ITO, Meerut V. Sh. Hardwari Lal, Meerut

ITA 5920/DEL/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6950 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 03-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHEODAN SINGH BHADDORIA
• Assessee Lawyers: R B PANDEY
• Keywords: Capital asset

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH MEERUT CAMP, NEW DELHI BEFORE SHRI I.C.SUDHIR, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI , ACCOUNTANT MEMBER ITA NO. 5920/DEL./2014 : ASSTT. YEAR : 2009-10 ITO WARD-1(3) MEERUT VS HARDWARI LAL S/O. LATE SHRI NIADER SINGH, VIII & P.O. NANGLA TASHI, KASAMPUR MEERUT (APPELLANT) (RESPONDENT) PAN NO. ABTPH7601Q C.O. NO. 206/DEL/2015 (IN ITA NO. 5920/DEL/2014 HARDWARI LAL S/O. LATE SHRI NIADER SINGH, VIII & P.O. NANGLA TASHI, KASAMPUR MEERUT ITO WARD-1(3) MEERUT (APPELLANT) (RESPONDENT) PAN NO. ABTPH7601Q ASSESSEE BY : SH. R.B.PANDEY , ADV. REVENUE BY : SH. SHEODAN SI NGH BHADDORIA, SR. DR DATE OF HEARING : 16.12.2015 DATE OF PRONOUNCEMENT : 12.02.2015 ORDER PER I.C.SUDHIR, J.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST ORDE R OF CIT(A)- MEERUT DATED 21.08.2014 AND PERTAINS TO ASSESSMENT YEAR 2009-10. ITA NO.5920/DEL/2014 HARDWARI LAL 2 2. THE REVENUE HAS QUESTION FIRST APPELLATE ORDER MAINLY ON THE BASIS THAT THE LD. CIT(A) ERRED IN ACCEPTING THAT THE ASS ESSEE HAD RECEIVED PART SALE CONSIDERATION IN CASH WITHOUT REQUIRING THE ASSESSE E TO PRODUCE NECESSARY EVIDENCE IN SUPPORT. 3. THE LD. SR. DR SUBMITTED THAT BEFORE THE AUTHO RITIES BELOW THE ASSESSEE COULD NOT ESTABLISH THE SOURCE OF DEPOSIT OF CASH OF RS. 49,36,000/- IN HIS SAVING BANK ACCOUNT AS THE EXPLANATION OF THE A SSESSEE THAT THE SOURCE OF THE SAID DEPOSIT WAS SALE PROCEEDS FROM HIS AGRICUL TURAL LAND WAS NOT SUPPORTED WITH ANY EVIDENCE. JUST BECAUSE THE AGREEMENT WAS N OT REGISTERED, IT CANNOT BE IGNORED FOR THE PURPOSE OF I.T.ACT, 1961. 4. THE LD. AR ON THE OTHER HAND PLACED RELIANCE O N THE FIRST APPELLATE ORDER. HE SUBMITTED THAT COPY OF THE AGREEMENT OF S ALE WITH SACHIN GUPTA AND ROHIT GARG WAS FURNISHED ON WHICH THE LD. CIT HAD C ALLED FOR A REMAND REPORT FROM THE AO, IN WHICH THE AO HAD ACCEPTED THE FACT OF THE TRANSFER OF CAPITAL ASSETS BEING AGRICULTURAL LAND MADE BY THE ASSESSE E. 5. HAVING GONE THROUGH THE ORDERS OF THE AUTHORI TIES BELOW, WE FIND THAT THE AO HAD MADE THE ADDITION OF RS, 49,36,000 /- DEPOSITED BY THE ASSESSEE IN CASH IN HIS SAVING BANK ACCOUNT ON THE BASIS THA T THE EXPLANATION OF THE ASSESSEE THAT IT WAS SALE PROCEEDS FROM HIS AGRICUL TURAL LAND SUPPORTED WITH A COPY OF AGREEMENT OF SALE WITH SHRI SACHIN GUPTA AN D SHRI ROHIT GARG ON STAMP PAPER OF RS. 100/- DATED 7.10.2008 WAS NOT A RELIABLE DOCUMENT AS THE SAME WAS NOT REGISTERED. WE DO NOT AGREE WITH SUCH VIEW AS FOR THE TRANSFER OF CAPITAL ASSET FOR THE PURPOSE OF INCOME TAX ACT THE A.O. HAS TO EXAMINE THE GENUINENESS IN VIEW OF THE PROVISIONS LAID DOWN IN TO BE EXAMINED AS PER SECTION 2(47) OF THE I.T. ACT READ WITH SECTION 53 A OF THE TRANSFER OF PROPERTY ITA NO.5920/DEL/2014 HARDWARI LAL 3 ACT. IT IS NOT THE CASE OF THE AO THAT SHRI SACHIN GUPTA AND SHRI ROHIT GARG HAD DENIED THE CLAIMED TRANSACTION NOR IS IT THE C ASE OF THE AO THAT THE AGREEMENT PRODUCE IN SUPPORT WAS SHAM. THE AO IN HI S REMAND REPORT HAS ALSO ACCEPTED THE FACT OF TRANSFER OF CAPITAL ASSET BEIN G AGRICULTURAL LAND AS CLAIMED BY THE ASSESSEE. 6. CONSIDERING ALL THE ABOVE MATERIAL FACTS IN ITS TOTALITY, WE ARE OF THE VIEW THAT THE LD. CIT(A) HAS RIGHTLY HELD THAT THE SOURCE OF THE DEPOSIT IN QUESTION HAS BEEN SATISFACTORILY EXPLAINED BY THE A SSESSEE AND THUS THE ADDITION IN QUESTION WAS NOT SUSTAINABLE. THE ACTION OF THE LD. CIT(A) IN DELETING THE ADDITION OF RS. 49,36,000/- IS UPHELD. THE RELATED GROUNDS RAISING THE ISSUE ARE ACCORDINGLY REJECTED. 7. IN THE RESULT, THE APPEAL IS DISMISSED. (ORDER PRONOUNCED IN THE COURT ON 12/02/2016). SD/- SD/- (PRASHANT MAHARISHI) (I.C.SUDHIR) ACCOUNTANT MEMEBR JUDICIAL MEM BER DATED: 12 / 02/2016 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITA NO.5920/DEL/2014 HARDWARI LAL 4 DATE INITIAL 1. DRAFT DICTATED ON 12.02.2016 2. DRAFT PLACED BEFORE AUTHOR 12.02.2016 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.