TaxTMI 
TaxTMI 
2018 (1) TMI 734
X X X X Extracts X X X X
X X X X Extracts X X X X
....cord, it was seen that since the relevant facts for deciding the issues were readily available on record, it was deemed appropriate to reject the oral prayer and proceed with the present appeal after hearing the ld. Sr.DR. 3. The record shows that the assessee was required to explain the deposits in its Saving Bank Account maintained with the Bank of India, Doraha of Rs. 36,50,000/-. The assessee despite various opportunities, failed to explain these which resulted in an addition of the said amount being made in his hands. 4. The issue was carried in appeal by the assessee before the First Appellate Authority praying for admission of fresh evidence. The evidence was confronted to the AO. The AO objected to the admission of the evidence. The CIT(A) noting the objection, again directed the evidence to be considered by the AO on merits. Thereafter, considering the Remand Report of the AO, the CIT(A) granted part relief to the extent the evidence was accepted by the AO in support of assessee's claim. Aggrieved by this relief, the Revenue is in appeal. 5. The ld. Sr.DR relied upon the assessment order. However, on it being pointed out that relief has been given on considering the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the bank was against the receipt of Sales of agricultural land. This date is mentioned on Xerox of Sales Deed. 6.1. On a ready of the above facts, it is evident that apart from pleading illiteracy, ignorance of the procedures and relevance of retaining copy of the Sale Deed was also not understood. Reference is made to efforts initially to obtain a copy from the purchaser, which failed as the purchaser declined to hand over his copy and the efforts to follow-up for issue of a duplicate Sale Deed from the office of the Sub Registrar after first acquainting himself with the procedures etc. to do so are found to have been pleaded. It is seen that the evidence sought to be filed admittedly was the duplicate copy of the Registered Sale Deed received on 03.06.2015. The assessee is also found to have submitted as per submissions extracted in page 4 and 5 of the impugned order that he is a farmer living in a small village Raimajara Tehsil Payal District Ludhiana and being illiterate; he was not aware of the Income Tax Department itself let alone the responsibilities in income tax proceedings. Copy of the Jamabandi demonstrating the ownership of agricultural lands in the name of his fath....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Payal Milk Cooperation Society Ltd. Monthly statement issued by the said society acknowledging the supply of milk was also relied upon as fresh evidence. Reliance was also placed on copy of the Saving Bank Account in Bank of India, Payal and bank statement disclosing these deposits was also relied upon as fresh evidence. It was further stated that the notice was not initially understood and the facts referred to in the information explained, were stated to be incorrect. For ready reference, relevant extract from the submissions on record are reproduced : "13. That the notice issued by iTO was not understandable to assessee as it was not in regional language. Notice was not proper as it was mentioned that assessee has an account bank account in Bank of India, Doraha but assessee does not have any bank account in doraha. Doraha is 10 km from Tehsil payal. Tehsil Payalis a banking hub for all the nearest villager within 5 kilometer. So assessee has bank account in payal" (emphasis supplied) 6.3 The CIT(A) has confronted the evidences to the AO. Admission of fresh evidence has been objected to by the AO vide his remand report dated 11.11.2016 extracted at pages 9 to 11 of the or....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing evidences which facts have not been assailed. The evidences relied upon and considered have not been assailed or rebutted by any contrary evidence in the present proceedings. In the circumstances, I am of the view that the occasion to raise a ground against the relief granted did not arise. It is unfortunate that the Tax Authorities did not see the proceedings in continuation of the proceedings. A different man coming at a different point of time, it appears mechanically has proposed the raising of the ground. It is seen that the present appeal has been filed with the approval of the orders dated 21.07.2017 of Pr. CIT-2, Ludhiana and it is unfortunate that even the said Authority did not care to keep a control on the quality of the appeal filed. The AO, who filed the remand report, is not named. However, the remand report is extracted in the impugned order. Although, the name of the AO who has filed the present appeal is given, however the fact that there are checks and balances in place to ensure that frivolous appeals are not filed apparently are not working. It cannot be over emphasized that every time a frivolous appeal is filed by the department, not only the entire Govt. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ITR 682 (Delhi) an officer must not take advantage of ignorance of the assessee as to his rights, which can be extended to also mean and include that the AO must not file frivolous appeals abusing his position so as to force the tax payer to engage counsel to defend the relief. The tax administration works for the government of India and cannot be allowed to be viewed as an agent of an alien State which was the case of pre independence India. The Apex Court has well addressed the position in the case of CIT Vs Mahalaxmi Sugar Mills Co. Ltd. (1986) 160 ITR 920 (S.C) that "There is a duty cast on the ITO to apply the relevant provision of the Act for the purpose of determining the true figure of the assessee's taxable income and the consequential tax liability". Reference may also be made to the order dated 10.01.2018 in ITA 599/CHD/2017 in the case of ITO Vs Randhir Singh, Sirhind with the following observations : "4.2 In the aforesaid facts and circumstances, the occasion for the AO to file an appeal did not arise. It is noticed that for filing the present appeal, approval has been granted by Pr. CIT Patiala on 15.03.2012. There can be no two opinions to hold that the approval a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....urpose as it not only enures the tax payer from defending frivolous appeals but even otherwise ensures that the Government time, money and funds are not frivolously frittered. Reference may also be made to the order dated 04.01.2018 in ITA 424/CHD/2017 in the case of ITO Vs Shri Jagdev Singh : 7. Though the ITAT has the powers to impose costs, however the exercise of the power is refrained from. However, it is hoped that the administration vigorously ensures that the Officers are advised and instructed to exercise their discretion fairly and judiciously in not filing appeals frivolously. It is noted that the administrative checks and balances put in place by the Department for ensuring that frivolous appeals are not filed, do not appear to be working. Care should have been taken to note that the issue had been given up in the Remand Proceedings by the AO. In these in the circumstances, without assailing the facts and evidences, appeal should not have been filed mechanically. It is seen that the present appeal has been filed with the approval of Pr. CIT-2 Ludhiana. It not only demonstrates that the approval has been given mechanically, it also erodes the trust reposed by the tax ....