NAGENDRA SINGH,KUSHINAGAR V. ITO, WARD - 2(4), KUSHINAGAR

MA 20/VNS/2023

AI Insights

The case revolves around a Miscellaneous Application filed by Narendra Singh against an earlier order of the Income Tax Appellate Tribunal, which had not considered various issues raised regarding additions made by the Assessing Officer and confirmed by the CIT(A). The primary contention was that the receipts compared by the Assessing Officer were not accurately representing the transactions related to insurance premium payments but were instead related to money transfers for family support from outstation. The Tribunal, after reviewing the additional evidence and submissions provided by the assessee, decided to remand the matter back to the Assessing Officer for a detailed verification of the transactions in question.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 33585 (ITAT-VARANASI)
• Duration Of Justice: 1 year(s) 7 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-09-2024
• Assessment Year: 2010-2011
• Appeal Filed On: 26-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA MEENA
• Assessee Lawyers: ASHISH BANSAL
• Keywords: Opportunity of being heard

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, VARANASI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER MA No.20/VNS/2023 (Arising out of ITA No.185/VNS/2019) (Assessment Year :2010-11) Narendra Singh 257, Verma Niwas Padrauna Road Kasya Kushinagar Vs. Income Tax Officer Ward- 2(4) Kushinagar PAN/GIR No.BAVPS2523N (Appellant) .. (Respondent) Assessee by Shri Ashish Bansal Revenue by Smt. Kavita Meena Date of Hearing 13/09/2024 Date of Pronouncement 05/12/2024 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid Miscellaneous Application has been filed by the assessee against order of the Tribunal dated 05/08/2022 passed in ITA No.185/VNS/2019. 2. The assessee has filed this Miscellaneous Application, seeking recalling of the order passed by the Tribunal in the appeal mentioned in the caption being ITA No.185/VNS/2019 relating to appeal for the assessment year 2010-11. The assessee stated that while passing the order in the aforesaid appeal ITAT did not take cognizance of the various issues raised through these grounds towards addition erroneously made by the A.O. as also confirmed by the ld. CIT(A). He further stated that at the time of the hearing, the appellant through his authorized representative specifically pleaded that the receipts which has been compared by the Assessing Officer [as also confirmed by the ld. CIT(A)] with the name of the person who took the insurance policy from the assessee/ appellant, the same was not correct as the receipts are w.r.t. amount transferred by the person from outstations to their relatives and not the amount paid by the insurers for their premium amount. This was the main reason for making the erroneous addition and confirmed by the authorities below. He further stated that it is the normal practice adopted by almost all the LIC Agents, as a part of rendition of their services for their clients they use to collect premium amount from Policy holders. Normally policy holders pay the amount of their premium amount in round figures for payment of LIC Premium. Receipts issued towards premium payment are taken by the policy holder for their records and claiming deduction in the income tax. Further, none of the receipts contains the name of the assessee/Agent however, his agent code number is mentioned on their receipt. The name, address, sum assured, premium payable Quarterly, Half Yearly and Annually have been mentioned in the register, extracts of which was filed before the ITAT during the course of hearing. The certified list has been obtained from the LIC Office, regarding policy holders of the assessee having his code number was also enclosed. The counsel for the assessee further stated that premium amount cannot be paid by the cheque drawn from the account of the agent, that is why cash were withdrawn for making payment of premiums of Policy Holders. 3. The counsel stated that while deciding the appeal the ITAT took cognizance of the remand report of the Assessing Officer (which is based on wrong facts) and observation made by the CIT(A) on the basis of such remand report which was as mistakeably affirmed by the ITAT. On the basis of same incorrect facts as demonstrated by the assessee’s representative during hearing, receipts relate to money received by the relatives for whom the amount has been transferred by the person from outstation for their relatives were compared with the pages of the dairies which relates to policyholders who have deposited premium amount in the appellant’s account. 4. At the time of hearing of the MA the counsel for the assessee reiterated the aforesaid fact and tried to demonstrate that the comparison made while adjudicating that the receipts of the amount received from the person outstation with the diary pages is wholly incorrect as the same are relating to two different things. He has tried to convince that the amount deposited in his bank account are premium money received from his clients as well as money received from villagers residing outstations to be transferred to their relatives in villages. After hearing the matter, the bench sought for explanation duly supported by the documents in this regard on 13.09.2024. In pursuance of the direction of the bench, assessee placed on record the following submission reads as under:- Comparative chart relating to the amount received by the assessee from various persons of his villager residing outside in different cities, helping them for transferring the money to their family members residing in village (similar to the function of Bank Mitra) Page No. of paper book Name of the remitter Date of remittance Amount for payment Date of withdrawl 11 Brij Kishore Singh 11-09-2009 4000/- 15-09-2009 9000/- an d 500 / cash 22 Rajesh 14-09-2009 5500/- 12 Umesh Singh 06-11-2009 7000/- 07-11-2009 15000/- 17 Virendra Singh 06-11-2009 3000/- 15 Vinod 07-11-2009 5000/- 18 Virendra 10-11-2009 9000/- 11-11-2009 35000/- 14 Brij Kishore Singh 10-11-2009 25000/- 13 Harendra Singh 09.10.2009 11000/- 11.10.2009 (1500 + 8500+900) 16 Virendra 16.10-2009 6000/- 16-10-2009 Out Of 6800/- 21 Surjeet 21.08.2009 12000/- 22-08- 2009 Out Of 20000/- paid to him on 24.08.200 9 20 Raghunath Jha 16.09.2009 3000/- 16.09.2009 Out Of 20000/- and also paid to others 18 Suresh 08.09.2009 7000/- 08.09.20 09 out of 15000 /-  Maximum deposits in the bank a/c have been made from out stations, by the remitters, for making payments to their family members or to pay the premium instalments. It is apparent from the bank statement (appearing at pages 23 to 44 of the paper book) that after every deposit inter branch fee has been charged by the bank.  LIC premium remitted to the assessee from his customers (policy holders) residing outside; other than those who have given money directly to the assessee in cash, in his bank account is withdrawn by the assessee and the premium is paid to the Life Insurance Corporation, out of cash withdrawal so made by him, as direct transfer was permissible only from the policy holder’s account. Pages 1 to 10 of the paper book is the dairy maintained by the assessee for his customers wherein complete details of the policy and schedule of premium paid is mentioned, as also there is specific serial number for each policy holder and in order to substantiate this fact, details collected from the Life Insurance Corporation wherein the name of the policy holder, agent code, sum insured, premium paid and date of payment is mentioned, the assessee has mentioned the serial number at the right hand side which is duly verifiable and matching with the serial number mentioned in the dairy (PB 1 to 10). 5. After going through the said information, I find that the assessee did collected premium amount from his customers located at different places, the inter branch fee is deducted from the account of the assessee on these deposits. The assessee withdrew these money and paid the premium towards the insurance policy for his customers. This fact is also verifiable from the pages of diary placed in the form of MA No.20/VNS/2023 Nagendra Singh 10 paper book as also the agent code of the assessee is mentioned on these premium receipts. Further, the assessee is also able to demonstrate that he is acting as a matter bank mitra and the amount is being paid to the relatives who send the money from outstation. Looking to the overall facts, the matter is remanded back to the Assessing Officer to verify the entire deposits in bank account vis-à-vis premium paid towards life insurance and the payment made out of money deposited outstation to the person concerned as stated by the assessee and allow the same to the extent if the same is found correct, needless to say after giving proper opportunity of being heard. 6. In view of the aforesaid the MA is allowed and the Appeal of the assessee is recalled and the same is allowed for statistical purposes. 7. In the result, Miscellaneous Application of the assessee is allowed for statistical purposes. Order pronounced on 05/12/2024. Sd/- (AMIT SHUKLA) JUDICIAL MEMBER Varanasi; Dated 05/12/2024 MA No.20/VNS/2023 Nagendra Singh 11 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Varanasi 1. The Appellant 2. The Respondent. 3. The CIT(A), Varanasi. 4. CIT 5. DR, ITAT, Varanasi 6. Guard file. //True Copy// "