Jagtar Singh Shergill, Jagraon v. ITO, W-1, Jagraon

ITA 222/CHANDI/2019 | 2011-2012
Pronouncement Date: 04-11-2019 | Result: Allowed

Appeal Details

RSA Number 22221514 RSA 2019
Assessee PAN CITPS0273G
Bench Chandigarh
Appeal Number ITA 222/CHANDI/2019
Duration Of Justice 7 month(s) 30 day(s)
Appellant Jagtar Singh Shergill, Jagraon
Respondent ITO, W-1, Jagraon
Appeal Type Income Tax Appeal
Pronouncement Date 04-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 04-11-2019
Last Hearing Date 13-08-2019
First Hearing Date 04-11-2019
Assessment Year 2011-2012
Appeal Filed On 05-03-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH SMC CHANDIGARH BEFORE SHRI SANJAY GARG JUDICIAL MEMBER ./ ITA NO. 222/CHD/2019 / ASSESSMENT YEAR : 2011-12 SHRI JAGTAR SINGH SHERGILL S/O SHRI LAL SINGH NOW VPO SIDHWAN BET TEHSIL JAGRAON DISTRICT LUDHIANA VS. THE ITO WARD-1 JAGRAON DISTT. LUDHIANA ./PAN NO. CITPS0273G / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI SUDHIR SEHGAL ADVOCATE ' ! / REVENUE BY : SH. M.P. DIWEDI SR.DR # $ % /DATE OF HEARING : 04.11.2019 &'() % / DATE OF PRONOUNCEMENT : 04.11.2019 / ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 1.11.2018 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-3 LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LD. ASSESSING OFFICER IN LAW AS WELL AS ON FACTS HAS ERRED INITIATING PROCEEDINGS U/S 147 OF THE ACT AND ISSUING NOTICE U/S 148 OF THE ACT. 2. THAT THE LD. ASSESSING OFFICER HAS ERRED IN HOLDING THAT HE HAS REASONS TO BELIEVE THAT THAT INCOME OF THE APPE LLANT HAS ITA NO. 222-CHD-2019- SHRI JAGTAR SINGH SHERGILL LUDHIANA 2 ESCAPED ASSESSMENT AND HENCE THE WHOLE PROCEEDINGS ARE VOID AB INITIO. 3. THAT NOTWITHSTANDING THE ABOVE GROUNDS OF APPEAL T HE LD. CIT (APPEALS)-3 LUDHIANA IN LAW AS WELL AS ON FACT S HAS ERRED IN CONFIRMING THE ADDITION AT RS. 29 05 460/- ON ACCOUNT OF CASH DEPOSITED IN THE BANK ACCOUNT BY TH E APPELLANT AND HOLDING THAT THE SAME AS UNDISCLOSED CASH DEPOSIT. 4. THAT THE LD. CIT (APPEALS)-3 LUDHIANA WHILE CONFIR MING THE ADDITION OF RS. 29 05 460/- HAS ERRED IN NOT PROPER LY APPRECIATING THE EVIDENCES GIVEN AND EXPLANATIONS M ADE TO EXPLAIN THE SOURCE OF CASH DEPOSIT IN THE BANK ACCO UNT OF THE APPELLANT. 5. THAT THE LD. CIT (APPEALSJ-3 LUDHIANA WHILE CONFIR MING THE ADDITION OF RS. 29 05 460/- HAS ERRED IN NOT CONSID ERING THE ROTATION OF SAME FUNDS WHICH WERE CASH WITHDRAWN AN D THEN AFTERWARDS REDEPOSITED IN THE SAME BANK ACCOUNT WHI CH IS QUITE APPARENT FROM THE BANK STATEMENT ITSELF. 6. THAT THE LD. CIT (APPEALS)-3 LUDHIANA WHILE CONFIR MING THE ADDITION OF RS. 29 05 460/- HAS ERRED IN NOT CONSID ERING THE GENUINENESS OF ADVANCE AGAINST AGREEMENT TO SELL TH E PLOT AT RS. 10 00 000/-. 7. THAT THE LD. CIT (APPEALS)-3 LUDHIANA WHILE CONFIR MING THE ADDITION OF RS. 29 05 460/- HAS ERRED IN NOT CONSID ERING THE GENUINENESS OF PAST SAVINGS AND AGRICULTURAL INCOME AT 1 87 575/-. 8. THAT THE LD. CIT (APPEALS)-3 LUDHIANA WHILE CONFIR MING THE ADDITION OF RS. 29 05 460/- HAS ALSO ERRED IN CONSI DERING THE CASH DEPOSITED IN BANK ACCOUNT AT RS. 4070460/- AS AGAINST ACTUAL CASH DEPOSITED AT RS. 40 48 575/-. 3. THE APPEAL OF THE ASSESSEE IS BARRED BY LIMITAT ION PERIOD 45 DAYS. A SEPARATE APPLICATION FOR CONDONATION OF DEL AY HAS BEEN MOVED WHICH IS SUPPORTED WITH THE AFFIDAVIT DATED 24.6.20 19 OF THE ASSESSEE DULY NOTARIZED BY THE NOTARY PUBLIC. CONSIDERING T HE GROUNDS MENTIONED IN THE APPLICATION / AFFIDAVIT FOR CONDO NATION OF DELAY AND ITA NO. 222-CHD-2019- SHRI JAGTAR SINGH SHERGILL LUDHIANA 3 ALSO CONSIDERING THE SHORTNESS OF THE DELAY PERIOD THE DELAY IN FILING THE PRESENT APPEAL IS HEREBY CONDONED. 4. GROUND NOS. 1 & 2 : SO FAR AS GROUND NOS. 1 & 2 ARE CONCERNED THE LD. COUNSEL FOR THE ASSESSEE HAS NOT ADDRESSED ANY ARGUMENTS ON THE ISSUE RAISED VIDE THESE GROUNDS. GROUND NOS. 1 & 2 OF THE APPEAL ARE THEREFORE DISMISSED AS NOT PRESSED. 3. GROUND NOS. 3 TO 8 : SO FAR AS GROUND NOS. 3 TO 8 ARE CONCERNED THE SOLE GRIEVANCE RAISED BY THE ASSESSEE THROUGH THESE GROUNDS OF APPEAL IS RELATING TO THE ADDITION MADE BY THE ASSESSING OFFI CER OF RS. 29 05 460/- INTO THE INCOME OF THE ASSESSEE ON ACC OUNT OF UNEXPLAINED INVESTMENT. THE PLEA OF THE ASSESSEE HAS BEEN THAT AN AMOUNT O F RS. 10 LACS WAS RECEIVED BY THE ASSESSEE AS EARNEST MONEY ON ACCOUNT OF AGREEMENT TO SELL ENTERED INTO BY THE ASSESSEE WITH SHRI JASWANT SINGH S/O SHRI SURJIT SINGH. FURTHER IT HAS BEEN CLAIM ED THAT THE SOURCE OF DEPOSIT OF RS. 17 LACS WAS OUT OF IMMEDIATE PAST W ITHDRAWALS OF THE ASSESSEE. THE REMAINING AMOUNT OF RS. 1 83 575/- H AS BEEN ALLEGED TO HAVE BEEN EARNED FROM AGRICULTURAL INCOME BY THE AS SESSEE. THE ASSESSEE FURNISHED THE ADDITIONAL EVIDENCES TO PROVE HIS CON TENTION BEFORE THE LD. CIT(A) WHEREUPON A REMAND REPORT WAS CALLED BY TH E LD. CIT(A) FROM THE ASSESSING OFFICER. A COPY OF THE REMAND REPORT HAS BEEN PLACED ON FILE BEFORE US. ITA NO. 222-CHD-2019- SHRI JAGTAR SINGH SHERGILL LUDHIANA 4 4. A PERUSAL OF THE REMAND REPORT DATED 19.2.2018 R EVEALS THAT THE SAME IS A NON- SPEAKING REPORT. NONE OF THE EVIDENC ES HAS BEEN DISCUSSED BY THE ASSESSEE IN THE REMAND REPORT. 5. THERE IS A MENTION THAT THE ASSESSEE HAD FURNISH ED COPY OF THE AGREEMENT TO SELL OF THE PLOT AND ALSO THE STATEM ENT OF THE ALLEGED PURPOSED PURCHASER NAMELY SHRI JASWANT SINGH WAS AL SO ON RECORD. A COPY OF THE BANK ACCOUNT STATEMENT OF SHRI JASWANT SINGH WAS ALSO FURNISHED TO PROVE THE SOURCE OF THE ABOVE PAYMENT OF RS. 10 LACS AND IT HAS BEEN STATED THAT THE AMOUNT WAS OUT OF WITHDRAW ALS MADE BY SHRI JASWANT SINGH FROM HIS BANK ACCOUNT. FURTHER THE ASSESSEE HAS ALSO RELIED UPON HIS BANK STATEMENT TO SUBMIT THAT THE AMOUNT IN QUESTION WAS WITHDRAWN EA RLIER FROM HIS BANK ACCOUNT. THE ASSESSEE IN THIS RESPECT HAS RELIED UP ON THE BANK ACCOUNT ENTRIES DATED 18.5.2010 12.7.2010 14.9.2010 AND 1 6.9.2010 SHOWING THE WITHDRAWALS OF THE AMOUNT BUT NONE OF THESE ASP ECTS HAS BEEN DISCUSSED BY THE ASSESSING OFFICER IN THE REMAND RE PORT. IT IS ALSO GATHERED FROM THE RECORD THAT THE ASSESSEE IS IN TH E BUSINESS OF MONEY CHANGER AND HAS SHOWN AN INCOME OF RS. 1 59 872/- O UT OF THE SAID ACTIVITY. UNDER THE CIRCUMSTANCES IN MY VIEW THE CASE OF T HE ASSESSEE HAS NOT BEEN PROPERLY EXAMINED BY THE ASSESSING OFFICER . THE LD. CIT(A) HAS ALSO CONFIRMED THE ADDITION MADE BY THE ASSESSI NG OFFICER RELYING UPON THE NON-SPEAKING REMAND REPORT OF THE ASSESSIN G OFFICER. ITA NO. 222-CHD-2019- SHRI JAGTAR SINGH SHERGILL LUDHIANA 5 6. IN VIEW OF THIS THE IMPUGNED ORDER OF THE CIT(A ) IS HEREBY SET ASIDE. THE MATTER IS RESTORED TO THE FILE OF THE AS SESSING OFFICER FOR DECIDING THIS ISSUE AFRESH AFTER DULY CONSIDERING THE EVIDENCES FURNISHED BY THE ASSESSEE AND TO PASS A SPEAKING OR DER IN ACCORDANCE WITH LAW. NEEDLESS TO SAY THAT THE ASSESSING OFFIC ER WILL PROVIDE PROPER OPPORTUNITY TO THE ASSESSEE TO PRESENT HIS CASE. TH E ASSESSEE IS ALSO DIRECTED TO PROMPTLY APPEAR BEFORE THE ASSESSING OF FICER AS AND WHEN CALLED FOR AND NOT TO CONTRIBUTE IN ANY MANNER IN DELAYING THE PROCEEDINGS. THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED OF STATISTICAL PURPOSES ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING. SD/- ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 04.11.2019 .. '+ - .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 % 2 34516 / DR ITAT CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER 8 ' / ASSISTANT REGISTRAR ITA NO. 222-CHD-2019- SHRI JAGTAR SINGH SHERGILL LUDHIANA 6