KALU RAM MEENA, Jaipur V. ITO, Jaipur

ITA 95/JPR/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5170 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 27-01-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained investment; Opportunity of being heard
• Section: 68; 69; 148

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF;D LN L; DS LE{K BEFORE:SHRI BHAGCHAND, AM & SHRI LALIET KUMAR, J M VK;DJ VIHY LA-@ ITA NO. 95/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2006-07 SHRI KALU RAM MEENA OPP. LAXMI MANDIR CINEMA TONK ROAD, JAIPUR CUKE VS. THE ITO WARD- 6 (2) JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: ADZPM 6589 J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI ANIL KUMAR SHARMA CA JKTLO DH VKSJ LS@ REVENUE BY: SHRI RAGHUVIR SINGH DAGUR, ADDL.CIT - DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 27/06/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 30/06/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDE R OF THE LD. CIT(A)- II, JAIPUR DATED 28-11-2014 FOR THE ASSESSM ENT YEAR 2006-07 RAISING THEREIN FOLLOWING GROUNDS OF APPEAL. 1. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) IS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 6,60,000/- AGAINST THAT OF RS. 8,50 LACS MADE BY TH E AO AS UNEXPLAINED CASH DEPOSITS INTO THE BANK WITHIN THE MEANING OF SECTION 68 OF I.T. ACT, 1961 ITA NO. 95/JP/2015 SHRI KALU RAM MEENA VS. ITO, WARD- 6 (2), JAIPUR . 2 2. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE LD. CIT(A) IS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 10,11,970/- TOWARDS CASH PAYMENTS FOR PURCHASE OF AGRICULTURE LAND WHICH HAS BEEN HELD BY THE AO AS UNEXPLAINED INVESTMENT WITHIN THE MEANING OF SECTIO N 69 OF THE I.T. ACT, 1961 3. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE LD. CIT(A) IS NOT JUSTIFIED IN UPHOLDING THE AGRICULTUR E INCOME OF THE ASSESSEE AT RS. 1.90 LACS ONLY AGAINST THAT RS. 5,98,500/- CLAIMED BY THE ASSESSEE AND THEREBY NOT CONSIDERING THE BALANCE OF RS. 4,08,500/- AS GENUIN E SOURCE OF CASH DEPOSITS INTO THE BANK OR PAYMENTS MADE FOR PURCHAE OF AGRICULTURE LAND. 2.1 DURING THE COURSE OF HEARING, THE LD. AR FILED THE WRITTEN SUBMISSION CONTENDING THEREIN AS UNDER:- GROUND NO.1, 2 AND 3: 1. THE APPELLANT BEING AN INDIVIDUAL FILED HIS RETU RN OF INCOME ON 30.07.2006 DECLARING TOTAL INCOME OF RS.91720/-. 2. THE ASSESSMENT PROCEEDINGS WERE INITIATED U/S 148 OF THE ACT AND COMPLETED VIDE ASSESSMENT ORDER DATED 30.01.2014. 3.THE AO DURING THE COURSE OF ASSESSMENT PROCEEDING S OBSERVED THAT THE ASSESSEE HAS PURCHASED CERTAIN LANDS DURING THE RELEVANT PREVIOU S YEAR AND MADE CASH DEPOSITS IN HIS BANK ACCOUNTS FOR PASSING OF THE RELEVANT CHEQU ES AS FOLLOWS: DATE/BANK CENTRAL BANK OF INDIA, JYOTI NAGAR, JAIPUR A/C NO.2929 SBI A/C NO. 01190038673/10 203283824 TOTAL 26.09.2005 100000/- 100000/- 11.10.2005 500000/- 500000/- 27.10.2005 200000/- 200000/- ITA NO. 95/JP/2015 SHRI KALU RAM MEENA VS. ITO, WARD- 6 (2), JAIPUR . 3 31.10.2005 50000/- 50000/- TOTAL 850000/- 4. THE AO FURTHER OBSERVED THAT THE ASSESSEE HAS MA DE CASH PAYMENT OF RS.1011970/- FOR PURCHASE OF CERTAIN LAND.(PAGE NO.3 OF THE ASSE SSMENT ORDER) (TOTAL RS.1861970/- ) 5.THE ASSESSEE IN RESPONSE TO QUERY RAISED BY THE A O, CLAIMED THE ABOVE SAID INVESTMENT OF RS.1861970/- OUT OF AGRICULTURE INC OME AND RECOVERY FROM OLD DEBTORS. THE ASSESSEE CLAIMED THE AGRICULTURE INCOME OF RS.5 98500/- AND BALANCE OF RS.1263470/- OUT OF RECOVERY FROM OLD DEBTORS. 6. THE ASSESSEE IN SUPPORT OF HIS CLAIM FILED COPY OF IT RETURN FOR THE PRECEDING A.Y.2005-06, ALONG WITH BALANCE SHEET AND PROFIT & LOSS ACCOUNT ANNEXED THERE TO (PB NO.10-13) AND COPY OF REVENUE RECORDS OF AGRICU LTURE LAND (PB NO.6-9). 6. THE AO REJECTED EXPLANATION OF THE ASSESSEE IN R ESPECT OF BOTH THE SOURCES AND HELD THE BANK DEPOSITS OF RS.850000/- AND CASH PAYM ENT FOR PURCHASE OF LAND OF RS.1011970/- AS UNEXPLAINED U/S 68/69 OF IT ACT 1 961 AND MADE ADDITION OF THE SAME TO RETURNED INCOME. 7. HOWEVER THE LD. CIT(A) ALLOWED SET OFF OF RS.19 0000/- TOWARDS AGRICULTURE INCOME AND RESTRICTED ADDITION OF RS.850000/- TO RS.66000 0/-. 8.THE ASSESSEE HAS PRODUCED THE COPY OF IT RETURN OF PRECEDING A.Y.2005-06 AND BALANCE SHEET ANNEXED THERETO WHEREIN THE ASSESSEE HAS DISCLOSED LOANS AND ADVANCES FOR RS.6500000/- OUTSTANDING AS ON 31.03. 2005. 9. THE ABOVE SAID RETURN OF INCOME FILED ON 08.07 .2005, I.E. WELL BEFORE THE INITIATION OF RELEVANT ASSESSMENT PROCEEDINGS (25.03.2013) IS LYING ON RECORD AND THE SAME HAS BEEN ACCEPTED BY THE DEPARTMENT. 10.THE ASSESSEE OUT OF THE ABOVE SAID LOANS AND ADV ANCES OF RS.6500000/- HAS RECOVERED THE LOANS AND ADVANCES FOR RS.1300000/- D URING THE RELEVANT PREVIOUS YEAR AS CLAIMED BEFORE THE AO. 11. THE REALIZATION OF OLD LOANS PERTAINS TO F.Y.20 05-06 WHEREAS THE RELEVANT ASSESSMENT PROCEEDINGS HAVE BEEN COMPLETED DURING T HE F.Y.2013-14, I.E. AFTER 8 YEARS OF RELEVANT PERIOD. ITA NO. 95/JP/2015 SHRI KALU RAM MEENA VS. ITO, WARD- 6 (2), JAIPUR . 4 12. THEREFORE THE ASSESSEE COULD NOT PROVIDE THE NA MES AND ADDRESSES OF THE DEBTORS FROM WHOM THE ABOVE SAID LOANS WERE REALIZED. 13. WHEN IT IS AN ESTABLISHED FACT THAT THE ASSESSE E WAS HAVING THE LOANS AND ADVANCES OF RS.6500000/- OUTSTANDING AT THE END OF PRECEDING YEAR AS EVIDENCED FROM THE RELEVANT RETURN OF INCOME. 14. THEREFORE, RECOVERY OF THE SAME DURING THE RELE VANT PREVIOUS YEAR AS CLAIMED BY THE ASSESSEE CANNOT BE DENIED EVEN IN ABSENCE OF NA ME WISE AND OTHER DETAILS OF THE SAME. 15. THE ASSESSEE IS NOT DISPUTING THE ESTIMATION OF AGRICULTURE INCOME OF RS.190000/- BEFORE THIS HON. BENCH AND RELEVANT GROUND NO.3 MAY KINDLY BE TREATED AS NOT PRESSED. 16. THUS THE CASH DEPOSITED IN TO THE BANK OF RS.85 0000/- AND CASH PAYMENT OF RS.1011970/- FOR PURCHASE OF LAND MAY KINDLY BE TRE ATED AS EXPLAINED TO THE EXTENT OF RS.1263470/- BEING OUT OF RECOVERY FROM OLD LOANS/D EBTORS AND THE RELEVANT ADDITION MAY KINDLY BE DELETED TO THAT EXTENT. 2.2 DURING THE COURSE OF HEARING, IT IS OBSERVED FROM T HE WRITTEN SUBMISSION OF THE ASSESSEE THAT THE ASSESSEE HAS NO T PRESSED THE GROUND NO. 3 VIDE PARA 15 OF THE WRITTEN SUBMISSION. HENCE , THE GROUND NO. 3 OF THE ASSESSEE IS DISMISSED BEING NOT PRESSED. 2.3 NOW THE GROUND NO. 1 AND 2 IS MENTIONED HEREUN DER FOR ADJUDICATION OF THE ISSUE. 1. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) IS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 6,60,000/- AGAINST THAT OF RS. 8,50 LACS MADE BY TH E AO AS UNEXPLAINED CASH DEPOSITS INTO THE BANK WITHIN THE MEANING OF SECTION 68 OF I.T. ACT, 1961 2. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE LD. CIT(A) IS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. ITA NO. 95/JP/2015 SHRI KALU RAM MEENA VS. ITO, WARD- 6 (2), JAIPUR . 5 10,11,970/- TOWARDS CASH PAYMENTS FOR PURCHASE OF AGRICULTURE LAND WHICH HAS BEEN HELD BY THE AO AS UNEXPLAINED INVESTMENT WITHIN THE MEANING OF SECTIO N 69 OF THE I.T. ACT, 1961. 2.4 IN NUT SHELL, THE LD. AR OF THE ASSESSEE SUBMIT TED THAT THE ASSESSEE HAD PURCHASED CERTAIN LANDS DURING THE RELEVANT PRE VIOUS YEAR AND MADE CASH DEPOSITS IN HIS BANK ACCOUNTS FOR PASSING OF T HE RELEVANT CHEQUES AS FOLLOWS:- DATE/BANK CENTRAL BANK OF INDIA, JYOTI NAGAR, JAIPUR A/C NO.2929 SBI A/C NO. 01190038673/10 203283824 TOTAL 26.09.2005 100000/- 100000/- 11.10.2005 500000/- 500000/- 27.10.2005 200000/- 200000/- 31.10.2005 50000/- 50000/- TOTAL 850000/- THE ASSESSEE HAS SUBMITTED THAT HE HAS MADE CASH PA YMENT OF RS.1011970/- FOR PURCHASE OF CERTAIN LAND.(PAGE NO. 3 OF THE ASSESSMENT ORDER) (TOTAL RS.1861970/-). THE ASSESSEE IN RESPON SE TO QUERY RAISED BY THE AO, CLAIMED THE ABOVE SAID INVESTMENT OF RS.1 861970/- OUT OF AGRICULTURE INCOME AND RECOVERY FROM OLD DEBTORS. T HE ASSESSEE CLAIMED THE AGRICULTURE INCOME OF RS.598500/- AND BALANCE O F RS.1263470/- OUT OF ITA NO. 95/JP/2015 SHRI KALU RAM MEENA VS. ITO, WARD- 6 (2), JAIPUR . 6 RECOVERY FROM OLD DEBTORS. THE ASSESSEE IN SUPPORT OF HIS CLAIM FILED COPY OF IT RETURN FOR THE PRECEDING A.Y.2005-06, ALONG W ITH BALANCE SHEET AND PROFIT & LOSS ACCOUNT ANNEXED THERE TO (PB NO.10-13 ) AND COPY OF REVENUE RECORDS OF AGRICULTURE LAND (PB NO.6-9). TH E ASSESSEE SUBMITTED THAT THE AO REJECTED EXPLANATION OF THE ASSESSEE IN RESPECT OF BOTH THE SOURCES AND HELD THE BANK DEPOSITS OF RS.850000/- AND CASH PAYMENT FOR PURCHASE OF LAND OF RS.1011970/- AS UNEXPLAINED U/S 68/69 OF IT ACT 1961 AND MADE ADDITION OF THE SAME TO RETURNED INCO ME. HOWEVER THE LD. CIT(A) ALLOWED SET OFF OF RS.190000/- TOWARDS AGRIC ULTURE INCOME AND RESTRICTED ADDITION OF RS.850000/- TO RS.660000/-. THE ASSESSEE HAD PRODUCED THE COPY OF IT RETURN OF PRECEDING A.Y.20 05-06 AND BALANCE SHEET ANNEXED THERETO WHEREIN THE ASSESSEE HAD DISC LOSED LOANS AND ADVANCES FOR RS.6500000/- OUTSTANDING AS ON 31.03. 2005. THE ASSESSEE SUBMITTED THAT THE ABOVE SAID RETURN OF INCOME FI LED ON 08.07.2005, I.E. WELL BEFORE THE INITIATION OF RELEVANT ASSESSMENT P ROCEEDINGS (25.03.2013), WAS LYING ON RECORD AND THE SAME HAD BEEN ACCEPTED BY THE DEPARTMENT. THE ASSESSEE OUT OF THE ABOVE SAID LOAN S AND ADVANCES OF RS.6500000/- HAD RECOVERED THE LOANS AND ADVANCES F OR RS.1300000/- DURING THE RELEVANT PREVIOUS YEAR AS CLAIMED BEFORE THE AO. THE REALIZATION OF OLD LOANS PERTAINED TO F.Y.2005-06 W HEREAS THE RELEVANT ITA NO. 95/JP/2015 SHRI KALU RAM MEENA VS. ITO, WARD- 6 (2), JAIPUR . 7 ASSESSMENT PROCEEDINGS HAD BEEN COMPLETED DURING TH E F.Y.2013-14, I.E. AFTER 8 YEARS OF RELEVANT PERIOD. . THEREFORE THE A SSESSEE COULD NOT PROVIDE THE NAMES AND ADDRESSES OF THE DEBTORS FROM WHOM TH E ABOVE SAID LOANS WERE REALIZED. THE ASSESSEE SUBMITTED THAT IT IS A N ESTABLISHED FACT THAT THE ASSESSEE WAS HAVING THE LOANS AND ADVANCES OF R S.6500000/- OUTSTANDING AT THE END OF PRECEDING YEAR AS EVIDENC ED FROM THE RELEVANT RETURN OF INCOME.. THE LD. AR OF THE ASSESSEE SUBMI TTED THAT THE NAMEWISE DETAILS AND ADDRESSES OF THE DEBTORS COULD NOT BE P ROVIDED FOR WANT OF TIME AND THE ASSESSEE WAS ALSO NOT PROVIDED ADEQUAT E OPPORTUNITY OF BEING HEARD. THUS THE LD. AR OF THE ASSESSEE PRAYED TO RESTORE BOTH THE GROUNDS TO THE FILE OF THE AO TO DECIDE THEM AFRESH BY PROVIDING REASONABLE OPPORTUNITY OF HEARING. 2.5 THE LD. DR OPPOSED THE SUBMISSIONS OF THE ASSESSEE AND RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 2.6 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FEEL THAT IN THE INTEREST OF JUSTICE, THE ASSESSEE SHOULD BE GIVEN ONE MORE CHANCE TO SUBMIT THE NAMES WISE DETAILS AND ADDRESSES OF THE DEBTORS BEFORE THE AO TO SQUARE UP THE ISSUE IN QUESTION. THE ASSESSEE IS THUS DIRECTED TO SUBMIT THE DETAILS AS INDICATED ABOVE BEFORE THE AO FOR RE-ADJUDICATION OF THE ISSUE IN Q UESTION AND COOPERATE ITA NO. 95/JP/2015 SHRI KALU RAM MEENA VS. ITO, WARD- 6 (2), JAIPUR . 8 IN THE PROCEEDINGS. THUS IN VIEW OF THE FACTS AND C IRCUMSTANCES OF THE CASE, THE APPEAL OF THE ASSESSEE IS SET ASIDE TO TH E FILE OF THE AO TO DECIDE IT AFRESH BY CONSIDERING THE DETAILS (SUPRA) AND PR OVIDING THE REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THUS TH E APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES . 3.0 IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30/06/20 16. SD/- SD/- YFYR DQEKJ HKKXPUN (LALIET KUMAR) (BHAGCHAND ) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 30/06/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI KALU RAM MEENA, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- 6 (2), JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 95/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR