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TMI Blog2022 (6) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the initiation of re-assessment proceedings. Accordingly, ground No.1 of the assessee s appeals stands dismissed. Cash deposits - We would be inclined to dismiss the assessee s appeal on the merits of the case also. However, we also note that the assessee is an Army Veteran who retired from the Army in 1984. As per his own admission, he had income only from agricultural activity as well as from pension. We also note that in the paper book which has been filed by the assessee, the assessee has filed copy of letters as obtained by commission agent that assessee had received an amount of Rs. 50,00,000/- during the year from sale of agricultural receipts. The assessee has also filed affidavit on his own behalf as well as of Shri Sukhjinder Singh, Numberdar, wherein, it has been stated that the actual value of the land sold by the assessee was Rs. 70,00,000/-. Although, these evidences were filed as additional evidences before the Ld. CIT(A), the Ld. CIT(A) did not accept them as there was no further corroborative evidence in support of the same. However, ignoring the past conduct of the assessee and on the peculiar facts of this case, duly noting that the assessee is a retir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere given to the assessee to justify the cash deposit, but no further response was forthcoming from the assessee. In such a situation, the Assessing officer, after allowing benefit of sale consideration of Rs. 5,00,000/, proceeded to add amount of Rs. 65.01,000/-, credited in the saving bank account of the assessee, as income from undisclosed sources. The Assessing officer also made an addition of Rs. 25,372/- being interest from the said saving account. The assessment was completed at an income of Rs. 65,26,372/-. 2.1 The assessee preferred an appeal before the Ld. First Appellate Authority, wherein, the assessee was allowed a further relief of Rs. 6,20,000/- pertaining to sale of another land after admitting additional evidence. However, the assessee s challenge to initiation of proceeding u/s 148 of the Act was dismissed by the Ld. CIT(A). 2.2 Aggrieved, the assessee has now challenged the action of the Ld. CIT(A) by raising following grounds of appeal:- 1. That the Ld. CIT(A)-3, Ludhiana has erred in upholding the validity of the action of the AO in re-opening the case of the appellant u/s 148 of the Income Tax Act, 1961. Which was based on conjectures surmises. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer had reopened the case merely on the basis of AIR information of cash deposit and that there was no cogent reason to believe that any income of the assessee had escaped assessment. It was submitted that merely because the assessee had deposited the cash in his bank account would not mean that the income of the assessee had escaped assessment. It was argued that a perusal of the reasons would show that the Assessing officer had simply recorded his satisfaction but had not real reasons to believe that any income had escaped assessment. It was submitted that the Assessing officer had proceeded on a fallacious assumption that the deposit in the bank account would tantamount to escapement of income. 4.2 The Ld. AR also drew our attention to the letter written to the CIT(A) (placed at page 9 of the paper book), wherein, the assessee had requested for admission of additional evidences. The same is being reproduced herein under for a ready reference. Sub: Request for admission of Additional Evidence. Kindly refer the above noted appeal. In this regard the appellant may kindly be allowed to file the following additional evidences as the same could not be produced at the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h, a few years ago after a prolonged illness. After the death of his some the family is under enormous grief, dire mental stress and deep mental agony. His wife and the widow daughter in law are under deep mental pressure. The assessee, who is of 67-78 years age, suffers from various chronic ailments. He has no assistance of an advocate. The assessee is not in good health, illiterate, having no awareness of Tax laws and consequences and having no assistance of any family member for complying with his legal obligations and obtaining the legal remedies. As such the assessee could not produce complete evidence to the satisfaction of the Ld AO. In view of the above stated facts and circumstances of the case the assessee was prevented by sufficient cause in producing these evidences at the time of assessment. It is humbly prayed that in the interest of justice to the appellant, the additional evidences may kindly be admitted. Date 25.05.2018 Sd/- Appellant 4.3 The Ld. AR also drew our attention to the English translation of affidavit of the assessee filed before the Ld. CIT(A), wherein, it has been deposed by the assessee that he had sold agricultural land at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that even after numerous opportunities having been offered to the assessee, the assessee did not respond to the query letter issued by the Assessing officer. The Ld. Sr. DR supported the reopening on the ground that the Assessing officer had tangible material with him which was based for reopening of the assessment. She also argued that the assessee did not raise any objection to the initiation of re-assessment proceeding during the course of assessment proceedings. On merits, it was submitted by the Ld. Sr. DR, relief had already been given by the Ld. CIT(A) on the basis of sale deed filed by the assessee in this regard. The Ld. Sr. DR submitted that the re-assessment proceedings in this case were perfectly justified. 6.0 We have heard the rival submissions and have also perused the material on record. The facts of the case are not in dispute. As per the information available from record, the assessee is an individual and the Assessing officer was in possession of an AIR information as per which the assessee had deposited cash of Rs. 70,01,000/- in his saving bank account. The Assessing officer issued verification letter u/s 133(6) of the Act requiring the assessee to expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A), however, admitted additional evidence in the form of another sale deed of Rs. 6,20,000/- against the Viska No. 822 and directed the Assessing officer to delete the addition of Rs. 6,20,000/- but confirmed the remaining amount. Before us also, the Ld. AR has argued vehemently against the assumption of jurisdiction u/s 148 of the Act and the main thrust of his arguments have been that the Assessing officer could not have proceeded to initiate the impugned proceedings simply based on AIR information. The Ld. AR has also relied on the numerous judicial precedents, wherein, it has been held that it would be incorrect to assume jurisdiction u/s 148 of the Act by reaching a conclusion that bank deposits would be constituting income which has escaped assessment. 6.2 We have gone through the judicial precedents which have been cited by the Ld. CIT(A) while dismissing the assessee s challenge to the assumption of jurisdiction u/s 147 / 148 of the Act. As we have stated earlier also, there was no co-operation from the end of the assessee regarding explanation for deposit of cash of Rs. 70,01,000/- and the assessee had also failed to respond to the verification letter issued u/s 133(6) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case, the onus was initially on the assessee to explain before the Assessing officer, the source of bank deposits but his non- compliance left no option with the Assessing officer but to issue notice u/s 148 of the Act. The law as laid down by the Hon'ble Apex Court and the Hon ble Punjab Haryana High Court as stated above, still holds good. Similarly, the Chandigarh Bench of the ITAT in the case of ACIT Vs. Kisco Castings Pvt Ltd reported in 152 TTJ 629 (Chandigarh Tribunal) has held that where the information is factual and not false and the same has merely been communicated to the Assessing officer, he would be within his statutory right to invoke the provisions of section 147 read with 148 of the Act. The Coordinate Bench of the Tribunal went on to hold that the information being factually correct and the assessee failing to respond to the proceedings under the Act, the Assessing officer had rightly assumed jurisdiction u/s 147 read with section 148 of the Act. We also note that the Ld. CIT(A) has also cited and relied on the judicial precedents which we have quoted in the above mentioned paragraphs and we are in complete agreement with the reliance so placed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Sukhjinder Singh, Numberdar, wherein, it has been stated that the actual value of the land sold by the assessee was Rs. 70,00,000/-. Although, these evidences were filed as additional evidences before the Ld. CIT(A), the Ld. CIT(A) did not accept them as there was no further corroborative evidence in support of the same. However, ignoring the past conduct of the assessee and on the peculiar facts of this case, duly noting that the assessee is a retired Army veteran, we would like to afford one more opportunity to him to explain the source of deposits before the Ld. First Appellate Authority and to come out with clean hand once of all. Therefore, in the interest of substantial justice, we restore this appeal to the file of the CIT(A) to be decided on merits of the addition after affording due opportunity to assessee to present its case. We also direct the assessee to submit all documentary evidences and submissions which the assessee wishes to rely upon in support of its claim without any delay and whenever the Ld. CIT(A) directs him to do so, failing which, the Ld. First Appellate Authority shall be at liberty to proceed ex-parte qua the assessee and decide the case on merits ..... X X X X Extracts X X X X X X X X Extracts X X X X
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