ITO, Ward 2(1), Chandigarh V. M/s Chandigarh Royale City Promoters Pvt. Ltd., Chandigarh

ITA 647/CHANDI/2022

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9379 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 19-12-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 02-10-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 10; 201

Judgement Text

ITA Nos.646&647/CHANDI/2022 Assessment Years : 2011-12 & 2012-13 M/s Chandigarh Royale City Promoters Pvt. Ltd. Page 26 of 30 q uash e d b y t he CI T( A) an d al so up held b y us as di scuss e d a bo ve . 16 . Th e A. O . n oted tha t som e o f the a g re eme nts, i n q uest io n, ha ve been m ad e o n 2 2.0 2. 2 011 i .e. in f i na nc ia l y ea r 20 10- 1 1 rel ev an t to a ss essm en t y ear 201 1- 12 . H e, the r efo re, ob ser ved tha t t ho ug h the s ub sta nt i ve a dd i tio ns r el a ti ng to th e sai d agr ee men ts h ave b e e n ma d e in the a sse s sm ent y ea r 20 12- 1 3, how ever , t o pr o t ect the i nt e rest o f the r eve n ue, he a g a i n reo pen ed t he a s s es sm ent fo r the a sse s sm ent y e a r i n q uesti o n, and m ad e the i m pug ne d a ddi ti o n pert a in i ng to t he sa i d a g re eme n ts a m o unti ng t o R s. 2. 10 cr o r es i n t he i m pug ned asses s m e nt ye a r on pr o t ect ive b asi s . 17 . Th e ld. CI T (A) ho w ever del ete d t he im pug ne d a dd i tio ns m a de by the A.O . ob s ervi ng a s und er : “(ii) It is apparent from the perusal of the reasons recorded for reopening that the Assessing Officer had reasons to believe that an amount of Rs.2,09,90,625/- had escaped assessment. This amount of Rs.2,09,90,625/- was deposited in cash by Sh. Tarlochan Singh in his bank account number 656210100022275 with Bank of India on 22.02.2011. The AO has mentioned that cash of Rs.2,09, 90,625/- (1,19,90,625 + 90,00,000) has been deposited on 22.02.2011 which is the date of agreement to sell between Sh. Tarlochan Singh and Sh. Parveen Kumar. Since the land was finally purchased by the appellant company, and Sh. Parveen Kansal was one of the director of the appellant company during that period, the AO had reason to believe that payment of Rs.2,09,90,625/- was made by appellant company and the same was deposited in the bank account by Sh. Tarlochan Singh. At the time of recording of reasons, the Assessing Officer was aware that the company M/s. Chandigarh Royale City Promoters Pvt. Ltd. was formed on 28.02.2011 and this fact has been mentioned at para 5 of the assessment order. The agreement to sell between Sh. Tarlochan Singh and Sh. Parveen Kumar was done on