SHRI CHIRANJI LAL BAIRWA, JAIPUR v. INCOME TAX OFFICER, WARD-1-5, JAIPUR

ITA 284/JPR/2018 | 2009-2010
Pronouncement Date: 06-11-2019 | Result: Partly Allowed

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Appeal Details

RSA Number 28423114 RSA 2018
Assessee PAN APPPB6541M
Bench Jaipur
Appeal Number ITA 284/JPR/2018
Duration Of Justice 1 year(s) 8 month(s) 6 day(s)
Appellant SHRI CHIRANJI LAL BAIRWA, JAIPUR
Respondent INCOME TAX OFFICER, WARD-1-5, JAIPUR
Appeal Type Income Tax Appeal
Pronouncement Date 06-11-2019
Appeal Filed By Assessee
Tags chiranji lal
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 06-11-2019
Last Hearing Date 27-06-2018
First Hearing Date 27-06-2018
Assessment Year 2009-2010
Appeal Filed On 28-02-2018
Judgment Text
VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH SMC JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; DS LE{K BEFORE: SHRI SHRI VIJAY PAL RAO JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 284/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10. SHRI CHIRANJI LAL BAIRWA 96 BAIRWA KI DHINI KALWARA JAIPUR. CUKE VS. THE INCOME TAX OFFICER WARD 1(5) JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. APPPB 6541 M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI A.K. KANODIA (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI ABHISHEK SHARMA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 04.10.2019. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 06/11/2019. VKNS'K@ ORDER PER VIJAY PAL RAO JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 11.12.2017 OF LD. CIT (APPEALS) KOTA FOR THE ASSESSMENT YEAR 200 9-10. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. BECAUSE ON THE FACTS & CIRCUMSTANCES OF THE CA SE LERNED CIT APPEAL WAS NOT JUSTIFIED WHILE CONFIRMING THE ORDER PASSED BY AO UNDER SECTION 144/147. 2. BECAUSE ON THE FACTS & CIRCUMSTANCES OF THE CASE LERNED CIT APPEAL WAS NOT JUSTIFIED WHILE CONFIRMING THE ADDIT ION MADE BY AO AMOUNTING TO RS. 16 65 000/- AS INCOME FROM UNDI SCLOSED SOURCES. 3. UNDER THE FACTS & CIRCUMSTANCES OF THE CASE LERN ED CIT APPEAL WAS NOT JUSTIFIED WHILE NOT CONSIDERING THE SALE DE ED EXECUTED BY HIS FATHER WHICH WAS THE SOURCE OF DEPOSIT AS AD DITIONAL EVIDENCE UNDER RULE 46A WITHOUT RECORDING ANY REASO N. 2 ITA NO. 284/JP/2018. SHRI CHIRANJI LAL BAIRWA JAIPUR. 4. THE ASSESSEE CRAVES LEAVE TO ADD/ALTER ANY OF TH E GROUND OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2. THE ASSESSEE IS AN INDIVIDUAL AND NOT AN INCOME- TAX RETURN FILER. THE AO ISSUED NOTICE UNDER SECTION 148 OF THE IT ACT ON 15 .03.2016 ON THE BASIS OF THE INFORMATION OF DEPOSIT OF CASH IN THE SAVINGS BANK ACCOUNT OF THE ASSESSEE OF RS. 16 65 000/-. IN RESPONSE TO THE NOTICE ISSUED UNDE R SECTION 148 AS WELL AS VARIOUS NOTICES ISSUED UNDER SECTION 142(1) THE ASSESSEE D ID NOT FILE ANY RETURN OF INCOME OR REPLY. EVEN THE ASSESSEE DID NOT APPEAR BEFORE T HE AO AND THE ASSESSMENT WAS COMPLETED UNDER SECTION 144 READ WITH SECTION 147 O N 21.11.2016 WHEREBY THE AO HAS MADE THE ADDITION OF RS. 16 65 000/- ON ACCOUNT OF UNEXPLAINED CASH DEPOSIT IN THE BANK ACCOUNT. THE ASSESSEE CHALLENGED THE ACTIO N OF THE AO BEFORE THE LD. CIT (APPEALS) AND CONTENDED THAT SOME OF THE CASH TO TH E EXTENT OF RS. 10 00 000/- IS DEPOSITED BEING THE SALE CONSIDERATION OF AGRICULTU RAL LAND SOLD BY THE FATHER OF THE ASSESSEE AND THE BALANCE WAS ALSO DEPOSITED FROM TH E FATHER OF THE ASSESSEE WHO HAS AGRICULTURAL INCOME AS WELL AS THE AMOUNT RECEI VED FROM SALE OF CATTLES. THEREFORE THE ASSESSEE CONTENDED THAT THE ENTIRE A MOUNT OF RS. 16 65 000/- WAS DEPOSITED AS RECEIVED FROM THE FATHER OF THE ASSESS EE AND FOR TAKING THE DEMAND DRAFT IN RESPECT OF AGRICULTURAL LAND PURCHASED IN THE NAME OF MOTHER OF THE ASSESSEE. THE LD. CIT (A) REJECTED THE CONTENTION O F THE ASSESSEE AS WELL AS EXPLANATION OF SOURCE OF CASH DEPOSIT IN THE BANK A CCOUNT ON THE GROUND THAT THERE IS NO DIRECT NEXUS OF THE SALE CONSIDERATION AND DE POSIT AND THERE IS ALSO A GAP OF 3 MONTHS BETWEEN THE FIRST DEPOSIT AND TWO OTHER DEPO SITS IN THE BANK ACCOUNT. 3 ITA NO. 284/JP/2018. SHRI CHIRANJI LAL BAIRWA JAIPUR. 3. BEFORE THE TRIBUNAL THE LD. A/R OF THE ASSESSEE HAS SUBMITTED THAT THE ADDITION OF RS. 16 65 000/- HAS BEEN MADE UNDER SEC TION 68 OF THE ACT WHEREAS THE ASSESSEE IS NOT MAINTAINING ANY BOOKS OF ACCOUNT OR DOING ANY BUSINESS THEREFORE THE DEPOSITS MADE IN THE BANK ACCOUNT CANNOT BE ADD ED UNDER SECTION 68. HE HAS FURTHER SUBMITTED THAT THE LD. CIT (A) HAS CONFIRME D THE ADDITION WITHOUT ASCERTAINING THE CORRECT NATURE OF RECEIPT AS WELL AS THE EVIDENCE FILED BY THE ASSESSEE TO SHOW THAT THE AMOUNT WAS DEPOSITED OUT OF THE SALE PROCEEDS OF AGRICULTURAL LAND AS WELL AS OTHER RECEIPTS OF THE FATHER OF THE ASSESSEE FROM AGRICULTURAL INCOME AS WELL AS SALE OF CATTLES. HE HAS FURTHER CONTENDED THAT SINCE THE FATHER OF THE ASSESSEE WAS NOT HAVING BANK ACCO UNT THEREFORE THE AMOUNT WAS DEPOSITED IN THE BANK ACCOUNT OF THE ASSESSEE FOR T AKING THE DEMAND DRAFT IN RESPECT OF ANOTHER LAND PURCHASED FOR A CONSIDERATION OF RS . 16 65 000/- IN THE NAME OF MOTHER OF THE ASSESSEE. THUS THE DEPOSIT WAS MADE O NLY FOR THE PURPOSE OF TAKING THE DEMAND DRAFT AND THE ENTIRE MONEY BELONGED TO T HE FATHER OF THE ASSESSEE WHO HAS INVESTED THE SAME FOR PURCHASE OF AGRICULTURAL LAND. HE HAS REFERRED TO THE SALE DEED DATED 10.10.2008 WHEREBY THE FATHER OF THE ASS ESSEE SOLD THE AGRICULTURAL LAND AS WELL AS SALE DEED DATED 16.10.2008 VIDE WHICH TH E NEW AGRICULTURAL LAND WAS PURCHASED. HENCE THE LD. A/R HAS SUBMITTED THAT THE ASSESSEE HAS EXPLAINED THE SOURCE OF DEPOSIT IN THE BANK ACCOUNT AND THEREFOR E NO ADDITION IS CALLED FOR. HE HAS ALSO REFERRED TO THE AFFIDAVIT OF THE FATHER OF THE ASSESSEE WHO HAS ADMITTED THE FACT THAT THE ENTIRE MONEY BELONG TO HIM AND SOURCE IS BEING SALE CONSIDERATION OF AGRICULTURAL LAND SOLD BY THE FATHER AS WELL AS AGR ICULTURAL INCOME AND AMOUNT RECEIVED AGAINST SALE OF CATTLES. 4 ITA NO. 284/JP/2018. SHRI CHIRANJI LAL BAIRWA JAIPUR. 4. ON THE OTHER HAND THE LD. D/R HAS SUBMITTED THA T DESPITE REPEATED NOTICES ISSUED BY THE AO THE ASSESSEE DID NOT RESPOND AND NO COMPLIANCE WAS MADE TO ANY OF THE NOTICES. EVEN NO RETURN OF INCOME WAS FILED BY THE ASSESSEE UNDER SECTION 139 OR IN RESPONSE TO NOTICE UNDER SECTION 148 OF THE A CT. THE LD. CIT (A) HAS EXAMINED THE DETAILS OF THE DEPOSITS MADE IN THE BANK ACCOUN T AS WELL AS THE SALE DEEDS AS RELIED UPON BY THE ASSESSEE AND FOUND THAT THERE IS NO DIRECT LINK BETWEEN THE SALE CONSIDERATION AND DEPOSITS MADE IN THE BANK ACCOUNT . HE HAS RELIED UPON THE IMPUGNED ORDER OF THE LD. CIT (A). 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD. THERE IS NO DISPUTE THAT THE FATHER OF THE ASSESSEE SOLD AGRICULTURAL LAND VIDE SALE DEED DATED 10.10.2008 FOR A CONSIDERATION OF RS. 10 00 000/- THOUGH THE DEPOSIT OF RS. 9 55 000/- WAS MADE ON 17.7.2008 WHI CH WAS PRIOR TO THE SALE DEED DATED 10.10.2008. HOWEVER THERE WAS A SUBSEQUENT D EPOSIT IN THE BANK ACCOUNT OF RS. 7 10 000/- ON 16.10.2008 WHICH WAS SUBSEQUENT T O THE PRESENT SALE DEED. THE ENTIRE DEPOSIT WAS USED FOR THE PURPOSE OF PAYMENT OF PURCHASE CONSIDERATION IN RESPECT OF THE AGRICULTURAL LAND PURCHASED IN THE N AME OF MOTHER OF THE ASSESSEE VIDE SALE DEED DATED 16.10.2008. AS PER THE DETAIL S OBTAINED FROM THE BANK TWO DEMAND DRAFTS WERE PREPARED ON 17.07.2008 FOR RS. 4 50 000/- AND RS. 5 00 000/- RESPECTIVELY TOTAL AMOUNTING TO RS. 9 50 000/-. THU S RS. 9 50 000/- WAS WITHDRAWAN FROM THE BANK ACCOUNT THROUGH DDS FOR PAYMENT OF PU RCHASE CONSIDERATION OF AGRICULTURAL LAND MUCH BEFORE THE DATE OF SALE DEED I.E. 16.10.2008. FROM THESE DETAILS IT IS MANIFEST THAT THE PURCHASE CONSIDERAT ION PAID FOR PURCHASE OF THE LAND IN THE NAME OF MOTHER OF THE ASSESSEE WAS IN ADVANCE A ND ONE MONTH PRIOR TO THE SALE DEED THEREFORE IT CANNOT BE RULED OUT THAT THE SA LE CONSIDERATION WAS ALSO RECEIVED 5 ITA NO. 284/JP/2018. SHRI CHIRANJI LAL BAIRWA JAIPUR. IN ADVANCE BY THE FATHER OF THE ASSESSEE IN RESPECT OF THE SALE OF THE AGRICULTURAL LAND. IN ANY CASE WHEN THERE IS A SUBSEQUENT DEPO SIT IN THE BANK ACCOUNT THEN TO THE EXTENT OF RS. 10 00 000/- BEING THE SALE CONSID ERATION OF AGRICULTURAL LAND SOLD BY THE FATHER THE SOURCE OF DEPOSIT MADE IN THE BANK ACCOUNT STAND EXPLAINED. CONSEQUENTLY NO ADDITION IS WARRANTED TO THE EXTENT OF RS. 10 00 000/- ON ACCOUNT OF CASH DEPOSIT IN THE BANK ACCOUNT. AS REGARDS TH E REMAINING AMOUNT OF RS. 6 65 000/- THE ASSESSEE HAS EXPLAINED THAT THIS IS OUT OF THE AGRICULTURAL INCOME OF THE FATHER AS WELL AS SALE OF CATTLES. HOWEVER TH IS REMAINS ONLY A SUBMISSION ON THE PART OF THE ASSESSEE AND NOT SUBSTANTIATED WITH ANY EVIDENCE. HENCE THE ADDITION OF BALANCE AMOUNT OF RS. 6 65 000/- IS CONFIRMED FOR W ANT OF ANY SUPPORTING EVIDENCE AND SOURCE OF DEPOSIT. AS REGARDS THE OBJECTION OF THE LD. A/R OF THE ASSESSEE THAT THE ADDITION WAS MADE UNDER SECTION 68 OF THE ACT IT IS PERTINENT TO NOTE THAT IN SUBSTANCE THE AO HAS MADE THE ADDITION ON ACCOUNT O F UNEXPLAINED DEPOSIT IN THE BANK ACCOUNT AND NO PROVISION IS MENTIONED IN THE A SSESSMENT ORDER. THEREFORE THIS CONTENTION OF THE LD. A/R IS BEREFT OF ANY MERIT OR SUBSTANCE. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 06/11/20 19. SD/- ( FOT; IKY JKWO (VIJAY PAL RAO) U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 06/11/2019. DAS/ 6 ITA NO. 284/JP/2018. SHRI CHIRANJI LAL BAIRWA JAIPUR. VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SHRI CHIRANJI LAL BAIRWA JAIPUR. 2. THE RESPONDENT THE ITO WARD 1(5) JAIPUR. 3. THE CIT(A). 4. THE CIT 5. THE DR ITAT JAIPUR 6. GUARD FILE (ITA NO. 284/JP/2018) VKNS'KKUQLKJ@ BY ORDER LGK;D IATHDKJ@ ASSISTANT. REGISTRAR