Smt. Sonika Taxak, Hissar V. Pr.CIT, Panchkula

ITA 55/CHANDI/2021

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6917 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 12-07-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revision of order; Opportunity of being heard; Assessment record
• Section: 263; 63; 12; 11; 143(3)

Judgement Text

आयकर य कर , य य “ब ” , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B, CHANDIGARH एन. के. सैन , य एवं सं"य #, य य$क स%&य BEFORE: SHRI N.K. SAINI, VICE PRESIDENT AND SHRI SANJAY GARG, JUDICAL MEMBER आयकर अपील सं./ ITA No.55/Chd/2021 / Assessment Year : 2011-12 Smt.Sonika Taxak, House No.215, Sector 15-A, Hisar. ब म Pr. Commissioner of Income Tax, Panchkula. ./PAN NO: ADWPT1882G /Assessee by : Shri Parikshit Aggarwal, CA / Revenue by : Shri Sarabjeet Singh, CIT ! /Date of Hearing : 23.11.2021 "#$% ! /Date of Pronouncement: 07.12. 2 021 (Hearing Through Video Conferencing) आदेश/Order Per Sanjay Garg, Judicial Member : The p r e s e nt a p p e a l h a s be e n f il e d by t he a s s e ss e e a g a i ns t t h e o rde r o f t h e P r i nc ip al C o m mi s s io ne r o f I n c o me Ta x , P a nc hk u l a (i n s ho r t re fe r re d t o a s ‘ Ld . P r. CI T’ ) d a t e d 19 . 03 . 2 02 1 r e la t in g t o a s s e s s me nt y e a r 20 1 1 - 1 2 , pa ss e d u /s 26 3 o f t he I nc ome Ta x A c t , 19 6 1 ( he re i na f te r r e fe r red t o a s “ A c t ” ). ITA No.55/Chd/2021 A.Y. 2011-12 Page 2 of 10 2. Th e a s s e s s e e in t h is a p p e a l h a s t a k e n f o ll o w i ng g r o u n d s : “1. That on law, facts & circumstances of the case, the Worthy Pr. CIT has grossly erred assuming jurisdiction u/s 263 even when : 1.1 The original assessment order passed u/s 147 r.w.s. 143(3) did not satisfy the twin conditions of being an 'erroneous order' and 'prejudicial to the interest of revenue'. 1.2 The Worthy Pr, CIT has erred in setting aside the assessment order u/s 147 r.w.s. 143(3) and in directing the AO to make assessment afresh on the ground that AO had not conducted worthwhile enquiries during the assessment proceeding even when the AO had conducted thorough enquiries and also most importantly the Pr. CIT failed to carry our any enquiry himself and also failed to demonstrate which most necessary enquiry the Ld. AO failed to carry out. 1.3 The Worthy Pr. CIT failed to appreciate that inadequate inquiry does not amount to lack of inquiry so as to assume valid jurisdiction u/s 263. 1.4 The Worthy Pr, CIT issued show cause notice u/s 263 on one issue and when assessee replied to that issue and the Worthy PCIT did not find any objection therein, he then passed the impugned order on an altogether new allegation which also did not exist and in any case do not give valid jurisdiction u/s 263 to the respondent. 1.5 The Worthy Pr. CIT has conducted the impugned proceedings u/s 263 in extreme haste and without affording reasonable opportunity of being heard to the appellant. 1.6 The impugned order u/s 263 has not been served on the appellant on or before 31.03.2021 and hence is beyond the ITA No.55/Chd/2021 A.Y. 2011-12 Page 3 of 10 prescribed limitation period and therefore deserving to be quashed. 2. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same.” 3. A p e ru s a l o f t he a bo v e g r o u nd s o f t h e a p pe a l o f t he a s s e s se e re ve a ls t ha t t h e a s se s s e e ha s a g it a t e d t he a c t io n b y t he Ld . P r . C I T f o r a s s u mi ng t h e r e v is io n ju r is dic t io n u /s 26 3 o f t he A c t . 4. Th e b ri e f fa c t s o f t h e c a s e a r e t h a t a s p e r t he in fo r ma t io n r e c e iv e d , i t w a s f o u nd t h a t d u r i ng t he f i na n c i a l y e a r 20 1 0 - 1 1 r e le v a nt t o a s s e s s me nt y e a r 2 0 1 1 - 12 , the a s s e s se e h a d d e p o s it e d c a s h a m o u n t i ng t o R s . 19 . 02 la c s i n he r s a v i ng b a nk a c c o u n t ma i n t a in e d w i t h K o t a k Ma h ind r a B a nk . Th e a s s e s s e e h a d n o t fi le d h e r r e t u rn o f i nc ome u /s 13 9 ( 1) o f t h e A c t . The r e fo re , t he a s s e s s me n t i n t he c a s e o f t he a s se s se e w a s r e o pe ne d b y t he A O i nv o k in g t h e pro v is io ns o f s e c t i o n 14 7 r e a d w it h s e c t io n 1 4 8 o f t h e A c t , t o v e r if y t he s o u rc e o f c a s h d e po s i te d in t o t h e b a nk a c c ou n t o f the a s s e s se e . Th e a s s e s se e e x p la i ne d b e f o re t he A O t h a t t he ba n k a c c o u n t i n q u e s t i o n w a s a j o in t a c c o u nt o f t he a s s e s se e w i t h he r h u s ba n d , name ly Sh r i Su re nde r Si ng h Ta x a k. Th e a s s e s s e e e x p l a ine d tha t t h e a s se s s e e d id not de po s i t a n y a mo u n t in t ha t b a n k a c c o u n t , r a t h e r t he a mo u nt ITA No.55/Chd/2021 A.Y. 2011-12 Page 4 of 10 o f R s . 1 9 l a c s w a s d e p o s i te d b y t he s e c o nd jo i n t a c co u nt ho l d e r i . e . h e r h u s b a nd S h ri S u re nde r Si n g h Ta x a k . The a s s e s se e fu r t he r e x p l a ine d t he s o u r c e o f c a s h w it h he r hu s b a nd t ha t t h e s a i d a mo u nt w a s re ce iv e d b y hi m in l i e u o f a g r e e me nt t o s e ll 2 0 % s h a r e i n t he h o u s e w i t h Sh r i Su ni l K ha s a . I t w a s a l s o e x p la i ne d t h a t t h e h o u s e w a s a l lo t t e d by N o id a A u t ho ri t y (D e v e l o pe r ) i n t he na me o f S hr i R o s ha n La l Ta x a k, f a t h e r - i n- l a w o f t h e a s s e s s e e . H o we v e r , t he fa t h e r - i n- la w o f t h e a s s e ss e e w a s p a r a ly t ic a nd wa s no t ha v i ng g o o d he a l t h . Th e r e f o re , t he h u s b a nd o f t he a s s e s se e e xe cu te d an a g r e e me nt t o s e ll o f 20 % s ha r e i n t h e ho u s e a nd r e ce i ve d R s . 19 la c s s o t h a t t h e in s t a ll me n t o f t h e h o u se a mou n t i ng t o R s . 17 . 2 5 l a c s m a y b e d e p o s it e d w it h t h e N o id a A u t h or it y . Th e a s s e s s e e a l s o s u p p l ie d c o py o f t h e de ma nd n o t i ce f ro m N o id a D e ve lo pme nt A u t h o r it y da t e d 1 8 .0 1 . 20 1 1. The AO c o n du c t e d ne c e ss a r y in q u i r i e s i n t h is r e s pe c t a nd admi t t e d t he c la i m o f t he a s s e s se e a nd a c ce p te d t he re t u r n of i n c o me . 5. Th e r e a f t e r t he Ld . P r .C I T i nv o k e d h i s po we r s u /s 2 6 3 o f t he A c t a nd o bs e rv e d t ha t t he A O ha d fa i le d t o ma k e ne c e s s a r y in q u i ri e s in t hi s c a s e . He o bs e r ve d t h a t t he a g r e e me nt t o s e l l w a s e nt e re d i n t o b y t he a s s e s se e w i t h Sh r i Su ni l K ha s a fo r s a le o f 20 % s ha r e in t he h o u s e , w here a s a s pe r t he r e c o rd s s u b mi t t e d b y t he a s se s se e , t h e ho u se i n ITA No.55/Chd/2021 A.Y. 2011-12 Page 5 of 10 q u e s t i o n w a s t ra n s f e r re d v i de le t t e r N o . 8 74, d a t e d 01 . 04 . 2 01 5 i n t h e n a me o f t he a s s e s se e . He o b se r ve d t ha t t he a s se s se e w a s n o t t he o w ne r o f t he a b o v e - s a id pro p e r t y a t t he t i me o f e xe c u t i o n o f a g r e e me nt t o s e ll . H e fu r the r o bs e r ve d t h a t i n t h e a g re e me nt t o s e l l, t he p r op e r ty w a s me nt io n e d a s a p lo t b u t a c t u a ll y i t w a s a d u p l e x h ou s e . He , t he re fo re , o b se rv e d t ha t t h e re w as c l e a r l y l a c k o f i nq u ir i e s by t h e A O . He a c c o r d i ng ly , h e l d t ha t t h e o r de r o f th e A O w a s e r r o ne o u s a n d p re j u d i c i a l t o t he int e re s t o f t he Rev e n ue . He , t he re fo re , se t a si d e t he a s s e s s me n t o r de r in q u e s t io n w i t h t he d ire c t i o n t o t he A O t o p a s s a fr e s h a s s e s s me n t o r de r . Th e r e l e v a n t p a ra o f t he o r de r o f t h e Ld . P r .CI T, fo r t he s a ke o f r e fe re n ce , is re p r o d u c e d he re un d e r : “The reply filed by the assesse has been examined but not acceptable because as per agreement to sell dated 14.02.2011 by which the assessee has claimed that during the year under consideration, he had received Rs.19 Lakh from Sh. Sunil Khasa on 14.02.2011 for sale of his 20% share in plot No. 213. Noida the final date of "conclusion of deal was fixed for 31.03.2011, but as per reply dated 17.03.2021 of the assessee, he has submitted a copy of letter No. 874 dated 01.04.02015 of Naveen Okhla Audhyogik Vikas Pradhikaran. Noida vide which the above said house was transferred to the name of the assessee on 01.04.2015 only. Thus it is clear that the assessee was not the owner of the above said property at the time of agreement to sell. The above facts do not prove the genuineness of cash deposits Rs.19,02,000/-. Moreover, in the agreement to sell, the property was mentioned as a plot but it was actually a duplex residential house. This fact has also not been examined. ITA No.55/Chd/2021 A.Y. 2011-12 Page 6 of 10 3. I have carefully examined the entire facts of the case from the assessment record and the reply submitted by the assessee. Perusal of assessment record shows that the replies filed during the assessment proceedings were just placed on record and the A.O. has failed to make any independent enquiries to verify that cash deposits were received from Sh. Sunil Khasa by executing agreement to sell dated 14.02.2011 of his 20% share in plot No. 213, Noida. Moreover as per reply dated 17.03.2021, the assessee has submitted a copy of letter No. 874 dated 01.04.02015 of Naveen Qkhla Audhyogik Vikas Pradhikaran, Noida vide which the above said house was transferred to the name of the assessee on 01.04.2015 only. Thus it is clear that the assessee was not the owner of the above said property at the time of agreement to sell. The above facts clearly show that the assessee could not prove the genuineness of cash deposits Rs.19,02,000/-. Moreover, in the agreement to sell, the property was mentioned as a plot but it was actually a duplex residential house. There was a clear lack of inquiry on the part of the AO. In view of the facts discussed above it is clear that the assessment order is erroneous and prejudicial to the interest of revenue. The A.O. should conduct detailed enquiries on the above issues. Inquiries should be conducted to examine the ownership of property. The agreement to sale should also be examined. Documentary evidences regarding purchase and sale of property should also be called for and examined. The fact that it was a plot or house which was sold should be examined. The source of cash deposit should be examined supported by documentary evidences and in case it is not explained necessary action should be taken as per law. ...... ” 6. B e i n g a g g rie ve d b y t he a bo ve o rd e r o f t he Ld. P r.C I T t he a s se s se e h a s c o me i n a p pe a l be fo re u s . We ha v e he a r d t he r i v a l c o n t e n ti o n s a nd h a v e g o ne t h r o u g h t h e r e co r ds . A pe r u s a l o f t h e a bo v e re p r o d u c e d re le v a nt p a r a o f t he o r de r o f t he Ld. P r .C I T re v e a l s t ha t t he Ld. P r .C I T ha d p r o ce e de d o n t he w r o n g f o o t in g t h a t t h e a s s e s se e h a d de po s i t e d the a mo u n t o f R s .1 9 l a c s in t h e a c c o u nt a nd f u r t h e r t h at t he ITA No.55/Chd/2021 A.Y. 2011-12 Page 7 of 10 a s s e s se e h a d e nt e re d i nt o a n ag r e e me n t t o se l l f o r 2 0 % s ha re i n t he h o us e w i t h S hr i S u n il K ha s a , wh e r e as , t h e c a s e o f t he a s se s se e fr o m t h e v e r y be g i n ni n g h a s be e n t ha t t he a mo u n t o f R s .1 9 la c s w a s n o t de p o s i t e d b y he r in t he j o i nt ba n k a c c o u n t , r a t h e r t he a mo u nt in q u e s t i o n w a s d e po s i te d by t he o t he r /s e c o nd a c c o u nt h o l d e r i.e . he r h u s b a nd , na me l y Sh r i S u r e n d e r S i ng h Ta x a k . I n o u r v ie w , o nc e t he a s se s se e ha d c o me w it h a c le ar s t a n d t ha t t he a c c o u nt in q u e s t io n w a s a j o in t a c c ou n t a n d t he a mo u n t w a s d e po s i te d by t he o t he r a c c o u nt h o ld er a nd t ha t o t he r a c c ou n t ho ld e r , name l y S hr i S u r e nd e r S ing h Ta x a k ha d a d mi t t e d be fo re t he AO i n c l e a r t e r m t h a t i n fa c t , he h a d de p o s i te d t he a mo u n t in q u e s t i o n an d n o t t he a s s e s se e a nd fu r t he r t he s o u r c e i n hi s h a nd wa s a l so me nt io n e d , t he n u n de r t he c i r c u ms t a n c e s , t he a d di t io n , i f a ny , c o u ld h a v e b e e n ma d e i n t h e c a s e o f S hr i Su r e nde r Si ng h Ta x a k , i f he w o u l d ha v e fa i le d t o p r o v e t he g e n u i ne ne s s o f t h e t r a ns a c t i o n . I n o u r v ie w, wh e n the a s s e s se e ha d e x pla i n e d t h a t t he ac c o u nt w a s a jo in t a c c o u nt a nd t h e a mo u n t w a s d e p o s i te d by t h e s e c o nd a c c o u nt ho l d e r , t he n in o u r v ie w, t he AO s ho u l d ha v e dr o p p ed t he pr o c e e d i ng a g a ins t t h e a s s e s se e a nd is s u e d n o t ic e to t he s e c o nd a c c o u n t ho l d e r , i.e . t he hu s b a n d o f t he a s s es se e . ITA No.55/Chd/2021 A.Y. 2011-12 Page 8 of 10 Ho w e ve r , t he A O c o n t i nu e d w it h t h e p r o c e e d in g s , w h ere in t he a s se s se e d u ly e x p l a i ne d t he s o u r c e o f c a s h d e p os i te d e ve n b y t he se c on d a c c o u nt ho l de r . The A O t o f u r t her v e r i fy t he g e nu i ne ne s s o f t h e t r a n s a c t io n, r e c o r de d t he s ta t e me nt o f S hr i S u n il K h a s a , t h e p r o p o s e d pu r c h a s e r , w ho c a t e g o r ic a ll y a dmit t e d t h a t he ha d p a i d t he a mo u nt o f R s . 1 9 la c s t o t he s e c ond a c c o u n t ho l d e r . H o we v e r , t he Ld . P r .C I T pr o c e e de d w i t h th e re v i s i o n o rde r o n t he p re mi s e s th a t t he a mo u n t wa s d e po s i t e d by t he as s e s se e a n d t hat s he ha d a ll e g e d ly e x e c u te d t h e a g re e me nt t o s e ll a n d f u r t her t ha t s he wa s n o t t he o wne r o f t he ho u se on t h e d a te o f t he ex e c u t i on o f t h e a g re e me nt t o s e ll . W ha t e ve r ma y b e t he s ho rt c o mi ng s /d is c r e p a n c i e s re la t in g t o t he ag r e e me nt t o s e l l 2 0 % p o r t io n o f t he h o u s e , t ha t c o u l d ha v e be e n t a k e n int o c o n s i de r a t i on i n t he a s s e s s me nt p ro ce e d in g s in t he ca s e o f t he s e c o nd a cc o u nt ho l d e r i.e . t he hu s ba n d o f t he a s s e s se e . O n ce t he as s e s s e e ha d e x pl a i ne d t ha t s he ha s n o t d e p o s it e d a n y a mo u nt i n t he jo i n t a c c o u n t a nd f u r t h e r t he se co n d a c c o u n t ho ld e r h a d i n c l e a r te r m a d mi t t e d t h a t t he a mo u n t w a s d e p o s it e d by hi m, t he a s s e s s e e , i n o u r v ie w , w a s a b s o l v e d o f he r l i a bil i t y t o fu rt he r e x p l a in a bo u t t he t r a n sa c t i o n. H o we ve r , t he Ld . Pr . C I T pr o c e e de d o n w r o n g fo o t in g t ha t t h e a fo r e s a id ITA No.55/Chd/2021 A.Y. 2011-12 Page 9 of 10 e x p la na t i o n re l a ti n g t o t h e a g re e me nt t o s e ll 2 0% sh a r e i n t he h o u se p e r t a in t o t h e a s s e s s e e . E v e n i t w a s e x pla i ne d t ha t t he f a t he r of t h e h u s b a n d o f t h e a s se s se e w as pa ra l y t ic a nd w a s no t in go o d he a lt h a n d , t he re fo re , t he a gr ee me n t to s e l l w a s e xe c u te d by t h e h u s ba n d o f t h e a s s e s se e i .e . t he s e c o nd a c c o u nt h o l d e r . Th e c o mp u ls io n f o r e x e c u t i o n o f a g r e e me nt t o s e l l w a s a l s o e x p l a ine d a s i ns t a ll me n t w a s d ue o f R s . 17 . 25 l a c s t o w a r d s t he N o i da A u t ho r i t y /D e v e l op e r a n d t ha t t he hu s b a n d o f t he a s s e s s e e wa s i n d i r e n e e d of mo n e y fo r w hi c h h e o b ta i ne d R s .1 9 l a c s f r o m hi s f r ie nd S hr i Su ni l K ha s a a nd in li e u o f t h a t , he e xe c u t e d a g re e me n t t o s e ll o f 20 % s h a r e o f t h e ho u se . Th e fa t h e r - i n- l a w o f t he a ss e s s e e e x p ire d a f te r s o me t i me a n d t h e re a ft e r t he ho u s e in fa c t, wa s t r a n s fe r re d in t h e n a me o f t h e h u s ba n d o f t he as s e s s e e o n 0 1. 0 4 .2 0 15 . Th e a bo v e f a c t s s h o w t ha t t he A O h a d d u ly ma d e a pp r o p r ia t e in q ui r i e s a nd e v e n re c o r de d t he s t a te men t o f Sh r i Su ni l K h a s a , w h o a d mi t t e d t h a t he h a d g i v e n R s. 1 9 l a c s t o t he h u s b a n d o f t he a s s e s s e e . I n v ie w o f t h e a b o ve di s c u s s i o n, it i s h e l d t h a t t h e Ld . Pr . C I T w r o ng ly e xe r c i se d hi s re v i s i o n j u r is d i c t i o n u /s 26 3 o f t he A c t . Th e imp u g ne d o r de r p a s se d b y t h e Ld . P r .C I T u /s 2 63 o f t he A c t be i ng b a d ITA No.55/Chd/2021 A.Y. 2011-12 Page 10 of 10 in l a w, i s n o t s u s t a i na b l e a n d t he s a me i s a c c o r d ing l y , q u a s h e d . 7. I n t he re s u l t , t he a p pe a l o f t he a s se s s e e s ta nd s a ll o w e d . O r de r p r o n o u n c e d o n 0 7 . 1 2 . 2 0 2 1 . Sd/- Sd/- (N.K.SAINI) (SANJAY GARG) /VICE PRESIDENT ) %& / Judicial Member Dated: 07.12.2021 *रती* आदेश ' ( ) *े) / Copy of the order forwarded to : 1. +/ The Appellant 2. ', +/ The Respondent 3. आ र आ - / CIT 4. आ र आ - ( )/ The CIT(A) 5. ) . / ' 0 , आ र ! आ0 र , 123 /4/ DR, ITAT, CHANDIGARH 6. / 3 फ ई / Guard File आदेश स र/ By order, सह ंज र/ Assistant Registrar