS. 6. IN APPEAL, THE LD. CIT(A) CONFIRMED THE ADDITION S MADE BY THE AO. 7. THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE APPLICATION DATED 12.02.2019 FOR ADMISSION O F THE ADDITIONAL EVIDENCES. IT HAS BEEN PLEADED IN THE S AID APPLICATION THAT THE SOURCE OF THE DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSEE WAS OUT OF WITHDRAWALS FROM ANOTHER ACCOUNT OF THE ASSESSEE AND ALSO FROM THE ACCOUNT OF HER HUSBA ND NAMELY SHRI SOHAN LAL ARORA. THE ASSESSEE IN THIS RESPECT HAS RELIED UPON THE BANK STATEMENT OF HER OWN ACCOUNT AS WELL AS THAT OF HER HUSBANDS ACCOUNT. THE LD. COUNSEL HAS SUBMITT ED THAT DUE TO INADVERTENCE, THE ASSESSEE COULD NOT PRODUCE THE BANK ACCOUNT STATEMENT OF THE ASSESSEE WITH VIJAYA BANK AND COPY OF BANK ACCOUNT OF HER HUSBAND WITH UNION BANK OF I NDIA. THAT THE SAME WERE THE NECESSARY DOCUMENTS TO BE LO OKED INTO FOR PROPER ADJUDICATION OF THE ISSUE. THE LD. COUN SEL HAS ALSO SUBMITTED THAT SOME AMOUNT OUT OF THE AFORESAID CAS H DEPOSITED WAS OUT OF SAVINGS/CASH IN HAND OF THE AS SESSEE. THAT THE ASSESSEE MAY BE GIVEN OPPORTUNITY TO PRESE NT HER CASE ITA-440/CHD/2015 A.Y. 2006-07 PAGE 4 OF 5 AND EXPLAIN THE SOURCE OF THE AFORESAID CASH DEPOSI T OF RS. 5 LACS BEFORE THE AO. 8. THE LD. DR, ON THE OTHER HAND HAS SUBMITTED THAT THE ASSESSEE HAS ALREADY AVAILED THE OPPORTUNITY TO PRE SENT HER CASE BEFORE THE LOWER AUTHORITIES, HENCE, THE APPLI CATION OF THE ASSESSEE SHOULD NOT BE ALLOWED. 9. CONSIDERING THE RIVAL SUBMISSIONS AND ALSO CONSI DERING THAT THE RELIANCE HAS BEEN PLACED BY THE ASSESSEE O N STATEMENT OF BANK ACCOUNTS WHICH CANNOT BE SAID TO BE CREATED LATER ON AND IS RELIABLE RECORD MAINTAINED IN REGULAR COURSE OF BUSINESS BY THE BANK, IN OUR VIEW, THE INTEREST OF JUSTICE W ILL BE WELL SERVED IF THE SAME ARE GONE THROUGH BY THE AO FOR P ROPER ADJUDICATION OF THE CASE. THE APPLICATION FOR ADDI TIONAL EVIDENCES OF THE ASSESSEE IS ALLOWED AND ACCORDINGL Y THE IMPUGNED ORDER OF THE CIT(A) IS SET ASIDE. THE MAT TER IS RESTORED TO THE FILE OF THE AO ON THIS ISSUE FOR AD JUDICATION AFRESH. NEEDLESS TO SAY THAT THE AO WILL GIVE OPPO RTUNITY TO THE ASSESSEE TO FURNISH THE NECESSARY DETAILS INCLU DING THE BANK STATEMENTS ETC. TO PROVE THE SOURCE OF THE CAS H DEPOSITS OF RS. 5 LACS IN HER BANK ACCOUNT AND THEN THE AO T O PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW. ITA-440/CHD/2015 A.Y. 2006-07 PAGE 5 OF 5 10. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TR EATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 11. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH MAY,2019. SD/- SD/- (. '... # $) ( ) (DR. B.R.R.KUMAR) (SANJAY GARG) %& / ACCOUNTANT MEMBER / JUDICIAL MEMBER POONAM '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR