Sh. Amit Kumar Lekhi, Ludhiana V. ITO, W-5(1), Ludhiana

ITA 52/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1836 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 16-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Set aside

Judgement Text

ITA NO. 37-C-2015 M/S OSWAL WOOLEN MILLS, LUDHIANA 2 13,87,400/- ON ACCOUNT OF UNEXPLAINED DEPOSITS IN T HE BANK ACCOUNT OF THE ASSESSEE. 3. BRIEF FACTS RELATING TO THE ISSUE ARE THAT THE A SSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTED THAT THERE WERE VARIOUS CASH DEPOSITS IN THE SAVING BANK ACCOUNT OF THE ASSESSEE MAINTAINED WITH STATE BANK OF INDIA, SANEWAL TOTALI NG RS. 13,87,400/-. WHEN ASKED TO EXPLAIN IN THIS RESPECT, THE ASSESSEE SUBMITTED THAT ASSESSEE DURING THE YEAR HAD CARRIED OUT ACTIVITY A S A CUSTOMER SERVICE PROVIDER (IN SHORT CSP). THE ASSESSEE EXPLAINED THAT RURAL PERSONS TENDER THEIR SAVINGS TO THE ASSESSEE FOR FURTHER S ENDING / CREDITING THE AMOUNT TO THEIR ACCOUNTS OR ACCOUNTS OF THE FAMILY MEMBERS AS THEY FEEL INCONVENIENT TO STAND IN LINE FOR LONG TIME OR WHEN THERE IS CONNECTIVITY PROBLEM OR SERVER OF THE BANK IS DOWN / OUT OF ORDE R. HOWEVER, THE ASSESSING OFFICER DID NOT GET SATISFIED WITH THE AB OVE REPLY OF THE ASSESSEE. HE FURTHER NOTED THAT THE ASSESSEE HAD FA ILED TO PRODUCE THE PERSONS FROM WHICH HE HAD ALLEGEDLY RECEIVED THE MO NEY FOR FURTHER DEPOSITING IN THEIR BANK ACCOUNTS. HE FURTHER NOTED THAT THE ENQUIRES MADE BY HIM FROM THE STATE BANK OF INDIA, SANEWAL REVEALED THAT THE ASSESSEE WAS NOT DESIGNATED CSP OF THE BANK. THE ASSESSING OFFICER, THEREFORE, HELD THAT THE AFORESAID DEPOSITS TOTALIN G A SUM OF RS. 18.37,000/- WAS UNEXPLAINED INCOME OF THE ASSESSE E AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE. ITA NO. 37-C-2015 M/S OSWAL WOOLEN MILLS, LUDHIANA 4 BY THE ASSESSEE FROM WHICH IT WAS NOT CLEAR WHETHER SUCH LETTERS WERE GIVEN BY THE CONCERNED PERSONS TO THE BANK OR TO TH E ASSESSEE. THE LD CIT(A), THEREFORE, HELD THAT THE ASSESSEE HAD FAILE D TO SUBSTANTIATE HIS CONTENTION WITH RELIABLE EVINCE, THEREFORE, UPHELD THE ADDITIONS MADE BY THE ASSESSING OFFICER. 6. BEING AGGRIEVE BY THE ABOVE ORDER OF THE CIT(A), THE ASSESSEE HAS COME IN APPEAL BEFORE US. AT THE OUTSET, LD. COUNSE L FOR THE ASSESSEE HAS REITERATED THE SUBMISSIONS AS WERE MADE BEFORE THE LOWER AUTHORITIES. APART FROM THAT, THE LD. COUNSEL FOR THE ASSESSEE H AS ALSO INVITED OUR ATTENTION TO AN APPLICATION DATED 22.8.2018 FOR AD MISSION OF THE ADDITIONAL EVIDENCES. IT HAS BEEN PLEADED IN THE S AID APPLICATION THAT THE ASSESSEE IS A RESIDENT OF LUDHIANA WHICH IS AN INDU STRIAL TOWN THAT MIGRATORY LABOURERS FROM THE STATES OF UTTER PRADE SH AND BIHAR AND OTHER STATES WORK IN VARIOUS FACTORIES IN LUDHIANA. THE ASSESSEE PROVIDES THEM THE SERVICE BY TAKING SMALL AMOUNT OF DEPOSITS FOR FURTHER DEPOSITING THE SAME TO THEIR SAVING BANK ACCOUNTS / BANK ACCOUNTS OF THEIR FAMILY MEMBERS BY CHARGING A VERY SMALL COMM ISSION. IT SAVES TIME AND EFFORT OF THE LABORERS WHICH THEY USE FOR WORKING OVERTIME IN THE FACTORIES. THE ASSESSEE HAS SOUGHT TO PRODUCE T HE ADDITIONAL EVIDENCES IN THE SHAPE OF BANK ACCOUNT STATEMENTS O F SUCH PERSONS TO PROVE THAT THE AMOUNT IN QUESTION HAD ACTUALLY BEE N TRANSFERRED FROM ITA NO. 37-C-2015 M/S OSWAL WOOLEN MILLS, LUDHIANA 6 ASSESSMENT ORDER IN QUESTION PRIOR TO THE STIPULATE D DATE FOR FILING OF THE REPLY AND EVIDENCES BY THE ASSESSEE. THE EVIDENCES SOUGHT TO BE FURNISHED BY THE ASSESSEE GO TO THE ROOT OF THE CA SE AND, IN OUR VIEW, ARE VERY MUCH NECESSARY TO BE GONE THROUGH FOR PROPER D ECISION OF THE CASE. IN VIEW OF THIS, THE ORDER OF THE LD. CIT(A) IS HER EBY SET ASIDE AND THE MATTER IS REMANDED BACK TO THE FILE OF THE ASSE SSING OFFICER FOR ASSESSMENT AFRESH WITH A DIRECTION TO THE ASSESSING OFFICER TO ADMIT THE EVIDENCES SOUGHT TO BE PRODUCED BY THE ASSESSEE AND PASS THE ASSESSMENT ORDER AFRESH AFTER DULY CONSIDERING THE SAME. NEEDL ESS TO SAY THAT THE ASSESSING OFFICER WILL GIVE PROPER OPPORTUNITY TO T HE ASSESSEE TO PRESENT HIS CASE. THE APPEAL OF THE ASSESSEE IS ACCORDINGLY TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17.06.2019. SD/- SD/- ( / ANNAPURNA GUPTA) / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 17.06.2019 .. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. / CIT 4. ( )/ THE CIT(A) 5. , ! ' , #$%& / DR, ITAT, CHANDIGARH 6. %' () / GUARD FILE