SH. KULDEEP SINGH, AMRITSAR v. INCOME TAX OFFICER, WARD - 5(3), AMRITSAR

ITA 579/ASR/2017 | 2009-2010
Pronouncement Date: 30-12-2019 | Result: Allowed
Expert Summary: Only AIR information can not be reason to believe but suspect only

Appeal Details

RSA Number 57920914 RSA 2017
Assessee PAN DACPS0154J
Bench Amritsar
Appeal Number ITA 579/ASR/2017
Duration Of Justice 2 year(s) 3 month(s) 22 day(s)
Appellant SH. KULDEEP SINGH, AMRITSAR
Respondent INCOME TAX OFFICER, WARD - 5(3), AMRITSAR
Appeal Type Income Tax Appeal
Pronouncement Date 30-12-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 30-12-2019
Date Of Final Hearing 28-11-2019
Next Hearing Date 28-11-2019
Last Hearing Date 09-10-2018
First Hearing Date 23-01-2018
Assessment Year 2009-2010
Appeal Filed On 08-09-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DB BEN CH AMRITSAR BEFORE SHRI N.K. CHOUDHRY JM & DR. A.L.SAINI AM ./ ITA NO. 579/ASR/2017 ( / ASSESSMENT YEAR: 2009-10) SH. KULDIP SINGH VILL: MIRANKOT KHURD P.O. MIRAN KOT KALAN AMRITSAR (PUNJAB). VS. INCOME TAX OFFICER WARD-5(3) AMRITSAR (PUNJAB). ./ ./ PAN/GIR NO.: DACPS 0154 J (APPELLANT) .. (RESPONDENT) APPELLANT BY : SH. INDERJIT PAUL ADV. RESPONDENT BY : SH. CHARAN DASS DR. / DATE OF HEARING : 28/11/2019 /DATE OF PRONOUNCEMENT : 30/12/2019 / O R D E R PER DR. A.L. SAINI : THE CAPTIONED APPEAL FILED BY THE ASSESSEE PERTAIN ING TO ASSESSMENT YEAR 2009- 10 IS DIRECTED AGAINST THE ORDER PASSED BY THE COM MISSIONER OF INCOME TAX (APPEALS)-2 AMRITSAR [IN SHORT CIT(A)] IN APPEAL NO.10485/2016-17 WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASS ESSING OFFICER U/S 144 R.W.S. 147 OF THE INCOME TAX ACT 1961 (IN SHORT THE ACT) DA TED 19.12.2016. 2. IN THIS APPEAL ASSESSEE HAS RAISED TWELVE GROUN DS OF APPEAL HOWEVER DURING THE COURSE OF HEARING THE LD COUNSEL INFORMS THE BE NCH THAT ASSESSEE DOES NOT WANT TO PRESS GROUND NUMBERS 1 2 5 8 9 10 11 AND 12 TH EREFORE WE DISMISS THESE GROUNDS AS NOT PRESSED. OTHER REMAINING MAIN GROUNDS RAISED BY THE ASSESSEE ARE AS FOLLOWS: 3. THAT THE LD. ASSESSING OFFICER HAS ERRED IN LAW WHILE PASSING THE ASSESSMENT ORDER U/S 144 OF INCOME-TAX ACT 1961 INSTEAD OF U/S 143(3) O F INCOME-TAX ACT 1961 WHICH PROVES THAT ASSESSMENT FRAMED BY HIM WAS WITHOUT APPLICATI ON OF MIND AND IN POST HASTE MANNER AND THE WORTHY CIT(A) HAS IMPLIEDLY APPROVED IT WIT HOUT GOING THROUGH THE FACTS OF THE CASE AND ADJUDICATE THIS GROUND OF APPEAL WITHOUT A PPLICATION OF MIND. ITA NO.579/ASR/2017 AY: 2009-10 SH. KULDIP SINGH. 2 | P A G E 4. THAT THE LD. ASSESSING OFFICER HAS ERRED IN LAW FOR ASSUMING JURISDICTION TO MAKE REASSESSMENT U/S 148 WITHOUT FULFILLING THE MANDATO RY REQUIREMENT OF SERVICE OF NOTICE U/S 148 OF INCOME-TAX ACT 1961 WITHIN STIPULATED PERIO D AS PROVIDED BY LAW AS WELL AS REOPENING BASED ON AIR INFORMATION ONLY AND THE WOR THY CIT(A) HAS IMPLIEDLY APPROVED IT WITHOUT GOING THROUGH THE FACTS OF THE CASE AND ADJUDICATE THIS GROUND OF APPEAL WITHOUT APPLICATION OF MIND. 6. THAT THE LEARNED AO HAS REOPENED THE RE-ASSESSME NT IN POST HASTE MANNER ON 29-3- 2016 BASED ON AIR INFORMATION AVAILABLE ON AST AND AS SUCH BELIEF FORMED BY HIM IS WRONG WHICH IS SUBJECT MATTER OF THE REOPENING OF T HE CASE FOR THIS PARTICULAR ASSESSMENT YEAR AND HE DID NOT CONDUCT HIS OWN INVESTIGATIONS TO SATISFY HIMSELF ABOUT THE CORRECTNESS OF PARTICULARS BEFORE REASONS RECORDED WHICH IS TOTALLY ERRONEOUS AND UNTENABLE. THE REASONS RECORDED FOR REOPENING ARE V AGUE AND THERE IN NO LIVE NEXUS BETWEEN THE REASONS RECORDED AND THE INCOME ESCAPIN G ASSESSMENT AND THE WORTHY CIT(A) HAS IMPLIEDLY APPROVED IT WITHOUT GOING THRO UGH THE FACTS OF THE CASE AND ADJUDICATE THIS GROUND OF APPEAL WITHOUT APPLICATIO N OF MIND. 7. THAT THE LEARNED AO HAS ERRED ON FACTS AND IN LA W IN REOPENING OF RE-ASSESSMENT IS BAD AND LIABLE TO BE QUASHED AS THE REASONS RECORDED FO R REOPENING THE ASSESSMENT DOES NOT MEET THE STATUTORY REQUIREMENTS OF SECTION 147 OF T HE INCOME-TAX ACT 1961. THE REASON RECORDED BY THE AO IS TOTALLY BASED ON AIR INFORMAT ION AVAILABLE ON AST AND INITIATION OF PROCEEDINGS WAS WITHOUT ANY MATERIAL FOR ESCAPEM ENT OF INCOME FOR ASSESSMENT YEAR UNDER CONSIDERATION AND THE WORTHY CIT(A) HAS IMPLI EDLY APPROVED IT WITHOUT GOING THROUGH THE FACTS OF THE CASE AND ADJUDICATE THIS G ROUND OF APPEAL WITHOUT APPLICATION OF MIND. 3. THE FACTS OF THE CASE WHICH CAN BE STATED QUITE SHO RTLY ARE AS FOLLOWS: THE REOPENING PROCEEDINGS UNDER SECTION 147 OF THE ACT IN ASSESS EE`S CASE WERE INITIATED BY ISSUE OF NOTICE U/S 148 OF THE INCOME TAX ACT 1961 ON 29.0 3.2016. AS PER INFORMATION AVAILABLE ON RECORD THE AO NOTICED THAT SH. KULDIP SINGH S/O SH. POORAN SINGH MIRANKOT KHURD P.O. MIRANKOT KALAN AMRITSAR HAD M ADE CASH DEPOSITS OF RS. 1 02 84 360/- IN SAVING BANK A/C NO. 001496 MAINTAI NED WITH CANARA BANK DURING THE FINANCIAL YEAR 2008-09 WHICH WAS NOT DISCLOSED BY ASSESSEE. THEREFORE ANOTICE U/S 148 OF THE ACT WAS ISSUED ON 29.03.2016. THE AO AGA IN ISSUED NOTICE U/S 142(1) OF THE ACT. IN RESPONSE TO NOTICE U/S 142(1) SHRI MAN DEEP SINGH AR APPEARED BEFORE AO AND FURNISHED THE POWER OF ATTORNEY AND ATTENDED THE ASSESSMENT PROCEEDING FROM TIME TO TIME AND WRITTEN REPLY DATED 29.11.2016 FUR NISHED. THE AR ALSO FURNISHED BEFORE AO THE COPIES OF CONVINCE DEED OF LAND SOLD BY THE ASSESSEE`S FATHER SHRI PURAN SINGH AT RS. 19 24 000/-.ASSESSEE`S REPLY DATED 29 .11.2016 IS REPRODUCED BELOW: ITA NO.579/ASR/2017 AY: 2009-10 SH. KULDIP SINGH. 3 | P A G E WITH REFERENCE TO ABOVE STATED SUBJECT PLEASE FIND THE UNDER MENTIONED DETAILS. WITH REFERENCE TO YOUR QUERY NO 1 REGARDING NATURE OF BUSINESS OR PROFESSION CARRIED OUT DURING THE PERIOD 01.04.2008 TO 31.03.2 009: THIS IS TO STATE THAT DURING THE PERIOD UNDER REFERENCE I WAS DOING AGRIC ULTURAL OPERATIONS ON THE LAND OWNED BY MY FATHER. WITH REFERENCE TO YOUR QUERY NO 2 REGARDING LIST OF ALL ACCOUNTS/DEPOSITS JOINTLY OR SEVERALLY HELD DURING THE F.Y. 2008-09 ALONG WITH S TATEMENT OF ACCOUNT. THIS IS TO BRING TO YOUR KIND ATTENTION THAT I OWNED ONLY ONE SAVING ACCOUNT WITH CANARA BANK BRANCH MIRANKOT KALAN AMRITSAR BEARING ACCOU NT NO. 01496. THE SAID ACCOUNT DETAIL IS ATTACHED HEREWITH FOR YOUR REFERE NCE. WITH REFERENCE TO YOUR QUERY NO 3 REGARDING STATEME NT OF INVESTMENTS IN PURCHASE/SALE OF IMMOVABLE PROPERTY WITH SUPPORTING DOCUMENTARY EVIDENCES. THIS IS TO BRING TO YOUR KIND ATTENTION THAT DURING THE RELEVANT FINANCIAL YEAR I DID NOT MAKE ANY INVESTMENTS IN PURCHASE OF IMMOVABLE P ROPERTY. WITH REFERENCE TO YOUR QUERY REGARDING SOURCE OF CR EDIT ENTRIES OF RS. 1 04 56 220/- IN THE BANK ACCOUNT NO 001496 WITH CA NARA BANK AMRITSAR: THIS IS TO STATE THAT AN AMOUNT OF APP RS 75 LAKHS WAS GIVE N AS GIFT TO ME BY MY FATHER ON SALE OF AGRICULTURAL LAND OWNED BY HIM. SINCE HE WAS NOT KEEPING GOOD HEALTH AND HAD HANDSOME AMOUNT WITH HIM & OUT OF WHICH HE GIFTED ME THE SAID AMOUNT. ULTIMATELY HE BREATHED HIS LAST ON 03.10.2008. (COP Y OF DEATH CERTIFICATE IS ATTACHED HEREWITH FOR YOUR READY REFERENCE). COPY O F THE AGREEMENT ENTERED INTO BY HIM IN THE YEAR 2006 FOR SALE OF HIS AGRICULTURA L LAND IS ALSO ATTACHED HEREWITH FOR YOUR READY REFERENCE. WITH REFERENCE TO YOUR QUERY REGARDING DETAIL OF IN TEREST EARNED/ACCRUED DURING THE FINANCIAL YEAR 2008-09: THIS IS SUBMIT THAT DUR ING THE PERIOD UNDER REFERENCE BANK CREDITED RS 41789/- AS INTEREST FOR THE PERIOD 2008-09. 4. ON 15.12.2016 SH. MANDEEP SINGH AR OF THE ASSESS EE APPEARED BEFORE AO. THE ASSESSING OFFICER AS PER ORDER SHEET QUERY DATE D 15.12.2016 ASKED THE AR TO EXPLAIN THE CASH DEPOSIT OF RS.1 02 84 360/-. ON 1 6.12.2016 SH. MANDEEP SINGH AR OF THE ASSESSEE AGAIN APPEARED BEFORE AO AND FUR NISHED WRITTEN REPLY WHICH IS REPRODUCED BELOW:- REPLY DATED 16.12.2016 WHICH IS AS UNDER:- WITH REFERENCE TO ABOVE STATED SUBJECT PLEASE FIND THE UNDER MENTIONED DETAILS WITH REFERENCE TO ABOVE THIS IS TO STATE THAT ASSE SSEE WAS A AGRICULTURIST DURING THE PERIOD UNDER REFERENCE & WAS HELPING HIS FATHER IN PERFORMING AGRICULTURAL OPERATIONS AS NO LAND WAS OWNED BY HIM PERSONALLY B UT WAS HELPING IN CULTIVATING THE LAND OWNED BY HIS FATHER. ASSESSEE DO NOT HAVE ANY SOURCE OF INCOME EXCEPT ITA NO.579/ASR/2017 AY: 2009-10 SH. KULDIP SINGH. 4 | P A G E FROM SAVING ACCOUNT INTEREST RECEIVED BY HIM FROM B ANK. INCOME TAX RETURN AS PREPARED IN RESPONSE TO NOTICE IS ATTACHED HEREWITH . DURING THE COURSE OF LAST HEARING THE ASSESSEE HAS BEEN ALLOWED TO INSPECT THE FILE & FOUND THE FOLLOWING REASONS HAVE BEEN RECORD ED: ASSESSEE HAS MADE CASH DEPOSIT OF RS. 1 02 84 360/ - DURING THE F.Y. 2008-09 SO I HAVE REASON TO BELIEVE THAT INCOME CHARGEABLE TO TAX FOR THE A.Y. 2009-10 HAS ESCAPED ASSESSMENT WITHIN THE MEANING OF SECTION 14 7 OF THE INCOME TAX ACT OBJECTIONS AGAINST REASONS RECORDED 1. THE REASONS HAVE BEEN RECORDED ON VAGUE INFORMAT ION. THESE REASONS ARE NOT REASONS IN THE EYES OF LAW SINCE THEY HAVE RECORDED MERELY ON VAGUE INFORMATION WHICH CANNOT BE HELD IN BIR BAHADU SINGH SAIJWALI VS. ITO WARD-1 HALDWANI 53 TAXMAN. CO. 366 (DELHI-TRIB). 2. THE ONLY MATERIAL AVAILABLE BEFORE YOUR GOODSELF WAS AIR INFORMATION OF THE ASSESSEE HAVING DEPOSITED RS. 102.84 LAKHS IN HIS S AVING BANK ACCOUNT. 3. THE MERE FACT THAT THE DEPOSITS WERE MADE IN A B ANK ACCOUNT DOES NOT INDICATE THAT THESE DEPOSITS HAVE CONSTITUTED AN INCOME WHIC H HAS ESCAPED ASSESSMENT. IN A RECENT CASE OF HONBLE ITAT AMRITSAR IN ITA N O. 129(ASR)/2015 IT WAS HELD THAT THE REOPENING U/S 148 DONE ON THE BASIS OF AIR INFORMATION IS INVALID. THE COPY OF ORDER IS ENCLOSED FOR YOUR READY REFERENCE. YOU ARE REQUESTED TO DISPOSE OF THESE OBJECTIONS BEFORE TAKING THE ASSESSMENT PR OCEEDING U/S 143(2)/147. 5. ON 19.12.2016 SH. MANDEEP SINGH AR OF THE ASSESS EE APPEARED BEFORE AO AND FURNISHED WRITTEN AS FOLLOWS: REPLY DATED 19.12.2016 WHICH IS AS UNDER:- WITH REFERENCE TO ABOVE STATED SUBJECT PLEASE FIND THE UNDER MENTIONED DETAILS. WITH REFERENCE TO ABOVE THIS IS TO STATE THAT ASSE SSEE GOT CASH GIFTS FROM HIS FATHER WHO WAS A AGRICULTURIST & IN THE YEAR 2008-09 WAS O N HIS DEATH BED AND ULTIMATELY EXPIRED ON 03.10.2010 BUT BEFORE HE EXPI RED HE GAVE CERTAIN MONEY TO HIS SON KULDIP SINGH OUT OF LOVE & AFFECTION AND TH E SAME WAS RECEIVED BY HIM FROM THE SALE PROCEEDS OF AGRICULTURAL LAND OWNED B Y HIM. OUT OF HIS TOTAL LAND HOLDING SOLD BY HIM COPIES OF SOME OF THE TITLE DE EDS HAVE BEEN PROCURED AFTER A LOT OF EFFORTS WHICH ARE WORTH AROUND RS. 24 LAKHS. COPIES OF OTHER TITLE DEEDS OF THE LAND HOLDING SOLD BY MY FATHER COULD NOT BE TRA CED IN SPITE OF BEST OF MY EFFORTS. THE ENTIRE MONEY DEPOSITED IN MY BANK ACCO UNT WAS GIVEN TO ME BY MY FATHER OUT OF SALE PROCEEDS OF AGRICULTURAL LAND IT MIGHT BE POSSIBLE THAT THE MONEY GIVEN TO ME BY HIM ALSO INCLUDE THE AMOUNT OF SALE CONSIDERATION BUT NOT DEPICTED THEREIN. ITA NO.579/ASR/2017 AY: 2009-10 SH. KULDIP SINGH. 5 | P A G E 6. HOWEVER AO REJECTED THE CONTENTION OF THE ASSES SEE AND HELD THAT THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE HAD NOT F URNISHED CONCRETE EVIDENCE ABOUT THE DEPOSITS OF RS.1 02 84 360/- NO ANY GIFT PROOF OF RS. 75 00 000/- FURNISHED BY THE ASSESSEE AR WHICH REMAINED UNEXPLA INED AND PEAK AMOUNT OF RS. 1 02 84 360/- AFTER WITHDRAWALS COMES TO RS. 68 50 000/- FOR WHICH NO SATISFACTORY REPLY WITH CORROBORATIVE DOCUMENTARY E VIDENCE HAD BEEN FILED BY THE ASSESSEE. THEREFORE AO MADE ADDITION TO THE TUNE O F RS.68 50 000/-. 7. AGGRIEVED BY THE ORDER OF THE LD. AO THE ASSESSE E CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) WHO HAS CONFIRMED THE REOPENI NG OF ASSESSMENT U/S 147 OF THE ACT AS VALID AND THEREFORE CONFIRMED THE ADDITION MADE BY THE AO PARTLY. AGGRIEVED BY THE ORDER OF LD CIT(A) THE ASSESSEE IS IN APPEA L BEFORE US. 8. THE LD. COUNSEL FOR THE ASSESSEE HAS RELIED ON S UBMISSIONS MADE BEFORE THE AUTHORITIES BELOW. ON THE OTHER HAND THE LD. DR HA S PRIMARILY REITERATED THE STAND TAKEN BY THE ASSESSING OFFICER WHICH WE HAVE ALREAD Y NOTED IN OUR EARLIER PARA AND THE SAME IS NOT BEING REPEATED FOR THE SAKE OF BREV ITY. 9. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY GON E THROUGH THE SUBMISSION PUT FORTH ON BEHALF OF THE ASSESSEE ALONG WITH THE DOCU MENTS FURNISHED AND THE CASE LAWS RELIED UPON AND PERUSED THE FACT OF THE CASE INCLU DING THE FINDINGS OF THE LD CIT(A) AND OTHER MATERIALS AVAILABLE ON RECORD. BEFORE US LD COUNSEL SUBMITTED COPY OF BANK STATEMENT (PB 1-2). THE LD COUNSEL SUBMITTED COPY O F NOTICE UNDER SECTION 148 OF THE ACT WHICH WAS ISSUED BY AO ON 29.03.2016 (PB 3). T HE LD COUNSEL SUBMITTED COPY OF ACKNOWLEDGEMENT ISSUED BY POSTAL AUTHORITIES REGARD ING DATE OF SERVICE OF NOTICE ON 06/04/2016 WHICH IS PLACED ON PAPER BOOK PAGE NO.4 TO 5. THE LD COUNSEL SUBMITTED COPY OF REPLY AND OBJECTIONS AGAINST REASON RECORDE D FILED BEFORE THE AO DURING ASSESSMENT PROCEEDINGS (PB 8-11). A COPY OF DEATH C ERTIFICATE OF FATHER OF THE ASSESSEE IS PLACED ON PAPER BOOK PAGE 12. THE LD COUNSEL SUB MITTED COPY OF REGISTERED SALE DEED EXECUTED BY HIS FATHER DURING HIS LIFE TIME AN D SALE PROCEEDS WERE DEPOSITED IN THE BANK ACCOUNT OF THE ASSESSEE (PB13TO 27).THE LD COUNSEL SUBMITTED COPY OF ITA NO.579/ASR/2017 AY: 2009-10 SH. KULDIP SINGH. 6 | P A G E JAMABANDI IN LIEU OF PROOF THAT THE ASSESSEE AND HI S FATHER WAS AGRICULTURIST AND HAVE SUFFICIENT AGRICULTURAL LAND (PB 28-35). WE NOTE THAT THESE EVIDENCES DOCUMENTS AND FACTS A S NARRATED ABOVE WERE THERE BEFORE THE ASSESSING OFFICER DURING THE REASSESSMEN T PROCEEDINGS. THE ASSESSING OFFICER TOOK THESE DOCUMENTS ON RECORD BUT DID NOT COMMENT THAT WHY THESE DOCUMENTS WERE FALSE OR UNTRUE. ASSESSEE SUBMITTED BEFORE AO THAT HE OWNED ONLY ONE SAVING ACCOUNT WITH CANARA BANK BRANCH MIRANKO T KALAN AMRITSAR BEARING ACCOUNT NO. 01496 AND ASSESSEE INFORMED THE AO THAT HIS FATHER SOLD SOME LAND AND SALE PROCEEDS WERE DEPOSITED IN THE BANK ACCOUNT OF THE ASSESSEE. THE AO HAS NOT REJECTED THE SALE DEED EXECUTED BY HIS FATHER. THE ASSESSEE HAS ALSO SUBMITTED THAT HIS FATHER HAS GIFTED HIM A SUM OF RS.75 LAKHS DURING H IS LIFE TIME. THE ASSESSEE HAS ALSO FURNISHED BEFORE THE AO THE JAMABANDI THE RECORD OF LAND WHICH PROVES THAT THE ASSESSEE AND HIS FATHER WERE AGRICULTURIST AND HAVE SUFFICIENT AGRICULTURAL LAND AND THE AO HAS NOT REJECTED THE SAME. THE ASSESSING OFFICER FAILED TO BRING ON RECORD ANY COGENT EVIDENCE TO PROVE THAT SALE DEED EXECUTED BY ASSESSEE`S FATHER WAS WRONG AND JAMABANDI THE RECORD OF LAND WAS FALSE OR UNTRUE. THE LD COUNSEL SUBMITS THAT SINCE THE AGRICULTURAL INCOME IS EXEMPT FROM TAX THEREFOR E ASSESSEE HAS NOT OFFERED FOR TAXATION. SINCE THE ASSESSEE EXPLAINED THE SOURCE O F BANK DEPOSITS THEREFORE INCOME HAS NOT ESCAPED ASSESSMENT WITHIN THE MEANING OF SE CTION 147 OF THE ACT. HENCE ACCORDING THE ASSESSEE THERE IS NO ESCAPEMENT OF IN COME U/S 147 OF THE ACT. 10. THE SMC BENCH OF THIS TRIBUNAL IN THE CASE OF S HRI ASHWANI KUMAR IN ITA NO. 129/ASR/2015 A.Y.2005-06 ON IDENTICAL FACTS H ELD THAT THERE IS NO ESCAPEMENT OF INCOME UNDER SECTION 147 OF THE ACT. THE FINDING S OF THE SMC BENCH ARE GIVEN BELOW: 7. THE FACTS ARE NOT DISPUTED. A BARE PERUSAL OF T HE REASONS RECORDED FOR ISSUANCE OF NOTICE U/S 148 OF THE ACT SHOWS THAT THE ONLY MATE RIAL AVAILABLE BEFORE THE AO WAS THE AIR INFORMATION OF THE ASSESSEE HAVING DEPOSITED AN AMOUNT OF RS.11.60 LAKHS IN HIS SAVINGS BANK ACCOUNT. REMARKABLY THE REASONS RECOR DED DID NOT EVEN MENTION THE BANK IN WHICH SUCH SAVINGS BANK ACCOUNT WAS MAINTAINED. THE ASSESSEE AS AVAILABLE FROM THE FIRST PAGE OF THE ASSESSMENT ORDER WAS ISSUED NOTI CE U/S 148 OF THE ACT IN PURSUANCE TO ITA NO.579/ASR/2017 AY: 2009-10 SH. KULDIP SINGH. 7 | P A G E THE AFORESAID REASONS. THE ASSESSMENT ORDER UNDER S ECTION 143(3) OF THE ACT IS DATED 25.03.2013. THE ASSESSEE HAD FILED THE RETURN OF IN COME ON 05.10.2005 AND IT HAD BEEN STATED IN RESPONSE TO THE NOTICE U/S 148 OF THE ACT THAT THIS RETURN BE TREATED AS HAVING BEEN FILED IN RESPONSE TO THIS NOTICE. IN 'BIR BAHA DUR SINGH SIJWALI' (SUPRA); LIKE IN THE PRESENT CASE THE REASONS ASSESSMENT YEAR: 2005-06 RECORDED INDICATED THAT CASH DEPOSITS HAD BEEN MADE IN THE BANK ACCOUNT OF THE A SSESSEE. THE TRIBUNAL HELD THAT THE MERE FACT THAT THE DEPOSITS HAVING BEEN MADE IN A B ANK ACCOUNT DOES NOT INDICATE THAT THESE DEPOSITS CONSTITUTE AN INCOME WHICH HAS ESCAP ED ASSESSMENT. IT WAS OBSERVED THAT THE REASONS RECORDED DID NOT MAKE OUT A CASE THAT T HE ASSESSEE WAS ENGAGED IN SOME BUSINESS AND THE INCOME FROM SUCH A BUSINESS HAD NO T BEEN RETURNED BY THE ASSESSEE. IN THE CASE AT HAND ALSO THE REASONS RECORDED DO NOT CONTAIN ANY SUCH RECITAL. THE TRIBUNAL HELD THAT THE FACTUM PER SE OF DEPOSITS IN THE BAN K ACCOUNT OF THE ASSESSEE COULD NOT BE MADE THE BASIS FOR HOLDING THE VIEW THAT INCOME HAD ESCAPED ASSESSMENT OVER-LOOKING THAT THE SOURCES OF THE DEPOSITS NEED NOT NECESSARI LY BE THE INCOME OF THE ASSESSEE; AND THAT AS SUCH THE REASONS RECORDED WERE NOT SUFFICI ENT TO BELIEVE ESCAPEMENT OF INCOME; THAT RATHER THEY WERE REASONS TO SUSPECT ESCAPEMEN T OF INCOME WHICH WAS NOT ENOUGH FOR ISSUANCE OF A NOTICE U/S 148 OF THE ACT: 8. 'BIR BAHADUR SINGH SIJWALI' (SUPRA) AS DISCUSSE D IS CLEARLY APPLICABLE TO THE PRESENT CASE. NO DECISION TO THE CONTRARY HAS BEEN CITED BE FORE ME. 9. IN VIEW OF THE ABOVE FINDING MERIT IN THE GRIEV ANCE RAISED BY THE ASSESSEE BY WAY OF GROUND NO. 1 THE REASONS RECORDED BY THE AO FOR IS SUANCE OF NOTICE U/S 148 OF THE ACT ARE HELD TO BE INVALID BEING REASONS NOT SUFFICIEN T TO BELIEVE ESCAPEMENT OF INCOME - BASED ON VAGUE INFORMATION. ALL THE PROCEEDINGS PUR SUANT THERETO INCLUDING THE ASSESSMENT YEAR: 2005-06 ASSESSMENT ORDER DATED 25. 03.2013 AND THE IMPUGNED ORDER DATED 29.01.2015 ARE THUS ANNULLED AND CANCELLED. A CCORDINGLY ALL THE OTHER ISSUES ON MERITS ARE RENDERED ACADEMIC AND INFRUCTUOUS. 11. BASED ON THE FACTUAL POSITION NARRATED ABOVE W E NOTE THAT THERE IS NO ESCAPEMENT OF INCOME U/S 147 OF THE ACT HENCE WE QUASH THE RE ASSESSMENT PROCEEDINGS INITIATED BY ASSESSING OFFICER. 12. IN THE RESULT THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE COURT ON 30.12 .2019. SD/- SD/- ( N.K. CHOUDHRY ) (A.L.SAINI) % / JUDICIAL MEMBER / ACCOUNTANT MEMBER AMRITSAR AMRITSAR &/ DATE: 30/12/2019 ( BCG PS ) ITA NO.579/ASR/2017 AY: 2009-10 SH. KULDIP SINGH. 8 | P A G E COPY OF THE ORDER FORWARDED TO: 1. SH. KULDIP SINGH VILL: MIRANKOT KHURD P.O. MIRA NKOT KALAN AMRITSAR (PUNJAB). 2. INCOME TAX OFFICER WARD-5(3) AMRITSAR (PUNJAB). 3. C.I.T(A)-2 AMRITSAR. 4. C.I.T.- CONCERNED. 5. THE SR. DR I.T.A.T. AMRITSAR. TRUE ORDER BY ORDER ASSISTANT REGISTRAR ITAT AMRITSAR BENCH