Sh. Raj Kumar Singh Atwal S/O S. Balraj Singh, SBS Nagar V. The Income Tax Officer, SBS Nagar

ITA 577/ASR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0561 (ITAT-AMRITSAR)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 03-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHAWANI SHANKER
• Keywords: Rectification of order
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. (CAMP AT JALANDHAR) BEFORE SH. A.D. JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO.577(ASR)/2015 ASSESSMENT YEAR:2009-10 PAN: AMGPS6980D SH. RAJ KAMAL SINGH ATWAL, VS. INCOME TAX OFFICER, VPO RAHON, NAWANSHAHAR NAWANSHAHAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. RAKESH JOSHI, ADVOCATE RESPONDENT BY: SH. BHAWANI SHANKER, DR DATE OF HEARING: 27/06/2016 DATE OF PRONOUNCEMENT: 11 /07/2016 ORDER PER A.D. JAIN, JM: THIS IS THE ASSESSEES APPEAL FOR THE ASSESSMENT Y EAR 2009-10, AGAINST THE ORDER DATED 13.08.2015, PASSED BY THE L D. CIT(A)-1, JALANDHAR. THE ASSESSEE HAS RAISED THE FOLLOWING GR OUNDS OF APPEAL: 1. THAT THE LD. CIT(A), JALANDHAR, HAS ERRED IN LA W AND FACTS OF THE CASE IN CONFIRMING THE ORDER OF THE AO IN REJEC TING THE RECTIFICATION APPLICATION U/S 154 OF THE I.T.ACT, 1 961. 2. THAT THE LD. CIT(A), WHILE REJECTING THE APPEAL FOR RECTIFICATION OF MISTAKE APPARENT ON RECORD HAS MERELY ACTED IN A MECHANICAL MANNER WITHOUT APPRECIATING THE REAL FAC TS AND DOCUMENTS PLACED ON RECORD. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A N AGRICULTURIST BY PROFESSION, HAVING INCOME FROM RENT AND BANK INTERE ST AND FILED HIS RETURN OF INCOME AT RS.2,34,200/- PLUS AGRICULTURAL INCOME OF ITA NO.577(ASR)/2015 A.Y. 2009-10 2 RS.8,00,000/-. THE AO ASSESSED THE INCOME AT RS.16, 44,200/- BY MAKING AN ADDITION OF RS.14,10,000/-. 2.1. THE ASSESSEE DEPOSITED RS.29,60,000/- IN CASH IN HIS S.B. A/C NO.12930/- WITH CANARA BANK, NAWANSHAHR ON DIFFEREN T DATES DURING THE YEAR UNDER CONSIDERATION. THE ASSESSEE CLAIMED THAT OUT OF RS.29,60,000/-, RS.14,10,00/- (RS.3,00,000/-, RS.6 ,00,000/- & RS.5,00,000/- WERE DEPOSITED ON 15.9.2008, 17.9.200 8 & 18.9.2008) WERE RECEIVED FROM HIS FATHER WHO DIED ON 08.05.200 9, BUT FAILED TO PROVE HIS CLAIM. THE AO TREATED THE AMOUNT OF RS.14,10,0 00/- AS DEPOSITED BY THE ASSESSEE AS OUT OF UNDISCLOSED SOURCES AND, ACCORDINGLY, MADE AN ADDITION OF RS.14,10,000/-. 3. THE LD. CIT(A) CONFIRMED THE ASSESSMENT ORDER. 4. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT IN THIS CASE, ALL THE DOCUMENTS, I.E., CASH FLOW STATEMENTS AND BANK STAT EMENTS WERE FURNISHED. BEFORE THE AO, THE ASSESSEE EXPLAINED TH E NATURE OF THE ENTRIES AS AMOUNT RECEIVED FROM HIS FATHER. THE BAN K STATEMENT OF SAVING BANK ACCOUNT NO.13142, WHICH WAS A JOINT ACCOUNT HE LD BY THE ASSESSEE WITH HIS FATHER, WAS FILED. IT WAS FROM THIS ACCOUN T THAT THE MONEY HAD BEEN WITHDRAWN EARLIER. THE CASH FLOW STATEMENT SH OWED EXISTENCE OF SUFFICIENT FUNDS IN THE SAID BANK ACCOUNT BEFORE WI THDRAWAL. THE FINANCIAL AFFAIRS HAD BEEN MANAGED BY THE FATHER OF THE ASSESSEE, WHO EXPIRED ON 08.05.2009. THE ASSESSEE DEPOSITED RS.29 ,60,000/- IN HIS SAVINGS BANK ACCOUNT NO.12930 WITH CANARA BANK, NAW ANSHAHR, ON THE ITA NO.577(ASR)/2015 A.Y. 2009-10 3 SAME DATE. OUT OF THIS, DEPOSIT OF RS.14,10,000/-, I.E. RS.3,00,000/- DEPOSITED ON 15.09.2008, RS.6,00,000/- ON 17.09.200 9 AND RS.5,00,000/- ON 18.09.2008, WERE ADDED BACK TO THE ASSESSEES INCOME FOR WANT OF NECESSARY DOCUMENTARY EVIDENCE. THE ASS ESSEE SOUGHT RECTIFICATION, WHICH WAS DENIED BY BOTH THE AUTHORI TIES BELOW. 5. THE DOCUMENTS, AS PRODUCED BEFORE THE AUTHORITIE S BELOW, I.E., BANK STATEMENST AND CASH FLOW STATEMENTS SHOW THAT SUFFICIENT FUNDS WERE AVAILABLE WITH THE ASSESSEE. HOWEVER, THE AUTHORIT IES BELOW WRONGLY DID NOT TAKE INTO CONSIDERATION THIS ASPECT OF THE MATTER, WHEREAS IN THE CASE OF SUNIL SAHNI VS. ITO, 70 ITD 481 (DELHI IT AT), IT WAS HELD THAT EVEN A DOCUMENT PERTAINING TO THE EARLIER YEAR CONS TITUTES RECORD AND IF THE SAME IS OVER-LOOKED, IT AMOUNTS TO A MISTAKE AP PARENT ON RECORD. FURTHER, THE FACTUM OF CONCEALMENT OF PENALTY PROCE EDINGS WAS ALSO IN FAVOUR OF THE ASSESSEE IN AS MUCH AS THE PROCEEDING S INITIATED WERE DROPPED ON CONSIDERING THE ABOVE FACTS. 6. SPECIFICALLY, THE CASH FLOW STATEMENT, COPY WHER EOF HAS BEEN FILED BEFORE US AT APB-2 SHOWS THAT THE ASSESSEE HAD SUFF ICIENT FUNDS AS ON 15.09.2008, 17.09.2008 & 18.09.2008. IT WAS FROM TH ESE FUNDS THAT THE ASSESSEE HAD MADE DEPOSITS IN HIS BANK ACCOUNT. PE RTINENTLY, THESE DEPOSITS WERE FROM CASH IN HAND AND NO AMOUNT HAD BEEN CREDITED BY THE ASSESSEE AS RECEIVED FROM HIS FATHER ON THE SAI D DATES. NO QUESTION IN THIS REGARD WAS RAISED BY THE AO AND IT WAS ONLY BE CAUSE OF THE NARRATION IN THE CASH FLOW STATEMENT OF THE JOINT ACCOUNT OF THE FATHER. A ITA NO.577(ASR)/2015 A.Y. 2009-10 4 COPY OF THE CASH FLOW STATEMENT IS AT APB-1. THIS NARRATION WAS SHOWN TO BE AS FUNDS RECEIVED BY THE ASSESSEE FROM HIS FA THER. THIS IS DUE TO THE FACT THAT THESE FUNDS WERE WITHDRAWN BY THE ASSESSE E FROM THE JOINT ACCOUNT AND THE AO AS WELL AS THE LD. CIT(A) FELL INTO MIS-APPREHENSION OF THE FACTS. 7. A PERUSAL OF THE ABOVE DOCUMENT SHOWS THAT THE M ISTAKE CONTENDED BY THE ASSESSEE IS VERY MUCH PRESENT AND THIS IS A MISTAKE APPARENT FROM THE RECORD. THUS, IN KEEPING WITH THE DECISION OF THE HONBLE SUPREME COURT, IN THE CASE OF T.S. BALRAM ITO COMPANY CIRCLE IV, BOMBAY VS. VOLKART BROTHERS & OTHERS, 82 ITR 5 0 (SC), IT IS A MISTAKE, WHICH IS OBVIOUS AND PATENT ON RECORD AND IS, THUS, RECTIFIABLE UNDER SECTION 154 OF THE ACT. IN FACT, AS MADE OUT, IT IS A MISTAKE OF CALCULATION HAVING OCCURRED DUE TO OVER-SIGHT AT TH E TIME OF ASSESSMENT. 8. IN VIEW OF THE ABOVE, THE ORDER OF THE LD. CIT(A ) IS REVERSED. THE GRIEVANCE OF THE ASSESSEE IS ACCEPTED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11/0 7/ 2016. SD/- SD/- (T.S. KAPOOR) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER /SKR/ DATED: 11/07/2016 COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:SH. RAJ KAMAL SINGH ATWAL, RAHON. 2. THE ITO, NAWANSHHAR 3. THE CIT(A), JLR 4. THE CIT, JLR 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY