Surinder Singh, Kangra V. Pr. CIT, Shimla

ITA 511/CHANDI/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9992 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 27-08-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 20-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH GUPTA
• Keywords: Assessment record; Set aside
• Section: 263

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 511/CHD/2017 / ASSESSMENT YEAR : 2012-13 SH. SURINDER SHARMA, PROP.SHARMA ELECTRONICS, VPO KANGRA, DISTT. KANGRA THE PR. DCIT, SHIMLA ./PAN NO. AFLPS0069R / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI PARIKSHIT AGGARWAL, CA FOR SHRI ASHWANI KUMAR, CA ' ! / REVENUE BY : SH. ASHISH GUPTA, CIT DR # $ % /DATE OF HEARING : 08.03.2019 &'() % / DATE OF PRONOUNCEMENT : 22. 05.2019 (*/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 6.2.2017 OF THE PR. COMMISSIONER OF INC OME TAX (APPEALS), SHIMLA [HEREINAFTER REFERRED TO AS PCIT] PASSED U/S 263 OF THE ACT WHEREBY THE LD. PCIT HAS SET ASIDE THE ASSESSMENT O RDER DATED 20.10.2014 AND HAS DIRECTED THE ASSESSING OFFICER T O MAKE ASSESSMENT AFRESH BY CONDUCTING FURTHER INQUIRIES IN RESPECT O F A UNSECURED LOANS RECEIVED BY THE ASSESSEE. ITA NO. 511-C-2017- SH. SURINDER SHARMA, KANGRA 2 2. BRIEF FACTS RELATING TO THE ISSUE ARE THAT ON PE RUSAL OF THE RELEVANT CASE RECORDS / ASSESSMENT RECORDS, THE LD. PCIT NOT ICED THAT THE ASSESSEE DURING THE YEAR HAD RECEIVED AN AMOUNT OF 71,86,742/ - AS UNSECURED LOANS. HE FURTHER NOTICED THAT THE ASSESSING OFFICE R HAD NOT MADE PROPER INQUIRIES SO AS TO CONFIRM THE CREDITWORTHINESS OF THE CREDITORS AND GENUINENESS OF THE TRANSACTIONS. HE, ACCORDINGLY IN VOKING THE PROVISIONS OF SECTION 263 OF THE ACT ISSUED THE ASSESSEE A SH OW CAUSE NOTICE IN THIS RESPECT. IN RESPONSE TO THE SHOW CAUSE NOTICE, THE ASSESSEE FURNISHED REPLY AND THE DETAILED EVIDENCES TO PROVE THE GENUINENESS OF THE TRANSACTIONS AND CREDITWORTHINESS OF THE CREDITORS. HOWEVER, THE LD. PCIT VIDE PARA 5 OF THE IMPUGNED ORDER OBSERVED THAT THE DETAILS O F EVIDENCE FURNISHED BY THE ASSESSEE BEFORE HIM WERE NOT FURNISHED BEFO RE THE ASSESSING OFFICER WHEN THE SAME WERE CALLED FOR FROM THE ASSE SSEE. THAT THE CORRECTNESS AND VALIDLY OF THE EVIDENCES FURNISHED BY THE ASSESSEE BEFORE HIM COULD NOT BE ACCEPTED UNTIL AND UNLESS THE SAME WERE PROPERLY ENQUIRED UPON BY THE ASSESSING OFFICER. FURTHER, HE HELD THAT THE ASSESSING OFFICER HAD PASSED THE ASSESSMENT ORDER IN HASTE WITHOUT CONDUCTING THE REQUIRED INQUIRIES TO ASCERTAIN THE GENUINENESS OF THE CASH CREDITS. HE ACCORDINGLY HELD THAT THE ASSESSME NT ORDER PASSED BY THE ASSESSING OFFICER WAS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE. HE, THEREFORE, SET ASIDE THE ORDER PASSED BY THE ASSESSING OFFICER FOR DE NOVO ASSESSMENT ON THIS ISSUE. ITA NO. 511-C-2017- SH. SURINDER SHARMA, KANGRA 3 3. BEFORE US, LD. COUNSEL FOR THE ASSESSEE HAS SUBM ITTED THAT IN REPLY TO THE SHOW CAUSE NOTICE ISSUED BY THE PCIT, THE AS SESSEE HAD FURNISHED THE DETAILED EVIDENCES TO PROVE THE GENUINENESS OF THE TRANSACTIONS AND CREDITWORTHINESS OF THE CREDITORS. THAT ON SUCH EV IDENCES, THE LD. PCIT HAD CALLED UPON THE REMAND REPORT FROM THE ASSESSI NG OFFICER, THEREAFTER, THE ASSESSING OFFICER CONDUCTED DETAILE D AND EXTENSIVE ENQUIRIES AND AFTER CONSIDERING THE EVIDENCES FURNI SHED BY THE ASSESSEE, THE LD. ASSESSING OFFICER VIDE LETTER NO. ITO /DMA/ REVIEW/2016-17 DATED 28.10.2016 SENT HIS REMAND REPORT TO THE LD. PCIT WHEREBY HE CONCLUDED AS UNDER:- AS DETAILED ABOVE , THE UNSECURED LOANS FROM DIFFERENT INDIVIDUALS APPEAR TO GENUINELY EXPLAINED WITH REGARD TO THE MODE OF PAYMENT, GENUINENESS OF THE TRANSACTION AND CREDITWORTHINESS OF THE PERSONS GIVING LOANS. THE REPORT IS BEING SUBMITTED FOR KIN D PERUSAL AND NECESSARY ACTION. ASSESSMENT RECORD (TWO VOLUMES) IS FORWARDED HEREWITH. THE COPY OF THE DETAILED REMAND REPORT OF THE ASSES SING OFFICER HAS BEEN PLACED ON THE FILE AT PAGES 121 TO 125 OF THE PAPER BOOK BEFORE US. HOWEVER, THE LD. PCIT CONVENIENTLY IGNORED THE SAID REMAND REPORT AND PASSED THE IMPUGNED ORDER U/S 263 DIRECTING AGA IN THE ASSESSING OFFICER TO MAKE THE SAME ENQUIRIES. SINCE THIS PEC ULIAR FACT WAS VERY STRANGE AS THERE WAS NO MENTION OF THE AFORESAID RE MAND REPORT IN THE IMPUGNED ORDER PASSED BY THE LD. PCIT, THE LD. DR E XPRESSED HIS DOUBT ITA NO. 511-C-2017- SH. SURINDER SHARMA, KANGRA 4 ABOUT THE GENUINENESS OF THE REMAND REPORT. ACCORDI NGLY, THE LD. DR WAS DIRECTED VIDE ORDER DATED 26.2.2019 TO SUMMON T HE ORIGINAL ASSESSMENT RECORD AS WELL AS RECORD FROM THE OFFICE OF THE LD. PCIT IN RESPECT OF PROCEEDINGS CARRIED OUT U/S 263 OF THE A CT. THE LD. CIT DR VIDE HIS LETTER DATED 8.3.2019 PRODUCED BEFORE US T HE COPIES OF THE FILE ORDER OF THE PROCEEDINGS CARRIED OUT BY THE LD. PCI T U/S 263 OF THE ACT. 4. WE FIND THAT EVEN IN THE FILE ORDER DATED 18.11. 2016 THERE IS A MENTION OF THE REMAND REPORT SUBMITTED BY THE ASSES SING OFFICER UNDER SIGNATURE OF ITO (HQ) AND THEREAFTER THE ITO (HQ) HAD ALSO REPORTED THAT IN VIEW OF THE REMAND REPORT OF THE ASSESSING OFFICER, THE RANGE HEAD HAS ALSO STATED THAT NO FURTHER ACTION WAS REQ UIRED TO BE TAKEN IN THIS CASE AS THE ASSESSEE HAS DULY EXPLAINED THE SO URCE OF THE UNSECURED LOAN REFLECTED IN THE BALANCE SHEET. FROM THE ABOVE FACTS, IT IS PROVED THAT THE NECESSA RY AND DETAILED INQUIRIES HAVE BEEN MADE BY THE ASSESSING OFFICER IN RESPECT OF THE UNSECURED LOANS RECEIVED BY THE ASSESSEE AND AS PER THE REPORT OF THE ASSESSING OFFICER, THE ASSESSING OFFICER DULY EXPLA INED THE SOURCE, CREDITWORTHINESS OF THE CREDITOR AND AS WELL AS GEN UINENESS OF THE TRANSACTIONS. HOWEVER, THE LD. PCIT CONVENIENTLY I GNORED THE REPORT OF THE ASSESSING OFFICER AND PASSED THE IMPUGNED ORDER U/S 263 DIRECTING AGAIN THE ASSESSING OFFICER TO MAKE ENQUIRES IN RES PECT OF UNSECURED ITA NO. 511-C-2017- SH. SURINDER SHARMA, KANGRA 5 LOANS. THE AFORESAID ORDER OF THE LD. PCIT IS NOT SUSTAINABLE IN VIEW OF THE ABOVE FACTS AND THE SAME IS ACCORDINGLY QUASHED . THE APPEAL OF THE ASSESSEE IS HEREBY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22.05.2019 SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 22. 05.2019 .. '+ ,- .- / 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