The Income-tax Officer, Amritsar. V. Ms. Nirmal Kaur, D/o. S. Angrej Singh, Distt. Amritsar.

ITA 663/ASR/2014

• Counselvise Citation: 66320914 RSA 2014
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 03-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P N ARORA
• Keywords: Gift; Additional evidence
• Section: 142(1); 147; 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.663(ASR)/2014 ASSESSMENT YEAR:2005-06 PAN :DFXPK3391M INCOME TAX OFFICER, VS. MS. NIMRAT KAUR WARD-4(3), D/O SH.ANGREJ SINGH, AMRITSAR. VILL. DEERAKOT, P.O.GEHRI MANDI, JANDIALA GURU, AMRITSAR. NOW: H/NO.5762, JYOTISAR COLONY, B/S. RAGUNATH COLLEGE, JANDIALA GURU, AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY:SH.TARSEM LAL, DR RESPONDENT BY:SH.P.N.ARORA, ADVOCATE DATE OF HEARING:26/2/2015 DATE OF PRONOUNCEMENT: 17/03/2015 ORDER PER B.P.JAIN,AM: THIS APPEAL OF THE REVENUE ARISES FROM THE ORDER O F THE CIT(A), AMRITSAR, DATED 22.08.2014 FOR THE ASSESSMENT YEAR 2005-06. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. CIT(A) IS ERRED IN DELETING THE ADDITION OF RS.14, 25,000/- ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS IN SAVING BANK ACCOUNT: ITA NO.663(ASR)/2014 2 (A) BY ADMITTING AN ADDITIONAL EVIDENCE OF ALLEGED AFFIDAVIT SUBMITTED BY THE FATHER OF THE ASSESSEE WHICH WAS M ADE ON 11.04.2014 ITSELF, WHEREAS, THE ASSESSMENT IN TH E CASE WAS COMPLETED ON 04.03.2013. (B) THE ASSESSEE HAD NEITHER EXECUTED ANY GIFT DEED NOR PRODUCED THE SAME BEFORE THE AO DURING THE COURSE O F ASSESSMENT PROCEEDINGS. (C) WITHOUT FILING ANY EXPLANATION REGARDING THE OP ENING BALANCE OF RS.4,30,101/- AND REST CASH DEPOSITED DU RING THE YEAR UNDER CONSIDERATION IN THE BANK ACCOUNT OF THE ASSESSEE. 2. APPELLANT CRAVES LEAVE TO AMEND OR ADD ANY OR MORE GROUNDS OF APPEAL. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSM ENT IN THIS CASE WAS MADE U/S 144/147 OF THE INCOME TAX ACT, 1961 (IN SH ORT, THE ACT) AND THE RELEVANT ORDER OF THE AO IS REPRODUCED FOR THE SAKE OF CONVENIENCE AS UNDER: THIS CASE WAS REOPENED U/S 147 OF THE I.T. ACT, 196 1 AFTER SEEKING APPROVAL FROM THE ADDL. CIT, RANGE-IV, AMRITSAR. NO TICE U/S 148 OF THE ACT WAS ISSUED ON 28.03.2012. LATER ON, STATUTO RY NOTICE U/S 142(1) OF THE ACT ALONGWITH QUESTIONNAIRE WAS ISSUE D ON 02.07.2012 DULY SERVED UPON THROUGH SPEED POST VIDE NO.1082 DA TED 10.07.2012 FOR HEARING FOR 18.07.2012. IN RESPONSE TO NOTICE U /S 142(1) OF THE ACT, NEITHER ANYBODY ATTENDED THE PROCEEDINGS NOR ANY WR ITTEN REPLY FURNISHED ON OR BEFORE THE DATE OF HEARING I.3. 18. 07.2012. HOWEVER, ANOTHER NOTICE U/S 142(1) ALONG WITH QUESTIONNAIRE WAS ISSUED ON 21.01.2013 AT THE ADDRESS TAKEN FROM THE ACCOUNT OP ENING FORM AS RECEIVED FROM THE CENTRAL BANK OF INDIA, GEHRI MAND I, AMRITSAR VIDE ITS LETTER DATED 16.01.2013 DULY SERVED UPON THROUG H REGISTERED POST VIDE NO.4765 DATED 21.01.2013 FOR HEARING FOR 30.01 .2013. THIS TIME ALSO, NEITHER ANYBODY ATTENDED THE PROCEEDINGS NOR ANY WRITTEN REPLY FURNISHED ON OR BEFORE THE DATE OF HEARING I.E. 30. 01.2013. FURTHER FINAL OPPORTUNITY NOTICE FOR FRAMING EX-PARTE ASSE SSMENT FOR THE AY 2005-06 WAS ISSUED ON 05/06.02.2013 DULY SERVED UPO N THROUGH ITA NO.663(ASR)/2014 3 REGISTERED POST VIDE NO.5241 DATED 06.02.2013 WHICH WAS ALSO UN- COMPLIED WITH. 2. AS PER INFORMATION AVAILABLE ON RECORD, THE ASSE SSEE LADY HAS MADE DEPOSITS IN SAVING BANK ACCOUNT AMOUNTING TO R S.14,25,000/- DURING THE FINANCIAL YEAR 2004-05 RELEVANT TO THE A Y 2005-06. SINCE THIS INFORMATION COULD NOT BE VERIFIED DUE TO THE F ACT THAT THE ASSESSEE LADY IS NOT COMPLYING WITH THE NOTICES ISSUED FROM TIME TO TIME. 3. IN VIEW OF THE AFORESAID DISCUSSION, I HAVE NO A LTERNATIVE BUT TO MAKE THE ASSESSMENT EX-PARTE U/S 144 OF THE INCOME TAX ACT, 1961 AND ASSESS THE INCOME OF THE ASSESSEE LADY AT RS.14 ,25,000/- FOR THE ASSESSMENT YEAR 2005-06. 3. BEFORE THE LD. CIT(A), THE ASSESSEE MADE SUBMISS IONS AND ADDITIONAL EVIDENCES WHICH WERE ADMITTED AND THE LD. CIT(A) D ELETED THE ADDITION VIDE HIS ORDER DATED 22.08.2014 IN PARA 6 OF HIS ORDER. 4. THE LD. DR AT THE OUTSET, RELIED UPON THE ORDER OF THE AO AND ARGUED THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN ADMITTING THE ADDITIONAL EVIDENCE AND THE ASSESSEE HAS NEVER EXECUTED ANY GIFT DEED NOR PRODUCED THE SAME BEFORE THE AO DURING THE COURSE OF ASSESSMENT PROCE EDINGS. FURTHER, THE ASSESSEE HAS NOT EVEN SUBMITTED ANY EXPLANATION WIT H REGARD TO OPENING CASH BALANCE AND CASH DEPOSITED DURING THE IMPUGNED YEAR . 5. THE LD. COUNSEL FOR THE ASSESSEE, MR. P.N.ARORA, ADVOCATE, ON THE OTHER HAND, RELIED UPON THE SUBMISSIONS MADE BEFORE THE LD. CIT(A) AND THE ORDER OF THE LD. CIT(A). ITA NO.663(ASR)/2014 4 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. A PERUSAL OF THE SUBMISSIONS MADE BY THE ASSESSEE B EFORE THE LD. CIT(A) AND THE ORDER OF THE AO, WE CONCUR WITH THE VIEWS OF TH E LD. CIT(A) GIVEN IN PARA 6 OF HIS ORDER, WHICH FOR THE SAKE OF CONVENIE NCE ARE REPRODUCED HEREINBELOW: I HAVE GONE THROUGH ASSESSEES SUBMISSION AND ASSE SSMENT ORDER OF THE A.O PASSED U/S 144/147 OF THE INCOME T AX ACT ON 04.03.2013. THE ASSESSEE HAD APPLIED FOR CONDONATIO N OF DELAY AS ORDER WAS PASSED ON THIS CASE ON 04.03.2013, WHEREA S APPEAL AGAINST THE SAID ORDER WAS PASSED ON THIS CASE ON 04.03.201 3, WHEREAS APPEAL AGAINST THE SAID ORDER WAS FILED ON 11.09.2013. THE ASSESSEE STATED THAT DELAY WAS DUE TO THE FACT THAT SAID ORDER WAS NEVER RECEIVED BY THE APPELLANT AS DEPARTMENT HAD ISSUED NOTICES U/S 147 AT THE OLD ADDRESS OF THE ASSESSEE I.E., MS. NIMRAT KAUR, D/O SH. ANGREZ VILLAGE DEERAKOT, P.O GHERI MANDI, DISTT. AMRITSAR. THE AS SESSEE FOR THE FIRST TIME CAME TO KNOW ABOUT THE ASSESSMENT ORDER FROM THE INSPECTOR WHO HAD VISITED THE APPELLANT TO SERVE NOTICE U/S 2 21(1) ON 29.07.2013. THE ASSESSEE HIM SELF ALONG WITH COUNSE L APPEARED BEFORE THE A.O AND REQUESTED FOR THE COPY OF THE ASSESSMEN T ORDER BY WAY OF LETTER DATED 12.08.2013. THE A.O SUPPLIED COPY OF T HE ASSESSMENT ORDER ON 12.08.2013 AND APPEAL WAS FILED 11.09.2013 I.E. WITHIN 30 DAYS RECEIPT OF THE ORDER. DURING APPELLATE PROCEED ING THE ASSESSEE SUBMITTED THAT HER FAMILY SHIFTED TO THE NEW HOUSE DURING F.Y.2005-06 SITUATED AT JYOTISAR COLONY, BEHIND RAGHUNATH COLLE GE, JANDIYALA GURU, DISTT. AMRITSAR AND IN CONFIRMATION OF ABOVE SHIFTING EVIDENCE IN THE FROM OF RATION CARD AND PHOTOCOPY OF THE REG ISTRY OF NEW ADDRESS WAS SUBMITTED. THE ASSESSEE FURTHER SUBMITT ED COPY OF MARRIAGE CARD OF THE ASSESSEE OF FEBRUARY 2013 AND PAN CARD TO PROVE THAT ASSESSEE WAS UNMARRIED DURING F.Y.2004-0 5 AND WAS OF 18 YEARS AGE. IN VIEW OF ABOVE DETAILS, THE DELAY IN F ILING APPEAL IS CONDONED AND ASSESSEE WAS ALLOWED TO ARGUE APPEAL O N QUANTUM ADDITION. THE ASSESSEE HAS FILED FOUR GROUNDS OF APPEAL INTER -ALIA CHALLENGING ADDITION MADE OF RS.14,25,000/- ON ACCO UNT OF CASH DEPOSIT IN SAVING BANK ACCOUNT ON VARIOUS DATES BY TREATING THE SAME ITA NO.663(ASR)/2014 5 AS UNDISCLOSED INCOME OF THE APPELLANT WITHOUT CONS IDERING TO THE FACT SUMS WERE RECEIVED OUT OF GIFT RECEIVED FROM THE FA THER, WHICH WAS OUT OF SALE PROCEEDS OF AGRICULTURE LAND AND WITHOUT CO NSIDERING CASH CREDIT BALANCE IN BANK ACCOUNT. THE ASSESSEE SUBMIT TED A COPY OF AFFIDAVIT OF HER FATHER SH. ANGREZ SINGH, S/O SH. B ALI SINGH STATING THE FACT THAT HE HAS GIFTED RS. 8 LAKH TO HER DAUGHTER (ASSESSEE) OUT OF SALE PROCEEDS OF AGRICULTURE LAND, WHICH WAS SOLD F OR RS.10 LAKH ON 30.09.2004. THE ASSESSEE SUBMITTED COPIES OF SALE D EED AND ENGLISH TRANSLATION OF THESE SALE DEEDS AS WELL. SH. ANGREZ SINGH FURTHER STATED IN HIS AFFIDAVIT THAT NO OTHER PROPERTY/INVESTMENT WAS MADE BY HIM OR HIS FAMILY MEMBER DURING THE F.Y.2004-05 RELATED TO A.Y.2005-06. IT CAN BE SEEN FROM BANK STATEMENT THAT FOLLOWING CASH WERE DEPOSITED IN THE BANK ACCOUNT:- DATE RUPEES 30.01.2004 1,70,000/- 19.08.2004 30,000/- 01.10.2004 4,75,000/- 04.10.2004 7,20,000/- 06.10.2004 30,000/- THIS BANK ACCOUNT WAS HAVING OPENING CASH BALANCE O F RS.4,30,101/- ON 01.04.2004 AND FROM THAT BANK BALANCE, VARIOUS C ASH WITHDRAWALS WERE ALSO MADE DURING THE F.Y. MAJOR CASH DEPOSIT O F RS. 4,75,000/- AND RS.7,20,000/- WERE MADE ON 01.10.2004 AND 04.10 .2004 RESPECTIVELY AND ARE ON ACCOUNT OF SALE PROCEED OF RS.10,00,000/- RECEIVED ON 30.09.2004 BY THE FATHER OF THE ASSESSE E ON ACCOUNT OF SALE OF AGRICULTURE LAND. THE FATHER OF THE ASSESSE E HAS SUBMITTED ANOTHER AFFIDAVIT STATING THAT ENTIRE FAMILY CONSIS TING OF SIX MEMBERS WERE MAINTAINING ONLY ONE BANK ACCOUNT NUMBER 61194 5 WITH CENTRAL BANK OF INDIA IN THE NAME OF NIMRAT KAUR (ASSESSEE) AND THERE WAS NO OTHER BANK ACCOUNT IN NAME OF ANY OTHER FAMILY MEMB ER DURING THAT PERIOD. IN VIEW OF ABOVE, A LETTER WAS ISSUED TO IN COME TAX OFFICER, WARD-4(3) TO SUBMIT REPORT U/S 250(4) OF INCOME TAX ACT, 1961 AFTER VERIFICATION OF ADDITIONAL EVIDENCE REGARDING TRANS FER DEEDS OF SALE OF AGRICULTURE LAND OF RS.10,00,000/- BY HER FATHER, C ASH FLOW STATEMENTS ITA NO.663(ASR)/2014 6 AND AFFIDAVIT OF HER FATHER THAT HE HAS GIFTED RS.8 ,00,000/- TO HER DAUGHTER OUT OF SALE PROCEEDS OF ABOVE AGRICULTURE LAND THE AO WAS DIRECTED TO VERIFY CONTENTS OF THESE ADDITIONAL EVI DENCES AND SOURCE OF CASH DEPOSITS IN BANK ACCOUNT. THE INCOME TAX OFFIC ER, WARD-4(3), ASR HAS SUBMITTED A REPORT U/S 250(4) DATED 14.08.2 014 INCORPORATING FINDINGS ON THESE ADDITIONAL EVIDENCE S INCLUDING AFFIDAVITS OF ASSESSEES FATHER. IN VIEW OF ABOVE, A LETTER WAS ISSUED TO INCOME TAX OFFICER, WARD-4(3) TO SUBMIT REPORT U/S 250(4) OF INCOME TAX ACT, 1961 ON VERIFICATION OF ADDITIONAL EVIDENC E REGARDING TRANSFER DEEDS OF SALE OF AGRICULTURE LAND OF RS.10 ,00,000/- BY HER FATHER, CASH FLOW STATEMENTS AND AFFIDAVIT OF HER F ATHER THAT HE HAS GIFTED RS.8,00,000/- TO HER DAUGHTER OUT OF SALE PR OCEEDS OF ABOVE AGRICULTURE LAND AND THE AO WAS DIRECTED TO VERIFY CONTENTS OF THESE ADDITIONAL EVIDENCES AND SOURCE OF CASE DEPOSITS IN BANK ACCOUNT. THE INCOME TAX OFFICER, WARD-4(3), ASR HAS SUBMITTED A REPORT U/S 250(4) DATED 14.08.2014 IN CORPORATING FINDINGS ON THESE A DDITION EVIDENCES INCLUDING AFFIDAVITS OF ASSESSEES FATHER. IN VIEW OF SALE DEED OF AGRICULTURE LAND FOR RS.10 LAKH AND CASH WITHDRAWAL S OUT OF OPENING CASH BALANCE AVAILABLE OF RS.4,30,101/- ON 01.04.20 04 AND SUBSEQUENT CASH WITHDRAWAL ALL THE CASH DEPOSITS IN THE SAVING BANK ACCOUNT OF THE ASSESSEE ARE EXPLAINED. IN VIEW OF A BOVE EVIDENCE, THE ADDITION MADE BY THE A.O IN THIS REGARD ARE DELETED . GROUND NUMBER 1 TO 4 OF THE APPEAL ARE DECIDED IN FAVOUR OF THE A SSESSEE IN VIEW OF ABOVE FINDINGS. 7. AS REGARDS THE GROUND OF THE REVENUE AND THE OBJ ECTION RAISED BY THE LD. DR, THE ASSESSEE HAD APPLIED FOR CONDONATION OF DELAY, AS THE ASSESSMENT ORDER WAS PASSED ON 04.03.2013 WHEREAS THE APPEAL B EFORE THE LD. CIT(A) WAS FILED ON 11.09.2013 AND DELAY WAS DUE TO THE FA CT THAT THE SAID ASSESSMENT ORDER WAS NEVER RECEIVED BY THE ASSESSEE AS THE DEPARTMENT HAD ISSUED NOTICES U/S 147 OF THE ACT, AT THE OLD ADDR ESS OF THE ASSESSEE I.E., AT VILLAGE DEERAKOT, P.O. GEHRI MANDI, DISTT. AMRITSAR . IT WAS FOR THE FIRST ITA NO.663(ASR)/2014 7 TIME, THE ASSESSEE CAME TO KNOW ABOUT THE ASSESSMEN T ORDER FROM THE INSPECTOR WHO HAD VISITED THE ASSESSEE TO SERVE NO TICE U/S 221(1) ON 29.07.2013 AND ACCORDINGLY ON RECEIPT OF THE ASSESS MENT ORDER ON 12.08.2013, THE APPEAL WAS FILED ON 11.09.2013 SINC E THE FAMILY OF THE ASSESSEE HAD BEEN SHIFTED TO THE NEW HOUSE DURING F .Y. 2005-06 AT JYOTISAR COLONY, JANDIALA GURU AND COPY OF RATION CARD AND P HOTOCOPY OF THE REGISTRY OF NEW ADDRESS WAS SUBMITTED TO THE LD. C IT(A). THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS JUSTIFIED IN ADMITTING THE ADDITIONAL EVIDENCES SINCE THE ASSESSEE HAD A S UFFICIENT CAUSE FOR SUBMITTING THE ADDITIONAL EVIDENCES BEFORE THE LD. CIT(A). 8. MOREOVER, ALL THE ADDITIONAL EVIDENCES ALONGWITH SUBMISSIONS OF THE ASSESSEE WERE FORWARDED TO THE AO FOR COMMENTS AND THE AO VIDE HIS LETTER DATED 14.08.2014 SUBMITTED THE REMAND REPORT INCORP ORATING SUBMISSIONS OF THE ASSESSEE. THE LD. CIT(A) HAS EXAMINED THE ADDIT IONAL EVIDENCES I.E., TRANSFER DEED OF SALE OF AGRICULTURE LAND FOR RS.10 LAKHS TO ASSSESSEES FATHER, CASH FLOW STATEMENTS AND AFFIDAVIT OF ASSESSEES FA THER, WHO HAD GIFTED RS.8 LAKHS TO THE ASSESSEE OUT OF SALE PROCEEDS OF AGRIC ULTURAL LAND AND ALSO EXPLANATION OF THE OPENING CASH IN HAND AND SUBSEQU ENT CASH WITHDRAWAL FOR CASH DEPOSITS IN THE SAVING BANK ACCOUNT WERE ALSO EXAMINED AND FOUND TO BE EXPLAINED BY THE LD. CIT(A). IN THE FACTS AND CIRCUMSTANCES, WE FIND NO ITA NO.663(ASR)/2014 8 INFIRMITY IN THE ORDER OF THE LD. CIT(A), WHO HAS R IGHTLY DELETED THE ADDITION MADE BY THE AO. THUS, ALL THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 9. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IN I TA NO.663(ASR)/2014 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17TH MARCH, 2015. SD/- SD/- (A.D.JAIN) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 17TH MARCH, 2015 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:MS. NIMRAT KAUR D/O ANGREJ SINGH, JAND IALA GURU, AMRITSAR. 2. THE ITO WARDS 4(3), ASR. 3. THE CIT(A), ASR. 4. THE CIT, ASR. 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.