Shri Charanjeet Singh , Sriganganagar V. ITO, Ward-3, Sriganganagar

ITA 7/JODH/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5784 (ITAT-JODHPUR)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 07-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH (SMC), JODHPUR BEFORE SHRI N.K. SAINI, VICE PRESIDENT ITA NO. 07/JODH/2019 (ASSESSMENT YEAR-2010-11) SHRI CHARANJEET SINGH, SRIGANGANAGAR VS THE ITO, WARD-3, SRIGANGANAR (APPELLANT) (RESPONDENT) PAN: AHYPD5988P & ITA NO. 08/JODH/2019 (ASSESSMENT YEAR-2010-11) SMT. INDERBEER KAUR, SRIGANGANAR VS THE ITO, WARD-3, SRIGANGANAR (APPELLANT) (RESPONDENT) PAN: AWBPD1245K REVENUE BY SH. P.K. SINGI, DR ASSESSEE BY SHRI RAJENDRA JAIN, ADVOCATE DATE OF HEARING 09.05.2019 DATE OF PRONOUNCEMENT 10.05.2019 O R D E R 2 THESE TWO APPEALS BY THE ASSESSEES ARE DIRECTED AGA INST THE SEPARATE ORDERS OF CIT(A), BIKANER EACH DATED 8.10 .2018 2. SINCE THE ISSUE INVOLVED IS COMMON IN BOTH THE A PPEALS WHICH WERE HEARD TOGETHER, SO, THESE ARE BEING DISPOSED O FF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 3. AT THE FIRST INSTANCE, I WILL DEAL WITH THE APPE AL IN ITA NO.7/JODH/2019 IN THE CASE OF SHRI CHARANJEET SINGH , SRIGANGANAGAR. 4. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L:- GROUNDS 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE ID CIT (A) ERRED IN UPHOLDING VALIDITY OF NOTIC E U/S 148 OF THE ACT. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE ID CIT (A) ERRED IN RECORDING VARIOUS FINDING I N RESPECT OF VALIDITY OF NOTICE U/S 148 ARE CONTRARY TO THE MATE RIAL AVAILABLE ON RECORD. 3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE ID CIT (A) ERRED IN SUSTAINING ADDITION OF RS. 6,50,150/- U/S 69 OF THE ACT IN RESPECT OF CASH DEPOSITED IN T HE BANK ACCOUNT 4. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE ID CIT (A) ERRED IN NOT CONSIDERING THE DOCUMEN TARY EVIDENCES AND EXPLANATION FURNISHED BY THE ASSESSEE AND ARE ON RECORD. 3 5. FROM THE ABOVE GROUNDS, IT IS GATHERED THAT THE ASSESSEE HAS CHALLENGED THE VALIDITY OF THE REOPENING BY ISSUING NOTICE U/S 148 OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT'). 6. THE FACTS OF THE CASE IN BRIEF ARE THAT THE ASSE SSING OFFICER ISSUED NOTICE U/S 148 OF THE ACT BY RECORDING THE REASONS THAT THE ASSESSEE HAD NOT FILED THE RETURN OF INCOME AND THAT THE AMOUNT DEPOSITED IN HIS BANK ACCOUNT ESCAPED ASSESSMENT. HE ASSESSED THE INCOM E OF THE ASSESSEE AT RS. 8.09,160/- BY MAKING ADDITION OF RS. 6,50,150/- . 7. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 8. NOW THE ASSESSEE IS IN APPEAL. 9. THE LD. COUNSEL FOR THE ASSESSEE DREW MY ATTENTI ON TOWARDS THE REASONS RECORDED BY THE ASSESSING OFFICER WHILE ISS UING NOTICE U/S 148 OF THE ACT, COPY OF WHICH IS PLACED AT PAGE 2 OF TH E PAPER BOOK WHICH READ AS UNDER:- '06.03.2017 - THIS OFFICE IS IN POSSESSION OF INFOR MATION THAT SH. CHARANJEET SINGH, G-13- AGGARSAIN NAGAR, SRIGAN GANAGAR HAS MAINTAINED BANK ACCOUNT AT AXIS BANK, SRIGANGAN AGAR. DURING THE F.V. 2009-10 (RELEVANT TO A.Y. 2010-11), THE ASSESSEE HAS MADE CASH DEPOSITS TO THE TUNE OF RS. 11,13,250 /- IN HIS BANK ACCOUNT. NO RETURN OF INCOME HAS BEEN FILED BY THE ASSESSEE AS PER AST/TMS DATABASE FOR THE F.Y. 2009-10 (RELEVANT TO A.Y. 2010-11) TO VERIFY THE SOURCE OF THESE TRANSACTIONS, I.E. C ASH DEPOSITS LETTER WAS ISSUED BY THIS OFFICE GIVING AN OPPORTUNITY OF 4 BEING HEARD BUT THE ASSESSEE HAS FAILED TO EXPLAIN THE SOURCE OF INVESTMENT. THEREFORE, MATERIAL IS AVAILABLE ON REC ORD THAT THE ASSESSEE HAS NOT FILED HIS RETURN OF INCOME FOR THE A.Y. 2010-11. THE EXPLANATION-2(A) OF SECTION-147 READS AS UNDER: EXPLANATION 2.FOR THE PURPOSES OF THIS SECTION, T HE FOLLOWING SHALL ALSO BE DEEMED TO BE CASES WHERE IN COME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT, NAMELY : (A) WHERE NO RETURN OF INCOME HAS BEEN FILED BY THE ASSESSEE BY THE ASSESSEE ALTHOUGH HIS TOTAL INCOME OR THE TOTAL INCOME OF ANY OTHER PERSON IN RESPECT OF WHI CH HE IS ASSESSABLE UNDER THIS ACT DURING THE PREVIOUS YEAR EXCEEDED THE MAXIMUM AMOUNT WHICH IS NOT CHARGEABLE TO INCOME-TAX.' CONSIDERING THE ABOVE FACTS, AN AMOUNT OF RS. 11,13 ,250/- ( EXCEEDING RS.L LAKH ) HAS ESCAPED ASSESSMENT IN T HE HANDS OF THE ASSESSEE. LOOKING TO THE ABOVE FACTS, I HAVE REASON TO BELIEV E THAT THE ASSESSEE HAS FAILED TO DISCLOSE FULLY AND TRULY ALL MATERIAL FACTS NECESSARY FOR ASSESSMENT AND THAT INCOME OF RS. 11 ,13,250/- HAS ESCAPED ASSESSMENT WITHIN THE MEANING OF PROVISION OF SECTION 147 OF THE IT. ACT, 1961' 10. THE LD. COUNSEL FOR THE ASSESSEE STATED THAT T HE ASSESSING OFFICER WRONGLY RECORDED THE REASONS BY OBSERVING THAT THE ASSESSEE HAD NOT FILED ANY RETURN OF INCOME, HOWEVER, THE RETURN OF INCOME WAS FILED ON 14.6.2012. MY ATTENTION WAS DRAWN TO THE PAGE NO.4 OF THE ASSESSEE'S PAPER BOOK WHICH IS THE COPY OF THE ACKNOWLEDGMENT OF THE RETURN FILED FOR THE ASSESSMENT YEAR 2010-11 DECLARING AN INCOME OF RS. 1,59,010/- ON14.6.2012. 11. IN HIS RIVAL SUBMISSIONS, THE LD. SR.DR SUPPORT ED THE ORDERS OF THE AUTHORITIES BELOW. 5 12. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE PRESENT CA SE, IT IS AN ADMITTED FACT THAT THE ASSESSING OFFICER ISSUED THE NOTICE U /S 148 OF THE ACT ON THIS BASIS THAT THE ASSESSEE HAD NOT FILED THE RETU RN OF INCOME. THE SAID OBSERVATION IN RECORDING THE REASONS OF THE ASSESSI NG OFFICER WAS WRONG SINCE THE ASSESSEE HAD ALREADY FILED THE RETURN OF INCOME ON 14.6.2012 FOR THE ASSESSMENT YEAR UNDER CONSIDERATION I.E. 2 010-11 WHICH SHOWS THAT THE ASSESSING OFFICER HAS NOT PROPERLY APPLIED HIS MIND WHILE ISSUING THE NOTICE U/S 148 OF THE ACT, THEREFORE, THE SAME IS NOT MAINTAINABLE. ACCORDINGLY, THE REOPENING ON THE BAS IS OF WRONG REASONS RECORDED IS QUASHED. 13. IN ITA NO. 8/JODH/2019 IN THE CASE OF SMT. INDERBEER KAUR, THE FACTS ARE SIMILAR AS WERE INVOLVED IN THE CASE OF S HRI CHARANJEET SINGH (SUPRA), THEREFORE, MY FINDINGS GIVEN ABOVE IN THE FORMER PART OF THIS ORDER SHALL APPLY MUTATIS MUTANDIS. 14. IN THE RESULT, APPEALS OF THE ASSESSEES ARE ALL OWED. (ORDER PRONOUNCED IN THE COURT ON 10.05.2019) SD/- (N.K. SAINI) VICE PRESIDENT DATED : 10.05.2019 .. 6 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. / CIT 4. ( )/ THE CIT(A) 5. , ! , $ / DR, ITAT, JODHPUR 6. ' / GUARD FILE / BY ORDER / ASSISTANT REGISTRAR