Shri Jasvir Singh, Kurukshetra V. ITO-Ward-1, Kurukshetra

ITA 77/CHANDI/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7446 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-08-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 20-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69

Judgement Text

, ,A, IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A CHANDIGARH BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER, AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 77/CHD/2020 / ASSESSMENT YEAR: 2013-14 SHRI JASVIR SINGH S/O RANDHEER SINGH, H. NO. 287A, VILLAGE DIWANA, TEHSIL PEHOWA, DISTT. KURUKSHETRA INCOME TAX OFFICER, WARD-1, KURUKSHETRA ./PAN NO : CNQPS 4895G /APPELLANT /RESPONDENT /ASSESSEE BY : SHRI ASHWANI KUMAR GARG, CA ! / REVENUE BY : SMT. C. CHANDRAKANTA, CIT, SMT. MEENAKSHI VOHRA, ADDL. CIT ' #$ /DATE OF HEARING : 04.08.2021 %&'($ /DATE OF PRONOUNCEMENT : 25 .08.2021 (THROUGH VIRTUAL HEARING) /ORDER PER ANNAPURNA GUPTA, A.M. : THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APP EALS), KARNAL [IN SHORT REFERRED TO AS CIT(A)] DATED 20-11-2019 U/S 250(6) OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS ACT). ITA NO. 77/CHD/2020 JASVIR SINGH V. ITO, KURUKSHETRA 2 2. THE SOLITARY ISSUE RAISED IN THE PRESENT APPEAL RE LATES TO ADDITION MADE U/S 69 OF THE ACT IN THE FACTS OF THE CASE THAT AN ADVANCE MADE BY THE ASSESSEE BY CHEQUE TO ONE MR. G URJAN SINGH OF RS.28,00,000/- REMAINED UNEXPLAINED. WE HAVE HEARD BOTH THE PARTIES. IT IS A FACT ON REC ORD THAT THE AMOUNT WAS ADVANCED THROUGH BANKING CHANNELS BY CHE QUE DATED 12.03.2013. THE REASON FOR HOLDING THE ADVANCE AS U NEXPLAINED IS THAT THERE WAS A CASH DEPOSIT OF EQUAL AMOUNT IN TH E BANK ACCOUNT A DAY BEFORE THE CHEQUE FOR THE ADVANCE WAS ISSUED. T HE AO EXAMINED THE DAY BOOK AND FOUND THAT CASH TO THE SA ID EXTENT WAS NOT THERE NOR WAS THERE ANY ENTRY REFLECTING CASH D EPOSITED IN THE BANK. IN EFFECT THIS CASH DEPOSIT COULD NOT BE EXPL AINED BY THE ASSESSEE. THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE IS THAT, THE ASSESSEE CARRIES ON BUSINESS, THE BANK ACCOUNT RELA TES TO ITS BUSINESS AND STANDS REFLECTED IN ITS FINANCIAL STATEMENTS, W HICH FACTS ARE NOT DISPUTED BY THE REVENUE. THAT ALL ENTRIES IN THE SA ID BANK ACCOUNT ACCORDINGLY STAND ENTERED IN THE BOOKS MAINTAINED B Y THE ASSESSEE, WHICH BOOKS ARE MAINTAINED ON DOUBLE ENTRY SYSTEM A ND HAVE BEEN DULY AUDITED ALSO. THEREFORE THERE IS NO QUESTION O F THE CASH ENTRY NOT HAVING BEEN ACCOUNTED FOR IN THE BOOKS OF THE A SSESSEE. THAT THE SAID CASH ENTRY HAD BEEN EXPLAINED TO BE ON ACCOUNT OF SALE RECEIPTS. ITA NO. 77/CHD/2020 JASVIR SINGH V. ITO, KURUKSHETRA 3 THAT THEREFORE BOTH THE ADVANCE AND THE CASH DEPOSI TED IN THE BANK STAND DULY EXPLAINED. WE AGREE WITH THE LD. COUNSEL THAT THE ADVANCE ADMI TTEDLY IS SOURCED FROM THE CASH DEPOSITED IN THE BANK IMMEDIA TELY BEFORE IT HAS BEEN GIVEN, BUT THEN AT THE SAME TIME THE SOURC E OF THE CASH DEPOSITED IN BANK REMAINED UNEXPLAINED, SINCE UNDEN IABLY THE ASSESSEE WAS UNABLE TO SUBSTANTIATE ITS CLAIM THAT THE SAME RELATED TO RECEIPTS FROM SALES MADE BY IT. NO BOOKS OF ACCO UNTS WERE PRODUCED BEFORE THE AO. THE DAY BOOK PRODUCED DID N OT REFLECT THE TRANSACTION. FOR THE LIMITED PURPOSE THEREFORE OF E XAMINING THE SOURCE OF CASH DEPOSITED IN BANK IMMEDIATELY BEFORE THE MAKING OF THE ADVANCE, WE RESTORE THE ISSUE BACK TO THE AO. I T GOES WITHOUT SAYING THAT THE MATTER BE DECIDED AFTER GIVING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. 3. THE APPEAL OF THE ASSESSEE STANDS ALLOWED THEREFOR E FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25.08.2021. SD/- SD/- (SATBEER SINGH GODARA) (ANNAPURN A GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 25.08.2021 GP/SR.PS &) *+,+ / COPY OF THE ORDER FORWARDED TO : ITA NO. 77/CHD/2020 JASVIR SINGH V. ITO, KURUKSHETRA 4 1. / THE APPELLANT 2. / THE RESPONDENT 3. ' - / CIT 4. ' - ( )/ THE CIT(A) 5. +./ 0 , $0 , 123/4 / DR, ITAT, CHANDIGARH 6. /35# / GUARD FILE ' / BY ORDER, / ASSISTANT REGISTRAR 1. DRAFT DICTATED 04.08.2021 SR.PS 2. DRAFT FIRST PLACED BEFORE AUTHOR 06.08.2021 3. APPROVED DRAFT COMES TO SR.PS/PS 4 FINAL DRAFT PLACED BEFORE AUTHOR 5. ORDER SIGNED AND PRONOUNCED ON 6 FILE SENT TO THE BENCH CLERK SR.PS 7. DATE ON WHICH FILE GOES TO THE AR 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 9. DATE OF DISPATCH OF ORDER