The Income-tax Officer, Jammu V. Sh. Syed Ahmed, Jammu

ITA 579/ASR/2014

• Counselvise Citation: 57920914 RSA 2014
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 19-02-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 29-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Section: 142(1); 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. A.D.JAIN, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.579(ASR)/2014 ASSESSMENT YEAR:2005-06 PAN :AJTPG5736H INCOME TAX OFFICER, VS. SH. SYED AHMED, WARD 1(3), JAMMU. FLAT NO.5, BLOCK A, DREAMLAND CO-OPERATIVE HOUSING SOCIETY, TRIKUTA NAGAR, JAMMU. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. V.K.SINGH, DR RESPONDENT BY:SH.JOGINDER SINGH, CA DATE OF HEARING:19/02/2015 DATE OF PRONOUNCEMENT:26/02/2015 ORDER PER B.P.JAIN, AM: THIS APPEAL OF THE REVENUE ARISES FROM THE ORDER O F THE OF THE CIT(A), JAMMU, DATED 24/07/2014 FOR THE ASSESSMENT YEAR 200 5-06. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. WHETHER THE CIT(A) JAMMU WAS RIGHT IN LAW IN DE LETING THE ADDITION MADE BY THE AO ON ACCOUNT OF FLAT PURCHASE D. 2. WHETHER THE CIT(A) JAMMU WAS RIGHT IN LAW IN DEL ETING THE ADDITION MADE BY THE AO ON ACCOUNT OF FLAT PURCHASE D AS THE ASSESSEE HAS FURNISHED NEITHER COPY OF BANK ACCOUNT S WHEREFROM THE PAYMENTS WERE MADE NOR SOURCE OF CRED IT ENTRIES TO JUSTIFY THE SAME HAVE BEEN PRODUCED. ITA NO.579(ASR)/2014 2 3. WHETHER THE CIT(A) JAMMU WAS RIGHT IN LAW IN DEL ETING THE ADDITION MADE BY THE AO ON ACCOUNT OF FLAT PURCHAS ED WHEN THE PROOF OF ASSESSABILITY OF THE PAYMENTS HAS NOT BEEN PRODUCED BY THE ASSESSEE EITHER DURING THE APPELLAT E OR ASSESSMENT PROCEEDINGS. 4. WHETHER THE CIT(A) JAMMU WAS RIGHT IN LAW IN DEL ETING THE ADDITION MADE BY THE AO ON ACCOUNT OF FLAT PURCHASE D AS NO BANK CERTIFICATE REGARDING TRANSFER ENTRY TO THE AS SESSEE FROM THE ACCOUNT OF HIS MOTHER HAS BEEN PRODUCED BY THE ASSE SSEE TO JUSTIFY HIS CONTENTION. 2. THE BRIEF FACTS OF THE CASE AS PER ORDER OF THE AO ARE REPRODUCED FOR THE SAKE OF CONVENIENCE AS UNDER: AS PER THE INFORMATION AVAILABLE WITH THIS OFFICE, THE ASSESSEE HAS PURCHASED A FLAT FROM DREAMLAND COOPERATIVE HOUSING SOCIETY LTD. FOR RS. 18 LACS OUT OF WHICH HE HAS PAID RS.7 LACS BY CHEQUES AND RS.11 LACS BY CASH DURING THE F.Y. 2004-05 RELEVANT TO THE A.Y.2005- 06. THE ASSESSEE HAS NOT DISCLOSED THIS INVESTMENT TO THE DEPARTMENT. HE HAS NOT FILED HIS INCOME TAX RETURN FOR THE A.Y. 2005-06. ACCORDINGLY, NOTICE U/S 148 WAS ISSUED TO THE ASSES SEE AFTER GETTING NECESSARY APPROVAL FROM JCIT-RANGE-1, JAMMU ON 28.0 3.2012, WHICH WAS ON THE ASSESSEE ON 29.03.2012 THROUGH NOTICE SE RVER. ON TAKING THE CHARGE OF THIS WARD, THE UNDERSIGNED ISSUED A L ETTER TO THE ASSESSEE DATED 18.10.2012 WHICH WAS RECEIVED BACK WITH THE R EMARKS THAT ASSESSEE IS OUT OF STATION ON 31.10.2012. ON 22.11 .2012 THE UNDERSIGNED AGAIN ISSUED A LETTER ALONGWITH NOTICE U/S 142(1) AND 143(2) OF THE ACT WHICH WAS AGAIN RECEIVED BACK UNS ERVED. A SHOW CAUSE NOTICE U/S 274 READ WITH SEC. 271 OF THE ACT WAS ISSUED ON 30.11.2012 WHICH WAS RECEIVED BACK UN-SERVED. AS THE MATTER IS TIME BARRING THE UNDERSIGNED IS LE FT WITH NO OTHER OPTION BUT TO PASS AN EX-PARTE ORDER U/S 144 OF THE ACT AS PER THE INFORMATION AVAILABLE WITH ME. THE CASE IS NOW ASSE SSED AS UNDER: ADDITION ON ACCOUNT OF FLAT PURCHASED RS.18,00,000 /- TOTAL INCOME ASSESSED RS.18,00,000/- ITA NO.579(ASR)/2014 3 3. BEFORE THE LD. CIT(A), THE ASSESSEE MADE THE SUB MISSIONS ALONGWITH CERTAIN DOCUMENTS, WHICH WERE SENT TO THE AO FOR RE PORT. THE LD. CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, REPORT OF THE AO AND REJOINDER TO THE REMAND REPORT DELETED THE ADDITION OF RS.17,00,000/- AND SUSTAINED THE ADDITION OF RS.1,00,000/- VIDE PARA 6 .2. OF HIS ORDER. 4. THE LD. DR RELIED UPON THE ORDER OF THE AO AND A RGUED THAT THE ASSESSEE HAS NEITHER FURNISHED THE COPY OF BANK ACC OUNT FROM WHERE PAYMENTS WERE MADE NOR SOURCE OF ENTRIES OF CREDIT WERE JUSTIFIED. HE, THEREFORE, PRAYED TO REVERSE THE ORDER OF THE LD. C IT(A) AND CONFIRM THE ORDER OF THE AO. 5. THE LD. COUNSEL FOR THE ASSESSEE, ON THE OTHER H AND, RELIED UPON THE SUBMISSIONS MADE BEFORE THE LD. CIT(A) AND THE ORDE R OF THE LD. CIT(A). 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. AT THE OUTSET, RS.11 LACS WERE INVESTED ON 6.5.2005 AND RS. 3 LACS ON 7.5.2005 WHICH PERTAINED TO THE YEAR ENDING 31 ST MARCH, 2006, RELEVANT TO THE ASSESSMENT YEAR 2006-07 WHEREAS WE ARE IN THE A SSESSMENT YEAR 2005- 06. THE AO CANNOT MAKE AN ADDITION OF RS. 11 LACS + RS.3 LACS TOTALING RS.14 LACS DURING THE IMPUGNED YEAR AND IT IS NOT A SUBJECT MATTER OF THE IMPUGNED YEAR. THE LD. CIT(A) HAS VERIFIED THE SAME AND HAS RIGHTLY DELETED THE ADDITION. ITA NO.579(ASR)/2014 4 7. AS REGARDS THE PAYMENT OF RS. 3 LACS ON 18.03.20 55, THE NECESSARY DOCUMENTS WERE SENT TO THE AO FOR VERIFICATION WHO ACTUALLY DID NOT VERIFY THE SAME. ACCORDINGLY, THE LD. CIT(A) VERIFIED THE DOCUMENTS THAT RS. 3 LACS WERE INVESTED FROM THE CLOSURE PROCEEDS OF OL D FDR IN THE NAME OF MOTHER OF THE ASSESSEE. THEREFORE, THE SOURCE OF IN VESTMENT STANDS EXPLAINED. THE ASSESSEE HAS SUBMITTED THE EXPLANATI ON OF INVESTMENT TO THE EXTENT OF RS. 17 LACS BEFORE THE LD. CIT(A), WHO H AD FORWARDED THE SAME TO THE AO FOR COMMENTS WHO DECLINED TO VERIFY THE SA ME AND IN TURN, THE LD. CIT(A) HAS EXAMINED THE SOURCE OF THE IMPUGNED INV ESTMENT AND THEREFORE, THE LD. CIT(A) HAS RIGHTLY DELETED THE ADDITION. WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A) AND THE SAME IS UPHELD. TH E APPEAL OF THE REVENUE IS DISMISSED ACCORDINGLY. 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I N ITA NO.579(ASR)/2014 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26TH FEBRUARY, 2015. SD/- SD/- (A.D.JAIN) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 26TH FEBRUARY, 2015 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:SH.SYED AHMAD, JAMMU 2. THE ITO WARD 1(3), JAMMU 3. THE CIT(A), JAMMU 4. THE CIT, JAMMU 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY