SHRI KULDIP SINGH, AMRITSAR V. INCOME TAX OFFICER WARD 4(3), AMRITSAR

ITA 711/ASR/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6611 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-12-2018
• Assessment Year: 2009-2010
• Appeal Filed On: 22-11-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: R K MAGOW LD
• Keywords: Gift; Income from undisclosed sources; Salary income; Additional evidence
• Section: 147; 68; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE T RIBUNAL AMRITSAR BENCH, AMRIT SAR BEFORE SH. SANJAY ARORA, ACCOUNTANT MEMBER AN D SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA NO.711(ASR)/2017 ASSESSMENT YEAR:2009- 10 KULDIP SINGH, H.NO.399-A, GURU AMAR DASS AVENUE, AJANALA ROAD, AMRITSAR [PAN:ABVPS 8023P] VS. INCOME TAX OFFICER, WARD-4(3), AMRITSAR (APPELLANT) (RESPONDENT) APPELLANT BY: SH. R.K. MAGOW (LD. CA) RESPONDENT BY: SH. CHARAN DASS (LD. DR) DATE OF HEARING: 10.12.2018 DATE OF PRONOUNCEMENT: 22.01.2019 ORDER PER N.K.CHOUDHRY, JM: THE INSTANT APPEAL HAS BEEN PREFERRED BY THE ASSESSEE/APP ELLANT AGAINST THE ORDER DATED 28.09.2017 PASSED BY THE LD. CIT(A), AMRITSAR, U/S 250(6) OF THE I.T. ACT, 1961 (HEREINAFTER CALLED AS T HE ACT). 2. IN THE INSTANT CASE, THE ASSESSEE HAD DECLARED TOTAL INCOME AT RS.1,99,840/-, HOWEVER, LATER ON THE CASE WAS REOPENED U/S 147/148 ON THE BASIS OF AIR AND ADDITION OF RS.7,83,000/-, WHICH WAS SHO WN AS NEGATIVE BALANCE BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATI ON, WAS ADDED BACK TO THE TAXABLE INCOME OF THE ASSESSEE BY TREATING TH E SAME AS INCOME FROM UNDISCLOSED SOURCES U/S 68 OF THE ACT. THE ASSESSMENT ORD ER WAS PASSED U/S 144 R.W. SEC. 147 OF THE ACT, THE ASSESSEE CHALLENG ED THE ASSESSMENT ORDER BEFORE THE LD. CIT(A) ON THE GROUNDS T HAT THE ITO HAS ERRED IN MAKING ADDITION OF RS.7,83,000/- ON ACCOUNT O F ALLEGED NEGATIVE ITA NO.711/ASR/2017 (A.Y.2009-10) KULDIP SINGH, AMRITSAR VS. ITO 2 CASH BALANCE QUA CASH DEPOSITED BY THE APPELLANT IN HDFC BANK ACCOUNT DURING THE F.Y.2008-09. FURTHER THE ITO ERRED IN M AKING THE ADDITION ON ACCOUNT OF NEGATIVE BALANCE AFTER IGNORING THE FACT TH AT THE APPELLANT IS A SCHOOL TEACHER AND AN AGRICULTURIST AND THE APPELLANT W AS IGNORANT OF THE ASSESSMENT PROCEEDINGS, HOWEVER, EXPLAINED VERBALLY THE SOURCE OF CASH DEPOSIT IN THE BANK INSTEAD OF IN WRITING. IT WAS FURT HER OBSERVED THAT THE OBSERVATIONS MADE BY THE ASSESSING OFFICER ARE AGAINST THE FACTS AND DO NOT AFFORD ANY LEGAL JUSTIFICATION TO THE ADDITIONS MADE BECAUSE OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND MATERIAL ON RECORD HAVE NOT B EEN PROPERLY CONSIDERED AND JUDICIALLY INTERPRETED BY THE ASSESSING OFF ICER. IT WAS FURTHER AVERRED THAT ALTHOUGH THE ASSESSEE APPEARED ON 09.12.20 16 ALONG WITH HIS COUNSEL BEFORE THE AO, HOWEVER, AT THAT PARTICULAR DAT E THE AO WAS NOT AVAILABLE IN HIS OFFICE, THEREAFTER, ON DATED 13.12.2 016 WHEN THE ASSESSEE APPEARED BEFORE THE ASSESSING OFFICER FOR SUBMISSIONS OF D OCUMENTS IN SUPPORT OF THE CASH DEPOSITED IN THE BANK, THE ASSESSEE WA S INFORMED THAT EX-PARTE ORDER HAS ALREADY BEEN PASSED. IT WAS ALSO PLEA DED BY THE ASSESSEE THAT THE ASSESSMENT ORDER HAS BEEN PASSED IN HASTE MANNER A ND JUSTICE HAS BEEN MISCARRIED BY PASSING AN EX-PARTE ORDER. FURTHER, IT WAS ALSO AVERRED THAT THE SERVICE OF NOTICE U/S 147/148 DATED 30.03.2016 WAS NOT PROPER AND FINALLY IT WAS AVERRED THAT WITHOUT PREJUDICE, GROUND S OF APPEAL IN PARA NO.2, THE INCOME TAX OFFICER HAS ERRED IN CALCULATING NEGATIVE BALANCE WHILE MAKING ADDITION AND EVEN THE PRINCIPAL OF TELESCOPING HAS BEEN IGNORED. 3. THE LD. CIT(A) WHILE CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, PARTLY ALLOWED THE RELIEF TO THE ASSESSEE BY REDUCING TH E ADDITION OF RS.7,83,000/- TO 5,83,000/-. THE CONCLUDING PART OF TH E ORDER OF LD. CIT(A) IS REPRODUCED HEREIN BELOW FOR THE DISPOSAL OF THE APP EAL. DECISION: - THE ASSESEE HAD DEPOSITS OF RS.11,49,000/- IN HIS SAVINGS BANK ACCOUNT MAINTAINED IN HDFC BANK DURING F.Y.2008-09. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF CASH DEPOSITS IN THE BANK ACCOUNT OF HDFC BANK DURING THE YEAR UNDER CONSIDERATION BUT THE SA ME REMAINED ITA NO.711/ASR/2017 (A.Y.2009-10) KULDIP SINGH, AMRITSAR VS. ITO 3 UNEXPLAINED DESPITE SEVERAL OPPORTUNITIES GIVEN BY THE AO. THE AO PREPARED A CASH FLOW STATEMENT ON THE BASIS OF DEPOSITS AND WI THDRAWAL IN THE BANK ACCOUNT DURING THE YEAR AND CALCULATED A NEGATIVE C ASH BALANCE OF RS.7,83,000/-. SINCE THE ASSESSEE HAD FAILED TO EXP LAIN THE SOURCE OF CASH DEPOSITS IN THE BANK ACCOUNT THEREFORE, THE AO MADE THE ADDITION OF RS.7,83,000/- U/S 68 OF THE ACT. IN THE APPEAL PROCEEDINGS THE APPELLANT HAD SUBMITT ED THE STATEMENT SHOWING CALCULATION OF CASH IN HAND AFTER CONSIDERI NG THE OPENING CASH IN HAND OF RS.8,00,000/- AND WITHDRAWALS FROM HDFC BAN K AND SBI FROM 01- 04-2008 TO 13- 10-2008. THE OPENING CASH IN HAND AS ON 01-04-2008 WAS SHOWN AT RS.8,00,000/-. THE COPY OF JAMABANDI AND G ARDHORI OF THE AGRICULTURE LANDS OF THE ASSESSEE WERE ALSO SUBMITT ED WITH THE WRITTEN SUBMISSIONS ALONG WITH THE COPY OF STATEMENT OF ACC OUNT IN HDFC BANK LTD A/C NO. 116201000052818 FROM 01-04-2008 TO 25-01-20 09, AND THE STATEMENT OF ACCOUNT OF ASSESSEE IN STATE BANK OF I NDIA, AMRITSAR CANTT ACCOUNT NO. 10734607959 FOR THE PERIOD 08-04-2008 TO 19-03-2009 , THE COPY OF FORM 16 OF AMARJIT KAUR W/O THE APPELLANT FOR F. Y.2006-07 AND THE COPY OF ITR OF SMT. AMAIJIT KAUR W/O THE APPELLANT FOR A.Y. 2008-09 DECLARING AN INCOME OF RS.2,74,950/- AND THE AFFIDAVITS OF SH. K ULDIP SINGH (APPELLANT) DATED 24-04-2017 AND OF SH. P. C SHARMA, ADVOCATE O F THE APPELLANT DATED 24-04-2017; AND COPY OF AGREEMENT TO SELL THE LAND AT VILLAGE CHAKK SIKANDER, TEHSIL AJNALA DATED 08-02-2008 WITH SH BALDEV SINGH S/O SH. HAZARA SINGH FOR TOTAL CONSIDERATION OF RS.15,00,000/- AND RECEI VED RS.8,00,000/- AS BIANA. THE ABOVE ADDITIONAL EVIDENCES SUBMITTED BY THE APPELLANT WERE ADMITTED UNDER RULE 46A(1)(C) OF THE I.T. RULES 196 2 AS ABOVE AND ARE CONSIDERED FOR ADJUDICATING THE IMPUGNED APPEAL. A) REGARDING THE SOURCE OF THE OPENING CASH IN HAN D OF RS.8,00,000/- AS ON 01-04-2008 THE APPELLANT HAD NOT GIVEN ANY SPECI FIC EXPLANATION ABOUT THE SOURCE THEREOF AND IN THE WRITTEN SUBMISSIONS FILED IN APPEAL PROCEEDINGS IT WAS STATED THAT THE AO HAD NOT GIVEN ANY BENEFIT IN REGARD TO ACCUMULATION OF CASH SINCE LAST SO MANY YEARS AS THE ASSESSEE WAS B ORN IN THE YEAR 1955 AND WAS EARNING INCOME SINCE LAST 30 YEARS. ALSO TH E AO HAD NOT GIVEN THE BENEFIT OF AGRICULTURE INCOME OF RS.99,800/- EARNED DURING THE YEAR. IN THE YEAR UNDER CONSIDERATION, THE RETURNED INCOM E OF THE ASSESSEE FOR A Y 2009-10 WAS RS.1,99,840/- WHICH IS RS.16,65 3/- PER MONTH WHICH IS BARELY SUFFICIENT TO MEET THE HOUSE HOLD EXPENSES O F THE FAMILY OF THE APPELLANT. THE SALARY INCOME OF THE APPELLANT IN TH E EARLIER YEARS WAS LESSER THAN RS.16,553/- PM AND THEREFORE THE SALARY INCOME OF EARLIER YEARS AS WELL WAS NOT SUFFICIENT, FOR MEETING THE HOUSE HOLD EXPE NSES OF THE FAMILY OF THE APPELLANT. NEVERTHELESS, THE INDIANS HAVE A PROPENS ITY TO SAVE FROM THEIR INCOME AND THEREFORE CREDIT FOR SAVINGS OF RS.50,000/- FROM THE EARLIER YEARS IS ALLOWED TO THE APPELLANT OUT OF HIS PAST SALARY INCOME AND THE OPE NING CASH IN HAND AS OF 01-04-2008 IS UPHELD ONLY AT RS.50,00 0/- AS AGAINST CLAIM OF ASSESSEE AT RS.8,00,000/-. ITA NO.711/ASR/2017 (A.Y.2009-10) KULDIP SINGH, AMRITSAR VS. ITO 4 (B) AS REGARDS THE CLAIM OF HAVING EARNED AGRICULT URE INCOME OF RS.1,99,800/- DURING THE YEAR 2008-09, IT IS OBSERV ED THE APPELLANT HAD NOT FILED HIS RETURN OF INCOME FOR A Y 2009-10 U/S 139( 1) OR IN COMPLIANCE TO THE NOTICE U/S 148 OF THE ACT. NO CLAIM OF HAVING EARNED AGRICULTURE INCOME WAS MADE BY THE APPELLANT IN THE RETURN OF INCOME FILED ON 02-07-2009 DECLARING TOTAL INCOME OF RS.1,99,840/-, THE IMPUGNED ASSESSM ENT PROCEEDINGS AND ALSO NO EVIDENCE IN THE FORM OF J FORMS WAS SUBMI TTED BY THE APPELLANT TO SHOW THAT HE EARNED ANY AGRICULTURE INCOME OUT OF H IS SHARE IN THE AGRICULTURE LAND HOLDING, WHOSE JAMABANDIS WERE SUBMITTED BY TH E APPELLANT IN APPEAL PROCEEDINGS. THEREFORE, IT IS HELD THAT THE CLAIM O F AGRICULTURE INCOME OF RS1,99,800/- IN F.Y.2008-09 IS DENIED TO THE APPELL ANT AND NO CREDIT IS ALLOWED TO THE APPELLANT OUT OF HIS SAID CLAIM OF A GRICULTURE INCOME. (C) THE STATEMENT OF ACCOUNT OF ASSESSEE IN STATE BANK OF INDIA, AMRITSAR CANTT ACCOUNT NO. 10734607959 FOR THE PERIOD 08-04- 2008 TO 19-03-2009. THE ASSESSEE HAD DISCLOSED ONLY ONE BANK ACCOUNT WITH H DFC BANK A/C NO. 1367160004120 WHICH WAS ALREADY CLOSED BY HIM VIDE LETTER DATED 28-07- 2016. THE ASSESSEE HAD NOT DISCLOSED HIS OTHER BANK ACCOUNT IN STATE BANK OF INDIA TO THE AO IN THE ASSESSMENT PROCEEDINGS. THE COPY OF THE STATEMENT OF ACCOUNT FOR THE F Y 2008-09 IN STATE BANK OF INDIA, AMRITSAR CANTT WAS PERUSED WHICH REVEALED MONTHLY CREDITS FROM CEMETEX DEP, AJNALA OF RS.18,678/- FROM APRIL, 2008 TO AUGUST, 2008 AND MO NTHLY CREDITS OF RS.19,652/- EACH FROM SEPT, -2008 TO JANUARY, 2009, AND CREDIT OF RS.21,670/-, AND 20,136/- IN FEBRUARY, 2009 AND MAR CH, 2009 RESPECTIVELY WHICH TOTALS TO RS. (93,390 + 98,260 + 21,670 +20,136) = RS.233,456/- THESE CREDITS APPEAR TO BE IN THE NATURE OF SALARY RECEIP TS FROM CEMETEX DEP, AJNALA AGAINST WHICH THE INCOME RETURNED BY THE ASSESSEE H AD BEEN DECLARED AT RS.1,99,840/-. THEREFORE THE APPELLANT HAD ALREADY DECLARED IN HIS RETURN OF INCOME FOR A Y 2009-10 THE RECEIPTS CREDITED IN HIS SAVING BANK ACCOUNT IN STATE BANK OF INDIA, AMRITSAR CANTT AS ABOVE FROM S ALARY INCOME. THE SAID BANK STATEMENT OF ASSESSEE IN SBI ALSO REVEALED MON THLY WITHDRAWALS THROUGH ATM OF AMOUNTS VARYING FROM RS.5,000/- TO R S.15,000/- AT A TIME, WHICH WERE FOR MEETING HIS MONTHLY HOUSE HOLD EXPEN SES AND OTHER EXPENSES. THEREFORE NO CREDIT IS ALLOWED TO THE APPELLANT OF THE CUMULATIVE CASH WITHDRAWALS OF RS.1,27,900/- FROM SAVINGS ACCOUNT O F THE APPELLANT FROM 01- 04-2008 UP TO 30-10-2008 OR FOR THE TOTAL CASH WITH DRAWAL MADE THROUGH ATM FROM THE SAID BANK ACCOUNT OF THE APPELLANT IN SBI DURING F.Y.2008-09 OUT OF THE SALARY INCOME OF THE CURRENT YEAR. FURTHER IF THE CASH WITHDRAWALS THROUGH ATM FROM TH E SAID S B ACCOUNT OF THE APPELLANT IN SBI, AMRITSAR CANTT WERE ONLY T O BE ACCUMULATED THROUGHOUT THE YEAR FOR MAKING CASH DEPOSIT IN HIS SAVINGS ACCOUNT IN HDFC BANK, THEN WHAT WAS THE SOURCE OF HIS MEETING HIS H OUSE HOLD EXPENSES AND OTHER EXPENSES INCURRED BY THE APPELLANT ON FAMILY AND SOCIAL OBLIGATIONS THROUGHOUT THE YEAR, WHICH HAS NOT BEEN EXPLAINED B Y THE APPELLANT. THEREFORE NO CREDIT IS ALLOWED TO THE APPELLANT OUT OF HIS CA SH WITHDRAWALS FROM S B ACCOUNT IN SBI. ITA NO.711/ASR/2017 (A.Y.2009-10) KULDIP SINGH, AMRITSAR VS. ITO 5 (D) SALARY INCOME OF HIS SMT. AMARJIT KAUR, W/O THE APPELLANT- THE COPY OF ACKNOWLEDGEMENT OF ITR FOR A.Y.2008-09 OF SMT. AMAI JIT KAUR W/O THE APPELLANT REVEALED GROSS - SALARY INCOME OF RS.2,74,950/- AND AFTER DEDUCTIONS UNDER CHAPTER VIA OF RS.99,087/- THE NET SALARY INC OME WAS RS.1,75,869/-. THE COPY OF FORM 16 OF SMT. AMARJIT KAUR FOR F.Y. 2 006-07 REVEALED GROSS SALARY INCOME OF RS.2,10,984/- AND AFTER DEDUCTIONS OF RS.80,094/- UNDER CHAPTER VIA, THE NET SALARY INCOME WAS SHOWN AT RS.1,30,890/-. CONSIDERING THAT THE WITHDRAWALS OF SALARY INCOME OF THE APPELL ANT IN SBI HAD BEEN APPLIED FOR HOUSE HOLD EXPENSES, THEREFORE, THE NET SALARY INCOME OF RS.1,75,869/- AND RS.1,30,890/- OF A.Y.2008-09 AND 2007-08 AFTER DEDUCTING SOME EXPENSES/SAVINGS THEREFROM WAS AVAILABLE WITH THE APPELLANT. THE APPELLANT IS ALLOWED MAXIMUM CREDIT OF RS.1,50,000/ - OUT OF THE SALARY INCOME OF HIS WIFE FOR A.Y.2008-09 AND 2007-08 FOR DEPOSIT OF CASH IN HIS SAVING BANK ACCOUNT IN HDFC. (E) THE APPELLANT SUBMITTED COPY OF AGREEMENT TO S ELL THE LAND AT VILLAGE CHAKK SIKANDER, TEHSIL AJNALA DATED 08-02-2008 WITH SH. BALDEV SINGH S/O SH HAZARA SINGH FOR TOTAL CONSIDERATION RS.15,00,00 0/- AND RECEIVED RS.8,00,000/- AS BIANA. NO DOUBT THERE IS NO LEGAL REQUIREMENT FOR REGISTRA TION OF THE AGREEMENT TO SELL AS IT DOES NOT TRANSFER TH E PROPERTY TO THE PROPOSED BUYER, BUT IN ABSENCE OF ANY AFFIDAVIT OR CONFIRMAT ION OF THE TRANSACTION OF SAID AGREEMENT TO SELL DATED 08-02-2008 FROM THE PR OPOSED BUYER SH. BALDEV SINGH, S/O HAZARA SINGH AND OF ANY WITNESS WHO WITN ESSED THE SAID AGREEMENT TO SELL CONFIRMING THE RECEIPT OF BIANA O F RS.8,00,000/- BY THE APPELLANT, THEREFORE THE GENUINENESS OF THE SAID AG REEMENT TO SELL DATED 08- 02-2008 STANDS NOT PROVED AND THEREFORE, NO CREDIT IS ALLOWED TO THE APPELLANT ON ACCOUNT OF THE SAID BIANA OF RS.8,00,000/-. (F) THE CASH FLOW STATEMENT SUBMITTED BY THE APPEL LANT BY CONSIDERING THE AMOUNTS WITHDRAWN/DEPOSITED FROM/IN HIS SAVINGS ACCOUNT IN HDFC BANK AND STATE BANK OF INDIA DURING F.Y.2008-09 DOES NOT TAKE INTO ACCOUNT THE UTILIZATION OF THE CASH WITHDRAWALS FOR HOUSE HOLD EXPENSES AND FAMILY EXPENSES OF THE APPELLANT. ALSO THE OPENING CASH IN HAND HAD BEEN SHOWN BY THE ASSESSEE AS ON 01-04-2008 AT RS.8,00,000/- WHIC H HAS ALREADY REJECTED (EXCEPT FOR RS.50,000) AS DISCUSSED ABOVE. THEREFOR E THE SAID CASH FLOW STATEMENT CANNOT BE ACCEPTED AS CORRECT AND IS DISM ISSED. THEREFORE THE APPELLANT IS ALLOWED THE CREDIT OF RS (50,000 + 150,000) = RS.2,00,000/- AS ABOVE WHICH WAS AT BEST AVAILABLE WITH THE APPELLANT FOR DEPOSIT IN HIS SAVING BANK ACCOUNT IN HDFC BANK. TH E EXPLANATION OF THE APPELLANT WITH REGARD TO THE BALANCE CASH CREDIT IN THE HDFC BANK OF RS.5,83,000/- IS CONSIDERED UNSATISFACTORILY EXPLAI NED IN VIEW OF THE ABOVE DISCUSSION. THEREFORE THE ADDITION OF RS.7,83,000/- IS REDUCED TO AND CONFIRMED AT RS.5,83,000/-. 4. ON FEELING AGGRIEVED AGAINST THE ORDER PASSED BY THE LD. CIT(A), THE ASSESSEE PREFERRED THE INSTANT APPEAL. ITA NO.711/ASR/2017 (A.Y.2009-10) KULDIP SINGH, AMRITSAR VS. ITO 6 5 . WE HAVE HEARD THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. BEFORE THE LD. CIT(A) IN THE APPELLATE PROCEE DING, THE ASSESSEE HAD SUBMITTED THE STATEMENT SHOWING CALCULATION OF CASH IN HA ND AFTER CONSIDERING THE OPENING CASH IN HAND RS.8,00,000/- AND W ITHDRAWALS FROM HDFC BANK AND SBI BANK FROM 1 ST APRIL, 2008 TO 13 TH OCTOBER, 2008. THE ASSESSEE HAD ALSO SUBMITTED THE COPY OF JAMABANDI AND GARD HORI OF THE AGRICULTURE LANDS OF THE ASSESSEE ALONG WITH FORM-16 OF A MRJIT KAUR, WIFE OF THE APPELLANT FOR F.Y.2006-07 AND THE COPY OF THE IT R OF SMT. AMARJIT KAUR FOR THE A.Y.2008-09 DECLARING THE TOTAL INCOME OF RS.2 ,74,950/- AND THE COPY OF THE AGREEMENT TO SELL OF THE LAND AT VILLAGE CHAKK SIKANDER, TEHSIL AJNALA DATED 08.02.2008 WITH SH. BALDEV SINGH S/O S H. HAZARA SINGH FOR TOTAL CONSIDERATION OF RS.15,00,000/- AND HAD SHOWN TH E AMOUNT OF RS.8,00,000/- RECEIVED AS BAYANA. THE SAID ADDITIONAL E VIDENCE FILED BY THE ASSESSEE WAS ADMITTED UNDER RULE-46A (1)(C) OF THE I.T.R ULE,1962 AND THEREAFTER, TAKEN INTO CONSIDERATION BY THE LD. CIT(A ). BEFORE THE LD. CIT(A), THE ASSESSEE HAD CLAIMED THAT THE ASSESSEE WAS BORN IN THE YEAR 1955 AND WAS EARNING SINCE FOR THE LAST 30 YEARS, HOWE VER, THE AO HAD NOT GIVEN THE BENEFIT OF AGRICULTURE INCOME OF RS.99,800/- EARNED DURING THE YEAR. 5.1 WHILE ADJUDICATING THE CLAIM OF THE ASSESSEE, THE LD . CIT(A) ALLOWED RS.50,000/- AS OPENING CASH IN HAND AS ON 01.04.2008 QUA PAST SALARY INCOME OF THE ASSESSEE. WITH REGARD TO THE AGRICULTURE I NCOME OF RS.1,99,800/- DURING THE YEAR 2008-09, IT WAS OBSERVED BY THE LD. CIT(A) THAT THE ASSESSEE HAD NOT FILED HIS RETURN OF INCOME FOR A.Y.2009-10 U/S 139(1) OR IN COMPLIANCE TO THE NOTICE U/S 148 OF THE A CT AND EVEN NO EVIDENCE IN THE FROM OF J FORMS SUBMITTED BY THE APP ELLANT TO SHOW THAT HE EARNED ANY AGRICULTURE INCOME OUT OF HIS SHARE IN TH E AGRICULTURE LAND ITA NO.711/ASR/2017 (A.Y.2009-10) KULDIP SINGH, AMRITSAR VS. ITO 7 HOLDING AGAINST WHICH JAMABANDIS WERE SUBMITTED BY THE ASSESSEE/APPELLANT IN APPEAL PROCEEDINGS, THEREFORE, THE CLAIM OF RS.1,99, 800/- DURING THE F.Y.2008-09 WAS DENIED TO THE ASSESSEE/APPELLANT BY THE LD. CIT(A). WHILE CONSIDERING THE STATEMENT OF ACCOUNT MAINTAINED WITH SBI AND HDFC BANK BY THE ASSESSEE, THE LD. CIT(A) DECLINED TO ALLOW THE CRE DIT ON ACCOUNT OF THE CUMULATIVE CASH WITHDRAWALS OF RS.1,27,900/- FROM THE SAV ING ACCOUNT OF THE APPELLANT FROM 01.04.2008 UPTO 30.10.2008. WITH REG ARD TO THE INCOME OF THE ASSESSEES WIFE SMT. AMRJIT KAUR, THE CREDIT OF RS.1,5 0,000/- OUT OF THE SALARY INCOME OF THE ASSESSEE'S WIFE FOR A.Y.2008-09 AND 2 007-08 FOR DEPOSIT IN ASSESSEES SAVING BANK ACCOUNT IN HDFC WAS ALLOWED. THE ASSESSEE HAS FAILED TO DEMONSTRATE, UNDER WHICH CIRCUMSTANCE S THE AFORESAID ACTION OF THE LD. CIT(A) WAS PERVERSE, ILLEGAL AND IMP ROPER, HENCE WE AFFIRM THE ACTION OF THE LD. CIT(A). 5.2 BEFORE US, THE ASSESSEE HAS ALSO SHOWN THE AGREEMENT TO SELL QUA LAND AT VILLAGE CHAKK SIKKANDER, TEHSIL AJNALA DATED 08-0 2-2008 WITH SH. BALDEV SINGH, S/O SH. HAZARA SINGH FOR TOTAL CONSIDERATION OF RS.15,00,000/- AND HAD SHOWN AN AMOUNT OF RS.8,00,000/- AS BAYANA RECEIP T. IT WAS OPINED BY THE LD. CIT(A) THAT ALTHOUGH, THERE IS NO LEGAL REQ UIREMENTS FOR REGISTRATION OF THE AGREEMENT TO SELL AS IT DOES NOT TRANSFER TO PRO PERTY BY THE PROPOSED BUYER, BUT IN ABSENCE OF ANY AFFIDAVIT OR CONFIRMATION OF THE TRANSACTION OF SAID AGREEMENT TO SALE DATED 08.02.2008 FROM THE PROP OSED BUYER SH. BALDEV SINGH S/O SH. HAZARA SINGH AND ANY WITNESS, WH O WITNESSED THE SAID AGREEMENT TO SALE, CONFIRMING THE RECEIPT OF BAYANA OF RS.8,00,000/- BY THE APPELLANT, THEREFORE, THE GENUINENESS OF THE SAID AGRE EMENT TO SALE DEED DATED 08-02-2008 STANDS NOT PROVED AND THEREFORE, N O CREDIT WAS ALLOWED TO THE APPELLANT ON ACCOUNT OF SAID BAYANA OF RS.8,00,000 /-. ITA NO.711/ASR/2017 (A.Y.2009-10) KULDIP SINGH, AMRITSAR VS. ITO 8 5.3 ON SPECIFIC QUERY BY THIS BENCH, AS TO WHAT HAS HAPPEN ED QUA AGREEMENT TO SALE, IT WAS SUBMITTED BY THE LD. AR THAT AGREEMENT TO SALE STOOD CANCELLED VIDE CANCELLATION AGREEMENT DATED 07.11. 2007 ON THE GROUND THAT NO PARTITION HAS BEEN EFFECTED BETWEEN T HE BROTHERS, THEREFORE, THE DEAL COULD NOT BE MATERIALIZED AND THE AMOUNT OF RS.8,00,000/- (1 LAC AS CASH AND 7 LAC THROUGH ONLINE TRANSFER BEARING NO.SBIN R-5211-7110-7000- 6250-3 DATED 7.11.2017) WAS REFUNDED. ONE OF THE CLAU SE OF THE AGREEMENT TO SELL DATED 25.03.2008 ON WHICH THE ASSESSEE HAD MADE I TS CASE, CLEARLY REFLECTS THAT THE SUBJECTED PROPERTY UNDER PROPOSED SALE IS FREE FROM SORTS OF ENCUMBRANCES SUCH AS SALE, MORTGAGE, GIFT, TRANSFER, DECRE E, LITIGATION, ACQUISITION/NOTIFICATION NOR ATTACHED AS SECURITY UNDER ANY BAIL BUT IS CLEAN AND CLEAR MARKETABLE PROPERTY AND NO AGREEMENT HAS BE EN EXECUTED REGARDING THE ABOVE SAID LAND BEFORE. THE CANCELLATION DEED DUE TO PARTITION DISPUTE, AS RELIED UPON BY THE ASSESSEE, IS CONTRARY TO TH E SAID CLAUSE OF THE AGREEMENT TO SELL THEREFORE CASTS DOUBTS ABOUT ITS AUTHEN TICITY. EVEN IN THE SAID AGREEMENT, IT WAS PROPOSED THAT REGISTRATION OF SAL E DEED WILL BE ON OR BEFORE 25.03.2008 AND THEREAFTER, VIDE REMINDER DAT ED 25.03.2008, THE DATE OF REGISTRATION WAS EXTENDED UP TO 24.09.2008. WE H AVE FAILED TO UNDER STAND AS TO WHAT PREVENTED THE ASSESSEE FOR EXECUTING THE SALE DEED UPTO 2017. NOTHING HAS BEEN SHOWN AND BROUGHT BEFORE US QUA ANY DISPUTE WITH REGARD TO THE SUBJECTED PROPERTY AND/OR ANY DOCUMENT B Y WHICH IT CAN BE ESTABLISHED THAT THE ASSESSEE HAD EVER TRIED TO GET DEMA RCATE/PARTITION THE PROPERTY AGAINST WHICH THE EARNEST MONEY OF RS.8,00,000 /- HAS BEEN TAKEN AND WHICH WAS PROJECTED BY THE ASSESSEE AS IN CASH IN HAND AS ON 1 ST APRIL, 2008. THEREFORE, ON THE AFORESAID REASONS, WE ARE UNAB LE TO CONVINCE OURSELF QUA DESIRABILITY OF THE CANCELLATION AGREEMENT. IN OUR VIEW, THE ASSESSEE HAS CLEARLY FAILED TO PROVE THE TRANSACTION MADE THROUGH AGREEMENT TO SALE DEED 08.02.2008 AS GENUINE AND HENCE, WE ARE NOT INCLINED T O GRANT ANY RELIEF IN ITA NO.711/ASR/2017 (A.Y.2009-10) KULDIP SINGH, AMRITSAR VS. ITO 9 PURSUANCE TO THE SAID AGREEMENT TO SALE AS DISCUSSED ABOVE. THE LD. CIT(A) HAS RIGHTLY AFFIRMED THE ADDITION OF RS.5,83,000/-. 5.4 IN OVERALL CONSIDERATION AND OBSERVATION MADE ABOV E, WE ARE OF THE CONSIDERED VIEW THAT THE ASSESSEE HAS FAILED TO ESTABLISH T HE PERVERSITY, IMPROPRIETY AND ILLEGALITY IN THE ORDER IMPUGNED HE REIN, HENCE, THE SAME IS LIABLE TO BE UPHELD. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS STAND S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22.01.2019. SD/- SD/- (SANJAY ARORA) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDIC IAL MEMBER DATED: 22.01.2019 /PK/ PS. COPY OF THE ORDER FORWARDED TO: (I) KULDIP SINGH H.NO.399-A, GURU AMAR DASS AVENUE, AJANALA ROAD, AMRITSAR (2) INCOME TAX OFFICER WARD-4(3), AMRITSAR (3) THE CIT(A), AMRITSAR (4) THE CIT CONCERNED (5) THE SR DR, I.T.A.T., AMRITSAR TRUE COPY BY ORDER