The Income-tax Officer, Amritsar. V. Sh. Balkar Singh Malhi, Amritsar.

ITA 466/ASR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89828 (ITAT-AMRITSAR)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 02-06-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 16-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TARSEM LAL
• Assessee Lawyers: PADAM BAHL

Judgement Text

IN THE INCOME TAX APPELLATE TRI BUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. PRAMOD KUMAR, ACCOUNTANT MEMBER AND SH. A.D.JAIN, JUDICIAL MEMBER I.T.A. NO. 466/ASR/2014 ASSESSMENT YEAR: 2011-12 PAN : AIPPS3344E THE INCOME TAX OFFICER, 5-(1), AMRITSAR VS. SH. BALKAR SINGH MALHI, H.NO. 8, MEDICAL ENCLAVE, CIRCULAR ROAD, AMRITSAR (APPELLANT) (RESPONDENT) APPELLANT BY: SH. TARSEM LAL RESPONDENT BY: SH. PADAM BAHL DATE OF HEARING: 02.06.2015 DATE OF PRONOUNCEMENT: 03.06.2015 ORDER PER A.D.JAIN (JM): IN THIS APPEAL, FILED BY THE DEPARTMENT FOR ASSESSM ENT YEAR 2011-12, THE BRIEF FACTS ARE THAT THE ASSESSEE, DURING THE Y EAR, WAS WORKING AS BLOCK AGRICULTURAL OFFICER AT ZIRA, DISTRICT FIROZEPUR. H IS AO RECEIVED AN AIR INFORMATION THAT THE ASSESSEE HAD DEPOSITED CASH AM OUNTING TO RS. 39,19,070/- IN HIS BANK ACCOUNT NO. 62021, MAINTAIN ED WITH SBI, ZIRA. ON QUERY , THE ASSESSEE SUBMITTED BEFORE THE AO THAT A S PART OF HIS DUTIES AS BLOCK AGRICULTURAL OFFICER, HE HAD DISTRIBUTED SEED S AND OTHER AGRICULTURAL ITA NO. 466/ASR/2014 AY- 2011-12 2 INPUTS ALLOCATED BY THE CHIEF AGRICULTURE OFFICER, FIROZEPUR, TO THE AGRICULTURIST / FARMERS, AT SUBSIDIZED RATES. THE P AYMENT IN LIEU THERE OF WAS COLLECTED AND DEPOSITED IN THE SAID BANK ACCOUNT AN D FROM THERE, FUNDS WERE TRANSFERRED TO THE SUPPLIERS BY CHEQUES / DRAFTS. I N SUPPORT OF HIS CONTENTION, THE ASSESSEE FILED BEFORE THE AO, DOCUMENTARY EVIDE NCES COMPRISING OF HIS AFFIDAVIT GIVING DETAILS OF PAYMENT MADE TO M/S PUN JAB AGRO FOOD CORPORATION LTD., CROP CHEMICAL INDIA LTD. AND PUNJ AB STATE SEEDS CORPORATION LTD., BANK STATEMENT OF M/S PUNJAB STAT E SEED CORPORATION, COPY OF INTERNAL OFFICER CORRESPONDENCE SHOWING PAY MENTS MADE FOR THE ASSESSEES BANK ACCOUNT AS OFFICIAL PAYMENTS, CERTI FICATE FROM CHIEF AGRICULTURE OFFICER, FIROZEPUR, I.E., THE ASSESSEE S SUPERIOR AUTHORITY; AND CERTIFICATE / LETTER REGARDING SUPPLY OF WHEAT SEED S AND PAYMENTS MADE TO COMPTROLLER PUNJAB AGRICULTURE UNIVERSITY, LUDHIANA . THE AO, HOWEVER, NOT SATISFIED WITH THE AFORESAID RESPONSE OF THE AS SESSEE, MADE AN ADDITION OF RS. 39,33,931/-, INVOKING THE PROVISIONS OF SECTION 69A OF THE I.T. ACT. BY VIRTUE OF THE IMPUGNED ORDER, THE LD. CIT(A) DELETE D THIS ADDITION. AGGRIEVED, THE DEPARTMENT IS IN APPEAL. 2. THE LD. DR, CHALLENGING THE ACTION OF THE LD. C IT(A), CONTENDED THAT DESPITE THE FACT THAT ASSESSEE HAD NOT BEEN ABLE TO PRODUCE ANY EVIDENCE TO ITA NO. 466/ASR/2014 AY- 2011-12 3 SHOW AS TO UNDER WHAT CIRCUMSTANCES THE GOVERNMENT MONEY WAS DEPOSITED BY THE ASSESSEE IN HIS OWN ACCOUNT, THE LD. CIT(A) HAS ERRONEOUSLY DELETED THE ADDITION CORRECTLY MADE BY THE AO. 3. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSES SEE HAS PLACED STRONG RELIANCE ON THE IMPUGNED ORDER. IT HAS BEEN CONTEND ED THAT THE LD. CIT(A) HAS DULY TAKEN INTO CONSIDERATION ALL THE DOCUMENTA RY EVIDENCES FILED BEFORE THE AO, PROVING THE CASE OF THE ASSESSEE, WHICH EVI DENCES HAD ILLEGALLY NOT BEEN TAKEN INTO CONSIDERATION BY THE AO. IT HAS BEE N SUBMITTED THAT THE ADDITION IN QUESTION HAS RIGHTLY BEEN DELETED BY TH E LD. CIT(A) BY PASSING A WELL REASONED SPEAKING ORDER, WHICH DOES NOT REQUIR E ANY INTERFERENCE AT OUR HANDS. 4. THE FACTS ARE NOT DISPUTED. THE FACT IS THAT AT THE RELEVANT TIME, THERE WAS NO BANK ACCOUNT IN ZIRA, IN THE NAME OF THE OFF ICE OF THE ASSESSEE, I.E; ASSISTANT PROJECT OFFICER / BLOCK AGRICULTURE OFFIC ER ZIRA. THERE EXISTED AN ACCOUNT IN THE NAME OF THE ASSESSEE IN THE SBI BRAN CH OF ZIRA. THE PAYMENTS RECEIVED AGAIN AT THE DISBURSEMENT OF SEEDS AND OTH ER AGRICULTURAL INPUTS WERE DEPOSITED IN THE ASSESSEES BANK ACCOUNT. IT W AS ONLY ON 19/11/2010, THAT BANK ACCOUNT IN THE NAME OF ASSISTANT PROJECT OFFICER [AGRICULTURE ITA NO. 466/ASR/2014 AY- 2011-12 4 OFFICER] , WITH THE ADDRESS OF BLOCK AGRICULTURAL O FFICER, ZIRA WAS OPENED IN SBI, ZIRA. THE ASSESSEE FILED A COPY OF THE BANK PA SS BOOK CONTAINING THESE PARTICULARS BEFORE THE AO. THE BANK PASS BOOK SHOWE D THAT THE SUM OF RS. 5,59,330/- WAS TRANSFERRED FROM THE ASSESSEES BANK ACCOUNT. THE ASSESSEE FILED A CERTIFICATE DT. 22/01/2014 FROM DISTRICT MA NAGER PAFC, LTD. FIROZEPUR FOR RS. 28,00,251/- AND A CERTIFICATE DT. 19/08/2013 FROM CROP CHEMICALS INDIA LTD. FOR RS. 1,64,440/-. THE ASSESS EE FILED A REPORT GIVING ACCOUNT OF PAYMENTS TOWARDS SEEDS MADE ON 19/11/201 0 BY THE ASSESSEE. THE ASSESSEE FILED A COPY OF BANK ACCOUNT OF PUNJAB STATE SEEDS CORPORATION SHOWING CHEQUES ISSUED BY THE ASSESSEE AND DEPOSITE D IN THE BANK ACCOUNT OF THE CORPORATION, TO PROVE PAYMENTS MADE BY THE A SSESSEE TO THE CORPORATION. AN AFFIDAVIT VERIFYING ALL THESE FACTS WAS ALSO FILED BY THE ASSESSEE. CERTIFICATE DT. 21/04/2014, ISSUED BY THE CHIEF AGRICULTURE OFFICER, FIROZEPUR WAS ALSO FILED. THIS CERTIFICATE CERTIFIE D THAT THE PAYMENTS MADE BY THE ASSESSEE OUT OF HIS SBI S/F ACCOUNT NUMBER WERE ON ACCOUNT OF COST OF VARIOUS INPUTS PURCHASED FROM VARIOUS GOVERNMENT AG ENCIES UNDER SEVERAL SCHEMES ENUNCIATED BY THE STATE GOVERNMENT AND THE CENTRAL GOVERNMENT, SUCH AS NATIONAL FOOD SECURITY MISSION SCHEME, AND THAT THESE INPUTS WERE DISTRIBUTED TO FARMERS. CERTIFICATE AND CONFIRMATIO NS WERE ALSO FILED TO SUPPORT THE CONTENTION THAT THE FUNDS DEPOSITED BY THE ASSESSEE IN HIS ITA NO. 466/ASR/2014 AY- 2011-12 5 SAVINGS BANK ACCOUNT WERE UTILIZED FOR MAKING PAYME NTS FOR COST OF SEEDS, FERTILIZERS AND OTHER INPUTS PROCURED FROM VARIOUS GOVERNMENT COMPANIES AND CORPORATIONS, FOR DISTRIBUTION TO THE FARMERS. 5. AS EVIDENT FROM THE ORDER UNDER APPEAL, THE LD. CIT(A) HAS DULY TAKEN INTO CONSIDERATION ALL OF THESE VOLUMINOUS DO CUMENTARY EVIDENCES FILED BY THE ASSESSEE BEFORE THE AO, BUT WRONGLY RE JECTED BY THE AO. THE ASSESSMENT ORDER, THEREFORE, WAS CLEARLY A RESULT O F COMPLETE MISREADING AND NON-READING OF MATERIAL DOCUMENTARY EVIDENCES B ROUGHT ON RECORD BY THE ASSESSEE AND THAT TOO, WITHOUT PROVIDING AN OPP ORTUNITY OF CROSS EXAMINATION TO THE ASSESSEE. THE AO DID NOT AS MUCH AS EVEN VERIFY THE BANK ACCOUNTS WHICH UNDISPUTEDLY STOOD IN THE NAME OF THE ASSISTANT PROJECT OFFICER [AGRICULTURAL] AND SHOWED THE FIRST ENTRY O F RS. 559330/-, TRANSFERRED FROM THE ASSESSEES BANK ACCOUNT. THESE ACCOUNTS AL SO SHOWED PAYMENTS MADE TO THE SUPPLIER PARTIES, BESIDES DEPICTING VAR IOUS CASH DEPOSITS. THE BANK STATEMENT OF M/S PUNJAB STATE SEEDS CORPORATIO N LTD., WHICH REFLECTED PAYMENTS FROM THE SBI ACCOUNT OF THE ASSESSEE, WAS ALSO BRUSHED ASIDE LIGHTLY BY THE AO. EVEN THE INTERNAL OFFICIAL CORRE SPONDENCES, SHOWING PAYMENTS MADE FROM THE ASSESSEES BANK ACCOUNT TO B E OFFICIAL PAYMENTS, ITA NO. 466/ASR/2014 AY- 2011-12 6 WHICH CORRESPONDENCES OBVIOUSLY COULD NOT FOUND FAU LT WITH, ALSO DID NOT FIND FAVOUR WITH THE AO. 6. THE LD. CIT(A), AFTER DULY TAKEN INTO CONSIDERAT ION ALL THE ABOVE FACTS, HAS RIGHTLY DELETED THE ADDITION WRONGLY MAD E. WE DO NOT FIND ANY REASON WHATSOEVER TO INTERFERE WITH THE WELL REASON ED ORDER PASSED BY LD. CIT(A). THE SAME IS THUS CONFIRMED. THE GRIEVANCE O F THE DEPARTMENT IS FOUND TO BE SHORN OF MERIT AND IT IS REJECTED. 7. IN THE RESULT, THE APPEAL FIELD BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03/06/2015. SD/- SD/- (PRAMOD KUMAR) ( A.D. JAIN) ACCOUNTANT MEMBER JUDIC IAL MEMBER DATED: 03.06.2015 AG COPY TO: 1.THE APPELLANT, 2. THE RESPONDENT, 3. THE CIT, 4. THE CIT(A) , 5. THE DR BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR