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TMI Blog2019 (8) TMI 1191X X X X Extracts X X X X X X X X Extracts X X X X ..... not available for redeposit back in the bank account. In the said circumstances, claim of re-deposit after a gap of 2-3 months was held to be not possible. In the facts of the present case, it is seen that there is no such allegation. No evidence has been made available by the Revenue to support the possibly unarticulated suspicion that the funds have been utilised elsewhere. - Appeal of assessee of allowed. - ITA No. 986/CHD/2018 - - - Dated:- 3-7-2019 - SMT. DIVA SINGH, JM For The Assessee : Shri Ashawani Kumar For The Revenue : Shri Shiv Swaroop Sharma ORDER The present appeal has been filed by the assessee assailing the correctness of the order dated 11.05.2018 of CIT(A)-1, Ludhiana pertaining to 2009-10 assessment year on the following grounds : 1. That order passed u/s 250(6) of the Income Tax Act, 1961 by the Ld. Commissioner of Income Tax (Appeals)-I, Ludhiana is against law and facts on the file in as much as he was not justified to arbitrarily uphold the action of the Ld. Assessing Officer in initiating proceedings u/s 148 of the Income-tax, 1961. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was submitted had never been substantiated by any Agreement or evidence. Accordingly, relying upon Smt. Kavita Chandra Vs CIT, Panchkula March 7, 2017 81 Taxmann.com 317 (P H) it was his submission that the addition may be confirmed. 4. The ld. AR in reply submitted that he is not aware of the difficulties of the department and he apologizes for the inconvenience caused due to some mistrust/fear presumably harboured by the assessee and he would advise the assessee in future to trust the tax authorities always. It was re-iterated that the fact that assessee was an agriculturist, is not disputed. Referring to the orders also, it was submitted that there is no hint or suggestion that the assessee had any other source of income. It was submitted that from the stated activity amounts which stood deposited in assessee's bank account, admittedly were withdrawn. The availability of the amounts with the assessee in the bank accounts is accepted. The occasion for concluding that it was undisclosed bank account of the assessee, it was submitted, does not arise as the assessee being agriculturist has never been an income tax assessee, so where was the occasion to disclo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th to the fears of the agriculturist who is stated to be not so simple by the Sr. DR but also highlights the unreasonableness of the tax authorities giving life to the fears that the implementation of the tax laws is draconian. 4.1 Addressing the finding of the CIT(A) and the arguments of the Sr.DR, it was submitted that the fact that lesser amount instead of the full amount is being redeposited, it was submitted by itself cannot lead to the conclusion that the claim is false. In case the law required the AO to ask where he had spent the money, he could well have asked. However, there is no such requirement. Nothing has been brought on record by the tax authorities to show that the funds have been utilized elsewhere. Forcing the assessee to do the impossible i.e. produce a written Agreement to Sell when there was no such agreement, it was submitted is unfair implementation of law. It was also his submission that the assessee is a simple agriculturist. 5. I have heard the rival submissions and perused the material available on record. The relevant finding of fact under challenge by the assessee in the present proceedings is extracted hereunder for r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greement for sale and that it had to be cancelled for some reason or the other. Besides, the appellant has not redeposited the exact amount of withdrawal which would have lent credence to be proposition that only the withdrawn amount was re-deposited. The said Impugned deposits are also after a considerable time gap, which remains entirely unexplained. The appellant'swhich cannot be accepted. The appellant has not even identified or named the property intended to be purchased or the name of the intending seller. Nor the circumstances which resulted in cancellation of the purported agreement to sale/purchase has been stated by the appellant either in the assessment proceedings or in the appellate proceeding. In the circumstances, the appellant's defence remains in the realm of a contrived story which cannot be given any serious credence. The appellant cannot, therefore, be given the benefit of telescoping regarding the aforesaid two deposits of ₹ 8 lakhs each on 21/11/2008 in the two accounts maintained with Axis Bank. The explanation of the appellant clearly falls short on the plausibility index in respect of the aforesaid two deposits. The action of the AO vis-a-vis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he peculiar circumstances of each case. On a perusal of the decision of the jurisdictional High Court in the case of Smt. Kavita Chandra Vs CIT, Panchkula (cited supra) relied upon by the Revenue, it is seen that the said decision prevails in peculiar facts and circumstances of the case wherein it was a consistent finding of fact available on record to the Hon'ble High Court that the withdrawals made were for the purpose of business and thus, were not available for redeposit back in the bank account. In the said circumstances, claim of re-deposit after a gap of 2-3 months was held to be not possible. In the facts of the present case, it is seen that there is no such allegation. No evidence has been made available by the Revenue to support the possibly unarticulated suspicion that the funds have been utilised elsewhere. Accordingly, considering the peculiar facts and circumstances of the present case ground No. 2 raised by the assessee is allowed. The addition sustained is directed to be deleted. 6. In the result, appeal of the assessee is allowed. Order pronounced in the Open Court on 03 July,2019. - - TaxTMI - TMITax - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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