Sh. Rajinder Singh Tur, Mohali V. ITO, Mohali

ITA 985/CHANDI/2014

• Counselvise Citation: 98521514 RSA 2014
• Duration Of Justice: 8 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-07-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 10-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S SIDHU

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH SMC CHANDIGARH BEFORE SHRI H.L.KARWA, HON'BLE VICE PRESIDENT ITA NO.985/CHD/2014 (ASSESSMENT YEAR: 2008-09 ) SHRI RAJINDER SINGH TUR, VS. THE INCOME TAX OFFICER, # 525, PHASE-IX, WARD-6(1), MOHALI. MOHALI. . PAN: ABWPS8243G (APPELLANT) (RESPONDENT) APPELLANT BY : SH. TEJ MOHAN SINGH RESPONDENT BY : SH. D.S. SIDHU, DR DATE OF HEARING : 31.07.2015 DATE OF PRONOUNCEMENT : 06.08.2015 O R D E R PER SHRI H.L.KARWA, (VP) : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST TH E ORDER OF LEARNED CIT (APPEALS), CHANDIGARH DATED 26.08.20 14, RAISING THE FOLLOWING GROUNDS : (I) THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND FACTS IN UPHOLDING T HE ADDITION OF RS.3,55,000/- MADE ON ACCOUNT OF DEPOSI T IN THE BANK OF THE ASSESSEE IN UTTER DISREGARD OF T HE EXPLANATIONS RENDERED WHICH IS ILLEGAL, ARBITRARY A ND UNJUSTIFIED. (II) THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS FURTHER ERRED IN BRUSHING ASIDE THE STATEMENT OF SH. DALIP SINGH WHO HAD CONFIRMED HAVING GIVEN THE AMOUNT OF RS,3,55,000/- TO THE 2 ASSESSEE ALONGWITH OTHER EVIDENCE PLACED ON RECORD WHICH IS ARBITRARY AND UNJUSTIFIED. (III) THAT THE ORDER OF THE LD. COMMISSIONER OF INC OME TAX (APPEALS) IS ERRONEOUS, ARBITRARY, OPPOSED TO L AW AND FACTS OF THE CASE AND IS, THUS, UNTENABLE. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE, AN INDIVIDUAL FILED HIS RETURN FOR THE ASSESSMENT YEAR 2008-09 DECLARING NET TAXABLE INCOME AMOUNTING TO RS.3,49,2 20/-. THE CASE WAS SELECTED UNDER SCRUTINY THROUGH CASS. THE ASSESSING OFFICER NOTICED THAT THERE WERE CERTAIN C ASH DEPOSITS ON VARIOUS DATES- TOTALING AMOUNTING TO RS.10,59,500/-. WHEN QUESTIONED ABOUT THE SOURCE OF THE SAME, THE APPELLANT HAD EXPLAINED THAT THE DEPOSIT OF RS.3,55,000/- ON 16.10.2007 WAS MADE BY HIS RELATIV E SHRI DALIP SINGH FOR MARRIAGE OF HIS TWO DAUGHTERS. AS P ER THE EXPLANATION FURNISHED BY HIM, SHRI DALIP SINGH WAS AN AGRICULTURIST, NOT WELL EDUCATED AND HAD COME FROM VILLAGE FOR MAKING PURCHASES FOR MARRIAGE OF HIS DAUGHTER AND T HE MONEY WAS DEPOSITED IN THE BANK ACCOUNT, SINCE, THE ASSES SEE AND SHRI DALIP SINGH BOTH HAD TO MAKE PURCHASES FOR THE MARRIAGE OF THEIR DAUGHTERS. A COPY OF CONFIRMATION FROM SHR I DALIP SINGH AND CONFIRMATION FROM ARHITYA ABOUT HIS ANNUA L AGRICULTURAL INCOME WAS FURNISHED. THE AO DID NOT A CCEPT THE EXPLANATION OF THE APPELLANT REGARDING THIS DEPOSIT OF RS.3,55,000/- ON THE FOLLOWING REASONS. (A) NEITHER THE ASSESSEE NOR THE RELATED PERSON S H. DALIP SINGH HAS INTIMATED THE RELATION BETWEEN THE PERSON AND THE ASSESSEE DURING THE PROCEEDINGS. 3 (B) HOW AND WHY A PERSON RESIDING NEAR ROPAR IS SUPPOSED TO COME TO MOHALI FOR SHOPPING WHEN ROPAR IS ITSELF A BIG CITY FULLY URBANIZED AND HAVING ALL THE FACILITIES FOR SHOPPING. THERE IS NO JUSTIFICATION/ TRUTH IN THE STATEMENT OF THE ASSESSEE OR THE WITNESS. ( C) HOW A PERSON OWING 42 ACRES OF AGRICULTURE LA ND AND EARNING INCOME AROUND RS.14 LACS THERE FROM ANNUALLY IS SUPPOSED TO DEPEND UPON ANY THIRD PERSON (THE ASSESSEE) FOR MAKING SHOPPING FOR THE MARRIAGE OF HIS DAUGHTERS. (D) NO EVIDENCE HAS BEEN PUT ON RECORD AS REGARDS THE EARNING OF RS.14 LACS AS AGRICULTURAL INCOME BY SH. DALIP SINGH DURING THE YEAR UNDER CONSIDERATION . (E) THE WITNESS SH. DALIP SINGH HAS STATED THAT NO SHOPPING WAS MADE BETWEEN THE PERIOD FROM OCTOBER,2007 TO DECEMBER,2007 WHEREAS A PERUSAL OF THE SAID BANK ACCOUNT SHOWS THAT AN AMOUNT OF RS.4 LACS HAS BEEN WITHDRAWN FROM THE BANK ACCOUNT NO.10033 MAINTAINED BY THE ASSESSEE WITH PUNJAB AND SIND BANK, PHASE 8,MOHALI ON 26.11.2007. (F) THE WITNESS SH. DALIP SINGH HAS PUT ON RECORD A CERTIFICATE FROM M/S HARDEV SINGH AND BROTHERS, GRAIN MARKET, BELA, DISTT. (ROPAR) DATED 16.8.2010 WHICH HAS BEEN EXAMINED. THE SAID AGENT HAS MENTIONED THAT THE PARTY SH. DALIP SINGH MAKES SALE OF FOOD-GRAINS ANNUALLY TO IT RANGING BETWEEN RS.10 LACKS TO 14 LACS. NO EVIDENCE IN THE SHAPE OF THE COPY OF ACCOUNT OR THE J-FORMS HAS BEEN PUT ON RECORD BY THE ASSESSEE DURING THE COURSE OF PROCEEDINGS. 3. DURING THE COURSE OF ASSESSMENT THE STATEMENT O F SH. DALIP SINGH WAS ALSO RECORDED WHEREBY HE CONFIR MED HAVING DEPOSITED THE SAID AMOUNT. HE ALSO PRODUCED CERTAIN SALE BILLS FROM COMMISSION AGENTS, BUT THE ASSESSIN G OFFICER NOTICED THAT THESE WERE IN THE NAME OF SHRI TARLOCH AN SINGH, 4 BROTHER OF THE APPELLANT. THE ASSESSING OFFICER ALS O NOTICED CERTAIN DISCREPANCIES IN THE BILLS. THE ASSESSING O FFICER FINALLY CONCLUDED THAT IT WAS IMPROBABLE THAT SHRI DALIP SINGH WOULD KEEP THE MONEY IN THE BANK ACCOUNT OF THE ASS ESSEE AND SO HE TREATED THIS AMOUNT OF RS.3,55,000/- AS UNEXPLAINED DEPOSITS. THE ASSESSING OFFICER MADE A TOTAL ADDITION OF RS.10,46,000/- INCLUDING THE SAID AMOUN T OF RS. 3,55,000/-. 4. THE ASSESSEE WENT INTO APPEAL BEFORE THE LEARNE D CIT (APPEALS), WHO DELETED ALL THE OTHER ADDITIONS APART FROM THIS 3,55,000/-. HE FOUND HIMSELF ENTIRELY IN AGREE MENT WITH THE FINDINGS OF THE ASSESSING OFFICER AND UPHELD TH E ADDITION OF RS.3,55,000/-. 5. DURING THE COURSE OF HEARING BEFORE ME, LEARNED COUNSEL OF THE ASSESSEE AGAIN REITERATED THAT THIS AMOUNT OF RS.3,55,000/- WAS RECEIVED FROM DALIP SINGH, WHO WA S WELL KNOWN TO HIS FAMILY, FOR THE PURPOSE OF MAKING PURC HASES FOR HIS DAUGHTERS MARRIAGE. IT WAS ALSO SUBMITTED THAT DALIP SINGH LIVES IN VPO FEROZEPUR, P.O BELA, DISTRICT RO PAR AND WAS NOT WELL EDUCATED, HENCE, HE PREFERRED TO MAKE JOINT PURCHASES WITH THE ASSESSEE FOR THE MARRIAGE FUNCTI ON FROM CHANDIGARH AND AMBALA FOR WHICH HE DEPOSITED MONEY IN THE ASSESSEES ACCOUNT. DALIP SINGH HAD ALSO GIVEN STAT EMENT BEFORE THE ASSESSING OFFICER, WHEREBY HE HAD ACCEPT ED THIS FACT. AN AFFIDAVIT OF SH. DALIP SINGH TO THIS EFFEC T WAS ALSO FILED BEFORE THE ASSESSING OFFICER. IN THE STATEMEN T, DALIP SINGH TOLD TO ASSESSING OFFICER THAT THE ASSESSEE I S HIS 5 COUSIN. TO SUBSTANTIATE THE FACT THAT DALIP SINGH W AS EARNING RS.14,00,000/- AS AGRICULTURAL INCOME. COPY OF FARD AND BILLS FROM ARHITYA WERE ALSO FILED IN THE PAPER BOOK. REG ARDING THE SALE VOUCHERS ISSUED IN THE NAME OF SHRI TARLOACHAN SINGH, IT WAS SUBMITTED THAT IT IS THE NAME OF THE ASSESSEES BROTHER AND THE BUSINESS WAS BEING CARRIED ON BY THE ASSESS EE JOINTLY WITH HIS BROTHER. AS REGARDS THE ALLEGATIONS OF THE ASSESSING OFFICER THAT WHY A PERSON RESIDING NEAR ROPAR IS SU PPOSED TO COME TO MOHALI, IT WAS SUBMITTED THAT CHANDIGARH AN D AMBALA ARE CERTAINLY CONSIDERED BETTER PLACES THAN ROPAR C ITY. IN VIEW OF THE ABOVE, IT WAS PRAYED THAT THE ADDITION MADE BY THE ASSESSING OFFICER MAY BE DELETED. 6. THE LEARNED DR, ON THE OTHER HAND, RELIED ON TH E ORDER OF THE ASSESSING OFFICER AND LEARNED CIT (APP EALS). 7. I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. IN THE STATEMENT RECORDED BY TH E ASSESSING OFFICER, SHRI DALIP SINGH HAS CONFIRMED T HE FACT OF GIVING DEPOSIT OF RS.3,55,000/- IN ASSESSEES BANK ACCOUNT. FROM THE COPY OF FARD JAMABANDI PLACED ON RECORD, I T APPEARS THAT SHRI DALIP SINGH OWNED 42 ACRES OF LAND, COPY OF AFFIDAVIT OF SHRI DALIP SINGH TO THIS EFFECT IS ALSO PLACED O N RECORD. 8. ON PERUSAL OF THE PAPER BOOK, IT IS SEEN THAT T HE ASSESSEE HAS ALSO PLACED ON RECORD THE CONFIRMATION FROM HARDEV SINGH & BROS., AN ARATIYA FROM THE GRAIN MA RKET CONFIRMING THAT THE AGRICULTURAL PRODUCT WAS SOLD T O HIM BY SHRI DALIP SINGH. SIMILARLY, COPIES OF CERTIFICATES & SALE BILLS 6 FROM M/S RANJODH SINGH & BORS. & M/S SAINI & CO. AR E ALSO PLACED ON RECORD. 9. ON A QUERY RAISED BY THE BENCH REGARDING THE RELATIONSHIP BETWEEN THE ASSESSEE AND SHRI DALIP SI NGH, COPY OF LAND HOLDING OF SHRI DALIP SINGH WHICH WAS IN VI LLAGE FEROZEPUR, P.O. BELA, TEHSIL CHAMKAUR SAHIB, DISTRI CT ROPAR WAS PLACED ON RECORD. FURTHER, THE SALE DEED OF SMT . PARAMJEET KAUR, WIFE OF THE ASSESSEE BEARING KHEWAT NO.34/37, KHESRA NO. 15-1/1/1 (5-12), 2(8-0), 10(8- 0) & 11(8- 0) MEASURING 37 KANALS 12 MARLAS WAS ALSO FILED, WH ICH SHOWS THAT THE DISTANCE OF LAND OF SHRI DILIP SINGH AND S MT. PARAMJEET KAUR WAS MERELY ONE KILOMETER. IT IS CL AIMED THAT THE ABOVE LAND OF ASSESSEES WIFE SMT.PARAMJEET KAU R WAS BEING CULTIVATED BY SHRI DALIP SINGH FROM 2007 TILL THE DATE OF SALE I.E. 26.4.2012. THIS FACT ALONE SHOWS THAT T HE FAMILIES OF THE ASSESSEE AND SHRI DALIP SINGH WERE KNOWN TO EACH OTHER FOR A LONG TIME SINCE THEIR LANDHOLDINGS WERE NEAR TO EACH OTHER. 10. ON PERUSAL OF THE ABOVE STATED EVIDENCES AND I N THE BACK GROUND OF THE FACT THAT SHRI DALIP SINGH HIMSE LF HAS CONFIRMED BEFORE THE ASSESSING OFFICER THAT HE HAS DEPOSITED THIS AMOUNT OF RS.3,55,000/- IN ASSESSEES BANK ACC OUNT, THIS EXPLANATION CANNOT BE REJECTED OUTRIGHTLY. THESE EV IDENCES FILED BY THE ASSESSEE ALSO PROVE THAT SHRI DALIP SI NGH IS A MAN OF MEANS AND THERE IS ALSO A RELATION BETWEEN HIM A ND THE ASSESSEE, THEREFORE, IT CANNOT BE DENIED THAT SHRI DALIP SINGH, IN FACT, HAS GIVEN THIS AMOUNT TO THE ASSESSEE. THE 7 EXPLANATION GIVEN BY THE ASSESSEE AND SH. DALIP SIN GH THAT THE AMOUNT WAS DEPOSITED FOR MAKING PURCHASES FOR T HE MARRIAGE OF DAUGHTER MAY SOUND WEIRD AND CAN RAISE SUSPICION IN THE MIND OF ASSESSING OFFICER. IT CAN BE A TRIGGER POINT FOR FURTHER INVESTIGATION BY THE ASSESSING OF FICER. HOWEVER, IN ITS ORDER THE ASSESSING OFFICER HAS NOT BEEN ABLE TO BRING ON RECORD ANY MATERIAL OR EVIDENCE TO FALS IFY THIS EXPLANATION AND DOCUMENTARY EVIDENCES FILED BY THE ASSESSEE. EVEN BEFORE ME, THE LEARNED DR HAS NOT BEEN ABLE TO DO THE SAME. THE ADDITION HAS SOLELY BEEN MADE ON THE BASI S OF SURMISES. SUSPICION HOWSOEVER STRONG CANNOT PARTAKE THE CHARACTER OF THE EVIDENCE/MATERIAL, AS HELD BY THE APEX COURT IN THE LAND MARK JUDGEMENT IN CASE OF UMCHARAN SHAW & BROS. VS. CIT (1959) 37 ITR 271(SC). 11. IN VIEW OF THIS, I AM NOT ABLE TO COME TO A CONCLUSION OTHER THAN THAT THE DEPOSIT OF RS.3,55,0 00/- HAS IN FACT BEEN DEPOSITED BY SHRI DALIP SINGH. THEREFORE, THE ADDITION MADE BY THE ASSESSING OFFICER IS HEREBY DE LETED. 12. IN THE RESULT, THE APPEAL FILED BY THE ASSESSE E IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 6 TH DAY OF AUGUST, 2015. SD/- (H.L.KARWA) VICE PRESIDENT DATED : 6 TH AUGUST, 2015 *RATI/PRAMOD* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/THE CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 8