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TMI Blog2018 (1) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... sent 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. Adequate efforts are made to inform the public that documents having financial implications like copies of Sale Deed etc. are retained even by the seller in order to avoid unnecessary harassment of tracing them to substantiate the availability of funds which is bound to be questioned by the Tax Administration. As a result of developmental activities of the State, the fruits of development have developed on at times on teaming masses who educationally, socially and financially were ill prepared to handle the bonanza. These incidents have suddenly attracted the ill prepared citizens in the tax net who on account of their ignorance are left battling their “gain and good fortune” in the mindless maze of the administrative requirements. Efforts of broadcasting of information through audio visual means etc must ensure percolation of information, awareness and education right down to the grass roots to prepare the citizens to handle their financial successes and failures as these efforts would go a long way to help the peo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was raised to the admission of fresh evidence by the CIT(A). It was noted that no specific ground on this issue had been raised and even otherwise, in the face of the concessions given by the AO in the Remand Report itself on the merits of the addition, the said argument had no relevance unless the evidences considered in the present proceedings were rebutted. The ld. Sr.DR stated that in the circumstances, he would only rely upon the assessment order. 6. I have heard the submissions and considered the material available on record. The addition in the facts of the present case was made by an order u/s 144 r.w.s. 147 of the Act based on bank deposits which remained unexplained in the assessment proceedings. On a reading of the impugned order, it is seen that fresh evidence has been admitted considering the following facts extracted from the order under challenge : 1. That assessee lives in village RaiMajara which is a small village of Tehsil Payal, Distt Ludhiana, It has a population below 10000 people. Most of the lie are illiterate here and never heard about the Income tax department. 2. That the notice is not in regional language assessee himself could not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e name of his father was also sought to be placed on record. It was submitted that in 2007, one of the brothers separated from the family, as a result of this, various agricultural lands were transferred by his father to his sons through various Transfer Deeds. Copy of Transfer Deed showing transfer of property from Tarlok Singh (Father) to Kulwinder Singh (assessee) vide vasika No. 2860 dt. 18.01.2007 was enclosed and since the father who was aged and old with whom the assessee was living could not go to the Bank to deposit the cash proceeds from sale of agricultural land, the following amounts were deposited on different dates : Father Assessee A. Sales Of Agriculture Land Vide Vasika No.: 1480 dt 08/09/2008 550694.00 254176.00 B. Sales Of Agriculture Land Vide Vasika No.: 1481 dt 08/09/2008 508333.00 0.00 C. Sales Of Agriculture Land Vide Vasika No.: 1888 dt 04/11/2008 0.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 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 order. The CIT(A) considering the objections overruled them holding that the assessee was prevented by sufficient cause from producing the evidence which was also considered to be relevant and crucial. The Revenue has neither rebutted the claims leading to the admission of fresh evidence nor has it rebutted the factum of its relevance or for that matter, its correctness. The evidence, it is seen was again confronted to the AO by the CIT(A). On considering the evidences on merit, the AO accepted that the deposits of ₹ 35,39,500/-, su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. machinery comes into play but even the tax payer is unnecessarily required to defend the relief granted in accordance with law. It is unfortunate that the tax payer for no fault of his is forced to engage a counsel and defend the relief granted which has been verified by the AO himself as per law. The AO to the public at large is an authority and not a person thus, the view taken by the said authority in remand proceedings should not be casually sought to be upset without even caring to rebut the evidences relied upon an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mi 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 admittedly has been granted mechanically which leads to the indelible conclusion that the Administrative checks and balances placed by the Department in place for not filing frivolous appeals admittedly are not working. Since the facts and evidences considered in the remand proceedings have not been rebutted by the AO in the present proceedings, the present appeal ought not to have been filed. As once the issues have been given up by the AO in the remand proceedings, the occasion to re-agitate the very same issue by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir 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 payer in the fairness of the administration. Filing of such frivolous appeals reflects poorly on the departmental mindset and gives unwanted strength to the ever increasing cynical belief that the administrative set up works mindlessly challenging any and every relief granted by an authority in accordance with law. Still more needs to be done to reign in the desire to show higher efficiency by concerned officials by filing a higher number of appeals. The mindless adherence to targets can cause irreparable havoc in the ..... 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