Shri Baljit Yadav, Jind V. ITO, W-1, Jind

ITA 784/CHANDI/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0673 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 17-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SUDERSHAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, SMC, CHANDIGARH , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 784/CHD/2019 / ASSESSMENT YEAR : 2015-16 SHRI BALJIT YADAV, VPO PANDU PINDARA, DISTRICT JIND VS. THE ITO, WARD -1 JIND ./PAN NO. ACJPY8417E / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI NIKHIL GOYAL, ADVOCATE & SHRI ASHOK GOYAL, CA ' ! / REVENUE BY : SHRI. ARVIND SUDERSHAN, JCIT # $ % /DATE OF HEARING : 12.03.2020 &'() % / DATE OF PRONOUNCEMENT : .2020 / ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 28.02.2019 OF THE COMMISSIONER OF INCOM E TAX (APPEALS), HISAR, HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LD. CIT(A) HAS ERRED IN GIVING A FINDIN G ABOUT THE VALIDITY OF NOTICE U/S 143(2), WHICH WAS NOT SERVED UPON THE ASSESSEE WITHIN THE TIME AS PRESCRIBED UNDER THE INCOME TAX ACT. ITA NO. 784-CHD-2019 SHRI BALJIT YADAV, JIND 2 2. THAT THE LD. CIT(A) HAS ERRED IN NOT ACCEDING TO THE SUBMISSIONS OF THE ASSESSEE WITH REGARD TO THE FACT THAT THE ASSESSMENT AS COMPLETED BY THE ASSESSING OFFICER WAS BARRED BY TIME. 3. THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 22,47,220/-AS PER PARA 6.3 OF THE ORDER. 4. THAT THE ADDITION HAVE BEEN CONFIRMED AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE SUBMISSIONS MADE BEFORE THE CIT(A) HAVE NOT BEEN FULLY APPRECIATED. 5. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROUNDS OF APPEAL BEFORE THE APPEAL IS FINALLY HEARD OFF. 3. GROUND NOS. 1 & 2 : GROUND NOS. 1 & 2 HAVE NOT BEEN PRESSED BY THE LD. COUNSEL FOR THE ASSESSEE AND THE SAME ARE A CCORDINGLY DISMISSED AS NOT PRESSED. 4. GROUND NO.3 : VIDE GROUND NO.3, THE ASSESSEE THE CONTESTED THE ACTION OF THE CIT(A) IN CONFIRMING THE ADDITION OF RS. 22,47,220/- REJECTING THE CONTENTION OF THE ASSESSEE THAT THE S AME WAS CASH IN HAND AT THE OPENING OF THE FINANCIAL YEAR 2014-15 RELATI NG TO ASSESSMENT YEAR 2015-16. THE ASSESSEE CLAIMED CASH IN HAND OF RS. 2 6,45,220/- AS ON 31.3.2013 AND EXPLAINED THAT RS. 12 LACS AND RS. 7 LACS WERE WITHDRAWN ON 27.12.2013 AND 31.12.2013 RESPECTIVELY FROM THE BANK ACCOUNT OF THE ASSESSEE WITH AXIS BANK AND FURTHER RS. 8.60 LACS W ERE RECEIVED FROM ITA NO. 784-CHD-2019 SHRI BALJIT YADAV, JIND 3 M/S ASHISH TRADING COMPANY ON ACCOUNT OF SALE OF AG RICULTURAL PRODUCE. THE ASSESSEE ALSO FURNISHED J FORM ISSUED BY M/S ASHISH TRADING COMPANY. THE LD. CIT(A), HOWEVER, OBSERVED THAT AS PER THE RETURN FILED FOR ASSESSMENT YEAR 2014-15, THE ASSESSEE H AD SHOWN NIL CASH IN HAND. THE LD. CIT(A) FURTHER NOTICED THAT THE ASSE SSEE HAD MADE MANY TRANSACTIONS OF CASH WITHDRAWALS AND DEPOSITS AFTER THE WITHDRAWAL OF THE ALLEGED AMOUNT CLAIMED TO BE OPENING BALANCE AND FU RTHER THAT DESPITE HUGE CASH IN HAND, THE ASSESSEE HAD WITHDRAWN CASH FROM THE BANK GIVING NO JUSTIFICATION OF THE SAME. THE LD. CIT(A ), HOWEVER, GAVE RELIEF TO THE ASSESSEE TO THE EXTENT OF 15% OF THE CASH IN HAND CLAIMED BY THE ASSESSEE AT RS. 3,97,783/- (ROUNDED OFF RS. 3,98,000/-) AND CONFIRMED THE ADDITION OR REMAINING AMOUNT OF RS. 22,47,220/-. THE RELEVANT PART OF THE ORDER OF THE CIT(A) IS REPRODU CED BELOW:- 6.3 GROUND NO. 3 REGARDING ADDITION OF RS. 26,45,220/- ON ACCOUNT OF CASH IN HAND, THE ASSESSEE SUBMITTED THAT THAT HE HAD SUFFICIENT CASH IN HAND ON 31.03.2013 BY EXPLAINING THAT RS. 12.00 LACS AND RS. 7. LACS WERE WITHDRAWN ON 27.12.2013 AND 31.12.2013. AND RS. 08.60 LACS WAS RECEIVED FROM ASHISH TRADING CO., PILLU KHERA ON ACCOUNT OF SALE OF AGRICULTURE PRODUCE FOR WHICH ASSESSEE HAS SUBMITTED FORM 'J' ISSUED BY M/.S ASHISH TRADING CO. THE SUBMISSION MADE BY THE ASSESSEE HAS BEEN PERUSED BUT NOT ACCEPTABLE. AS PER THE RETURN FILED FOR THE AY. 2014-15, THE ASSESSEE HAS SHOWN NIL CASH IN HAND. ON THE OTHER SIDE THE ASSESSEE HAS SHOWN CASH IN HAND OF RS. 30,40,420/- AS ON 10.04.2014 AND OUT OF THE SAID HUGE CASH IN HAND, HE HAS DEPOSITED RS. 2,35,000/- ONLY. ON ITA NO. 784-CHD-2019 SHRI BALJIT YADAV, JIND 4 22.04.2014, THE ASSESSEE WAS HAVING CASH-IN 'HAND AT RS. 28,05,420/- AND EVEN THEN HE HAS MADE CASH WITHDRAWAL OF RS. 2,00,000/- AND RS. 20,000/- AND RS. 15,00/-ON 22.04.2014. WHICH ISNOT LOGICAL. FURTHER, THE ASSESSEE HAS SHOWN RS. 8,60,350/- ON ACCOUNT OF AGRICULTURE PRODUCED SOLD ON 28.01.2014. WHEREAS, THE ASSESSEE HAS SHOWN THIS AMOUNT DEPOSITED ON 10.04.2014 AND 30.06.2014 I.E. AFTER PASSING OF FOUR MONTHS AND SIX MONTHS. FURTHER, OUT OF TOTAL CASH DEPOSIT OF RS. 98,46,390 / - THE ASSESSEE HAS TRANSFERRED OUT MORE THAN RS. 81,37,981/- THROUGH BANKING CHANNEL AND EVEN THEN THE ASSESSEE IS NOT HAVING A SINGLE DOCUMENTARY EVIDENCE IN SUPPORT OF HIS NATURE OF BUSINESS. HOWEVER CONSIDERING THAT APPELLANT MAY BE DOING SOME AGRICULTURAL SALE & PURCHASE AN AMOUNT OF 15% OF CASH IN HAND MAY BE ACCEPTED AS OPENING CASH IN HAND WHICH COMES TO RS. 3,97,783/- [ROUND OF RS. 3,98,000). IN LIGHT OF THE ABOVE, THE APPELL ANT GETS PART RELIEF OF RS. 3,98,000 AS DISCUSSED ABOVE AND AN ADDITION OF RS. 22,47,220 IS CONFIRMED. THE GROUND OF APPEAL IS THEREFORE PARTLY ACCEPTED. 4. I HAVE HEARD THE RIVAL CONTENTIONS OF THE LD. AU THORIZED REPRESENTATIVES OF BOTH THE PARTIES AND HAVE GONE T HROUGH THE RECORD. SO FAR AS THE INCOME FROM AGRICULTURAL ACTIVITY EAR NED DURING THE EARLIER YEAR CONSTITUTING OPENING CASH IN HAND IS CONCERNED , THE ASSESSEE HAS FURNISHED COPIES OF THE J FORMS ISSUE BY M/S ASHI SH TRADING COMPANY TOTALING RS. 8,61,900/- ALONG WITH AFFIDAVITS OF SH RI DALBIR SINGH AND SHRI PREM SINGH CONFIRMING THEIR JOINT OWNERSHIP OV ER LAND OF ABOUT 10 ACRES AND FURTHER CULTIVATION OF SAME BY THE ASSES SEE. ITA NO. 784-CHD-2019 SHRI BALJIT YADAV, JIND 5 UNDER THE CIRCUMSTANCES, THE ASSESSEE HAS GIVEN SUF FICIENT PROOF OF EVIDENCE OF EARNING OF AGRICULTURAL INCOME THROUGH SALE OF CROP TO M/S ASHISH TRADING COMPANY. MERELY BECAUSE IN THE RETUR N OF INCOME FILED FOR ASSESSMENT YEAR 2014-15, THE ASSESSEE HAD SHOWN NIL CASH IN HAND, THIS, IN MY VIEW, IS DUE TO SOME MISTAKE OR OVERSIG HT IN FILING THE COLUMNS OF THE RETURN. HOWEVER, WHEN THE ASSESSEE HAS GIVEN SUFFICIENT EVIDENCE OF INCOME FROM AGRICULTURAL ACTIVITY, TH EREFORE, THE SAID EVIDENCE CANNOT BE REJECTED ON THE TECHNICAL GROUND S. HOWEVER, SO FAR AS THE OPENING CASH IN HAND OUT OF THE BANK WITHDRAWAL S IS CONCERNED, I FIND THAT THOUGH, THE ASSESSEE HAS PLEADED THAT THE AMOUNT OF RS. 12 LACS AND 7 LACS WITHDRAWN ON 27.12.2013 AND 31.12.2013 RESPECTIVELY, HOWEVER, THE ASSESSEE HAS DONE SUBSEQUENT TRANSACTI ONS OF DEPOSITS AND WITHDRAWALS ALSO. THE AFORESAID FACT OF CASH IN HA ND OUT OF WITHDRAWALS FROM THE BANK, IN MY VIEW, IS NEEDED TO BE EXPLAINE D BEFORE THE ASSESSING OFFICER TO HIS SATISFACTION. 5. IN VIEW OF THIS, THE ADDITION OF RS. 8,61,900/- OUT OF OPENING CASH IN HAND CLAIMED TO HAVE BEEN EARNED FROM THE AGRICU LTURAL ACTIVITY IS ORDERED TO BE DELETED. THE ISSUE RELATING TO THE RE MAINING ADDITION ON ACCOUNT OF CLAIM OF OPENING BALANCE CLAIMED TO HAVE BEEN OUT OF THE BANK WITHDRAWALS IS RESTORED TO THE FILE OF THE ASS ESSING OFFICER FOR VERIFICATION PURPOSES. THE ASSESSING OFFICER WILL V ERIFY THE CLAIM OF THE ASSESSEE ON THIS LIMITED ISSUE AFRESH. ITA NO. 784-CHD-2019 SHRI BALJIT YADAV, JIND 6 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER COULD NOT BE PRONOUNCED EARLIER DUE TO NON-FU NCTIONING OF THE BENCH ON ACCOUNT OF CURFEW / LOCKDOWN IN THE WA KE OF COVID-19 PANDEMIC. ORDER PRONOUNCED ON 11.06.2020. SD/- ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 11.06.2020 .. '+ ,-.- / 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. 157$ / GUARD FILE '+ # / BY ORDER, 8' / ASSISTANT REGISTRAR