Shri Manjit Singh, Mohali V. ITO, W-6(4), Mohali

ITA 753/CHANDI/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3694 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 15-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, SMC, CHANDIGARH , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 753/CHD/2019 / ASSESSMENT YEAR : 2010-11 SHRI MANJIT SINGH, # 58, GILLCO VALLEY, KHARAR, MOHALI VS. THE ITO, WARD-6(4), MOHALI ./PAN NO. ABTPS1847B / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE ' ! / REVENUE BY : SH. MANJIT SINGH, CIT DR # $ % /DATE OF HEARING : 06.11.2019 &'() % / DATE OF PRONOUNCEMENT : 06.11.2019 / ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 28.3.2019 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) H AS ERRED IN LAW AS WELL AS ON FACTS IN UPHOLDING THE A DDITION OF RS. 10,00,000/- MADE IN RESPECT OF DEPOSITS IN BANK ACCOUNT WHICH IS ARBITRARY AND UNJUSTIFIED. ITA NO. 753-CHD-2019- SHRI MANJIT SINGH, MOHALI 2 2. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) H AS ERRED IN HOLDING THAT GENUINENESS AND CREDITWORTHIN ESS REMAINED UNADDRESSED WHICH IS ARBITRARY AND UNJUSTI FIED. 3. THAT THE LD. COMMISSIONER HAS UPHELD THE ADDITION F OR WANT OF FULFILLMENT OF CONDITIONS WHICH ARE AKIN TO SECTION 68 OF THE ACT WHICH SECTION IN ANY CASE IS NOT APPLICABLE IN THE INSTANT CASE AND AS SUCH THE ADDITION UPHELD IS ARBITRARY A ND UNJUSTIFIED. 4. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) H AS WITHOUT APPRECIATING THE FACTS AS PLACED BEFORE HIM IN THE RIGHT PERSPECTIVE UPHELD THE ADDITION, WHICH IS ARB ITRARY AND UNJUSTIFIED. 5. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TA X (APPEALS) IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW A ND FACTS OF THE CASE AND IS, THUS, UNTENABLE. 3. THE SOLE ISSUE RAISED IN THIS APPEAL IS REGARDIN G THE CONFIRMATION OF ADDITION OF RS. 10 LACS MADE BY THE ASSESSING OF FICER ON ACCOUNT OF UNEXPLAINED DEPOSITS IN THE BANK ACCOUNT OF THE ASS ESSEE . 2. I HAVE HEARD THE RIVAL CONTENTIONS OF THE LD. AU THORIZED REPRESENTATIVES OF BOTH THE PARTIES. THE LD. COUNSE L FOR THE ASSESSEE FROM THE RECORD HAS EXPLAINED THAT THE ASSESSEE ON 11.8.2009 HAD WITHDRAWN AN AMOUNT OF RS. 9,95,000/- FROM HIS BANK ACCOUNT MAINTAINED WITH STATE BANK OF INDIA. THE LD. COUNSE L HAS FURTHER EXPLAINED THAT THE SAID AMOUNT WAS RE-DEPOSITED IN THE BANK VIDE SIX TRANSACTIONS, DETAILED AS UNDER :- DATE AMOUNT 24.10.2009 120000 ITA NO. 753-CHD-2019- SHRI MANJIT SINGH, MOHALI 3 03.11.2009 650000 11. 11.2009 25000 12.11.2009 77000 13.11.2009 134500 14.11.2009 24000 THE ASSESSEE HAD GIVEN AN EXPLANATION BEFORE THE LO WER AUTHORITIES THAT THE FRIEND OF THE ASSESSEE NAMELY SHRI KULDEEP SING H HAD DEMANDED THE MONEY FROM THE ASSESSEE FOR SOME LAND PURCHASE TRAN SACTIONS. THAT THE ASSESSEE, THEREFORE, WITHDREW THE SAID AMOUNT FROM HIS BANK ACCOUNT AND HANDED OVER THE SAME TO HIS FRIEND SHRI KULDEEP SIN GH. HOWEVER, THE SAID LAND PURCHASE TRANSACTIONS DID NOT MATURE, HEN CE, SHRI KULDEEP SINGH REFUNDED THE AMOUNT TO THE ASSESSEE IN SIX IN STALLMENTS WITHIN A SHORT PERIOD OF FEW MONTHS AND THE SAME WAS RE-DEPOSITED BY THE ASSESSEE INTO THE BANK ACCOUNT. THE LD. CIT(A) REJE CTED THE ABOVE CONTENTION OF THE ASSESSEE ON THE GROUND THAT IF T HE CONTENTION OF THE ASSESSEE WAS TO BE PRESUMED AS TRUE, THE ENTIRE AM OUNT WOULD HAVE BEEN REFUNDED IN A SINGLE TRANSACTION. 3. I DO NOT AGREE WITH THE ABOVE PRESUMPTION RAISED BY THE LD. CIT(A). IT IS NOT IN THE HANDS OF THE ASSESSEE TO COMPEL BORROWER THE REFUND OF ENTIRE AMOUNT BY WAY OF A LUMPSUM PAYMEN T IN A SINGLE TRANSACTION. THE FACT ON THE FILE IS THAT THE AMOU NT OF RS. 10 LACS WAS WITHDRAWN BY THE ASSESSEE FROM HIS BANK ACCOUNT O N 11.8.2009 AND THE AMOUNT HAS BEEN REFUNDED WITHIN SHORT SPAN OF PER IOD. THE ASSESSEE ITA NO. 753-CHD-2019- SHRI MANJIT SINGH, MOHALI 4 HAS ALSO EXPLAINED THE REASONS FOR THE WITHDRAWALS AND FURTHER REASONS FOR RE-DEPOSIT. EVEN THE ASSESSEE HAS FILED THE CON FIRMATION FROM SHRI KULDEEP SINGH IN THE SHAPE OF THE AFFIDAVIT OF SAID SHRI KULDEEP SINGH AFFIRMING THAT HE HAD RECEIVED THE SAID AMOUNT OF R S. 10 LACS FROM THE ASSESSEE. THERE IS NO EVIDENCE ON FILE OF RECEIPT O F ANY OTHER INCOME BY THE ASSESSEE OF THE AMOUNT OF RS. 10 LACS FROM ANY OTHER SOURCE. THE ASSESSEE, IN MY VIEW, HAS EXPLAINED THE SOURCE OF D EPOSIT OF THE AMOUNT OF RS. 10 LACS. IN VIEW OF THIS, THE ADDITION MADE BY THE LOWER AUT HORITIES IS NOT SUSTAINABLE IN THE EYES OF LAW AND THE SAME IS ACCO RDINGLY ORDERED TO BE DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS HEREBY ALLOWED ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING. SD/- ( / SANJAY GARG) / JUDICIAL MEMBER DATED :06.11.2019 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR ITA NO. 753-CHD-2019- SHRI MANJIT SINGH, MOHALI 5 .