PARWINDER SINGH,CHANDIGARH V. INCOME TAX OFFICER, MOHALI

ITA 737/CHANDI/2025

AI Insights

The case involves an appeal by the assessee against the additions made by the lower tax authorities, which were based on the alleged unexplained income. The assessee argued that the funds in question were loans from relatives, supported by affidavits. The lower authorities had dismissed the appeal due to procedural issues related to the PAN number used in the appeal. The tribunal found that the identity of the assessee was not in dispute and that the new PAN number should be recognized for all purposes, including the adjudication of this appeal. The tribunal also accepted the affidavits as valid evidence that the funds were loans intended to demonstrate financial stability for visa purposes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785533 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 21-05-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

"ITA 737/CHD/2025 A.Y. 2010-11 5 there was no documentary evidence available of returning the same through banking channel. He has further relied upon the affidavits of the relatives of the assessee and submitted that the aforesaid affidavits duly prove that the amount in question was taken as a loan by the assessee. He has further submitted that even otherwise, the assessee did not have any other source of income at that time and there was no question of any unexplained income of the assessee. 6. The ld. DR, however, has submitted that as per the certificate given on the Paper Book, the ld. AR of the assessee has not mentioned that the aforesaid affidavits of relatives were produced before the lower authorities. She has brought my attention to the Index Certificate of the Paper Book and submitted that the authority mentioned ‘before whom the documents placed in the Paper Book were submitted’ is ‘ITAT’ only. At this, ld. AR of the assessee submitted that infact the aforesaid affidavits were duly furnished before the ld.CIT (Appeals). That there was an inadvertent mistake in not mentioning the name of the CIT (Appeals) in the Index Certificate. She has brought my attention to appeal opening Form 35 before CIT (Appeals), wherein the description of the aforesaid documents i.e. Printed from counselvise.com ITA 737/CHD/2025 A.Y. 2010-11 6 affidavits of the relatives and bank statement of relatives relied upon by the assessee before the ld.CIT (Appeals) has been duly mentioned. Therefore, it is duly established on the file that these affidavits were available before the CIT (Appeals). 6.1 So far as the issue relating to the PAN number is concerned, the ld.CIT (Appeals) has dismissed the appeal of the assessee as infructuous on account of mentioning of the new PAN number and not earlier PAN number. I do not find justification on the part of the ld.CIT (Appeals) in this respect. Admittedly, the old PAN number has been surrendered by the assessee, however, the said PAN number has not been deactivated by the Income Tax authorities. Since the assessee has been granted a new PAN number which also shows the correct details/address of the assessee, therefore, it is directed that the new PAN number of the assessee i.e. CDOPS9875E will be taken as a valid PAN number for all purposes i.e. not only for the purpose of adjudication of this appeal but also for any future correspondence. It is directed that the old PAN number of the assessee will be treated to have merged with this new PAN number. However, my above observations will not have any effect or bearing on any correspondence, assessment or Printed from counselvise.com ITA 737/CHD/2025 A.Y. 2010-11 7 other proceedings etc., whatsoever, issued at old PAN number. This direction is issued only to remove future confusion and related complications on this issue. 7. It is pertinent to mention here that the identity of the assessee has not been disputed. The assessee has also owned up the impugned transactions. If the assessee has been allotted two PAN numbers and the assessee insists that his new PAN number may be retained and the old PAN number may be deactivated, there is nothing wrong in that, rather, it will remove the future confusions and complications. The appeal before the ld.CIT (Appeals) was preferred by the assessee in his own name but by mentioning new PAN number and that itself does not invalidate the appeal filed before the ld.CIT (Appeals). Therefore, the impugned order of the ld.CIT (Appeals) holding that the appeal of the assessee was infructuous is set aside. 7.1 So far as the merits of the additions are concerned, as discussed above, the assessee has duly furnished the affidavits of his relatives who have duly affirmed that they had given the amounts in question to the assessee for depositing in the bank account so as to show assessee's Printed from counselvise.com ITA 737/CHD/2025 A.Y. 2010-11 8 financial worthiness to the concerned authorities for the purpose of approval of his Visa to migrate abroad. 8. Considering the overall facts and circumstances of the case, I do not find any justification on the part of the lower authorities in making the impugned addition and the same is, accordingly, ordered to be deleted. 9. In the result, appeal of the assessee stands allowed. Order pronounced on 31st October, 2025. Sd/- ( संजय गग[) (SANJAY GARG ) ÛयाǓयक सदèय/ Judicial Member “Poonam” आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. आयकर आयुÈत (अपील)/ The CIT(A) 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 6. गाड[ फाईल/ Guard File Assistant Registrar Printed from counselvise.com "