PR COMMISSIONER OF INCOME TAX LUDHIANA V. JAGPREET SINGH

ITA/181/2016

AI Insights

The case involves two appeals by the Pr. Commissioner of Income Tax-2, Ludhiana against the respondents, Jagpreet Singh and Amandeep Singh, concerning the assessment year 2010-2011. The core issue arose from the sale of a property by Jaswant Singh and his son Rahul Sagar, who alleged that the proceeds from the sale were involved in a theft, leading to tax assessments on the respondents based on their shares in the property. The Tribunal had previously allowed the respondents' appeals, which the appellants contested, leading to the current remand for a thorough examination of all facts and fair proceedings, including document inspection and cross-examination opportunities.

• Counselvise Citation: [2017] 140 COUNSELVISE.COM (IT) 700971 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 10-05-2017
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: AKSHAY BHAN; H P S SANDHU
• Assessee Lawyers: ZORA KLAR
• Keywords: Assessment Year 2010-2011; Cross Examination; Cross-examination; Document Inspection; Income Tax; Property sale; Cash Theft
• Section: 260-A

Judgement Text

"IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA-181-2016 (O&M) Date of decision:- 10.05.2017 Pr. Commissioner of Income Tax-2, Ludhiana ...Appellant(s) Versus Jagpreet Singh ...Respondent ITA-207-2016 (O&M) Pr. Commissioner of Income Tax-2, Ludhiana ...Appellant(s) Versus Amandeep Singh ...Respondent CORAM: HON'BLE MR. JUSTICE S.J. VAZIFDAR, CHIEF JUSTICE HON’BLE MR. JUSTICE ANUPINDER SINGH GREWAL Present:- Mr. Zora Singh Klar, Advocate, for the appellant(s). Mr. Akshay Bhan, Senior Advocate, with Mr. H.P.S. Sandhu, Advocate, for the respondents. * * * * S.J. VAZIFDAR, C.J. (ORAL) These two appeals are under Section 260 A of the Income Tax Act, 1961 against the order of the Tribunal allowing the respondents’/assessees’ appeals against the order of the CIT (Appeals) confirming the Assessing Officer’s order. The matters pertain to the assessment year 2010-2011. 2. As we intend remanding the matters, it is necessary to refer to the disputes briefly:- One Jaswant Singh and his son Rahul Sagar had purchased a property in the year 2008. Jaswant Singh had a 75% ITA-181-2016 (O&M) ITA-207-2016 (O&M) 2 interest therein and his son had a 25% interest therein. In March, 2010, they sold the property to three brothers. Two of the brothers are the respondents in the above appeals. An appeal has not been filed against the third brother on the ground of tax effect. Jaswant Singh and Rahul Sagar had filed an FIR alleging that an amount of about ` 2 crores in cash was stolen from their premises. They ultimately allegedly stated that the cash was obtained in respect of the sale of the property by them to the respondents herein and to the third brother. It is in view of this that proceedings were initiated against the respondents/assessees. The Assessing Officer added the amounts in proportion of the shares of the respondents and their brother to their respective incomes. 3. The order of the Tribunal notes that the respondents had not been given inspection of certain documents especially one of the statements made by Jaswant Singh and his bank statements and the books of account. The respondents further alleged that they were not permitted to cross-examine their vendors. The appellants on the other hand contend that the respondents and their brother refused to avail the opportunity of cross-examination on the ground that they had not been given inspection of the documents. 4. Considering the facts of these cases, the matters ought not to rest by default. It is necessary for the authorities to consider all the facts and decide the matter on merits. 5. The appeals are, therefore, disposed of by the following order:- (i) The impugned order and judgement is set aside and remanded to the Tribunal. It will be open to the Tribunal to decide the matter in such a manner as it thinks fit including ITA-181-2016 (O&M) ITA-207-2016 (O&M) 3 by remanding the matter further, if necessary, especially for the purposes of adducing the evidence. (ii) The respondents shall on or before 20.05.2017 inform the appellants in writing the documents that they desire. The appellants shall respond to the same in writing. If any of the documents are not available with the appellants, they shall state so in writing. Needless to add that it will be open to the respondents in that event to obtain the documents in accordance with law. The parties shall thereafter be afforded an opportunity of being heard and of cross-examining the relevant witnesses. (S.J. VAZIFDAR) CHIEF JUSTICE (ANUPINDER SINGH GREWAL) JUDGE 10.05.2017 Amodh Whether speaking/reasoned Yes/No Whether reportable Yes/No Amodh Sharma 2017.05.11 11:33 I attest to the accuracy and integrity of this document Chandigarh "