Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Vikrant Dutt Chaudhary Versus Commissioner of Income Tax, Panchkula (Haryana)

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

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 photocopy of the receipt is specific in that it evidence receipt of ͅ .....

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 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 authenticity of the receipt, the authenticity of the signatures of the as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

antly, 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 respective statements, for making the assessment under challenge before us - Dec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

11, 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 83 of 2015 as learned counsel for the parties are agreed that the issue in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 charge under section 5 of Income Tax Act, 1961 dehors the provisions of section .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 the reasons recorded, the appellant filed his income tax return on 5.11.200 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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, Chandigarh was determined at ₹ 12,23,334/-. Aggrieved by the order, 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

ieved 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-owners i.e. two brothers - Prashant Dutt Chaudhary & Vikrant Dutt Chaudary .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nquiries, 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 affixed thereon and signatures of both the sons as witnesses. The Assessing Off .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 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 similarity between the signatures on the revenue stamp and that of Smt.Vijay Chaud .....

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 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:- With respect to my statement recorded by you on 4.11.2003 at my residence a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ments 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 only ₹ 28,10,000/- were pending to be received on 15.9.2000 and that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

avy 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 fully as to their father's name and address. There is also no reference 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

p 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 confirm that this statement taken from me on 4.11.2003 at my residence was .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 assessee that photostat copy of the receipt in the possession of the income ta .....

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 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 making as assessment, the AO does not act merely on what is technically descr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd 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 Evidence Act. They are e.g. Vimal Chandra Golecha vs. ITO, 134 ITR 119, 130, 1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lly 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 relevant material for assessment. In this view of the matter, the submission 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

eceipt 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 than what they have done by seeing the photo copy of the receipt. Besides, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

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

Go to Mobile Version