Naresh Chander, Sonepat v. ITO, Sonepat

ITA 2749/DEL/2015 | 2005-2006
Pronouncement Date: 19-10-2016 | Result: Allowed

Appeal Details

RSA Number 274920114 RSA 2015
Assessee PAN AQEPC2840A
Bench Delhi
Appeal Number ITA 2749/DEL/2015
Duration Of Justice 1 year(s) 5 month(s) 12 day(s)
Appellant Naresh Chander, Sonepat
Respondent ITO, Sonepat
Appeal Type Income Tax Appeal
Pronouncement Date 19-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC 3
Tribunal Order Date 19-10-2016
Date Of Final Hearing 21-07-2016
Next Hearing Date 21-07-2016
Assessment Year 2005-2006
Appeal Filed On 07-05-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC-3 NEW DELHI BEFORE SMT DIVA SINGH JUDICIAL MEMBER I.T.A .NO.-274 9/DEL/2015 (ASSESSMENT YEAR- 2005-06) NARESH CHANDER S/O-SH.SUKH PAL R/O-H.NO.-437 SECTOR-7 GOHANA SONEPAT. PAN-AQEPC2840A (APPELLANT) VS ITO WARD-2 SONEPAT. (RESPONDENT) APPELLANT BY SH.R.K.VASHISTH ADV. RESPONDENT BY MS.ANIMA BARNWAL SR.DR ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A SSAILING THE CORRECTNESS OF THE ORDER DATED 19.02.2015 OF CIT(A) ROHTAK PERTAI NING TO 2005-06 ASSESSMENT YEAR ON VARIOUS GROUNDS. 2. THE RELEVANT FACTS OF THE CASE ARE THAT THE TAX EVASION PETITION IN THE CASE OF THE ASSESSEE WAS RECEIVED BY THE TAX AUTHORITIES AND ON ACCOUNT OF THE FAILURE TO BE REPRESENTED AN EX-PARTE ASSESSMENT ORDER WAS PASSED ASSESSING AN INCOME OF RS.31 50 000/- WHEREIN ADDITION OF RS.30 LAKHS WAS MADE AND SALARY INCOME WAS ESTIMATED AT RS.1 50 000/-. THE RELEVANT FACTS ARE EXTRACTED FROM THE ASSESSMENT ORDER:- TEP IN THE CASE OF SH. NARESH CHAND WAS RECEIVED I N THIS OFFICE. AS PER ALLEGATION LABELED IN THE TEP THE ASSESSEE SIGNED A N AGREEMENT WITH SHRI KRISHAN FOR PURCHASE OF LAND SITUATED IN GARHI UJAL E KHAN VILLAGE OF GOHANA FOR A CONSIDERATION OF RS.83 LACS. AS PER AGREEMENT HE PAID RS.15 LACS ON 02.12.2004 AND RS.15 LACS ON 28.02.2005 TO SHRI KRI SHAN BEFORE THE WITNESS SH BANSIDHAR. THE ASSESSEE WAS ASKED VIDE THIS OFF ICE LETTER NO.4666 DATED 05.08.2010 LETTER NO.7761 DATED 06.10.2010 TO FURNI SH COMPLETE DETAILS OF IMMOVABLE/MOVABLE ASSETS ALONG WITH SOURCE OF INVES TMENT. HE FILED REPLY VIDE DATE OF HEARING 21.07.2016 DATE OF PRONOUNCEMENT 19.10.2016 I.T.A .NO.-2749/DEL/2015 PAGE 2 OF 5 LETTER DATED 25.11.2010 STATED THEREIN THAT HE MAIN TAINED BANK ACCOUNT IN OBC KARNAL. HE PURCHASED RESIDENTIAL PLOT OF 270 SQ . YARD IN 1999 FOR RS.2.5 LACS. HE MAINTAINED ONE WAGON CAR PURCHASED IN 2005 AGAINST LOAN. HE FURTHER STATED THAT HE SIGNED AN AGREEMENT WITH SHR I KRISHAN FOR PURCHASE OF LAND SITUATED IN GARHI UJALE KHAN VILALGE OF GOHANA FOR A CONSIDERATION OF RS.83 LACS. HE FURTHER STATED THAT THE AMOUNT OF RS .83 LACS WAS PAID BY MY FATHER. BUT HE DID NOT PRODUCE ANY EVIDENCE REGARDI NG PAYMENT OF RS.83 LACS BY HIS FATHER. THERE HAS BEEN NO MENTIONED IN THE A GREEMENT THAT THE ASSESSEE HAS SIGNED THE AGREEMENT ON BEHALF OF HIS FATHER. H ENCE CONTENTION OF THE ASSESSEE REGARDING PAYMENT OF RS.83 LACS BY HIS FA THER IS ABSOLUTELY WITHOUT ANY EVIDENCE AND THEREFORE REJECTED. 3. THE ASSESSEE WAS FOUND TO HAVE BEEN WORKING ON T HE POST OF VLDA IN THE OFFICE OF SUB DIVISIONAL OFFICER ANIMAL HUSBANDRY KARNAL. NO RETURN OF INCOME WAS FILED BY THE ASSESSEE IN THE YEAR UNDER CONSIDERATION AS THE INCOME WAS NOT TAXABLE. ASSAILING THE ADDITION THE ASSESSEE FILED AN APPEAL BEFORE T HE CIT(A) SUBMITTING THAT HE WAS WORKING ON THE POST OF V.L.D.A. IN G.V.H. BUTANA. THE RELEVANT SUBMISSIONS EXTRACTED IN THE IMPUGNED ORDER AS UNDER:- 1. THAT I AM WORKING ON THE POST OF V.L.D.A. IN G.V.H . BUTANA AND I WAS APPOINTED IN THE YEAR 1988 FOR THE POST OF V.L.D.A. I DO NOT PURCHASE ANY PROPERTY IN MY NAME OR IN THE NAME OF MY SPOUSE AND CHILDREN. I PURCHASED ONLY A PLOT IN SECTOR-7 GOHANA AGAINST S ALE CONSIDERATION OF RS.2 36 000/- AND I CONSTRUCTED A HOUSE THEREUPON A FTER OBTAINING A HOUSE LOAN FROM ICICI BANK LTD. VIDE LOAN ACCOUNT NO. LBP NP00000350493 APPLICATION NO. 7771446818 AND EXCEPT THIS I PURCHA SED A WAGON-R CAR BEARING REGISTRATION NO. HR-1 IB/5400 AND FOR THAT PURPOSE I TOOK A CAR LOAN FROM ORIENTAL BANK OF COMMERCE GOHANA. EXCEPT THE ABOVE SAID PLOT AND CAR I HAVE NOT PURCHASED ANY OTHER PROPERTY. 2. I DO NOT HAVE ANY OTHER INCOME EXCEPT THE INCO ME FROM SALARY. 3. I HAVE NOT FILED INCOME TAX RETURN FROM ASSESSM ENT YEAR 2005-06 BECAUSE MY TOTAL INCOME WAS BELOW THAN TAXABLE INCO ME. I HAVE TWO BANK ACCOUNT ONE IS SALARY ACCOUNT WITH S.B.P. GOHANA B EARING ACCOUNT NO. 55057744253 AND ANOTHER ACCOUNT BEARING NO. 015074 WITH O.B.C. GOHANA WHICH HAS BEEN CLOSED BY ME. 4. I BELONGS TO A JOINT HINDU FAMILY. MY GRAND-FAT HER HARDEVA S/O RAM PARSAD WAS A BIG LANDLORD WHO WAS HAVING APPROXIMA TELY 120 ACRE AGRICULTURE LAND AND AFTER THE CONSOLIDATION HE HA D LEFT OWNER OF ABOUT 85 STANDARD ACRE AGRICULTURE LAND. MY FATHER IS ELDER SON OF HIS FATHER I.E. MY GRAND-FATHER AND IS HAVING 1/5 SHARE IN THE ANCESTR AL PROPERTY COMPRISED IN KHEWAT NO. 65/59 KHATA NO. 80 RECT. & KILLA NO . 23//8/2(2-8) 9(8-0) 10(7-8) 11/1(6-0) 24//15(8-0) 17(8-0) 18(8-0) 19(8-0) 20(8-0) 33//8(6- 14) 12(8-0) 15(7-4) 45//5(2-13) 7(3-18) SITUATE D IN THE REVENUE ESTATE OF VILLAGE BALI BRAHMANAN TEHSIL GOHANA DISTT. SONEP AT AND IN KHEWAT NO. 68/77 RECT. & KILLA NO. 8//23(8-13) 24/1(3-0) LL //3/L(7-7) 4(7-7) 26//9(8-0) 11(8-0) 12(8-0) 33//13/2(6-0) 18(7-8 ) 19(8-0) 23(7-8) I.T.A .NO.-2749/DEL/2015 PAGE 3 OF 5 39//18(8-0) 19(7-8) 23(7-8) KHEWAT NO. 1194 REC T. & KILLA NO. 42//26(90-13) 43//3(6-16) 8(7-8) 45//3/2(3-10) 4(7-18) 5(2-13) 7(3-8) 93//6(8-0) 8/2(1-2) 13(8-0) 14(8-0) 24//20(8-0) 20(8-0) 22(8-0) 25//16(7-8) 26//9(8-0) 11(8-0) 12(8-0) 20(8-0) 21(8-0) 25//2(6-0) 31//16/2(3-16) 24(8-0) 25(7-12) 32//1(7-7) 33// 23(7-8) 34(1(7-11) TOTAL MEASURING 93K-13M. 5. THAT I AM JUST A SHARE HOLDER IN THE ABOVE SAI D AGRICULTURE LAND BEING MEMBER OF JOINT HINDU FAMILY AND BEING LEGAL HEIR O F SUKHPAL S/O HARDEVA. 4. HOWEVER NOT CONVINCED WITH THE EXPLANATION THE CIT(A) CONFIRMED THE ADDITION HOLDING AS UNDER:- 3. I HAVE EXAMINED THE SUBMISSIONS MADE BY THE ASS ESSEE AND THE FACTS ON RECORD. IT IS SEEN THAT AT THE TIME OF ASSESSMENT P ROCEEDINGS FOR THIS YEAR THE ASSESSEE HAS STATED THAT HE HAD SIGNED AN AGREEMENT FOR PURCHASE OF LAND AT GARHI UJALE KHAN VILLAGE GOHANA WITH A PERSON CALL ED SHRI KRISHAN FOR A CONSIDERATION OF RS 83 LAKHS. THE ASSESSEE BY HIS OWN ADMISSION STATED THAT RS 83 LAKHS WERE PAID BY HIS FATHER BUT NO EVIDENCE OF THIS WAS FILED. A SUM OF RS 30 00 000/- BEING PAYMENTS MADE ON 04.12.2004 (R S15 00 000) AND 28.02.2005 (RS 15 00 000) WERE ADDED FOR AY 2005 -06. THE ASSESSEE WAS UNABLE TO SUBSTANTIATE HOW THE AGREEMENT SIGNED BY HIM IS NOT TRUE. MOREOVER NO ADDITIONAL EVIDENCE HAS BEEN FURNISHED BEFORE ME AS PER THE REMAND REPORT OF THE AO DATED 16.01.2015. THE APPELLANT HAS NOT B EEN ABLE TO DISCHARGE HIS ONUS IN PROVING THAT HE WAS NOT A PARTY TO THE SAID TRANSACTION. TO STATE THAT HIS FATHER MADE HIS 'SIGN A PAPER' AND THAT HIS FATHER ENTERED INTO AN AGREEMENT WITH ONE SHRI KRISHAN IS NOT AN ACCEPTABLE EXPLANATION. THERE WAS REPEATED NON COMP LIANCE BEFORE THE AO. EVEN BEFORE ME NO NEW MATERIAL HAS BEEN PLACED ON RECORD TO PROVE THE APPELLANT'S CLAIM. I THEREFORE CONFIRM THE ADDITION. 5. BOTH THE PARTIES HAVE BEEN HEARD. IN ORDER TO AS CERTAIN THE CORRECTNESS OF THE ASSERTIONS MADE BY THE PARTIES BEFORE THE BENCH IT IS NECESSARY TO FIRST ADDRESS THE FACTS. IT NEEDS TO BROUGHT ON RECORD AS TO WHAT SPE CIFIC LAND AS PER AGREEMENT TO SELL HAS BEEN PURCHASED BY THE ASSESSEE. MERE MENTION O F A VILLAGE IN A DOCUMENT BY ITSELF DOES NOT FORM THE EVIDENCE THAT A SPECIFIC L AND WAS OWNED BY WAY OF PURCHASE BY THE ASSESSEE. IN THE FACE OF THE DENIAL OF THE ASS ESSEE THAT THE SIGNATURES DO NOT BELONG TO HIM THE REVENUE FIRST NEEDS TO ADDRESS TH E STATUS OF THE SPECIFIC LAND. NAMELY BRING ON RECORD THE EXACT DESCRIPTION OF LAN D AND ASCERTAIN WHETHER IT HAS BEEN PURCHASED BY THE ASSESSEE. IN CASE THE ALLEGE D AGREEMENT TO SELL WAS NEVER I.T.A .NO.-2749/DEL/2015 PAGE 4 OF 5 ACTED UPON EVEN IN THAT SITUATION IN THE FACE OF TH E DENIAL OF THE ASSESSEE THAT THE SIGNATURE IS NOT HIS THE REVENUE WILL NEED TO SEEK FORENSIC EXAMINATION OF THE SAME BY HAVING AN EXPERTS OPINION ON THE HANDWRITING. THE FACT THAT THIS IS A CASE OF TAX EVASION PETITION WHEREIN THERE IS AN ASSERTION OF T HE ASSESSEE THAT THE SIGNATURE DOES NOT BELONG TO HIM AND THE ASSESSEE HAS ARGUED THAT APART FROM WAGON-R CAR AND CONSTRUCTION OF A HOUSE AFTER OBTAINING A HOUSE LOA N FROM ICICI BANK LTD. VIDE LOAN A/C NO.LBPNP00000350493 ON A PLOT IN SECTOR-7 GOHA NA THERE IS NO OTHER PROPERTY OWNED BY THE ASSESSEE ALL FACTS WHICH NEED TO BE AD DRESSED. . THE ASSESSEE MAY BE CALLED FOR TO FILE A SWORN DECLARATION UNDER PENALT Y OF PERJURY TO ADDRESS HIS VERSION OF FACTS IF NEED BE BEFORE PROCEEDING TO SEEK FORENSIC EVIDENCE ADDRESSING THE SIGNATURES ETC. HOWEVER AS FAR AS THE IMPUGNED ORDER IS CONC ERNED IT CANNOT BE SUSTAINED AS THERE IS NO DISCUSSION WHATSOEVER ON THE ARGUMENTS RECORDED IN THE SAID ORDER. ONCE THE ASSESSEE SAYS THAT THE SIGNATURE DOES NOT BELON G TO HIM AND THE PROPERTY REFEREED TO HAS ALSO NOT BEEN PURCHASED BY HIM. THEN THESE BASIC FACTS AND ARGUMENTS HAVE TO BE ADDRESSED AND IN ORDER TO PROCEED FURTHER AND HOLD THE SAME AS ASSESSEES UNDISCLOSED INCOME THE REVENUE NEEDS TO DEMONSTRAT E BY WAY OF EVIDENCES THE FALLACIES OF THE ASSESSEES CLAIM. IN THE ABSENCE OF ANY DISCUSSION ON THE RELEVANT FACTS AFTER HEARING THE PARTIES THE ISSUE IS RESTOR ED BACK TO THE AO TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSES SEE A REASONABLE OPPORTUNITY OF BEING HEARD. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 19 TH OCTOBER 2016. SD/- (DIV A SINGH) JUDICIAL MEMBER *AMIT KUMAR* I.T.A .NO.-2749/DEL/2015 PAGE 5 OF 5 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR I TAT NEW DELHI