TMI Blog2023 (3) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... planation of the assessee is not satisfactory in the opinion of the AO. The facts explained clearly show that it is the assessee who came forward with the explanation that the amount deposited in the bank account on which advance taxes have been paid in November 2016 and subsequently, the same was offered under PMGKY Scheme, 2016 cannot become assessable u/s 69A of the Act. Considering the scope of the Scheme in light of the Explanatory Notes, there is no reference to the Certificate issued by designated PCIT but definitely there is a reference to valid declaration made under the Scheme. Assessee has made a valid declaration under the PMGKY Scheme, 2016 and has duly paid taxes/penalty and has also deposited requisite amount under the PMGKY Scheme, 2016. By no stretch of imagination provisions of section 69A can be applied on the aforementioned facts. Therefore, the entire addition made by the AO and confirmed by the ld. CIT(A) do not hold any water and deserve to be deleted. Direct the Assessing Officer to delete the impugned addition made u/s 69A of the Act in respect of cash deposit in the bank account. Decided in favour of assessee. - ITA No. 962/DEL/2022, ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt maintained by the assessee is taxable as income from other sources u/s 69A of the Act. 7. The representatives of both the sides were heard at length, the case records carefully perused and with the assistance of the ld. Counsel, we have considered the documentary evidences brought on record in the form of Paper Book in light of Rule 18(6) of ITAT Rules. 8. The entire quarrel can be summed up by referring to the concluding para of the assessment order which reads as under: The reply filed by assessee has been considered but not found tenable as the case laws explained by the assessee have no direct relevance with the issue involved in this case and assessee failed to produce the certificate issued by the Pr.CIT (Central) Gurugram. This is important to mention here that the assessee paid the taxes, surcharge penalty on or before 31.03.2017 and also made 25% compulsory deposit under PMGKO on or before 30.04.2017. However, it was noted that part of the payments were made by the assessee before the date of notification of PMGKY Scheme 2016 on 17.12.2016 under the minor head 100 are not accepted by the system while uploading the Manual Form No. 1 online in the e-filing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 210100050007 1,00,00,000 ii) 15.11.2016 HDFC Bank Ltd. Yamuna Nagar 0210100050007 2,00,00,000 iii) 21.11.2016 HDFC Bank Ltd. Yamuna Nagar 0210100050007 1,50,00,000 Total 4,50,00,000 Period from 01.11.2016 to 30.12.2016 i) 13.11.2016 HDFC Bank Ltd. Yamuna Nagar 0210100050007 1,00,00,000 ii) 15.11.2016 HDFC Bank Ltd.Yamuna Nagar 0210100050007 2,00,00,000 iii) 21.11.2016 HDFC Bank Ltd. Yamuna Nagar 0210100050007 1,50,00,000 Total 4,50,00,000 (v) After p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 02101000050007 with HDFC Bank Ltd. Yamuna Nagar on 13.11.2016, 15.11.2016 21.11.2016 post 08.11.2016. In this regard, please explain the nature of the aforesaid cash deposits. Ans. I have deposited Rs.4.50 cr. In demonization of Rs.500/- and Rs.1000/- after demonetization on 08.11.2016. The said cash deposit has been made from my current year income i.e. F.Y. 2016- 17 in the saving bank account and I have already deposited the advance tax of Rs. 1,02,00,000/- Rs.31,00,000/- on the said income vide challan No.00180 00348 dated 16.11.2016 22.11.2016 and BSR Code 0510308 for the A.Y. 2017-18. I would further submit that I am ready to disclose the aforesaid income of Rs. 4.50 cr. Under the scheme of Pradhan Mantri Garib Kalyan Yojana notified by the Central Govt. and would deposit the taxes as per applicable in the said scheme to buy peace of mind and to avoid any litigation under the provisions of Income Tax Act, 1961. [Kamla Aggarwal] (viii) Thereafter, the assessee filed declaration in Form No. 1 u/s 199C of the Finance Act, 2016 in respect of taxation and investment Regime from PMGKY Scheme, 2016. The said declaration is exhibited at pages 42 to 44 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the same as reported to Id. Assistant Director of Income Tax (Inv.), Aayakar Bhawan, B.C. Bazar, Ambala Cantt. The detailed chart of above said eight family members in respect of income declared under PMGKY Scheme 2016 and the details of tax deposited as well as amount deposited in PMGKDS, 2016 is being enclosed herewith. We came to know that the department software is not accepting our tax of Rs. 11,13,50,000/- deposited and declared before the Id. Assistant Director of Income Tax (Inv.), Aayakar Bhawan, B.C. Bazar, Ambala Cantt. under the scheme of Pradhan Mantri Garib Kalyan Yojana, 2016 notified by the Central Govt. to buy peace of mind and to avoid any litigation under the provisions of Income Tax Act, 1961. Kindly process the declaration Form 1 filed by us manually under PMGKY scheme 2016 and to save us from hardships. Should your goodself require any clarification, I would be too willing to furnish the same. Thanking You, Yours Faithfully, [(RAJIV GUPTA, Advocate) Authorised Representative. End. As above. (x) On 08.01.2018, the assessee filed letter to the Chairman, CBDT in respect of application under PMGKY Scheme, 2016; (xi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposited in demonetized currency after 8/11/2016 in the bank account. In response to the summon myself attended and appeared before the ADIT (Inv.), Ambala on 28/12/2016. As per the advise of ADIT (Inv.), Ambala, the amount of cash deposited in the bank account after 8/11/2016 in old currency notes were agreed to be declared under PMGKY Scheme 2016. The scheme 'was announced on 16th December, 2016 wherein the tax was to be deposited at 49.9% and 25% of the amount was to be deposited in the PMGKY Deposit Scheme which is refundable after a certain period. I were assured by the ADIT (Inv.), Ambala that the advance tax deposited on 16/11/2016 and 22/11/2016 by me would be adjusted against the tax payable under PMGKY Scheme. I were further informed that balance amount of tax may be deposited on or before the due date and 25% of the amount declared in PMGKY scheme should be deposited on or before the due date in some specified bank under PMGKY deposit scheme 2016. As per the advise of the ADIT (Inv.), Ambala, I agreed to declare the amount of cash deposited by me aggregating to Rs.4.50 crores in PMGKY Scheme 2016 and also agreed to pay the balance amount of tax Rs.71,55,000/- after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be avoided in the matter. The details of Advance Tax paid on 16/11/2016 and 22/11/2016 by me are enclosed in the statement. 6. It is further submitted that I have not claimed the payment made in challan No.280 on 16/11/2016 and 22/11/2016 aggregating to Rs. 1,53,00,000/- in the return of income filed by me for A.Y.2017-18. As such this .amount of tax paid has not been adjusted against the regular tax liability for A.Y.2017-18 and therefore there is no case of any double credit for the said amount. 7. Kindly do the needful in the matter and oblige. Hoping to be excused for trouble and thanking you, Yours faithfully, (Kamla Aggarwal) (xiv) On 12.11.2019, the Deputy Commissioner/ACIT, Central, Karnal wrote the following letter to the assessee: Subject: Assessment proceedings in your case for A.Y. 2017-18 regarding. Kindly refer to your reply dated 19.10.2019. In the above said reply, you have claimed to have deposited the tax under PMGKY Scheme 2016. In order to verify these payments, you are requested to furnish the certificate issued from CIT (Central) Gurugam for these declaration and deposit the tax by you under PMGKY Sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... muna Nagar 0210100050007 1,50,00,000 Total 4,50,00,000 A copy of the bank statement has already been placed as part of reply dated 18.10.2019. 2.2 That on 16.11.2016, the assessee voluntarily suo-moto in a communication had stated as under: Most respectfully, the assessee would like to submit that out of an income of Rs. 4,50,00,000/-, the assessee has deposited Rs. 3,00,00,000/- in the saving bank account with HDFC Bank Ltd., Yamuna Nagar during the year and I have deposited the advance tax of Rs: 1,02,00,000/- on the income of Rs.3,00,00,000/- vide challan no.00180 dated 16/11/2016 BSR 0510308 for the A.Y. 2017-18. This is for your kind information please. 2.3 That on 16.12.2016, PMGKY scheme was announced wherein tax was to. be deposited at 49.9%; and 25% of the amount was to be deposited in the PMGKY Deposit Scheme which is refundable after a certain period. 2.4 That on 23.12.2016, summon was received from learned Assistant Director of Income Tax (Inv.), Ambala in the name of assessee in respect of cash deposit mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuments i.e., Form No.1 of PMGKY Scheme 2016.copies of advance tax paid challans, copies of tax paid challans under PMGKY scheme in challan No.287 and receipt for deposit made under the said scheme were submitted on the record of learned Pr. CIT (Central) Gurgaon. A copy of Form No. 1 is already placed on record. 2.8 That on 31.3.2017 subsequent to the deposit of Form No.1 in the office of learned Pr. CIT (Central) Gurgaon, my representative Mr. Rajiv Gupta, Advocate had written a letter to learned Pr. CIT (Central) Gurgaon wherein he stated that the department's software is not accepting the tax deposited in challan No.280between 14/11/2016 to 24/11/2016 under the PMGKY scheme 2016 and therefore the system is not processing the declaration in the case of assessee. -A copy of letter dated 31.3.2017 to learned Pr. CIT (Central). Gurgaon is already placed on record. It was requested in the said letter that the declaration filed in Form No.1 under PMGKY scheme may be processed manually and certificate may be issued accordingly. 2.9 In the meantime, my representative again appeared before learned Pr. CIT (Central) Gurgaon again requested to process the forms and to issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f head of the challan the position of tax paid under PMGKAY Scheme is as under: S. No. (1) Name of the Assessee (2) PAN (3) Amount declared in PMGRY Scheme 2016 (4) Advance Tax Paid in challan No. 280 (5) Tax Paid in Challan No. 287 (6) Total Tax paid (49.9%) (7) Amount deposited in PMGKY Deposit Scheme 2016 (25%) (8) 1. Kamla Aggarwal AAGPA4655K 4,50,00,000 1,53,00,000 71,55,000 2,24,55,000 1,12,50,000 2.14 Thus, the tax paid in advance tax challan no. 280 which was not appearing on portal under PMGKY Scheme has now been transferred to the said Scheme, therefore the advance tax appearing in 26AS got removed and transferred to PMGKY Scheme after change of head/code of challan by the Department. The relevant portion of form 26AS is as under: FORM 26AS Name of Assessee : Kamla Aggarwal PAN : AAOPA4655K. Assessment Year : 2017-18 PART A Details of Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been removed from 26AS (Advance Tax) and shifted to PMGKY tax payment as requested by the assessee. After the change of code/ head of challan the record has become straight and advance tax credit claimed in the return of income filed for AY 2017-18 is matching with advance tax payment shown in Form 26AS and at the same time PMGKY portal would show the amount of tax. payment under that Scheme as shown by the assessee in the Form No. 1 of PMGKY Scheme. 2016 and would exactly match with the amount of tax shown in Form no. 1 of PMGKY Scheme; (xvi) From the aforementioned factual details, it is clear that the advance tax paid has been shifted to PMGKY Scheme, 2016 tax payment as requested by the assessee. (xvii) Report of the office of ADIT, Investigation, Ambala Cantt dated 19.01.2017 reads as under: Sub.: Final Report in the case of family members of the M/s Globe Panel Group, Yamunanagar regarding29 As directed, the report in the case of M/s Globe Group, Yamunanagar is as under. 2. During enquiries in the case of each deposit above 1 crores, it was noticed that few of the cases having common address, belonged to same family and deposited cash of approx. 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sh. Sourabh Aggarwal C/o Globe Ranel Industries I. Pvt. Ltd. 419 Industrial Area, Behind, Yamuna Nagar (PAN: AALPA1253A) Kindly refer to your office letter F. No. Fr. DIT/INV/CHD/STRIP-II/2017-18/1280 dated 31.07.2017 dated 31.07.2017 vide which approval for closure of the STR in the above said case was sought. 2. In this regard, I am directed to convey that the worthy DGIT (Inv.) NWR has accorded the approval for closure of the STR. Letter dated 11.08.2017 Sub.: Report of STR No. 10316517 P-1 in the case of Sh. Sourabh Aggarwal C/o Globe Ranel Industries I. Pvt. Ltd. 419 Industrial Area, Behind, Yamuna Nagar (PAN: AALPA1253A) Kindly refer to your office letter F. No. Fr. Addl.DIT/INV/FBD/2017-18/1302 dated 17.07.2017 on the subject cited above. 2. In this regard, I am directed to enclose a copy of vide letter F. No. DGIT/INV/Chd/FIU/PI/10079/2555/237/2017- 18/447 dated 08.08.2017 received from the O/o the Director General of Income Tax (Inv) Chandigarh on the subject cited above. 3. Further, I am directed to convey the approval of the worthy DGIT (Inv.) NWR for closure of the above mentioned STR. xix) Thereafter, the ADIT, INV Fari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on ble High Court of Delhi in the case of Virag Tiwari V. Pr. CIT-21 vide order dated 12.03.2018, SLP filed by Sh. Virag Tiwari is pending for adjudication at the Supreme Court. 3. In this regard, it has been reported by the DGIT (System that correction in original challan attributes from advance tax challans (minor head 100) to PMGKY challan (minor head 112) which was wrongly carried out by DGIT (systems) on the basis of order u/s 119 dated 27.09.2017 has been rectified and challan attributes have been reverted back to the original attributes as reported by bank. 4. In view of the above, request of petitioners (Smt. Kamla Aggarwal and other seven family member) before CBDT vide letter dated 08.01.2018 regarding adjustment of advance tax towards PMGKY 2016 and CPGRAM Grievance DORVU/E/2019/01509 dated 11.07.2019 of Smt. Kamla Aggarwal may be treated as disposed off . (xxi) A further perusal of the record shows that the factual report on the recommendation made by the assessee dated 31.12.2020 to the DGIT, INV, NWR, Chandigarh was called for from the PCIT, Gurgaon. The report of the PCIT, Gurgaon dated 15.01.2021 was considered by the DGIT, INV, NWR who, alongwith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for any source of income for which the assessee does not offer any explanation or the explanation of the assessee is not satisfactory in the opinion of the Assessing Officer. 12. The facts explained hereinabove clearly show that it is the assessee who came forward with the explanation that the amount deposited in the bank account on which advance taxes have been paid in November 2016 and subsequently, the same was offered under PMGKY Scheme, 2016 cannot become assessable u/s 69A of the Act. 13. The assessee in her statement, given u/s 131 of the Act before the ADIT, INV, Ambala has categorically stated in respect of deposit of Rs. 4.50 crores in the bank account was made from her current year income F.Y. 2016-17 and she has already paid advance tax of Rs. 1.02 crores and 51 lakhs on 16.11.2016 and 22.11.2016 for A.Y. 2017-18 and she further categorically stated that income of Rs. 4.50 crores will be disclosed under PMGKY Scheme, 2016 notified by the Central Government and tax as applicable under the scheme would be deposited and facts mentioned hereinabove clearly demonstrate that the assessee has paid taxes fully as per PMGKY Scheme, 2016 and has also filed declaration in F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of whom an order or detention has been made under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 subject of the conditions specified under the Scheme. (b) in relation to prosecution for any offence punishable under Chapter IX or Chapter XVII of the Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention) Act, 1967, the Prevention of Corruption Act, 1988, the Prohibition of Benami Property 40 Transaction Act, 1988 and the Prevention of Money- Laundering Act, 2002; (c) to any person notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992; (d) in relation to any undisclosed foreign income and asset which is chargeable to tax under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. 18. The above is extracted from the explanatory notes on Provisions of the Taxation and investment Regime for PMGKY Scheme, 2016 as contained in Chapter IXA of the Finance Act, 2016 dated 27.12.2016 signed by Dr. Thakur Singh Mapwali, Under Secretary to the Government of India. 19. Consid ..... 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