New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 1073 - PUNJAB AND HARYANA HIGH COURT

2015 (12) TMI 1073 - PUNJAB AND HARYANA HIGH COURT - [2016] 389 ITR 411 - Photo copy of the receipt taken for the purpose of assessment - 'chargeability of income' - Whether the 'hypothetical income' can be brought to charge under section 5 of Income Tax Act, 1961 dehors the provisions of section 2(c) read with section 10 (Indian Contract Act, 1872), Section 5 (Transfer of Property Act, 1882), Section 17 (The Registration Act, 1908) and the provisions of Indian Stamp Act, 1899? - Held that:- The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d money on the revenue stamp affixed on the receipt further establishes the genuineness of the contents of the receipt. If the AO had the original of the receipt in his possession and shown the same to the assessees, the assessees could have done no better than what they have done by seeing the photo copy of the receipt. Besides, the receipt is relevant to the fact in issue and establishes in unambiguous terms the receipt of ₹ 55 lakhs in cash over the apparent consideration. Secondly, the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

merely on the basis of photo copy of the receipt. Thirdly, and more importantly, the assessees have not placed any evidence on record to rebut the contents of the receipt or even the contents of their statements. In this factual setting, we are unable to hold that the said receipt is irrelevant material for the purpose of making assessment. We therefore hold that the Assessing Officer has rightly acted upon the contents of the receipts which are duly corroborated by the assessees in their respec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

king condonation of delay is that against the impugned order dated 29.4.2011, an application under Section 254(2) of the Act was filed on 12.9.2011 which was rejected by the Tribunal on 30.6.2014. It was in these circumstances that delay in filing the present appeal impugning order dated 29.4.2011 has occurred. For the reasons stated in the application and after hearing learned counsel for the parties, the delay in filing the appeal is condoned. 2. This order shall dispose of ITA Nos.25, 38 and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2, claiming following substantial questions of law:- i) Whether under the facts and circumstances of the case, the signatory of the document can be a 'witness of himself', under Article 20(3) of the Constitution, as the 'morphed/photocopy' document never produced for examination in adjudication proceedings, hence the action is contrary to 'chargeability of income under section 5 of the Income Tax Act, 1961? ii) Whether the 'hypothetical income' can be brought to charg .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ant Dut Chaudhary (son) and Vikrant Dutt Chaudhary(son) through registered sale deeds dated 29.9.2000 for an amount of ₹ 39 lacs (Rs. 13 lacs each) vide receipt dated 15.9.2000, Annexure A.1. Report of ADI (Inv.) dated 11.3.2004 Annexure A.4 was forwarded to the DIT(Inv.) which formed the basis of initiation of reassessment proceedings. Notice dated 19.7.2006 was issued and served on the assessee under section 148 of the Act for initiation of re-assessment proceedings and on the basis of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ess in the alleged receipt of ₹ 55,00,000/-; mere photo copy of any document could not be taken as admissible evidence under section 102 of the Indian Evidence Act, 1872; the appellant purchased new H.No.162, Sector 2, Panchkula within one month after the sale of house in question. Not satisfied with the contentions raised by the appellant, the reassessment proceedings were concluded by the Assessing Officer on 22.11.2007 and long term capital gain on sale of House No.146, Sector 18A, Chan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and no material was produced to contend that the receipt was forged. Aggrieved by the order, the appellant filed an application under Section 254(2) of the Act before the Tribunal for rectification of the order dated 29.4.2011. Vide order dated 30.6.2014, Annexure A.14, the said application was dismissed. Hence the instant appeals by the appellant-assessees. 5. We have heard learned counsel for the parties. 6. A perusal of the findings recorded by the authorities below shows that three co-owner .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uiries were initiated against the three applicants. During the course of enquiries, the applicants were confronted with the photo copy of the receipt duly issued and signed by Smt.Vijay Dutt Chaudhary and her two sons Prashant Dutt Chaudhary and Vikrant Dutt Chaudhary as witnesses. As per the receipt, sum of ₹ 55 lacs was received as part payment towards sale of the house. The said receipt was dated 15.9.2000 and carried the signatures of Smt.Vijay Dutt Chaudhary on the revenue stamp affix .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sue and establishes in unambiguous terms the receipt of ₹ 55 lakhs in cash over the apparent consideration. The ADIT (Inv.) recorded the statements of Vijay Chaudhary and Prashant Chaduahry who confirmed the receipt of ₹ 55 lacs by them in cash for the sale of the property in question. In so far as retraction of statement of Prashant Chaudhary and Vijay Chaudhary is concerned as not having signed the receipt, a close examination of the handwriting on the revenue stamp showed similari .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Tribunal in its order dated 29.4.2011 had affirmed the findings recorded by the Assessing Officer and the CIT(A). The Tribunal in para 9 of its order noticed the plea of the assessee as under:- 9. At this stage, it may be relevant to reproduce the letter dated 1.12.2003 written by Smt.Vijay Dutt Chaudhary to the ADIT(Inv.) by which she is reported to have retracted her statement as given before the ADIT(Inv.) on 4.11.2003. A copy of the said letter has been filed before us. It reads as under:- W .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gnatures on such receipt are either forged or scanned from some other documents etc. and created just to harass me and my family members. As per that receipt the total consideration of sale of the H.No.146, Sector 8, Chandigarh is ₹ 93,00,000/-, ₹ 55,00,000/- were received on 15.9.2000 and ₹ 38,00,000/- shall be paid at the time of registry. Whereas I would like to point out that ₹ 9,90,000/- was received through Account payees cheques in June 2000/- as part payment and o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rs. Sir, how is this possible that the proposed buyer would make such a heavy payment without taking the consent of two other co-owners? This does not show that other co owners have taken any amount. This further cements the facts that this very receipt is just a figment of imagination and just created to harass us and waste the precious time of Income tax department. The receipt is incomplete and imaginary is further confirmed by the fact that proposed buyers and sellers have not identified ful .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dwriting, Ageing of paper used for such receipt and Ageing of revenue stamp affixed on this should also be done to confirm that the document was signed on 15.9.2000. I request you to fully investigate the matter. Matter may further be investigated as to who had sent the wrong complaint to waste the precious time of IT department and mislead the senior officers. Proper action may please be taken against the sender of the receipt so that no one should dare to mislead the IT department. I further c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

We have heard both the parties and carefully considered their submissions including the authorities referred to by them. The case of the AO in making the impugned addition is built on the photo copy of the receipt evidencing payment of ₹ 55 lacs in cash and the statements of the assessees as recorded by ADIT (Inv.) on oath in which they have confirmed the authenticity of the said receipt including its contents as well as their signatures appearing on it. It is however, the case of the asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e documents, in the absence of their original have little evidentiary value under the law of evidence. However, the relevant question is not whether photostat copies, in the absence of their original, have any evidentiary value under the Indian Evidence Act. The relevant question is whether the AO is at all required by the provisions of the IT Act to act on the basis of what is technically called evidence under the Indian Evidence Act. In our view, the issue is fairly well established. While mak .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t the AO is not fettered by the technical rules of evidence and the like and that he may act on material which may not, strictly speaking, be accepted as evidence in a court of law. Though the aforesaid proposition is well brought out by sections 142 and 143 and therefore no authority is needed to support them, there is nevertheless series of authorities laying down the proposition that an Assessing Officer can act on such materials and information, which are not strictly evidence under the Evid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y are relevant for the purpose of assessment and if they are not successfully rebutted by the assessee. What is the value of the photo copy of a document as material for the purpose of assessment depends essentially upon the nature of documents, contents of the document and the facts surrounding the case. It cannot be laid down as a general proposition that the photo copy of a document will always constitute relevant material for the purpose of assessment or that it will never constitute relevan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aid sum of money in cash. The name of the purchasers as also the date of receipt of the aforesaid sum of money are also mentioned in the receipt in unambiguous terms. The fact that the receipt carries signature of the recipient of the aforesaid money on the revenue stamp affixed on the receipt further establishes the genuineness of the contents of the receipt. If the AO had the original of the receipt in his possession and shown the same to the assessees, the assessees could have done no better .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version