Shri Amarjeet Singh Chadha, Chandigarh V. ITO, Chandigarh

ITA 441/CHANDI/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80840 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 25-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J S NAGAR
• Keywords: Additional evidence
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 441/CHD/2013 ASSESSMENT YEAR:2008-09 SHRI AMARJEET SINGH CHADHA VS. THE I.T.O CHANDIGARH CHANDIGARH PAN NO.AEEPS8844N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH RESPONDENT BY : SMT. J.S. NAGAR DATE OF HEARING : 24-07-14 DATE OF PRONOUNCEMENT : 05-08-14 ORDER PER T.R. SOOD, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 07/11/2012 OF CIT(A) CHANDIGARH. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L : I. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) H AS ERRED N LAW AS WELL AS ON FACTS IN SUSTAINING THE A DDITION OF RS. 4,81,463/- OUT OF TOTAL ADDITION OF RS. 5,04 ,757/- 2 BEING CASH DEPOSITS IN PUNJAB STATE COOPERATIVE BAN K WHICH IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. II. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEAL S) HAS FAILED TO CONSIDER THE EXPLANATIONS RENDERED IN RES PECT OF EVERY DEPOSIT IN THE ACCOUNT IN THE CORRECT PERSPEC TIVE AND AS SUCH THE ADDITION UPHELD IS ARBITRARY AND UNJUSTIFIED. III. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEA LS) HAS FURTHER ERRED IN UPHOLDING THE CHARGING OF THE INTE REST UNDER SECTIONS 234B OF THE ACT WHICH IS NOT CHARGEA BLE IN THE INSTANT CASE. 3. AFTER HEARING BOTH THE PARTIES WE FIND THAT THRO UGH AIR INFORMATION AO NOTICED THAT ASSESSEE WAS MAINTAINING BANK ACCOU NT NO. 0011301000020744 WITH PUNJAB STATE COOPERATIVE BANK , SCO 175-184, SECTOR 34-A, CHANDIGARH. IN THIS ACCOUNT THERE WERE DEPOSITS TO THE TUNE OF RS. 13,04,757/- AND ASSESSEE COULD EXPLAIN ONLY ONE ENTRY OF RS. 8 LACS. IN THE ABSENCE OF EXPLANATION THE BALANCE AMOUNT OF RS. 504757/- WAS ADDED TO THE INCOME OF THE ASSESSEE. 4. BEFORE CIT(A) CERTAIN ENTRIES WERE EXPLAINED AND THEREFORE ADDITION WAS REDUCED BY RS. 23,294/- . AGGRIEVED BY THIS ORD ER ASSESSEE FILED AN APPEAL BEFORE US. 5. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT AN A PPLICATION FOR ADMISSION OF ADDITIONAL EVIDENCE HAS BEEN FILED VID E APPLICATION DATED. 03/09/2013. ADDITIONAL EVIDENCE IN THE FORM OF ANOT HER BANK ACCOUNT IN BANK OF MAHARASHTRA SECTOR 45 CHANDIGARH HAS BEEN F ILED. THIS ACCOUNT WAS NOT FURNISHED BEFORE THE ASSESSING OFFICER OR C IT (A) BECAUSE OF POOR HANDLING OF THE CASE ON THE PART OF THE REPRESENTAT IVE. ASSESSEE HAD FILED A RETURN DECLARING INCOME UNDER SECTION 44 F AND MA IN DEPOSITS OF SALE 3 PROCEEDS WERE MADE IN BANK OF MAHARASHTRA FROM WHIC H THE AMOUNT WERE TRANSFERRED TO PUNJAB STATE COOPERATIVE BANK, THEREFORE IN THE INTEREST OF JUSTICE THIS ADDITIONAL EVIDENCE SHOUL D BE ADMITTED. 6. ON THE OTHER HAND LD. DR SUBMITTED THAT BEFORE A SSESSING OFFICER AND FIRST APPELLATE AUTHORITY THE ASSESSEE CLAIMED THAT HE WAS HAVING ONLY ONE BANK ACCOUNT AND THEREFORE THIS ACCOUNT SH OULD NOT BE ADMITTED. 7. AFTER CONSIDERING THE RIVAL SUBMISSION CAREFULLY WE ARE OF THE OPINION THAT ASSESSEE IS A SMALL SHOPKEEPER AND MAY HAVE NO T UNDERSTAND ISSUE PROPERLY. VERY SMALL DEPOSITS OF RS. 15000- 25000 H AVE BEEN MADE IN BANK OF MAHARASHTRA FROM WHERE THE AMOUNT HAS BEEN TRANS FERRED TO THE BANK ACCOUNT IN PUNJAB STATE COOPERATIVE BANK. THE ADDI TIONAL EVIDENCE GOES TO THE ROOT OF THE MATTER AND THEREFORE IN THE INTEREST OF JUSTICE WE ADMIT THE ADDITIONAL EVIDENCE. GROUND NO. 1 & 2 8. IN VIEW OF THE ADDITIONAL EVIDENCE CERTAIN VERIF ICATIONS ARE REQUIRED AND THEREFORE WE SET ASIDE THE ORDER OF LD. CIT(A) AND REMIT THE ISSUE TO THE FILE OF ASSESSING OFFICER WITH A DIRECTION TO V ERIFY THE ENTRIES IN THE BANK OF MAHARASHTRA AND THEN DECIDE THE ISSUE IN ACCORDA NCE WITH LAW. GROUND NO. 3 9. LEVY OF INTEREST UNDER SECTION 234 B IS OF CONSE QUENTIAL NATURE AND ASSESSING OFFICER IS DIRECTED TO LEVY THE INTEREST IN ACCORDANCE WITH THE PROVISIONS OF THE ACT. 4 10. IN THE RESULT APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05-08-2014 SD/- SD/- (SUSHMA CHOWLA) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 5 TH AUGUST, 2014 AG COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT, TH E CIT(A),THE DR