Shri Lal Chand Sharma, Jaipur V. Income Tax Officer, Ward-7(2), Jaipur

ITA 864/JPR/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0691 (ITAT-JAIPUR)
• Duration Of Justice: 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 03-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KHANNA JCIT DHK
• Assessee Lawyers: S L PODDAR; SOHAN LAL AGARWAL S
• Keywords: Salary income

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH JES'K LH- 'KEKZ] YS[KK LNL; ,O A H JH FOT; IKY JKWO] U;KF;D LNL; DS LE{K BEFORE: SHRI RAMESH C. SHARMA, AM & SHRI VIJAY PAL RAO, JM ITA NO. 864/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2014-15. SHRI LAL CHAND SHARMA, 48, LEELO KI DHANI, JAISINGHPURA, SANGANER, JAIPUR. CUKE VS. THE INCOME TAX OFFICER, WARD-7(2), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO.BGPNS 9915G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI S.L. PODDAR & SHRI SOHAN LAL AGARWAL (ADVOCATES) JKTLO DH VKSJ LS@ REVENUE BY : SHRI ASHOK KHANNA (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 26.03.2019. ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 28/03/2019. VKNS'K@ ORDER PER VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 14 TH MAY, 2018 OF LD. CIT (A)-3, JAIPUR FOR THE ASSESSMENT YE AR 2014-15. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS :- 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED CIT (A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 2,59,958/- ON ACCOUNT OF INVESTMENT IN JEEP WITHOUT CONSIDERING T HE SUBMISSION OF THE ASSESSEE. 2. THE ASSESSEE CRAVES YOUR INDULGENCE TO ADD, AMEN D OR ALTER ALL OR ANY GROUNDS OF APPEAL BEFORE OR AT THE TIME OF H EARING. 2 ITA NO. 864/JP/2018 SHRI LAL CHAND SHARMA, JAIPUR. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS REGARDIN G ADDITION MADE BY THE AO ON ACCOUNT OF CASH PAYMENT TOWARDS PURCHASE OF JEEP. THE ASSESSEE IS AN INDIVIDUAL AND DERIVES INCOME FROM SALARY. THE AO NOTED THAT THE ASSESSEE HAS PURCHASED A MAHINDRA JEEP FOR A CONSIDERATION OF RS. 13,37,958/ -, OUT OF WHICH A SUM OF RS. 10,78,000/- WAS FINANCED BY MAHENDRA FINANCE LTD. A ND BALANCE AMOUNT OF RS. 2,59,958/- WAS PAID IN CASH. THE AO ASKED THE ASSE SSEE TO EXPLAIN THE SOURCE OF THE CASH OF RS. 2,59,958/- PAID FOR PURCHASE OF MAH INDRA JEEP. THE ASSESSEE EXPLAINED THE SOURCE AS PAST SAVINGS AS WELL AS AGR ICULTURAL INCOME, HOWEVER, WHICH WAS NOT ACCEPTED BY THE AO AND CONSEQUENTLY AN ADDI TION OF RS. 2,59,958/- WAS MADE TO THE TOTAL INCOME OF THE ASSESSEE. THE ASSE SSEE CHALLENGED THE ACTION OF THE AO BEFORE THE LD. CIT (A) AND CONTENDED THAT TH E SOURCE OF CASH IS AVAILABLE IN THE CASH BOOK MAINTAINED BY THE ASSESSEE. COPY OF THE LEDGER ACCOUNT OF CASH WAS FURNISHED BEFORE THE LD. CIT (A) AS WELL AS THE AO. THE LD. CIT (A) DID NOT ACCEPT THE CASH BOOK PRODUCED BY THE ASSESSEE ON THE GROUN D THAT THE ASSESSEE HAS CLAIMED THE INTEREST INCOME OF RS. 72,000/-, HOWEVE R, NO SUCH INCOME WAS SHOWN IN THE RETURN OF INCOME. FURTHER, THE ASSESSEE HAS SH OWN DRAWINGS OF RS. 60,275/- WHICH IS NOT SUFFICIENT TO MEET THE HOUSEHOLD EXPEN DITURE AS WELL AS EDUCATION EXPENDITURE OF THE CHILDREN. ACCORDINGLY, THE LD. C IT (A) CONFIRMED THE ADDITION MADE BY THE AO. 3. BEFORE US THE LD. A/R OF THE ASSESSEE HAS SUBMIT TED THAT THE SOURCE OF CASH PAID FOR PURCHASE OF MAHINDRA JEEP WAS DULY EXPLAIN ED AND SUPPORTED BY CASH BOOK MAINTAINED BY THE ASSESSEE. THE SAID CASH BOOK REF LECTED THE WITHDRAWAL OF SAID AMOUNT OF RS. 2,59,958/- ON 1 ST NOVEMBER, 2013. FURTHER, THE ASSESSEE ALSO 3 ITA NO. 864/JP/2018 SHRI LAL CHAND SHARMA, JAIPUR. PRODUCED THE NECESSARY DOCUMENTS TO SHOW THAT THE H UF OF HIS FATHER OWNED AGRICULTURAL LAND OF 2.30 HECTARE AND THE ASSESSEE HAS RECEIVED HIS SHARE FROM THE AGRICULTURAL INCOME OF HUF OF SHRI HARNATH SHARMA. THUS ONCE THE ASSESSEE HAS RECEIVED HIS SHARE OF AGRICULTURAL INCOME FROM THE HUF OF HIS FATHER, THEN THE SAME WAS NOT REQUIRED TO BE SHOWN IN THE RETURN OF INCOM E. HE HAS REFERRED TO THE RELEVANT DOCUMENTS REGARDING THE HOLDING OF AGRICUL TURAL LAND AND AGRICULTURAL INCOME OF THE FATHERS HUF. AS REGARDS THE DRAWING S DURING THE YEAR OF RS.60,275/-, THE LD. A/R HAS SUBMITTED THAT THE WIFE OF THE ASSE SSEE ALSO MADE DRAWINGS OF RS. 54,000/- AND THERE IS DRAWINGS OF RS. 54,000/- IN T HE HUF ALSO. THEREFORE, THE TOTAL DRAWINGS OF THE FAMILY WAS RS. 1,68,275/- WHICH WAS SUFFICIENT WHEN THE ASSESSEE IS LIVING IN THE JOINT FAMILY. THE ASSESSEE IS ALSO R ESIDING IN THE VILLAGE AND IN HIS ANCESTRAL HOUSE, THEREFORE, THE TOTAL DRAWINGS OF R S. 1,68,275/- IS SUFFICIENT TO MEET THE HOUSEHOLD EXPENSES AS WELL AS EDUCATION EXPENSE S OF CHILDREN. HENCE THE LD. A/R HAS PLEADED THAT THE ADDITION MADE BY THE AO AND CO NFIRMED BY THE LD. CIT (A) IS LIABLE TO DELETED. 4. ON THE OTHER HAND, THE LD. D/R HAS RELIED UPON T HE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE AO AS WELL AS THE LD. CIT (A) HAS SPECIFICALLY POINTED OUT THAT THIS CASH BOOK FILED BY THE ASSESSEE IS NO T RELIABLE AND ACCEPTABLE BECAUSE THE ASSESSEE HAS SHOWN AGRICULTURAL INCOME IN THE C ASH BOOK BUT NO SUCH INCOME WAS SHOWN IN THE RETURN OF INCOME. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD. THERE IS NO DISPUTE DURING THE YEAR UNDER CONSIDERATION THAT THE ASSESSEE HAS PURCHASED A MAHINDRA JEEP WHICH WAS FINANCED BY M/S. MAHENDRA FINANCE LTD. TO THE EXTENT OF RS. 10,78,000/- AND THE BALANCE AM OUNT OF RS. 2,59,958/- WAS PAID 4 ITA NO. 864/JP/2018 SHRI LAL CHAND SHARMA, JAIPUR. BY THE ASSESSEE IN CASH. THE ASSESSEE HAS EXPLAINE D THE AVAILABILITY OF CASH BY PRODUCING THE CASH BOOK IN WHICH THERE WAS AN ENTRY OF AGRICULTURAL INCOME OF RS. 72,000/-. THE SOLE REASON OF REJECTING THE SOURCE OF CASH AS REFLECTED IN THE CASH BOOK WAS THE AGRICULTURAL INCOME RECORDED IN THE CA SH BOOK WHICH WAS NOT SHOWN IN THE RETURN OF INCOME. WE FIND THAT THE ASSESSEE PR ODUCED THE RELEVANT DOCUMENTS REGARDING HOLDING OF AGRICULTURAL LAND BY THE HUF O F THE FATHER SHRI HARNATH SHARMA TO WHICH THE ASSESSEE IS ALSO A MEMBER. THEREFORE, ONCE THERE IS AN AGRICULTURAL LAND HELD BY THE HUF AND ASSESSEE IS MEMBER OF THE SAID HUF THEN THE CLAIM OF AGRICULTURAL INCOME IS NOT WITHOUT ANY BASIS. THE A SSESSEE HAS DISCHARGED HIS ONUS BY PRODUCING THE RECORD OF THE AGRICULTURAL LAND AN D SHARE IN THE AGRICULTURAL INCOME. THE ASSESSEE ALSO PRODUCED THE AFFIDAVIT OF HIS FAT HER WHO IS KARTA OF THE HUF. ONLY BECAUSE OF AN ENTRY OF RS. 72,000/- OF AGRICULTURAL INCOME, THE ENTIRE AVAILABILITY OF CASH IN THE CASH BOOK CANNOT BE REJECTED, NEITHER T HE AO NOR THE LD. CIT (A) HAS POINTED OUT ANY OTHER DEFECT IN THE CASH BOOK, BUT DUE TO THE AGRICULTURAL INCOME NOT SHOWN IN THE CASH BOOK THE SAME WAS REJECTED. FURTH ER, THE ASSESSEE HAS ALSO BROUGHT ON RECORD THAT THE TOTAL DRAWINGS BY THE FA MILY MEMBERS OF THE ASSESSEE IS RS. 1,68,275/- THOUGH THE ASSESSEES DRAWINGS IS RS . 60,275/-. THUS HAVING REGARD TO THE FACTS OF THE CASE WHEN THE ASSESSEE HAS DISC HARGED ONUS OF THIS AVAILABILITY OF CASH BY PRODUCING THE RELEVANT DOCUMENTARY EVIDENCE AS WELL AS THE HOUSEHOLD WITHDRAWALS OF RS. 1,68,275/- BY THE FAMILY MEMBERS INCLUDING THE ASSESSEE, THEN THE ADDITION MADE BY THE AO AND SUSTAINED BY THE LD . CIT (A) WITHOUT GIVING A CONTRARY FINDING IS NOT SUSTAINABLE. EVEN OTHERWIS E, THE ASSESSEE BEING A SALARIED PERSON AND ASSESSED TO TAX COULD HAVE SOME PAST SAV INGS WHICH IS ALSO SHOWN IN THE 5 ITA NO. 864/JP/2018 SHRI LAL CHAND SHARMA, JAIPUR. CASH BOOK, THEREFORE, THE ADDITION MADE BY THE AO I S NOT SUSTAINABLE. THE SAME IS DELETED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 28/03/2019 . SD/- SD/- JES'K LH- 'KEKZ ] FOT; IKY JKWO ( RAMESH C. SHARMA ) ( VIJAY PAL RAO ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 28/03/2019. DAS/ VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT-SHRI LAL CHAND SHARMA, JAIPUR. 2. IZR;FKHZ Z@ THE RESPONDENT-THE ITO WARD-7(2), JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 864/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR 6 ITA NO. 864/JP/2018 SHRI LAL CHAND SHARMA, JAIPUR.