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Vikram Kaswan Versus Commissioner of Income-Tax

2016 (5) TMI 98 - ITAT CHANDIGARH

Revision u/s 263 - unexplained advance from Shri Ram Singh and deposit of the cash in the bank account - Held that:- Assessing Officer asked for the explanation of the assessee at assessment stage with regard to cash deposited in the bank account. The assessee furnished copies of the bank accounts for perusal of the Assessing Officer along with cash book in which cash was shown to have been received as advance against property from Shri Ram Singh. The agreement in question was also produced befo .....

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rded further in the order-sheet that the statement of Shri Ram Singh was recorded. It is not in dispute that the statement of Shri Ram Singh has initials of the Assessing Officer even as per the findings of the Commissioner of Income-tax. Therefore, there is no question of doubting the statement of Shri Ram Singh recorded at the assessment stage. These facts, therefore, clearly prove that the Assessing Officer examined this issue in detail at the assessment stage and accepted the explanation of .....

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the order under section 263 of the Income-tax Act and quash the same. - Decided in favour of assessee - I. T. A. No. 519/Chd/2014 - Dated:- 8-3-2016 - Bhavnesh Saini (Judicial Member) And Rano Jain (Accountant Member) For the Petitioner : Sudhir Sehgal For the Respondent : Manoj Mishra ORDER Bhavnesh Saini (Judicial Member) 1. This appeal by the assessee has been directed against the order of the learned Commissioner of Income- tax, Hissar, dated March 21, 2014, under section 263 of the Income- .....

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On-going through the statement of the account, it was found that cash has been deposited on July 8, 2008, in a sum of ₹ 5,30,000 and on July 10, 2008, ₹ 1,34,000 (Rs. 6,64,000). In order to explain the source of the aforesaid cash deposit, the assessee furnished the copy of the agreement dated July 5, 2008, according to which the assessee agreed to sell his plot of land for ₹ 25 lakhs against which an advance of ₹ 6,50,000 was stated to have been received in cash from Shr .....

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Singh Beniwal was recorded in which he has confirmed the payment of ₹ 6.5 lakhs as advance and stated that he had given his capital to some party for purchase of the property which was received back. It was, therefore, noted that the Assessing Officer has called for no details as to whom the advance has been given, against which property was given and when the advance was taken back, etc. The creditworthiness of Shri Ram Singh Beniwal is not examined. Therefore, the Assessing Officer did .....

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tement with remarks "seen". The statement is not subjected to cross- examination and the purchaser had income from commission, sale/purchase of property, some interest and agriculture income of ₹ 5 lakhs. The learned Commissioner of Income-tax, therefore, doubted that there is a lack of application of mind on the part of the Assessing Officer and the Assessing Officer did not make proper enquiry with regard to receipt of the advance of ₹ 6,50,000. The agreement is not regis .....

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both the parties and perused the material available on record. PB-37 is the notice under section 263 of the Act dated February 5, 2014, in which the Commissioner of Income-tax asked for the explanation of the assessee with regard to the receipt of advance of ₹ 6,50,000 as advance against the property. PB-5 is the letter of the Assessing Officer dated February 21, 2011, seeking explanation of the assessee at the assessment stage including furnishing of copies of bank accounts maintained by .....

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ecorded on July 21, 2011, signed by the Assessing Officer in which Shri Ram Singh has confirmed entering into an agreement for a sum of ₹ 25 lakhs for purchase of the property against which he has given advance of ₹ 6,50,000 to the assessee. In his statement, he has explained his income from commission of sale and purchase of property and interest along with the income from agricultural land. It is also explained that he has shown the transaction in his Income-tax return and he is as .....

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section 143(3) on July 21, 2011, whereby the Assessing Officer asked for the explanation of the assessee with regard to cash deposited in his bank account in a sum of ₹ 5,30,000 and ₹ 1,34,000, i.e., the amount in question which was received out of the agreement to sell whereby advance of ₹ 6,50,000 was received by the assessee. PB-25 is the audit objection dated March 28, 2013, in which the audit party raised the same objection with regard to receipt of the amount of ₹ .....

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or perusal of the Assessing Officer along with cash book in which cash was shown to have been received as advance against property from Shri Ram Singh. The agreement in question was also produced before the Assessing Officer for his perusal and the Assessing Officer recorded the statement of Shri Ram Singh in which Shri Ram Singh has confirmed entering into agreement to sell with the assessee and giving advance of ₹ 6,50,000. In his statement, he has also explained source of his income. Th .....

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Shri Ram Singh recorded at the assessment stage. These facts, therefore, clearly prove that the Assessing Officer examined this issue in detail at the assessment stage and accepted the explanation of the assessee with regard to advance from Shri Ram Singh and deposit of the cash in the bank account. The Assessing Officer, therefore, made proper enquiries at the assessment stage. If there was enquiry, even inadequate, that would not by itself give occasion to the Commissioner of Income-tax to pa .....

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dopted one of the courses permissible in law and it has resulted in loss of revenue ; or where two views are possible and the Income-tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the Revenue unless the view taken by the Income-tax Officer is unsustainable in law." Therefore, the observations of the Commissioner of Income-tax are wholly inappropriate to say that the assessment order was er .....

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objection asked for the explanation of the assessee after passing of the assessment order under section 143(3), vide letter dated May 29, 2013 (PB-24). The assessee replied to the said notice (PB-26) and on that, nothing is explained if any action have been taken. Therefore, inference could be drawn that such an audit objection must have been dropped against the assessee. Only after the issue of the audit objection, the Commissioner of Income-tax issued the notice under section 263 of the Act da .....

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