Sh. Paramjit Singh, Ludhiana v. ITO, W-1(2), Ludhiana

ITA 570/CHANDI/2019 | 2008-2009
Pronouncement Date: 04-11-2019 | Result: Partly Allowed

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Appeal Details

RSA Number 57021514 RSA 2019
Assessee PAN ANAPS6528A
Bench Chandigarh
Appeal Number ITA 570/CHANDI/2019
Duration Of Justice 6 month(s) 5 day(s)
Appellant Sh. Paramjit Singh, Ludhiana
Respondent ITO, W-1(2), Ludhiana
Appeal Type Income Tax Appeal
Pronouncement Date 04-11-2019
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 04-11-2019
Last Hearing Date 04-11-2019
First Hearing Date 04-11-2019
Assessment Year 2008-2009
Appeal Filed On 29-04-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH SMC CHANDIGARH BEFORE SHRI SANJAY GARG JUDICIAL MEMBER ./ ITA NO. 570/CHD/2019 / ASSESSMENT YEAR : 2008-09 SHRI PARAMJIT SINGH #527 STREET NO.2 GURU TEG BAHADUR NAGAR CHANDIGARH ROAD LUDHIANA VS. THE ITO WARD-1(2) LUDHIANA ./PAN NO: ANAPS6528A / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI TEJ MOHAN SINGH ADVOCATE ' ! / REVENUE BY : SH. MANJIT SINGH CIT 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 01.02.2019 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-1 LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE COMMISSIONER OF INCOME TAX(APPEALS) HAS ERRED IN LAW AS PASSING AN EX-PARTE ORDER WITHOUT AFFORDING A PROPER OPPORTUNITY OF HEARING WHICH IS ITA NO. 570-CHD-2019- SHRI PARAMJIT SINGH LUDHIANA 2 AGAINST THE PRINCIPALS OF NATURAL JUSTICE AND AS SU CH THE ORDER PASSED IS ILLEGAL ARBITRARY AND UNJUSTIF IED. 2. WITHOUT PREJUDICE TO THE ABOVE THE LD. COMMISSIONER OF INCOME TAX(APPEALS) HAS ERRED IN LAW AS WELL AS ON FACTS IN UPHOLDING THE ADDITION O F RS.5 00 000/- MADE ON ACCOUNT OF ALLEGED UNEXPLAINED CASH INTRODUCED IN THE BANK ACCOUNT APPLYING THE PROVISIONS OF SECTION 69A OF THE ACT WHICH IS ARBITRARY AND UNJUSTIFIED. 3. THAT THE LD. COMMISSIONER OF INCOME TAX(APPEALS) HAS FURTHER ERRED IN UPHOLDING THE ADDITION OF RS.27 300/- MADE ON ACCOUNT OF ALLEGED UNEXPLAINED EXPENDITURE APPLYING THE PROVISIONS OF SECTION 69C OF THE ACT WHICH IS ARBITRARY AND UNJUSTIFIED. 4. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS FURTHER ERRED IN UPHOLDING THE ADDITION OF RS.40 191/- ON ACCOUNT OF ALLEGED UNDISCLOSED BANK INTEREST WHICH IS ARBITRARY AND UNJUSTIFIED. 5. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS ERRONEOUS ARBITRARY OPPOSED TO LAW AND FACTS OF THE CASE AND IS THUS UNTENABLE. 3. GROUND NOS. 1 & 2: THROUGH THESE GROUNDS THE ASSESSEE HAS AGITATED THE CONFIRMATION OF ADDITION MADE BY THE A SSESSING OFFICER OF RS. 5 LAC ON ACCOUNT OF ALLEGED UNEXPLAINED DEPOSIT S IN THE BANK ACCOUNT. THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTICED THAT THE ASSESSEE HAD IN TOTAL DEPOSITED RS. 16 50 000/- IN HIS BANK. ON BEING ASKED TO EXPLAIN THE ASSESSEE FURNISHED THE DETAILS OF THE SOURCE OF THE DEPOSITS SO MADE. THE ASSESSING OFFICER WAS CONVINCED REGARDING THE SOURC E OF THE AMOUNT OF DEPOSIT OF RS. 11.50 LACS HOWEVER ASSESSEE COULD NOT SATISFACTORILY EXPLAIN ABOUT THE SOURCE OF DEPOSIT OF RS. 5 LACS THE SAME WAS ITA NO. 570-CHD-2019- SHRI PARAMJIT SINGH LUDHIANA 3 THEREFORE ADDED INTO THE INCOME OF THE ASSESSEE AS 'INCOME FROM UNEXPLAINED SOURCES'. 4. THE LD. CIT(A) CONFIRMED THE ADDITION SO MADE BY THE ASSESSING OFFICER VIDE HIS EX-PARTE ORDER DATED 11.8.2017. HO WEVER THE MATTER WAS REMANDED BACK TO THE FILE OF THE CIT(A) FOR ADJ UDICATION AFRESH VIDE ORDER DATED 27.3.2016 BY THIS TRIBUNAL PASSED IN IT A NO.1488/CHD/2017 ON THE REQUEST OF THE ASSESSEE TO ALLOW HIM THE OPP ORTUNITY TO PRODUCE THE NECESSARY DETAILS RELATING TO THE DEPOSIT OF RS . 5 LACS IN HIS BANK ACCOUNT. HOWEVER THE ASSESSEE AGAIN FAILED TO APPE AR AND EXPLAIN THE SOURCE OF DEPOSIT OF RS. 5 LACS IN THE SET ASIDE PR OCEEDINGS BEFORE THE LD. CIT(A). THE LD. CIT(A) THEREFORE REAFFIRMED T HE ADDITION VIDE HIS IMPUGNED ORDER. BEING AGGRIEVED BY THE SAID ORDER THE ASSESSEE HAS COME IN APPEAL BEFORE US. 5. THE ONLY CONTENTION OF THE LD. COUNSEL FOR THE A SSESSEE BEFORE US IS THAT THE ASSESSEE HAS BEEN EARNING PROFESSIONAL INCOME FROM PRACTICE AS A HOMEOPATHIC PRACTITIONER. THE CLAIM OF THE ASS ESSEE IS THAT THE AFORESAID AMOUNT OF RS. 5 LACS WAS DEPOSITED OUT O F HIS PAST SAVINGS. THAT THOUGH THE ASSESSEE COULD NOT PROVE WITH SPECI FIC DETAILS OF THE PAST SAVINGS HOWEVER THE FACT IS THAT THE ASSESSE E HAD BEEN EARNING AMOUNT OF RS. 1 LAC PER ANNUM AS PER RETURN OF INC OME FOR ASSESSMENT YEAR 2008-09 AND THAT THERE IS NO DOUBT OF THE FACT THAT THE ASSESSEE IS A HOMEOPATHIC PRACTITIONER AND HE MIGHT HAVE SOME PA ST SAVINGS FROM THE ITA NO. 570-CHD-2019- SHRI PARAMJIT SINGH LUDHIANA 4 INCOME EARNED FROM THE PRACTICE. THE LD. COUNSEL T HEREFORE HAS SUBMITTED THAT SOME BENEFIT OF DEPOSIT OUT OF HIS P AST SAVINGS MAY BE GIVEN TO THE ASSESSEE. 5. THE LD. DR HAS STRONGLY RELIED UPON THE FINDINGS OF THE LOWER AUTHORITIES AND HAS SUBMITTED THAT THE ASSESSEE DES PITE AVAILING OPPORTUNITY OF REHEARING BEFORE THE CIT(A) HAS AGAI N FAILED TO EXPLAIN THE SOURCE OF THE DEPOSIT OF RS. 5 LACS AND HENCE THE LD. CIT(A) PER FORCE HAS TO PASS AN EX-PARTE ORDER. THAT THE PLEA RAISED BY THE ASSESSEE IS GENERAL AND VAGUE. 6. CONSIDERING THE OVERALL FACTS AND CIRCUMSTANCES OF THE CASE AND ALSO CONSIDERING THE RIVAL CONTENTIONS OF THE LD. REPRESENTATIVES OF THE PARTIES I DEEM IT APPROPRIATE TO GIVE THE ASSESSEE THE BENEFIT OF DEPOSIT OF RS. 1 LAC FROM HIS PAST SAVING CONSIDERING THE FACT THAT THE ASSESSEE IS A MEDICAL PRACTITIONER AND MIGHT HAVE SAVED SOME AMOUNT HOWEVER SINCE THERE IS NO SPECIFIC EVIDENCE OF ANY TYPE OR DETAILS GIVEN BY THE ASSESSEE RELATING TO THE REMAINING AMOUNT OF DEPO SIT IN THE BANK HENCE THE ADDITION TO THE TUNE OF RS. 4 LACS MADE BY THE LOWER AUTHORITIES IS CONFIRMED. 7. GROUND NO 3 & 4 : THESE GROUNDS ARE NOT PRESSED BY THE LD. COUNSEL FOR THE ASSESSEE THEREFORE THE SAME STAND DISMISSED. ITA NO. 570-CHD-2019- SHRI PARAMJIT SINGH LUDHIANA 5 8. GROUND NO. 5 : THIS GROUND IS GENERAL IN NATURE AND DOES NOT REQUIRE ANY SPECIFIC ADJUDICATION. IN VIEW OF THIS THE APPEAL OF THE ASSESSEE IS TREA TED AS PARTLY ALLOWED. 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 .