9911796707
TMI Blog2015 (10) TMI 2007X X X X Extracts X X X X X X X X Extracts X X X X ..... ing search that the appellant has made noting of its undisclosed income on this paper - Held that:- The assessee stated before the Investigation Officer that these entries pertain to some “Kanyadan” given by him. But during the statement at the time of search the assessee clearly stated that the expenses incurred for the marriage of his daughter was ₹ 1.25 lakhs (page no. 17 of the Paper Book filed by AR). As relates to the case law cited by the AR that of Malabar Oil Marketing Co. [2003 (9) TMI 295 - ITAT BOMBAY-F] the same is relevant as in the said case, it was held that mere notings on the loose paper without any corroborative evidence, cannot be assessed as “income” in the hands of the assessee. It further held that there being no material on record to suggest that the assessee has received any amount apart from the amounts received by it per account payee cheques. The Assessing Officer as well as the CIT(A) has not given any reasons or justification as to how the figures mentioned in the loose paper pertains to denomination of thousand. Thus, no case for addition on this account is made out by the Revenue. - Decided against revenue. - I.T.A. No.-5044/Del/2011, I.T.A. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 234A, 234B, 234C. 3. The assessee was employed as Supervisor in irrigation department. There was search and seizure operation conducted on 4/3/2005 at the residential premises of the assessee. The Assessments relevant to the search period i.e. A.Y. 1999-2000 to 2005-2006 were completed by Assessing Officer (AO) under Section 153A/143(3) of the Income Tax Act, 1961 vide order dated 9.12.2006. The CIT(A) dismissed the appeals of the assessee for non-prosecution on 22.08.2008 which were restored by the ITAT, Delhi Benches vide order dated 31.07.2009. The CIT(A) vide order dated 16.03.2010 disposed of the said appeals by granting certain reliefs. Against the said order, the assessee approached ITAT, Delhi and the ITAT restored the appeals to CIT(A) for re-adjudication vide order dated 25.06.2010. The CIT(A) dismissed the appeals vide order dated 29.08.2011 of the assessee. The assessee filed appeal against the said order dated 29.08.2011. On 12.01.2012 the matter was dismissed and the same was recalled vide order dated 05.03.2012. Hence this appeal. 4. The factual matrix of the case is that during the search and seizure conducted on 04.03.2005 at the residence of the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty so acquired. The details of cheques issued to the assessee and his two sons from the bank account of Shri Sube Singh was furnished by assessee before CIT(A) as well as the investment made there from which are reproduced hereunder:- Sh. Kapoor Singh 09.03.2000 ₹ 15000/ 29.01.2004 ₹ 200000/ 215000/ Sh. Vikash S/o Sh. Kapoor Singh 01.09.2003 Rs.200000/ 13.10.2003 Rs.600000/ 800000/ Sh. Rajeev S/o Sh. Kapoor Singh 17.09.2001 ₹ 20000/ 15.01.2002 ₹ 260000/ 12.09.2002 ₹ 200000/ 10.11.2003 ₹ 900000/ 25.11.2003 ₹ 50000/ 1430000/ Vikash Rajeev purchased land by investing money received from Shri Sube Singh for purchase of land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. The AR submitted that there is nothing shown in the bank information that the amount pertains to the assessee and thus the cause of action should have been taken against Shri Sube Singh and not against assesses. The cheques were withdrawn by the said Shri Sube Singh and not by the assessee. The assessing officer should have been vigilant to start assessment proceedings against Shri Sube Singh and not that of the assessee. Section 132(4A) is not applicable in assessee s case as no supportive information was found by the Assessing Officer. The Revenue should have looked upon the bank account identity at that particular stage. The material not confronted to assessee, cannot be used against assessee in respect of the bank account. The AR also submitted compilation of the Judgments on the issue that Bank Pass Book when not maintained by the assessee or under his instruction, such pass book cannot be regarded as books of the assessee. (CIT vs. Bhai Chand H Gandhi, Bombay (1983) 141 ITR 67). The second case referred was on the issue of peak credit in the bank account cannot be treated as undisclosed income of the assessee (CIT vs. Ranjeet Kumar Sethia (2005) 198 CTR 550 (Raj.)). The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee though has given details of his salary, the same also indicates that there are certain amounts in the accounts of assessee which were found exorbitant. In fact the statements recorded during the search was also not sufficient to prove that the assessee has not received any amount from the said Shri Sube Singh. The proceedings against Shri Sube Singh was time barred and though the assessee s sons were assessed separately, there was no addition made in their income. The fact that the pass book was found in the custody of the assessee and from the above discussion it can be found that the bank a/c of Sh. Sube Singh was operated by assessee and on regular basis as Shri Sube Singh was not staying nearby either to the Bank or to the residence of the assessee which shows that the assessee was operating the Bank Account of Shri Sube Singh and the amounts were received by the assessee and his sons on regular basis for dealing in purchase and sale of properties. The assessee has also failed to give any evidence as to which properties he purchased and which properties were sold and also about repayment of loan to Shri Sube Singh. The assessee has not disputed the bank pass book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Account of Shri Sube Singh was operated by the assessee. Thus, this case law will not be applicable. As regards the case of Ranjeet Kumar Sethia (Supra) is concerned the issue of the peak credit in the bank account will also not come into picture as the said amount was not disclosed by the assessee and the assessee could not prove that the amount was received as loan and repaid thereafter by him. As relates to case of Ashok Kumar Chhugani (supra), the same does not reveals whether the bank account of the relative was operated by the assessee or not, but in present case the same is established and hence this case law will also not apply. 13. In result, this ground No. 1 of appeals for A.Y. 2000-2001 and 2002-2003 is dismissed. 14. Coming to the Ground No. 1 for the A. Y. 2003-2004 and 2004-2005, the factual matrix is that during the search, a paper was found which contained some figures as under:- 1. 70 dated 29.01.2003 2. 71 dated 07.02.2003 3. 50 dated 20.02.2003 4. 50 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any stage were not denied by the assessee. There was no explanation about the name which was mentioned in the said paper from both the DR as well as AR. The DR further stated that these are not Kanyadan receipts. As relates to the papers found, the assessee has come up with the version of paying the said amount as Kanyadan. The DR further stated that these entries are in thousands. The Assessing Officer more specifically in para 13 of the Assessment Order stated that the assesses at no point of time denied the said document and has never contested that the said entry is not that of any amount or any payment received to him and his sons and given by him to any other party. 18. We have perused the records and proceedings as well as the submissions made by both the sides. The assessee stated before the Investigation Officer that these entries pertain to some Kanyadan given by him. But during the statement at the time of search the assessee clearly stated that the expenses incurred for the marriage of his daughter was ₹ 1.25 lakhs (page no. 17 of the Paper Book filed by AR). As relates to the case law cited by the AR that of Malabar Oil Marketing Co., the same is relevant a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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