The Income-tax Officer, Phagwara V. Sh. Karnail Singh Bhogal, Phagwara

ITA 82/ASR/2013

• Counselvise Citation: 8220914 RSA 2013
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 20-01-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 05-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HARMINDER SYAL
• Keywords: Gift; Residential status; Additional evidence; Valuation report
• Section: 143(3); 54F

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO. 55(ASR)/2013 ASSESSMENT YEAR: 2009-10 PAN: AATPB1048A KARNAIL SINGH BHOGAL, S/O- VS. INCOME TAX OFFICER , SH. BHAGAT SINGH, M/S BHOGAL WARD-1, PHAGWARA PROPERTY DEALER, KHERA ROAD, PHAGWARA, DISTT.-KAPURTHALA (APPELLANT) (RESPONDENT) AND I.T.A. NO. 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 PAN: AATPB1048A INCOME TAX OFFICER VS. SH. KARNAIL SINGH B HOGAL, WARD-1, PHAGWARA H. N. 336, ST. NO. 7, BHOGAL MARKET, KHERA ROAD, PHAGWARA (APPELLANT) (RESPONDENT) ASSESSEE BY: SH. HARMINDER SYAL, ADVOCATE DEPARTMENT BY: SH. MAHAVIR SINGH, SR.DR DATE OF HEARING: 20.01.2014 DATE OF PRONOUNCEMENT: 13.02.2014 ORDER PER BENCH 1. THESE ARE THE CROSS APPEALS FILED BY THE ASSESSE E AS WELL AS BY THE REVENUE AGAINST THE ORDER DATED 20.01.2012 PASS ED BY LEARNED 2 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 CIT(A), JALANDHAR, FOR THE ASSESSMENT YEAR 2009-10. THE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE IN I.T.A. NO. 55(ASR)/ 2013 ARE AS UNDER: I. THAT THE ORDER OF THE CIT(A) IS ERRONEOUS AS REGARD DISALLOWANCE OF THE AMOUNT OF LOAN RAISED BY THE AP PELLANT FROM AVTAR SINGH (SON) & TAJINDERPAL SINGH (SON OF SON-I N-LAW) FOR THE PURPOSE OF RAISING CONSTRUCTION AS SUCH THE IMP UGNED ORDER IS AGAINST THE FACTS & PROVISIONS OF LAW. II. THE LEARNED CIT(A) HAS ERRED IN UPHOLDING AN ADDITI ON OF RS. 5,00,000/-, OUT OF TOTAL LOAN RS. 7 LACS RAISED BY THE APPELLANT THROUGH HIS SON AVTAR SINGH FROM CITIFINANCIAL CONS UMER FINANCE (INDIA) LTD, JALANDHAR FOR CONSTRUCTION AS HE HIMSELF WAS INELIGIBLE TO RAISE THE SAID LOAN BEING A SENIO R CITIZEN. III. THAT THE LEARNED CIT(A) HAS ERRED IN NOT APPRECIATI NG THE DOCUMENTS PRODUCED BEFORE A.O. AS WELL AS BEFORE TH E CIT REGARDING LOAN OF RS. 7 LACS. REPAYMENT OF THE SAID LOAN WAS ALSO MADE BY THE ASSESSEE FROM HIS OWN SOURCES. IV. THAT THE LEARNED CIT(A) HAS ALSO ERRED IN OBSERVING THAT THE LOAN AMOUNT DOES NOT REFLECT IN THE BALANCE SHEET W HEN IT WAS SHOWN IN CAPITAL ACCOUNT OF THE APPELLANT INSTEAD O F SECURED LIABILITY. SO IT IS NOTHING BUT A TECHNICAL MISTAKE . THUS THE ORDER OF THE CIT(A) IS UNJUST. V. THE LEARNED CIT(A) HAS FURTHER ERRED IN UPHOLDING A N ADDITION OF LOAN OBTAINED FROM TAJINDERPAL SINGH RS. 3,00,00 0/- IGNORING THE BANK TRANSACTION REFLECTING THE ADVANCEMENT OF LOAN & OTHER DOCUMENTARY EVIDENCE ON A SIMILAR OBSERVATION AS ME NTIONED IN THE PRECEDING GROUND OF APPEAL. HENCE THE ACTION OF CIT(A) IN NOT ALLOWING THE CLAIM OF RS. 3 LACS IS NOT JUSTIFI ED IN THE EYES OF LOW. VI. THAT THE CASE LAWS RELIED UPON BY THE LEARNED CIT(A ARE NOT ATTRACTABLE TO THE FACTS OF THE PRESENT CASE AND AR E DISTINGUISHABLE HENCE THE ORDER OF CIT(A) TO THIS E FFECT BE STRUCK DOWN. VII. THAT THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR DE LETE ANY GROUNDS OF APPEAL DURING THE PENDENCY OF THE PRESEN T APPEAL. 3 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 2. THE REVENUE HAS RAISED THE GROUNDS OF APPEAL IN I.T.A. NO. 82(ASR)/2013, WHICH ARE REPRODUCED AS UNDER: I. DELETING ADDITION OF RS. 28,17,800/- WHEN THE ASSES SING OFFICER HAS HELD THAT DEDUCTION U/S 54F OF THE INCO ME TAX ACT IS NOT ADMISSIBLE AS THE ASSESSEE FAILED TO FURNISH THE DOCUMENTARY EVIDENCE IN SUPPORT OF COST OF IMPROVEM ENT OF THE TRANSFERRED ASSETS DURING THE COURSE OF ASSESSM ENT PROCEEDINGS. II. IT IS PRAYED THAT THE ORDER OF THE LEARNED COMMISSI ONER OF INCOME TAX (APPEALS) BE SET-ASIDE AND THAT OF THE A SSESSING OFFICER BE RESTORED. III. THE APPELLANT REQUESTS FOR LEAVE TO ADD OR AMEND OR ALTER THE GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD AND DI SPOSED OF. 3. THE ASSESSEE FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2009-10 ON 19.11.2009 DECLARING AN INCOME OF RS. 4, 07,050/-, WHICH WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX AC T (IN SHORT THE ACT). THE ASSESSING OFFICER SELECTED THE CASE OF T HE ASSESSEE FOR SCRUTINY AND ISSUED NOTICE UNDER SECTION 143(2) OF THE ACT TO THE ASSESSEE ON 27.08.2010 AND SERVED UPON THE ASSESSEE ON 06.09 .2010. IN RESPONSE TO THE SAME, THE LEARNED AUTHORIZED REPRESENTATIVE OF THE ASSESSEE ATTENDED THE PROCEEDINGS TIME TO TIME AND FILED THE INFORMAT ION/DOCUMENTS AS CALLED FOR. 4. THE ASSESSEE IS DERIVING INCOME FROM HOUSE PROPE RTY, COMMISSION INCOME, SHORT-TERM CAPITAL GAINS AND INC OME FROM OTHER 4 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 SOURCE. AS REGARDS TO THE SHORT-TERM CAPITAL GAIN C OMPUTED BY THE ASSESSEE, THE ASSESSEE WAS ASKED BY THE ASSESSING O FFICER TO GIVE DOCUMENTARY EVIDENCE IN SUPPORT OF COST OF IMPROVEM ENT SHOWN AT RS. 28.71 LACS AND IN RESPONSE TO THE SAME THE ASSESSEE HAS REPLIED AS UNDER: IN THIS REGARD IT IS HUMBLY SUBMITTED THAT BREAK U P OF THE COST OF IMPROVEMENT/CONSTRUCTION IS GIVEN HEREUNDER ALONGWI TH SOURCES:- F. YR. OF CONST. AMOUNT 2006-07 RS. 5,13,000/- 2007-08 RS. 7,08,000/- 2008-09 RS. 16,50,000/- SOURCES ARE AS UNDER:- I. LOAN FROM GURDEV KAUR DURING THE YEAR 2006-07 R S. 3 LACS BALANCE SHEET ATTACHED. II. OUT OF LOAN RAISED FROM CITIFINANCIAL CONSUMER FINANCE (INDIAN) LTD. RS. 7 LACS THROUGH SON AVTAR SINGH. III. LOAN FROM PUNJAB NATIONAL BANK UNDER A/C NO. 349400HC00001031 DURING THE YEAR 2007-2008 RS. 9 LA CS. IV. INTEREST FREE LOAN OF RS. 3 LACS RAISED FROM S . TAJINDER PAL SINGH SON OF THE BROTHER-IN-LAW (SALA) OF THE ASSESSEE V. GIFT FROM KULDEEP SINGH SON OF THE ASSESSEE RS. 5,03,000/- VI. AMOUNT OF UNSECURED LOAN RAISED FROM SON SURIND ER SINGH RS. 3,85,000/- VII. LESS REPAYMENT OF LOAN RS. 2,17,000/- REFER ATTACHED BALANCE SHEETS FOR THE FINANCIAL YE AR 2006-07 TO 2008-09 RESPECTIVELY. 5. IN RESPECT TO THE ABOVE REPLY OF THE ASSESSEE RE GARDING THE DOCUMENTARY EVIDENCE IN SUPPORT OF COST OF IMPROVEM ENT SHOWN AT RS. 28.71 LACS, THE ASSESSING OFFICER HAS GIVEN HIS FI NDINGS WHICH ARE REPRODUCED AS UNDER: 5 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 1. NO DOCUMENTARY EVIDENCE IN THE FORM OF BILLS, ET C. REGARDING THE EXPENSES HAVING BEEN INCURRED ON THE COST OF IMPROV EMENT, HAS BEEN PRODUCED DURING THE COURSE OF ASSESSMENT PROCEEDING S. 2. NO DOCUMENTARY EVIDENCE HAS BEEN SUBMITTED BY TH E ASSESSEE HAVING UTILIZED THE LOAN/GIFT AMOUNTS ALLEGEDLY TAKEN BY T HE ASSESSEE FROM VARIOUS PERSONS I.E. SMT. GURDEV KAUR, SH. AVTAR SI NGH, SH. TAJINDER PAL SINGH, SH. KULDEEP SINGH, SH. SURINDER SINGH, E TC. TOWARDS COST OF IMPROVEMENT. 3. NO VALUATION REPORT OF THE REGISTERED VALUER IN RESPECT OF THE COST OF IMPROVEMENT HAVING BEEN MADE BY THE ASSESSEE HAS BE EN SUBMITTED, DURING THE COURSE OF ASSESSMENT PROCEEDINGS. ACCORDINGLY, THE SHORT-TERM CAPITAL GAINS ARE RE-CO MPUTED AS BELOW: SALE PROCEEDS : RS. 49,85,000/- LESS: : RS. 18,75,000/- SHORT TERM CAPITAL GAINS : RS. 31,10,000/- 6. AS REGARDS TO THE LOANS/GIFTS SHOWN BY THE ASSES SEE, THE ASSESSING OFFICER ASKED THE ASSESSEE TO PROVE THE IDENTITY/CREDITWORTHINESS OF THE DONOR AS WELL AS T HE OCCASION OF GIFT AND ALSO ASKED THE ASSESSEE AS TO WHY THE SAME BE NOT T REATED AS INCOME OF THE ASSESSEE AS UNEXPLAINED SOURCES AND TAXED ACCOR DINGLY. IN RESPONSE TO THE SAME, THE ASSESSEE GAVE HIS REPLY AS REGARDS TO THE LOAN OF 3 LAKHS FROM SH. TAJINDER PAL SINGH, WHICH IS REPRODUCED AS UNDER: S. TAJINDER PAL SINGH IS A PERMANENT RESIDENT OF U .K. AT ADDRESS 115, WOODLANDS AVF WOODLEY READING BERKSHIRE (U.K.) & HO LDING BRITISH PASSPORT NO. 108469099. HE IS DOING TYRE BUSINESS I N U.K. AND HAVING INCOME RS. 10-12 LACS PER ANNUM. SH. TAJINDER PAL S INGH VISITED INDIAN IN OCTOBER, 2008. HE HAD SOLD FOREIGN CURRENCY ON H IS VISIT TO INDIA AND THE PROCEEDS OF THIS WERE DEPOSITED IN HIS SAVING B ANK ACCOUNT. HE IS ALSO 6 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 REGULAR INCOME TAX ASSESSEE. HE ADVANCES THIS INTER EST FREE LOAN BY CHEQUE NO. 404781 DT. 10-12-2008 FROM PUNJAB NATION AL BANK, G.T. ROAD, PHAGWARA AND ITS ACCOUNT NUMBER IS 3494000505 002031. THE ASSESSEE HAD DECLARATION IN THIS CONTEST HAS ALREAD Y BEEN SUBMITTED. HOWEVER ORIGINAL COPY THEREOF IS ATTACHED. THIS AM OUNT MAY KINDLY BE ACCEPTED AS THE ASSESSEE HAS PROVED HIS IDENTITY, C REDITWORTHINESS & GENUINENESS OF TRANSACTION. 7. IN RESPECT TO THE ABOVE REPLY OF THE ASSESSEE RE GARDING THE LOAN OF 3 LAKHS TAKEN FROM SH. TAJINDER PAL SINGH, THE A SSESSING OFFICER HAS GIVEN HIS FINDINGS WHICH ARE REPRODUCED AS UNDER: 1. THE DECLARATION FILED BY SH. TAJINDER PAL SINGH IN RESPECT OF LOAN GIVEN TO THE ASSESSEE IS ON PLAIN PAPER. IT DOES NO T BEAR ANY ATTESTATION OF THE APPROPRIATE AUTHORITY. 2. NO DOCUMENTARY EVIDENCE REGARDING THE IDENTITY O F SH. TAJINDER PAL SINGH AND HIS RELATIONSHIP WITH THE ASSESSEE HAS BE EN PRODUCED DURING THE COURSE OF ASSESSMENT PROCEEDINGS, WHILE THE ASS ESSEE COULD HAVE CONVENIENTLY PRODUCED AT LEAST THE COPY OF PASSPORT OF SH. TAJINDER PAL SINGH, AS SUFFICIENT TIME HAD BEEN ALLOWED TO H IM. 3. NO PROOF OF THE CREDIT-WORTHINESS OF SH. TAJINDE R PAL SINGH IN THE FORM OF INCOME TAX RETURNS, ETC. FILED BY HIM HAVE BEEN SUBMITTED BY THE ASSESSEE. NO DOCUMENTARY EVIDENCE REGARDING HIS FINANCIAL STATUS OR HIS CAPACITY TO SPARE THIS SUM OF MONEY, HAS BEE N FILED. 4. NO DOCUMENTARY EVIDENCE REGARDING SH. TAJINDER P AL SINGH, HAVING VISITED INDIA IN OCTOBER, 2008 I.E. AT THE TIME WHE N THE FOREIGN CURRENCY WAS ALLEGEDLY SOLD BY HIM IN INDIA AND RS. 3,00,000/- FROM THESE SALE PROCEEDS HAVING BEEN GIVEN TO THE ASSESS EE, HAS BEEN PRODUCED DURING THE COURSE OF ASSESSMENT PROCEEDING S. 8. AS REGARDS TO THE GIFT OF RS. 2,50,000/- AND RS . 2,53,000/- FROM SH. KULDEEP SINGH, DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER FOUND THAT THERE WERE CREDIT ENTR IES OF RS. 2,53,000/- 7 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 AND RS. 2,50,000/- RESPECTIVELY ON 26.12.2008, IN T HE SAVING BANK ACCOUNT OF THE ASSESSEE, FOR WHICH THE ASSESSED WAS ASKED TO REPLY THE SAME AND THE ASSESSEE REPLIED AS UNDER: ASSESSEE HAS RECEIVED GIFT FROM KULDEEP SINGH VIDE TWO DIFFERENCE CHEQUES, THE DETAIL OF WHICH IS GIVEN HEREUNDER:- CHEQUE NO. AMOUNT 022821 RS. 2,50,000/- 022822 RS. 2,53,000/- FURTHER IT IS SUBMITTED THAT HE IS SON OF THE ASSES SEE WHO IS PERMANENTLY SETTLED IN KENYA AND IS GAINFULLY EMPLO YED THERE. HIS PAY SLIPS FOR THE YEAR ENDING MARCH, 2010 & MARCH, 2011 ARE ENCLOSED HEREWITH TO PROVE HIS INCOME & CREDITWORTHINESS. RE FERENCE IS ALSO MADE TO THE REPLY DATED. 25.11.2011 WHEREIN DETAILS REGA RDING HIM HAVE BEEN FURNISHED BY THE ASSESSEE ALONGWITH HIS AFFIDAVIT C ONFIRMING THE SAID GIFT MADE TO HIS FATHER ON HIS VISIT TO INDIA. PROOF OF EXCHANGE OF FOREIGN CURRENCY DONE BY HIM ALSO BEEN SUBMITTED. MOREOVER, THIS TRANSACTION OF GIFT HAS ALSO BEEN ROUTED THROUGH BANK. IN THE PRES ENT CASE YOUR GOODSELF HAS RAISED A QUERY REGARDING OCCASION OF GIFT TO HI S FATHER. IN THIS REGARD IT IS SUBMITTED THAT IN INDIAN CULTURE MOSTLY IN PUNJA BI COMMUNITY WHERE CHILDREN ARE SETTLED IN ABROAD AND THE PARENTS ARE LIVING IN INDIA IN THOSE CASES WHENEVER CHILDREN VISIT THEIR PARENTS, THE SA ME IS AN OCCASION OF FAMILY REUNION. ON THIS OCCASION OUT OF LOVE, RESPE CT & AFFECTION, KULDEEP SINGH HAS MADE THIS GIFT TO HIS FATHER. THE RE CANNOT BE ANY BLOOD RELATION HAVING MORE COVALENT & ADHESIVE BOND THAN FATHER & SON. THUS THERE IS NO REASON TO SUSPECT THE GENUINENESS OF TH IS TRANSACTION. 9. IN RESPECT TO THE ABOVE REPLY OF THE ASSESSEE R EGARDING THE GIFT OF RS. 2,50,000/- AND RS. 2,53,000/- FROM SH. KULDE EP SINGH, THE ASSESSING OFFICER HAS GIVEN HIS FINDINGS WHICH ARE REPRODUCED AS UNDER: 1. THE ASSESSEE HAD VIDE HIS REPLY DATED 14.09.201 1, HAD FILED A DECLARATION BY SMT. BALWINDER KAUR, OF HAVING GIFTE D RS. 2,50,000/- TO THE ASSESSEE. NOW THE ASSESSEE HAS FILED AN AFFI DAVIT DATED 8 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 26.10.2011 OF SH. KULDEEP SINGH, WHEREIN HE HAS STA TED A SUM OF RS. 2,50,000/- AND RS. 2,53,000/- HAD BEEN GIFTED BY H IM TO THE ASSESSEE. THESE TWO DECLARATIONS ARE IN CONTRADICTION TO EACH OTHER. FURTHER THE AFFIDAVIT FILED BY SMT. BALWINDER KAUR IS ONE PLAIN PAPER AND DOES NOT BEAR ANY ATTESTATION OF THE APPROPRIATE AUTHORITY. 2. NO DOCUMENTARY EVIDENCE REGARDING THE IDENTITY O F EITHER SH. KULDEEP SINGH BHOGAL OR SMT. BALWINDER KAUR AND THEIR RELAT IONSHIP WITH THE ASSESSEE HAS BEEN PRODUCED DURING THE COURSE OF ASS ESSMENT PROCEEDINGS, WHILE THE ASSESSEE COULD HAVE CONVENIE NTLY PRODUCED SH. KULDEEP SINGH ALONGWITH HIS ORIGINAL PASSPORT FOR V ERIFICATION AS THIS AFFIDAVIT HAS BEEN MADE IN INDIA ON 26.10.2011 I.E . DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 3. FURTHER, IT MAY NOT BE OUT OF PLACE TO MENTION T HAT 26.10.2011 WAS CELEBRATED AS DIWALI AND ALL THE GOVERNMENT/PUBLIC OFFICES REMAINED CLOSED AS IT IS A NATIONAL HOLIDAY BUT THIS DECLAR ATION WAS SIGNED AND VERIFIED BY THE NOTARY PUBLIC ON 26.10.2011 ITSELF. 4. NO ORIGINAL DOCUMENT REGARDING THE PROOF OF THE CREDIT-WORTHINESS OF EITHER SH. KULDEEP SINGH OR SMT. BALWINDER KAUR, IN THE FORM OF INCOME TAX RETURNS FILED BY THEM HAVE BEEN SUBMITTE D BY THE ASSESSEE. NO DOCUMENTARY EVIDENCE REGARDING THEIR FINANCIAL S TATUS OF THEIR CAPACITY TO SPARE THIS SUM OF MONEY, HAS BEEN FILED . 5. NO DOCUMENTARY EVIDENCE OF SH. KULDEEP SINGH AND SMT. BALWINDER KAUR, HAVING VISITED INDIA IN DECEMBER, 2008 I.E. A T THE TIME WHEN THE FOREIGN CURRENCY WAS ALLEGEDLY SOLD BY THEM IN INDI A AND RS. 2,50,000/- AND RS. 2,23,000/- RESPECTIVELY FROM THE SE SALE PROCEEDS HAVING BEEN GIVEN TO THE ASSESSEE HAS BEEN PRODUCED DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 6. NO DOCUMENTARY EVIDENCE OF SH. KULDEEP SINGH, HA VING VISITED INDIA AT THE TIME OF SIGNING THE AFFIDAVIT ON 26.10.2011, HAS BEEN PRODUCED DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 10. FURTHER, DURING THE COURSE OF ASSESSMENT PROCEED INGS, THE ASSESSEE HAS SHOWN RS. 3,85,000/- AS UNSECURED LOAN TAKEN FROM SH. SURINDER SINGH, WHICH THE ASSESSING OFFICER ASKED T HE ASSESSEE TO EXPLAIN THE SAME AND THE ASSESSEE HAS GIVEN ITS REP LY AS UNDER: 9 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 IT IS AN OLD UNSECURED LOAN OF SH. SURINDER SINGH. HIS CONFIRMATION ALONGWITH COPY OF PASSPORT IS ATTACHED . 11. IN RESPECT TO THE ABOVE REPLY OF THE ASSESSEE R EGARDING UNSECURED LOAN OF RS. 3,85,000/- TAKEN FROM SH. SUR INDER SINGH, THE ASSESSING OFFICER HAS GIVEN HIS FINDINGS WHICH ARE REPRODUCED AS UNDER: 1. THE DECLARATION FILED BY SH. SURINDER SINGH IN RESPECT OF THE LOAN, GIVEN TO THE ASSESSEE IS ON PLAIN PAPER. IT DOES NO T BEAR ANY ATTESTATION OF THE APPROPRIATE AUTHORITY. 2. THIS DECLARATION HAS BEEN SIGNED IN INDIA ON 26. 10.2011, WHEN THE ASSESSEE COULD HAVE CONVENIENTLY PRODUCED SH. SURIN DER SINGH ALONGWITH HIS ORIGINAL PASSPORT FOR VERIFICATION. 3. NO DOCUMENTARY EVIDENCE REGARDING THE IDENTITY O F SH. SURINDER SINGH AND HIS RELATIONSHIP WITH THE ASSESSEE HAS BEEN PRO DUCED DURING THE COURSE OF ASSESSEE PROCEEDINGS. 4. NO PROOF OF THE CREDIT-WORTHINESS OF SH. SURIND ER SINGH IN THE FORM OF INCOME TAX RETURNS FILED BY HIM HAVE BEEN SUBMITTED BY THE ASSESSEE. NO DOCUMENTARY EVIDENCE REGARDING HIS FINANCIAL STA TUS OR HIS CAPACITY TO SPARE THIS SUM OF MONEY, HAS BEEN FILED . 5. EVEN IN THE DECLARATION, SH. SURINDER SINGH HAS NOT MENTIONED THE DATE OF THE YEAR WHEN THIS AMOUNT OF UNSECURED LOAN OF RS. 3,85,000/- HAS BEEN GIVEN TO THE ASSESSEE. 12. AFTER DISCUSSING THE EXPLANATION OF THE ASSESSEE AS WELL AS VARIOUS CASE-LAWS ON THE ISSUE IN DISPUTE, THE ASSE SSING OFFICER WAS OF THE VIEW THAT THE ONUS LIES UPON THE ASSESSEE TO PR OVE THE IDENTITY, GENUINENESS AND CREDIT-WORTHINESS OF THE PERSONS FR OM WHOM GIFTS/LOANS HAVE BEEN RECEIVED. THE ASSESSEE HAS FAILED TO PROV E THE IDENTITY/CREDITWORTHINESS OF SH. TAJINDER PAL SINGH , SH. KULDEEP SINGH, 10 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 SMT. BALWINDER KAUR AND SH. SURINDER SINGH FROM WHO M THE AMOUNTS OF RS. 3,00,000/-, RS. 2,53,000/-, 2,50,000/- AND RS. 3,85,000/- RESPECTIVELY WERE ALLEGED TO HAVE BEEN RECEIVED BY THE ASSESSEE. FURTHER, NO DOCUMENTARY EVIDENCE TO PROVE THE IDENTITY, GENUINE NESS AND CREDITWORTHINESS OF THE ABOVE PERSONS, FROM WHOM TH E AFOREMENTIONED SUMS WERE ALLEGED TO HAVE BEEN RECEIVED AS GIFTS/LO ANS, HAS BEEN PRODUCED, DURING THE COURSE OF ASSESSMENT PROCEEDIN G. HOWEVER, DESPITE SUFFICIENT OPPORTUNITY, THE ASSESSEE COULD NOT ESTA BLISH THE IDENTITY, RELATIONSHIP OF THESE PERSONS WITH THE ASSESSEE AND ALSO THEIR RESIDENTIAL STATUS/CREDIT-WORTHINESS. THEREFORE, FROM THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE, THE AMOUNT OF RS. 3,00,000/- ON 1 0.12.2008; RS. 2,50,000/- ON 26.12.2008; RS. 2,53,000/- ON 26.12.2 008 IN THE SAVING BANK ACCOUNT OF THE ASSESSEE AND RS. 3,85,000/- CRE DITED IN THE CAPITAL A/C OF THE ASSESSEE, AS PER THE BALANCE-SHEET, RECEIVED BY THE ASSESSEE ARE NOT GENUINE TRANSACTIONS AND ARE ONLY COLORABLE DEVISES TO DEFRAUD THE REVENUE. IN FACT, THESE MONEY BELONG TO THE ASSESSE E HIMSELF AND ARE BEING GIVEN IN THE GARB OF GIFT/FOREIGN REMITTANCES . THEREFORE, THESE AMOUNTS ARE TREATED AS INCOME OF THE ASSESSEE FROM UNEXPLAINED SOURCES AS PER THE PROVISIONS OF THE INCOME-TAX ACT, 1961. 11 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 13. AS REGARDS TO THE GIFT OF RS. 5,00,000/- FROM SH . AVTAR SINGH, THE ASSESSING OFFICER FOUND THAT IN THE BALANCE SHE ET DATED 31.03.2009 PRODUCED BY THE ASSESSEE DURING THE COURSE OF ASSES SMENT PROCEEDINGS, THERE WAS AN ADDITION OF RS. 5,00,000/- WAS SHOWN T O THE CAPITAL ACCOUNT OF THE ASSESSEE DURING THE YEAR ON ACCOUNT OF GIFT FROM SH. AVTAR SINGH. WHEN THE ASSESSING OFFICER ASKED THE ASSESSEE TO EX PLAIN THE SAME, THE ASSESSEE REPLIED AS UNDER: S. AVTAR SINGH, SON OF THE ASSESSEE HAS OBTAINED L OAN OF RS. 7 LACS FROM CITIFINANCIAL CONSUMER FINANCE INDIA LTD. THIS AMOU NT WAS RECEIVED IN THREE INSTALLMENTS AS PER DETAIL HEREUNDER: DATE AMOUNT 10.11.2006 RS. 1,84,480/- 10.11.2006 RS. 2,50,000/- 10.11.2006 RS. 2,50,000/- ALL THESE PAYMENTS ROUTED THROUGH PUNJAB NATIONAL B ANK, RAILWAY ROAD, PHAGWARA HAVING A/C NO. 3494000100129980 FAVOURING AVTAR SINGH BHOGAL & KARNAIL SINGH. OUT OF THIS ACCOUNT HE HAS INVESTED RS. 5 LACS ON CONSTRUCTION OF HOUSE IN QUESTION. THE ASSESSEE HAS RETURNED THE LOAN AS PER EMI DETERMINED BY THE LOANEE. COPY OF BANK A CCOUNT IS ATTACHED IN SUPPORT OF AMOUNT SPENT ON CONSTRUCTION & REPAYM ENT OF LOAN. S. AVTAR SINGH IS AN INCOME TAX ASSESSEE WITH YOUR RESPECTIV E WARD. 14. IN RESPECT TO THE ABOVE REPLY OF THE ASSESSEE R EGARDING GIFT OF RS. 5,00,000/- FROM SH. AVTAR SINGH, THE ASSESSING OFFICER HAS GIVEN HIS FINDING WHICH IS REPRODUCED AS UNDER: 1. AS PER THE BALANCE SHEET AS ON 31.03.2009 PRODUC ED BY THE ASSESSEE ON 04.08.2011, ON THE LIABILITIES SIDE AN AMOUNT O F RS. 5,00,000/- HAS 12 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 BEEN SHOWN AS GIFT FROM SH. AVTAR SINGH AND THE SAM E STANDS ADDED TO HIS CAPITAL. THIS BALANCE SHEET HAS BEEN DULY SIGNE D BY THE ASSESSEE. NOW THE ASSESSEE IS TAKING THE PLEA THAT THIS AMOUN T OF RS. 5 LACS IS NOT A GIFT BUT A LOAN, WHICH IS MERELY AN AFTER-THO UGHT. 2. FURTHER, THERE ARE NO CORRESPONDING WITHDRAWALS OF RS. 1,84,480/-, RS. 2,50,000/- AND RS. 2,50,000/- RESPECTIVELY ON 10.11 .2006 FROM THE LOAN ACCOUNT NO. 9779594 OF SH. AVTAR SINGH WITH CI TIFINANCIAL CONSUMER FINANCE INDIA LTD. WHEN THE LOAN HAS BEEN ALLEGED TO HAVE BEEN GIVEN TO THE ASSESSEE BY SH. AVTAR SINGH. 3. HENCE, THE SOURCE OF THIS GIFT/LOAN AMOUNTING T O RS. 5 LACS REMAINS UNVERIFIED AND IS TREATED AS HAVING BEEN RECEIVED D URING THE YEAR UNDER CONSIDERATION I.E. ASSESSMENT YEAR 2009-10 IT SELF AND IS THUS TREATED AS THE INCOME OF THE ASSESSEE FROM UNEXPLA INED SOURCES AND IS TO BE TAXED ACCORDINGLY. 15. KEEPING IN VIEW THE AFORESAID DISCUSSION, THE AS SESSING OFFICER HAS MADE VARIOUS ADDITIONS IN THE PRESENT APPEAL, A S DISCUSSED ABOVE, AND COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF TH E ACT VIDE ORDER DATED 23.12.2011. BEING AGGRIEVED WITH THE ASSESSME NT ORDER DATED 23.12.2011, THE ASSESSEE FILED AN APPEAL BEFORE THE LEARNED FIRST APPELLATE AUTHORITY, WHO VIDE IMPUGNED ORDER DATED 20.11.2012, PARTLY ALLOWED THE APPEAL OF THE ASSESSEE AND DELETED THE ADDITION MENTIONED IN THE GROUNDS OF APPEAL FILED BY THE REVENUE AND SUST AINED THE ADDITION MADE BY THE ASSESSING OFFICER MENTIONED IN THE GROU NDS OF APPEAL FILED BY THE ASSESSEE. NOW, THE ASSESSEE AND THE REVENUE HAVE FILED THE PRESENT CROSS-APPEALS AGAINST THE IMPUGNED ORDER. 13 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 16. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT RECORDS AVAILABLE WITH US AND HAVE ALSO GONE THROUGH THE OR DERS PASSED BY THE REVENUE AUTHORITY ALONG WITH THE DOCUMENTARY EVIDEN CE FILED BY THE ASSESSEE IN THE SHAPE OF SMALL PAPER BOOK CONTAININ G PAGES FROM 1 TO 41, IN WHICH HE HAS ATTACHED THE CONFIRMATION OF S. AVT AR SINGH BHOGAL S/O KARNAIL SINGH BHOGAL; COPY OF JOINT A/C OF S. AVTAR SIGH BHOGAL & S. KARNAIL SINGH BHOGAL; COPY OF A/C AS APPEARING IN T HE BALANCE SHEET OF CITI FINANCIAL CONSUMER FINANCE INDIA LTD.; COPY OF ITR FOR THE ASSESSMENT YEAR 2007-08 TO 2009-10; COPY OF DECLARA TION OF S. TAJINDER PAL SINGH S/O SUKHDEV SINGH, U.K.; COPY OF NRE BANK A/C OF S. TAJINDER PAL SINGH; COPY OF SALE PROCEED OF FORE IGN EXCHANGE TO CUTE COLLECTIONS & FOREX PVT. LTD. & CUTE COLLECTIONS; C OPY OF PASSPORT OF S. TAJINDER PAL SINGH; & COPY OF JUDGMENTS I.E. (1997) 3 I.T. REP. 280 (P&H) CIT VS. RAM NARAIN GOEL; 103 IT REP. 344 SARO GI CREDIT CORPORATION VS. CIT; (2012) 19 ITM 15 CIT VS. AMAR CHAND & SONS. OUR FINDINGS ON THE ISSUES INVOLVED IN I.T.A. NO. 5 5(ASR)/2013 FILED BY THE ASSESSEE ARE AS UNDER: 16.1 LEARNED COUNSEL FOR THE ASSESSEE STATED THAT L EARNED CIT(A) HAS WRONGLY DISALLOWED THE AMOUNT OF LOAN RAISED BY THE ASSESSEE FROM AVTAR 14 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 SINGH (SON) & TAJINDERPAL SINGH (SON-IN-LAW) FOR TH E PURPOSE OF RAISING CONSTRUCTION AND WRONGLY UPHELD AN ADDITION OF RS. 5,00,000/- OUT OF THE TOTAL LOAN OF RS. 7 LACS RAISED BY THE ASSESSEE THR OUGH HIS SON AVTAR SINGH FROM CITIFINANCIAL CONSUMER FINANCE (INDIA) LTD, JA LANDHAR FOR CONSTRUCTION. HE FURTHER STATED THAT THE REPAYMENT OF THE SAID LOAN WAS MADE BY THE ASSESSEE FROM HIS OWN SOURCE. 16.2 AS PER BALANCE SHEET DATED 31.03.2009 PRODUC ED BY THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THERE IS AN ADDITION OF RS. 5,00,000/- DURING THE YEAR ON ACCOUNT OF GIFT FROM SH. AVTAR SINGH AND WHEN THE ASSESSEE WAS ASKED TO EXPLAIN THE SAME, TH E ASSESSEE REPLIED THAT AVTAR SINGH, SON OF THE ASSESSEE HAD OBTAINED HOUSING LOAN OF RS. 7 LACS FROM CITIFINANCIAL CONSUMER FINANCE INDIA LTD AND THIS AMOUNT WAS RECEIVED IN THREE INSTALLMENTS. HE FURTHER REPLIED THAT ALL THE PAYMENTS ROUTED THROUGH PUNJAB NATIONAL BANK, RAILWAY ROAD, PHAGWARA, HAVING A/C NO. 3494000100129980 FAVORING AVTAR SINGH BHOGA L & KARNAIL SINGH. OUT OF THIS ACCOUNT, HE HAS INVESTED RS. 5 L ACS ON CONSTRUCTION OF HOUSE IN QUESTION. THE ASSESSEE HAS RETURNED THE LO AN AS PER EMI DETERMINED BY THE LOANEE. THE ASSESSEE HAS ALSO ATT ACHED A COPY OF BANK ACCOUNT IN SUPPORT OF AMOUNT SPENT ON CONSTRUCTION & REPAYMENT OF LOAN. 15 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 THE ASSESSING OFFICER HAS REJECTED THE CONTENTION O F THE ASSESSEE ON THE GROUND THAT THE SOURCES OF GIFT/LOAN AMOUNTING TO R S. 5 LACS REMAINS UNVERIFIED AND WAS TREATED AS HAVING BEEN RECEIVED DURING THE YEAR UNDER CONSIDERATION I.E. ASSESSMENT YEAR 2009-10 ITSELF A ND IS THUS TREATED AS THE INCOME OF THE ASSESSEE FROM UNEXPLAINED SOURCES AND ACCORDINGLY HE ADDED THE SAME TO THE ASSESSEES INCOME. LEARNED FI RST APPELLATE AUTHORITY HAS ADMITTED IN THE IMPUGNED ORDER THAT AS FAR AS G IFT SHOWN IN THE BALANCE SHEET OF A.Y. 2008-09 I.E. A.Y. IN REFERENC E, IN THE NAME OF SH. AVTAR SINGH, SON OF ASSESSEE, IS CONCERNED, THE EXP LANATION IS THAT A LOAN FROM M/S CITI FINANCIAL CONSUMER FINANCE (I) LTD. O F RS. 7 LACS WAS TAKEN THROUGH ACCOUNT NO. 3494000100129980 OF PNB I N THE JOINT NAMES OF ASSESSEE AND SH. AVTAR SINGH ON 22.11.2006 BY CL EARING OF THREE CHEQUES WORTH RS. 1,84,480/- AND TWO CHEQUES OF RS. 2,50,000/- EACH. AFFIDAVIT TO THIS EFFECT IS ALSO FILED OF SH. AVTAR SINGH. COPY OF THE SAID JOINT ACCOUNT IS ALSO ON RECORD. MOREOVER, THESE TR ANSACTIONS RELATE TO A.Y. 2007-08 AND IN THE BALANCE SHEET OF A.Y. 2007- 08, NO LIABILITY TOWARDS SH. AVTAR SINGH IS SHOWN AS CLAIMED NOW. L EARNED FIRST APPELLATE AUTHORITY HAS REJECTED THE CLAIM OF THE A SSESSEE ONLY ON THE 16 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 GROUND THAT REGARDING THE ENTRY OF GIFT OF RS. 5,00 ,000/-, WHICH WAS SHOWN DURING THE CURRENT YEAR, NO EXPLANATION WAS G IVEN. 16.3 IN OUR CONSIDERED VIEW, BOTH THE REVENUE AUTH ORITIES HAVE IGNORED THE FACTS OF THE CASE AS WELL AS DOCUMENTAR Y EVIDENCE FILED BY THE ASSESSEE REGARDING OBTAINING OF HOUSING LOAN OF RS. 7,00,000/- FROM CITI FINANCIAL CONSUMER FINANCE (I) LTD. WHICH WAS RECEI VED IN THREE INSTALLMENTS I.E RS. 1,84,480/-, RS. 2,50,000/- AN D RS. 2,50,000/- RESPECTIVELY ON 10.11.2006. ALL THESE PAYMENTS ROUT ED THROUGH PUNJAB NATIONAL BANK, RAILWAY ROAD, PHAGWARA HAVING A/C NO . 3494000100129980 FAVOURING AVTAR SINGH BHOGAL & KAR NAIL SINGH, THE ASSESSEE. THE ASSESSEE HAS ALSO PRODUCED THE COPY O F BANK ACCOUNT IN SUPPORT OF HIS CONTENTION REGARDING THE AMOUNT SPEN T ON CONSTRUCTION AND REPAYMENT OF LOAN. EVEN OTHERWISE SH. AVTAR SINGH I S AN INCOME TAX PAYEE, WHICH THE ASSESSING OFFICER HAS NOT VERIFIED THE SAME. WE ARE OF THE VIEW THAT THE REVENUE HAS WRONGLY MADE THE ADDI TION OF RS. 5 LACS IN DISPUTE WITHOUT APPRECIATING THE EVIDENCE PRODUCED BY THE ASSESSEE. THEREFORE, THIS ADDITION IS NOT SUSTAINABLE IN THE EYE OF LAW AND WE DELETE THE SAME BY ACCEPTING THE AVERMENT OF THE ASSESSEE ON THE ISSUE INVOLVED IN GROUND NOS. 1 TO 4 OF THE ASSESSEES APPEAL. 17 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 16.4 AS REGARDS TO THE ADDITION OF RS. 3 LACS ON A CCOUNT OF LOAN TAKEN FROM SH. TAJINDER PAL SINGH, AFTER GOING THROUGH TH E CONTENTIONS RAISED BY THE ASSESSEE AND THE ORDERS PASSED BY THE REVENU E AUTHORITY, WE ARE OF THE VIEW THAT SH. TAJINDER PAL SINGH IS THE SON-IN- LAW OF THE ASSESSEE AND ASSESSEE HAS TAKEN LOAN EXACTLY FOR THE SAME PURPOS E AS THE LOAN OF RS. 5 LACS, MENTIONED ABOVE, TAKEN BY THE ASSESSEE FROM H IS SON AVTAR SINGH. AS REGARDS TO THE EVIDENCE FILED BY THE ASSESSEE BE FORE THE REVENUE AUTHORITY, THE LOAN AS PER DECLARATION FILED BY SH. TAJINDER SINGH IS AN INTEREST FREE LOAN AND WAS STILL OUTSTANDING AS ON 26.10.2011 I.E. THE DATE OF SIGNING IN THE DECLARATION BY HIM. HE CLAIMED TH AT IT IS RELATING TO A.Y. 2008-09 AND STILL OUTSTANDING. AS PER THE EVIDENCE FILED BY THE ASSESSEE, SH. TAJINDER PAL SINGH IS AN INCOME TAX PAYEE AND E ARNING 10-12 LACS EQUIVALENT OF INDIAN CURRENCY PER YEAR IN BERKSHIRE (U.K.). HIS CREDITWORTHINESS AND GENUINENESS HAS ALSO BEEN PROV ED BY THE ASSESSEE BEFORE THE REVENUE AUTHORITY. HE IS PERMANENT RESID ENT OF U.K. AND HOLDING BRITISH PASSPORT AND DOING TYRE BUSINESS IN UK. HE VISITED IN INDIA IN OCTOBER, 2008. HE HAD SOLD FOREIGN CURRENC Y ON HIS VISIT TO INDIA AND THE PROCEEDS OF THIS WERE DEPOSITED IN HIS SAVI NG BANK ACCOUNT. HE IS ALSO REGULAR INCOME TAX PAYEE AND ADVANCED THIS INT EREST FREE LOAN BY 18 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 CHEQUE NO. 404781 DT. 10-12-2008 FROM PUNJAB NATION AL BANK AND ITS ACCOUNT NUMBER IS 3494000505002031. SH. TAJINDER PA L SINGH HAS ALSO FILED HIS DECLARATION IN THIS CONTEXT BEFORE THE AS SESSING OFFICER, WHICH IS A PART OF RECORD, TO PROVE HIS IDENTITY AND CREDITW ORTHINESS AS WELL AS THE GENUINENESS OF TRANSACTION. 16.5 IN OUR CONSIDERED VIEW, THE REVENUE HAS WRONG LY MADE THE ADDITION OF RS. 3 LACS IN THE CASE OF ASSESSEE, WHI CH DESERVES TO BE CANCELLED AND ACCORDINGLY WE CANCEL THE SAME BY ALL OWING THE ISSUE INVOLVED IN GROUND NOS. 5 TO 7 RAISED BY THE ASSESS EE IN HIS APPEAL. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE I.E. I.T.A . NO. 55(ASR)/2013 IS ALLOWED. 16.6 AS REGARDS TO THE APPEAL FILED BY THE REVENUE I.E. ITA NO. 82(ASR)/2013, THE REVENUE HAS CHALLENGED THE DELETI ON OF ADDITION OF RS. 28,17,800/- (CORRECT FIGURE IS 29,18,800/-) ON ACCO UNT OF DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 54F OF THE AC T. ACCORDING TO THE REVENUE, THIS DEDUCTION IS NOT ADMISSIBLE TO THE AS SESSEE BECAUSE THE ASSESSEE HAS NOT FURNISHED ANY DOCUMENTARY EVIDENC E IN SUPPORT OF COST OF IMPROVEMENT OF THE TRANSFERRED ASSETS DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 19 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 16.7 WE HAVE HEARD BOTH THE PARTIES ON THE ISSUE I NVOLVED IN THE REVENUE APPEAL AND HAVE GONE THROUGH THE ORDERS PAS SED BY THE REVENUE AUTHORITY ALONG WITH DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE IN THE SHAPE OF PAPER BOOK AND WE ARE OF THE VIEW THAT DUR ING THE COURSE OF APPELLATE PROCEEDINGS, THE AUTHORIZED REPRESENTATIV E OF THE ASSESSEE FILED AN APPLICATION UNDER RULE 46A OF THE INCOME TAX RUL ES, 1962 FOR ADMISSION OF ADDITIONAL EVIDENCE ALONG WITH VARIOUS DOCUMENTS PROVING THE COST OF IMPROVEMENT OF THE TRANSFERRED ASSETS I N DISPUTE AND THE LEARNED FIRST APPELLATE AUTHORITY AFTER GIVING OPPO RTUNITY TO THE ASSESSING OFFICER, ADMITTED THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND DELETED THE ADDITION IN DISPUTE. THE LEARNED FIRST APPELLATE AUTHORITY HAS DELETED THE ADDITION IN DISPUTE BY GIVING ELABORATE FINDINGS ON THE BASIS OF ADDITIONAL EVIDENCE FILED BY THE ASSESSEE FOR TH E ASSESSMENT YEAR UNDER CONSIDERATION. 16.8 WE HAVE THOROUGHLY GONE THROUGH THE FINDINGS OF LEARNED FIRST APPELLATE AUTHORITY ON THE DELETION IN DISPUTE AND WE ARE OF THE CONSIDERED VIEW THAT LEARNED FIRST APPELLATE AUTHORITY HAS PAS SED A WELL REASONED ORDER AFTER AFFORDING ADEQUATE OPPORTUNITY TO THE A SSESSING OFFICER, BEFORE ADMITTING THE ADDITIONAL EVIDENCE ON THE ISS UE IN DISPUTE AND 20 I.T.A. NOS. 55 & 82(ASR)/2013 ASSESSMENT YEAR: 2009-10 APPRECIATED ALL THE DOCUMENTARY EVIDENCE AND RIGHTL Y DELETED THE ADDITION IN DISPUTE. WE DO NOT FIND ANY INFIRMITY IN THE IMP UGNED ORDER DATED 20.11.2012 ON THE ISSUE INVOLVED IN THE REVENUE APP EAL AND WE UPHOLD THE SAME. ACCORDINGLY, THE APPEAL FILED BY THE REVE NUE I.E. I.T.A. NO. 82(ASR)/2013 IS DISMISSED. 17. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED AND THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH FEBRUARY, 2014 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 13 TH FEBRUARY, 2014 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: KARNAIL SINGH BHOGAL, S/O- SH. BHAGA T SINGH, M/S BHOGAL PROPERTY DEALER, KHERA ROAD, PHAGWARA, DISTT .-KAPURTHALA 2. ITO, WARD-1, PHAGWARA 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.