Ms. Surinder kaur, Paatiala V. Pr.CIT, Patiala

ITA 86/CHANDI/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 2890 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 10-05-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revision of order
• Section: 6; 263; 63; 154; 15; 43

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , “ B ” , C H A N D I G A R H B E F OR E SH R I N . K . SA I N I , V I C E P R E SI D E N T & S H R I S U D H A N S HU SR I V A S T A V A , J U D I C I A L M E M B E R आयकर अपील सं./ ITA No. 86/C H D / 2 0 2 1 नधा रण वष / Assessment Year : 2 0 1 0 - 1 1 Ms. Surinder Kaur, #23, Preet Nagar, Patiala बनाम The Pr. CIT, Patiala थायी लेखा सं./PAN NO: AQDPK4521B अपीलाथ /Appellant यथ /Respondent Hearing though video Conferencing नधा रती क ओर से/Assessee by : Sh. Sudhir Sehgal, Advocate राज व क ओर से/ Revenue by : Sh. Sarabjeet Singh, CIT DR स ु नवाई क तार$ख/Date of Hearing : 09.02.2022 उदघोषणा क तार$ख/Date of Pronouncement : 06. 05.2022 आदेश/Order P er S u d h an sh u S ri va s ta va , J u d i c i a l M e mb e r : T hi s a p pe al is pr e f er re d b y t h e as s e s s ee ag a i ns t t he o r de r d a te d 28 . 0 3. 2 02 1 p a s s e d u/ s 2 6 3 o f t h e I n c o me T ax A ct , 1 961 ( he re i n a f t e r c al l e d ' th e A c t ' ) b y t h e L d. P r in c i pa l Co mm is s i on e r o f I nc o m e T a x P a ti a la [ h e r ei na ft e r r e fe rr e d t o a s ‘ [ P CI T ]’ a nd pe rt ai ns t o a s s es s me n t ye a r 20 1 0 -1 1 . 2. T he b ri e f fa ct s o f th e c as e a re t h at t he or i g i n al r e t u r n o f in c o m e w as fi l e d on 3 1. 03. 20 11 de c l ar i n g a n i nc o me o f Rs . 1, 9 0, 00 0/ - , s h ow i n g i nc o me o f Rs . 1, 20 ,0 0 0/ - a s i n c o m e fr o m D a ir y fa r m in g a n d R s . 70 , 000 / - a s S hor t T e r m C a p it a l G a in on s al e o f b u ff a l oe s . Subs e qu e n t l y, on 25 . 3 . 20 17 , r ea s o ns w er e re c or de d fo r r e op e n i n g o f th e as s e s s me nt o n t h e 2 ita 86-c-2022 – Ms. Surinder Kaur, Patiala ba s i s o f in for ma ti on th at d u r i n g t he c a pt io n e d ye a r t h e as s e s s ee h a d de p os i t ed c a s h i n t he b a n k a c c o u nt a mo u nt in g to Rs. 67, 8 3, 000 / - . T he r e a ft e r, t he A s s e ss i ng O ffi c e r (A O ) i ss u ed a q ues t i o n na i r e re q ui ri ng t he as s e s s e e t o e xp la i n t h e s ou r c e o f c as h de pos i t s in t h e b an k a cc ou n t a nd a f te r c o ns i d e r i ng t h e re s p on s e o f t he a s s es s e e, t he A s s ess i ng o f fi ce r a cc e p te d t h e r e t ur n e d i n c o m e o f t he a s s es s e e v id e or de r d a te d 3 0 . 6 . 2 0 17 . T he r e a ft e r, a no ti c e u/ s 15 4 o f t h e A c t w a s is s u ed v i d e d a t e d 12 . 0 3. 2 01 9 f or r ec t i f yi n g mi s t a ke a pp a r e n t fr o m re cor d p ro pos i ng re c ti fi c at i o n o f m i s ta ke pe rt a i n i n g t o ca s h d e p os i t o f R s . 37, 0 0, 0 00 / - de p os i t ed i n t he b an k a c c o un t o f t h e as s e s s ee . The re a ft er , s ho w c a us e no t i c e u/ s 26 3 ( 1) o f t h e A c t w as i s sue d vi de n ot ic e d a t e d 01. 05 . 2 01 9 , w he re in , i t w a s m en t i o n e d t ha t fr o m t he p er us al o f t he a s s e ss m e n t re c or ds , i t w as fo u nd t h a t t h e as s e s s ee h a d de po si te d Rs . 67, 83 , 0 00 / - o n va r i o us da t e s i n t he ba nk a c c o u nt a nd o ut o f t hi s an a m ou n t o f R s. 30 , 0 0, 0 00 /- w a s o n a c co u nt o f s al e o f p l ot by t he hu s ban d o f th e a s s es s e e w hi ch h a d r e m a i ne d u ne xp l a in ed. A s pe r t he s ho w c au s e no t i c e, th e A s s es s i ng o f fi ce r d i d n ot v e ri fy as t o w h y t h e a m ou n t o f R s. 37 , 0 0, 0 00 /- ha d b e en d e po s i t e d i n t he b an k ac c ou nt o f th e a s s es s e e t ho u g h t h e mo ney b el on g e d t o t h e hu s ban d o f t h e a s ses s e e. Th e a s s es s e e w as re q ui re d t o s h ow c a u s e as t o w h y t he a s s es s me nt o rde r m a y n o t b e s e t a s i de a s be i n g e rr o n eo us an d p re j udi c i a l t o t h e i n t e r st of Re v e n ue . In re s p o ns e t o t he s h ow ca s e no t i c e , t he a s s es s e e su b mi t te d b e f or e t h e L d. P CI T t h a t t h e s ho w ca us e n ot ic e h a d b ee n is s ue d o n t h e b a si s o f an a ud i t ob je c ti on a s w a s e ve n a p p ar en t fr o m t he p l a in re a d i ng o f t he s h o w 3 ita 86-c-2022 – Ms. Surinder Kaur, Patiala c au s e n ot i c e . H ow ev e r , t h e Ld. P C I T di d no t a c c e pt t he s a i d ob je ct i o n o f t he a s s e s se e . I n ad di t i on t o t hi s , t he a s s es se e a l s o s u b mi t te d b e for e t he Ld . P CI T t h a t t he a s se s s e e h ad fi l e d t he r e l e v an t d oc u me nt s b e for e t he A s s e s si ng o ffi c er a n d ha d a l s o e xp l a i n e d e a c h an d e ve r y e n t ry pe r t a in i n g t o t h e d epo s i t o f c a s h i n t he ba nk a c c ount b ut t he s a me d i d no t f i n d fa v ou r w i t h th e L d. P CIT a n d he pr oce e d e d t o hol d t ha t th e a s s es s men t or d e r d a t e d 30. 6 . 2 01 7 (p a s s e d u /s 1 43 (3) re a d w i t h s e c t i on 14 7 o f t he A c t ) w a s e r ro ne o us a s w e l l a s pr e j ud i c ia l t o t h e i n t e r e s t o f Re ve n ue . T h e as s e s s me nt or de r w a s s et a s id e w i t h the d i re c t i o n t o t he A s s es s i ng o ffi c er t o p a s s a fr es h o r de r a ft er c on s id e ri ng t he i s su es hi g h l i g ht e d i n th e s ho w c au s e n o t i c e. 2. 1 A ggr i e v e d, t he a s s ess e e h as no w a p pr oa c h e d t hi s Tr ib un a l c ha ll e n gi ng t h e o r d er p as s e d u / s 26 3 o f th e A ct b y r a is i n g t he fo ll ow i n g gr o un d s o f a p pe a l : 1. That the Ld. PCIT, Patiala has erred in assuming jurisdiction u/s 263 of the Income Tax Act, 1961 and, thereby, cancelling the order passed by the Assessing Officer u/s 147/143(3) dated 30.06.2017 and setting-aside the order as passed u/s 263 of the Income Tax Act, 1961 to the file of the AO for passing a fresh order. 2. That the Ld. PCIT has also erred in holding that the assessment as completed by the Assessing Officer is erroneous and prejudicial to the interest of revenue. 3. That the original assessment as framed by the Assessing Officer vide order dated 30.06.2017 has been framed after due application of mind and by considering all the documents/submissions made during the course of assessment proceedings. 4 ita 86-c-2022 – Ms. Surinder Kaur, Patiala 4. That the order u/s 263 is not valid as the same has been set- aside after taking note of audit objection and which is contrary to the decision of the Jurisdictional Punjab & Haryana High Court in the case of CIT vs. Sohana Woolen Mills reported in 296 ITR 238 and also notice u/s 154 dated 12.03.2019 was issued by the Assessing Officer to rectify the mistake and, thus, the order as passed by the PCIT u/s 263, is void-ab-initio. 5. That the replies to the show-cause notice as filed during the course of proceedings before the Ld. PCIT have not been considered properly. 6. That the appellant craves leave to add or to amend any of the grounds of appeal before the appeal is finally heard or disposed-off. 3. 0 T he L d. A R s ub m it t e d th at d u ri ng t h e c o urs e o f a s se ss me n t pr o c e e d i n gs , th e A s s ess i ng o f fi ce r h a d i s su ed a q uery l et t er r eq ui r i n g t he as s e s s ee t o e xp l ai n t h e s our ce o f ba n k de pos i t s an d i n re s p on s e t o t he sa m e, t he a s s es s e e h ad su b mi t t e d c op y o f t he b an k st a t e me nt a nd ha d a ls o e xp la i ne d t h e t ra ns ac t io ns be fo r e t he A s s e s s ing o ff i c e r. It w a s s ub m i tt e d t ha t t h e as s e s s ee ha d a l s o fi l e d a c o py of t he ag r e e m e nt fo r s a le o f pl ot a t Rs . 37 , 0 0, 00 0 /- a n d i t w as al s o e xpl a i n ed be for e t h e A s s es s i ng o f fi c e r t ha t t h e po s se s s i on w as gi ve n a t t he ti me o f ex ec ut i o n o f t he a g re e m en t an d t h a t t h e A s s ess i ng o ff i c e r h ad n ot d ou b t e d th e ge n ui ne ne s s o f th e s ai d a g re e me n t . It w as s ubm i t t e d t h a t e a c h a n d e v er y e nt ry o f t h e ba nk d e pos i t ha d be e n e x pl a in e d b y w a y o f a l et t e r du r i n g t he c o urs e o f a s s ess m e nt pr o c e e d i n gs , a c o py o f w h ic h h a s be e n p l a ce d a t pa ge 5 o f t h e pa pe r b oo k. It w a s a l s o s ub m i t t e d t ha t b o th t he e a r n es t m o ne y as w e l l a s t he ba l a nc e a m o un t fe l l i n th e s a me fi n a nc i a l y ea r a n d t ha t th er e w a s a di r ec t n ex u s o f c as h d e pos i t e d i n t he b an k a cc ou nt a nd 5 ita 86-c-2022 – Ms. Surinder Kaur, Patiala t he r ec e ip t o f m o ne y. It w as s u b m i t t e d t ha t t h a t ass e s s ee ha d a l s o e xp l a i n e d th at t h e a s s es s e e ha d d u l y e xpl a i n e d t he r e as o n f o r t he hu s ba n d de pos i ti ng t he mo ne y in t h e b a nk a c c o un t o f th e a s se s s e e be i n g t he s a m e i n ac c o rd a nc e w it h t h e w i s he s o f h is fa th er S h ri S uc ha S in g h w hi ch h a d be e n a c c e p t e d b y t h e A ss es s i ng o f fi ce r and n ow t h e pr o c e e d i n gs u/ s 26 3 o f t he A c t, in i t i a t e d a ft e r a l mos t 1 0 ye a rs a ft e r t he da t e o f t r an s ac t i o n a nd t a ki ng a di f fe r en t vi ew , w as l e ga l l y n ot t e n a b l e. It w a s al s o s u b m i t t e d t ha t t he as s e s s ee ha d e v e n f il e d c o pi es o f a ffi d a v i t s , w h er ei n , t he co ns i d er at i o n o f Rs . 3 7, 00, 0 0 0/ - h a d b ee n c on f i r m e d an d no t hi n g a d ve rs e h a d b e en p oi nt e d ou t by t h e A s s e s s in g o f fi c e r i n t h i s re g a rd an d , t he r e f or e , t he a ct i o n of t h e L d. P C IT i n s e tt i ng as i d e t h e a s s e s sme n t or de r o n t he i s s ue w a s w r o ng bo t h o n fa c t s a s w e ll as l aw . I t w as a rg ue d b y t he L d. A R t h a t t he r e w as d ue a pp l i ca ti on o f m i n d b y th e A s s e s s in g o f fi c e r i n t his r e ga rd a nd t he a ll e g a t i o n o f t h e L d. P CI T t ha t t he A s ses s i ng o ffic e r h a d n o t i n q ui r e d i nt o t h e i s s ue i s fa c tu a l ly i nc orr ec t an d, t he r e fore, th e se t t i n g a s id e o f t he a s s es s m en t or d er b y t he L d. P CIT w a s n ot s u s ta in ab le in t he e ye s o f l aw . 4. 1 T he L d. A R f urt he r ar g ue d t h at t he s ho w c au s e not i c e ha s b ee n i s s ue d a ft e r re ce iv in g a n a ud i t ob je c ti on ( as w as e vi d en t fr o m t h e re a di ng o f t h e i m pu g ne d or de r ) a nd h e re l ie d u p o n the n u me r ou s j u d ic i a l pr e c e d e n ts , w h er e i n, t h e Re vi s i o n a ry pr oc e e di ng s u/s 2 6 3 o f t he A c t w er e h e l d t o b e ba d i n l a w i f t he s a m e w e re b as e d on A ud i t obj e c t i on. 6 ita 86-c-2022 – Ms. Surinder Kaur, Patiala 4. 0 P e r c on t r a , th e L d. CI T D R s u pp ort e d t h e o r de r o f t h e L d. P CI T a nd v e h e me nt l y a r gue d t h a t th e f ac t r e m a i ne d t ha t th e ba n k de p os i t o f Rs . 37, 00 , 0 00 / - ha d re ma in ed u n ex pl ai ne d a n d th e A ss es s ing o f fi c e r h a d no t ap pl ie d h is mi nd to t h e is s ue a t ha n d an d ha d s i mp ly a c c e p te d t h e re t ur n o f i nc o me . I t w a s al s o s ubm i t t e d th at t he pu rpo s e o f a ud i t ob j e c t i on w as to b r in g t o no t i ce t he e rr ors or o mi ss i on s an d t h e L d. P CIT h a d i s s ue d s ho w c a us e no t i ce o n ly a f te r p r op erl y e xa mi ni ng t he i s s ue a nd n ot me r e l y be c au se t h e re w a s a n a udi t o b je c t i o n. Th e L d . CI T D R v e he me nt l y a r gu e d th at t h e Ld . P CIT h a d r i g h t l y s et a s i d e t he a s s es s men t or de r. 5. 0 We ha ve h e a r d th e ri va l s u b m i s s io ns a n d ha ve a ls o p er us e d t h e m at er ia l on re co rd as w e l l as p a p e r bo o k c on t a in in g va ri o us doc u me n t s fi l ed b y t he a s s es se e du ri ng th e c o u r s e o f a s s es s men t p ro c e e di ngs as w el l as c o py o f t h e n ot i ce is s ue d b y t h e A s s e s s in g o ff i c e r d ur i n g t he c ou r se o f a ss e s s me nt p ro c e e d i n gs . We ha v e a l so g on e t hr ou gh t he q ue r y l et t e r d a t e d 14. 0 6 . 2 0 17 i s s ue d by t h e I nc o me T a x O ffi ce r, Wa r d - 1, P a ti a la w h er ei n he had r eq ui re d t he as s e s s ee t o fu rn is h c o p ie s o f a l l t he ba n k a c c o un t s ma i n ta i ne d b y t he a s s e s se e a s w e ll as fur ni s h d e t a i ls o f c as h d e p os i t s i n t he s a v i n g b an k ac c ou nt a l o n g w i t h c og e n t a nd c or r o bo r a t i v e d oc u me nt a r y ev id e nc e s a nd a l s o s u b m it th e de t ai l s o f s ou rc e o f c a s h d e po s it s f or th e re le va n t p e r i o d . We ha v e a l s o g on e t hr o u gh th e r es p on s e o f th e a s s e s se e s ub mi tt e d b e for e th e A s s e s s i ng 7 ita 86-c-2022 – Ms. Surinder Kaur, Patiala o f fi c e r i n r e s po ns e to t h e s a i d qu e ry l et t er a n d t he s a me is b e i n g r ep r o du c e d he r e i n u n de r fo r a r e a d y r e fe r e n c e : - 5. 1 W e ha v e al s o go ne t hr ou gh t he E n gl is h t r a ns l at io n o f t he A gr ee me nt to S e l l a s w e l l a s t he En g l is h t ra ns l a t i on o f s al e d ee d a n d 8 ita 86-c-2022 – Ms. Surinder Kaur, Patiala a ls o o f t h e a ff i d a vi t o f t he a s s e ss e e ’s h us b a nd S h ri K u nd a n S i n g h, w he re in , i t ha s b e e n de pos e d t ha t s i n c e h e h a d s o ld t he pl o t o ri gi na l l y be l on gi ng t o hi s fa t her , h e h a d d e p o s it e d t h e a mou nt i n t h e ba n k ac c ou nt o f h is w i fe ( i . e . t h e as s e s s ee ) a s p e r t he w is h es o f h i s l at e fa t h e r. In ou r c ons i de re d o pi ni on , t he e n t i r e d o c u m e nt s fur n is h ed b y t h e a s se s s e e i n t hi s r e ga rd b e fo r e t he A s s es s i ng o f fi ce r as w el l i n r es p o n s e t o th e s how c au s e n o t i c e i s s ue d by t he L d. P CI T in d ic a t e t h a t th e cl a i m o f t he a s s es s e e re ga rd i n g t he s o ur c e o f b a n k de pos i t s i s cor re ct . T h e q ue r y l et t e r i s s ue d b y th e A O i ndi c a t e s t ha t t he A O ha d dul y a p pl i e d hi s m i nd t o th e i s s ue be fo r e h i m a nd f u rt he r t h e a s s es s e e a ls o h a d du l y r es po nd e d t o t he qu er y r ai s e d b y t h e A s s es s i ng o ff i c e r i n t h is r eg a r d a n d o nl y t he re a ft e r th e A O ha d ac c ep te d t h e r e t u rn o f i nc o me o f th e as s e s s e e. T he r e f o re , o n th e f a ct s o f t h e c a s e, it is our c ons i de re d vi ew , th at t he re i s n o l a ck o f i nq u ir y o n t h e p a rt o f t he A s s e s s in g o ffi c er w a rr a n t i ng i nv o c a t i o n o f re vi s i o na ry p r o c ee di ngs by t h e Ld . P CI T. 5. 2 A t t h i s j u n c t u r e, w e w ou l d li ke to p l a ce r e l i a nc e o n t h e j ud ge m en t o f t h e H on ' b l e D e l h i H i gh C ou rt i n t h e c as e o f S un be a m A u to Lt d. V s . CI T (2 0 1 0) 3 3 2 IT R 1 6 7( D e l h i . ) , w he re i n, th e H o n ' ble D el h i H i g h C o ur t ha s h e l d t ha t i f t he re w as an y i nq ui ry , ev en i n a d equ a t e , t h at w ou ld n ot by i ts e l f g i v e th e p ow e rs t o t he C o mm is s i on er t o pas s ord e r u / s 2 63 o f t he A c t , mer el y b e c au s e t he C o m m i ss i on er h as a d i ffe r e nt op i n i o n i n t he m a t t er a n d t ha t i t i s o n l y i n t h os e c a s es w he re t h e r e w a s n o en q u i ry, t ha t t he p o w e rs u / s 26 3 o f t h e A c t c a n b e e xe r ci s e d. T he L d. P CI T 9 ita 86-c-2022 – Ms. Surinder Kaur, Patiala c an no t p a s s an o r d er u/ s 2 63 o f th e A c t me re l y on th e gr ou nd th at fu r t h e r o r t h o ro u g h en qu i r y s ho u l d ha v e b ee n ma d e by t h e A s s e s s in g o f fi c e r. We al s o no te t h at t he H o n ' bl e A p ex C o u rt in th e c as e o f M a la ba r In d us t r i es Co. L t d. v CIT r ep o r t e d i n (20 00 ) 2 43 I TR 8 3 (S C ) ha s h el d t ha t i f t he A s s ess i ng o ffi c er a do p t s on e o f t h e poss i bl e c ou r se s pe r m is s i b l e i n l aw a nd i t h as re s u lt e d i n l os s o f re v e n u e, o r w he re t w o vi e w s a re p os s i bl e a nd t he A s s e s s i ng o f fi ce r a d op t s one v i ew w i th w hi c h t he Co m mi s s i on e r d oes n ot a gr e e , i t w o ul d no t b e an o r de r p re j ud ic i a l t o t h e i nt e r e s ts o f t h e R e ve nu e fo r t h e p urp o s e o f in vo ki ng t he re v i s i o na ry po w e r s u /s 26 3 o f t he A ct . T he r e f or e , on t he fa ct s o f t he pr es e nt c a se , w e a re o f t he c on s i d er ed opi ni on , t h at t h e i m p ug ne d o r de r w as d e fi n i t e ly ou t s id e t h e p ur vi ew o f se c ti on 26 3 of t he A c t a n d, w e ho l d th e i m p ug n e d or de r t o b e ba d i n l aw a nd q ua s h t h e s a me. A s w e ha v e a lr e a d y q ua s h ed t he i m pu g n ed o rd e r for t he re as o n s me nt i o ne d i n t he pr e c e di ng p ar ag ra p hs , w e a re not i nc l in ed t o a dj u d i c a t e o n t h e is s ue o f l e g a li t y o f r e v i s io n a r y p ro c e e di n gs ba se d on a udi t o b j ec t i o n a t t he pr es e nt j u nc t u r e. 6. 0 In th e fi n a l r es u lt , t h e a p pe al o f t he a s se s s e e s t an ds al l ow e d . O rde r p ro no un c e d O N 06. 05 . 2022 . Sd/- Sd/- ( N. K. SAINI) (SUDHANSHU SRIVASTAVA) Vice President Judicial Member Dated : 06.05.2022 “आर.के.” 10 ita 86-c-2022 – Ms. Surinder Kaur, Patiala आदेशक त+ल,पअ-े,षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु .त/ CIT 4. आयकरआय ु .त (अपील)/ The CIT(A) 5. ,वभागीय त न1ध, आयकरअपील$यआ1धकरण, च3डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar