Income Tax Appellate Tribunal - Chandigarh
Smt. Sunita Goyal, Panchkula vs Principal Commissioner Of Income Tax, ... on 6 July, 2022
आयकर अपीलीय अिधकरण,च डीगढ़
अिधकरण च डीगढ़ यायपीठ , च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH
BENCH 'B' CHANDIGARH
BEFORE: SMT. DIVA SINGH, JUDICIAL MEMBER &
SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA No. 104/CHD/2022
Assessment Year : 2012-13
Smt. Sunita Goyal, बनाम The Pr.CIT,
House No. 235, VS Panchkula.
Mansa Devi Complex,
Sector 4, Panchkula.
थायी लेखा सं./PAN /TAN No: AFUPG1855J
अपीलाथ /Appellant यथ /Respondent
िनधा रती क ओर से/Assessee by : Shri Nikhil Goyal, Advocate
राज व क ओर से/ Revenue by : Shri Sarabjeet Singh, CIT-DR
तारीख/Date of Hearing : 20.06.2022
उदघोषणा क तारीख/Date of Pronouncement : 06.07.2022
आदेश/ORDER
PER DIVA SINGH The present appeal has been filed by the assessee wherein the correctness of the order dated 02.09.2021 passed by ld. PCI T Panchkula pertaining to 2012-13 a ss e ss me n t ye a r i s a s sa i le d on th e fol l ow in g gr ou nd s :
1. That the Ld. CIT has erred in concluding proceedings under Section 263 of the Income Tax Act, 1961 without proper perusal of Assessment record.
2. Whether on the facts and circumstances of the case and in law, the Ld. CIT has exceeded legislative jurisdiction u/s 263 of the Income Tax Act, 1961 thus the order passed by the Ld. CIT is bad in the eyes of the law.
3. That the Ld. CIT has erred in substituting an alternative view as against the firm view adopted by the Ld. AO at the time of original assessment u/s 143(3) read with section 147 of the Income Tax Act, 1961.
4. That the Appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off.
ITA 104 /CHD/2022 A.Y. 2012-13 Page 2 of 15
2. Th e r e l e v a nt fa cts of the ca se a re th a t a s p er i nf or ma ti on r e ce i ve d by the ta x a d mi n is tr a ti on, it was n o te d tha t t he a ss e s see h a d ma de a n i nve st me nt of Rs. 5 ,0 6 , 56 2 /- to wa rd s p ur c ha se o f immov a b le p r op e r ty f ro m M / s B a j w a D e ve l ope rs Ltd . Si nc e the a sse s se e h a d not f ile d a ny re tur n of in come u/s 1 3 9( 1 ) a nd 1 3 9( 4 ) o f th e A ct, pr oc ee di n gs we re in i tia te d u/s 1 4 7 b y is su a nc e of no tic e d a te d 28 . 0 3. 2 01 9 a fte r r e cor d in g of r e a s ons . I n re sp ons e the re to , th e a sse ssee f il ed he r r e t urn d e c la r i ng i nc ome of Rs. 1 ,3 4 ,4 01 /-. N o tic e s u/s 1 4 3 (2 ) a n d 1 4 2( 1 ) w e re i ssue d to t he a sse s see a n d c ons ide rin g t he re p l y, th e re t ur ne d i ncome w a s a cce p ted b y t he AO b y an or d e r d a te d 2 3 .1 1 .2 0 1 9 . Thi s or d e r wa s s ub j e cte d to the Re v i si ona ry p r oce e d in gs b y the l d. P CI T th is or d e r is un d e r chal l e n ge in the p r e se nt p r oce e d ings .
3. Th e l d . A R i nv iti n g a tte nti on to th e a s se s sme n t or d e r a n d th e re pl y g ive n to t he ld . P CI T s ub mi tte d th a t the is sue h a d b ee n e nq u i re d int o b y the AO in d e t a il s pe ci f ic a ll y on th is p oi nt. I t wa s sub mitt e d th a t on ly a fte r con si de r in g th e re pl ie s of t he a s se sse e , t he re t ur ne d in come o f th e ass e ssee was a cc e p te d. The so ur ce s o f i n ve s tme n t for the s pe cifi c p r op e r ty it w a s a r g ue d we re a l l con si de re d by t he AO e x ha u sti ve ly . I t w as su b mit te d th a t me r e l y be ca use the A O d oe s no t r e c or d the se, th is fa c t by i ts e l f ca n no t be a f a cto r to r e ope n a va l i dly co nc lu de d a sse ss me nt p ro cee di ngs b y t he ld . PC I T e xe r ci si ng ITA 104 /CHD/2022 A.Y. 2012-13 Page 3 of 15 Re vi si ona r y p owe r s u /s 2 6 3 a r b i tr a ri l y. H e a v y re li a n ce w a s p la ce d up on the fo ll ow i ng or d e r s pa ss e d b y the AO :
In response to these notices authorised representative of assessee furnished reply along with documents/information called for including the documentary evidence regarding the source of investment for purchase of immovable property on behalf of assessee. The reply of the assessee and documents submitted has been considered and no adverse inference is drawn in the case. 3 .1 Th e ld . A R f ur th e r in vi ted a tte n ti on to p a r a 6 of t he i mpu gn e d or d e r a nd s ub mi tte d th a t t he a ss e ssee ha d e xpl a i ne d th a t th e a moun t of Rs . 1 l a kh ca me fr om he r n e phe w . A ff id a v it of th e ne p he w , it w a s su bmi tt e d , ha d b ee n ma de a v a il a b le to th e A O. I t w a s sub mi tte d , th a t i t h a s a l so be e n fil e d be f ore t he l d. P C I T w he re in th e re l a ti ons hi p wi th the a sse ss ee a n d the P AN of t he a s se s se e 's ne p he w w e re cle a r l y spe l t out. The co nte nts the re of h a ve n ot be e n up se t b y the l d. P C I T. F or r e a d y re fe re nce , the sa i d a ff i da vi t e xtr a c te d i n the imp u gne d or d e r is re p r od uce d he re un de r :
AFFIDAVIT I Sahil Gupta S/o Sh. Chander Kumar /o Jalandhar City, Punjab, do hereby state on oath and solemnly affirm as under:
1. That I have given a gift of Rs. 1,00,000/- in cash to smt. Sunita Goyal, out of natural love and affection in FY 2011-12
2. That I have given this amount out of my income and personal savings.
3. That I'm filling my ITR regularly with IT department and my PAN is BMPPG9865D.
4. That Smt. Sunita Goyal is my Massi.
(Sd/-) (Deponent) It is certified that above stated facts are true and correct to best of my knowledge and nothing here has been concealed.
(Sd/-) (Deponent) ITA 104 /CHD/2022 A.Y. 2012-13 Page 4 of 15 3 .2 I t w a s sub mi tte d t ha t thi s a f f id a v i t i s a va i la b l e b ef or e the AO . Th i s f a ct , it was sub m i tte d , is e vi de nt fr om t he ob se r va ti on s of the ld . P CI T it se l f a s the l d . P CI T d i sca r d s it n oti ng th a t th e Af fi d a vi t w a s p re p a re d j ust a few da y s b e fore th e p a ss in g of th e a s se s sme n t or d e r . I t w a s su bmi tte d tha t w ha t i s w r ong i n th a t. Ev id e n ce w h e n c a lle d fo rt h b y t he AO w a s a d d r e sse d by th e a sse s see a s p e r re co rd . Th e l d . P CI T, it w a s a s sa i l e d fu r th e r , h ol d s th a t "The Assessing Officer simply placed this non-descript piece of paper on the assessment records, as the noting sheet entry dated 20-11-2019 in the file reads as under "Sh. Dinesh Chandel, Advocate attended. Furnished details asked for. Case discussed and assessed.". I t w a s a r gue d w h a t w a s w r ong in a cce p tin g th i s. Th e su sp ic i on i n l d . P C I T's mi nd , i t w a s sub mi tte d, i s th e sole r e a s on. Th e ld . P C I T, it w a s su b mi tte d , ig nor i ng th e fa c t tha t th e re l a ti ons hi p w a s d e mo nst r a ted a nd id e n ti ty of th e ne p he w b y w a y of h i s PAN n umb e r sto od q u ote d c onc lud e d tha t t he a f fi d a vi t is a b a ld se lf se r vi n g docume nt w i tho ut up se tti ng i ts co nte nts . I t w a s hi s su bmi s si on t ha t th e AO h a s l ook e d i n to t he r e le v a nt d a ta on th e b a si s of P AN de ta il s a va i la b l e a nd a p p a r e nt ly w a s sa t is fi e d a nd a cce p te d t he f lo w of mon e y f ro m th e sa i d n e p he w a n d i n th e or de r p a ss e d b y th e ld . P C I T n e i the r th e re la t ion sh i p ha s b ee n up se t n or th e f a ct th a t th e sa i d a mou nt wa s n ot a va i l a b le to Sh ri S a hi l G up ta , w hos e P AN d e ta i l s we re a va il a bl e e ve n to the ld . P CI T. I t w as a r gue d t hat ITA 104 /CHD/2022 A.Y. 2012-13 Page 5 of 15 no e vi de nce to r e b ut th e a ff id a v it has been t a ke n i nto co ns id e r a ti on to up se t the v a li d l y pa sse d or de r b y th e AO ha s b ee n pl a ce d on re cor d .
3 .3 I nv i tin g a tte n tion to pa ra 7 of th e i mpu gn e d or d er , i t w a s su b mit te d , t ha t a n a mou nt of Rs . 3 ,2 5 , 00 0 /- h a d b ee n re ce i ve d b y th e a s se s se e a s e a r ne st mon e y fr om S hr i Ya s hp a l fo r the co nte mpl a te d sa l e of Ho use N o. l 49 , New D a rs ha n i B a gi , Ma n i ma j r a , 0 -3 Ma r l a s ow ne d b y t he a sse s see . I t w a s su bmi tte d th a t th e e v i de nc e p la ce d on r e cor d w a s d i sc a rd e d b y t he ld . P C I T h ol di n g th a t it wa s on a p l a i n p i e ce of p a p e r w i th t he Re ve n ue Sta mp of R s. 1/-. Th e f a ct th a t i t wa s th e e a r ne st mon e y for a s pe ci fi c p r ope r ty w hi ch was f or fei te d by t he p ur c ha se r a s he wa s un a b le to c omp le te t he tr a nsa cti on w i thi n th e s ti pu l a te d time ha s n ot bee n d is pu te d b y the ld . PCI T. The r e le v a nt d ocu men t e xtr a cte d i n th e i mp ugn e d or de r a t p a ge 8 r e l ie d u pon b y th e l d . AR, f or r e a d y re fe re n ce is e xtr a cte d h e re u nde r :
Earnest Money Received a sum of Rs. 3,25,000/- ( Rs. Three Lakh Twenty Five Thousand rupees only) in shape of cash from Sh. Yashpal S/o Late Roshan Lal R/o village Manimajra, Chandigarh against the sale of House no. 149 situated in New Darshani Bagh, Manimajra, Chandigarh measuring 0-3 Marlas approximately or 18"x42" in Khasra no. 73/54(6K-9M), Khewat no. 331, Khautani no. 389, Hadbast no. 375. That the total sale price of the above said property under sale is fixed at Rs. 9,25,000/-(Nine Lakhs Twenty Five thousand Rupees only/-). Balance amount after deducting the earnest money from the total sale price is Rs. 600000/-(Rs. Six Lakhs Eighty Thousand Rupees onlyl-) which shall be paid on or before 10lh February 2012. That in case the said seller back out from this bargain then the said seller shall be liable ITA 104 /CHD/2022 A.Y. 2012-13 Page 6 of 15 to return double of the amount received by him today. In case the said purchaser back out from this bargain then his money shall stand forfeited in favor of the said seller. In case the said purchaser does not accept such liquidated damages then the purchaser has the right to get the sale affected through court of law under Specific Relief Act at the risk and cost of said seller. In witness of whereof both the parties have set their hands on this deed at Chandigarh on the day, month, year mentioned above in presence of witness, Dated: 24th November 2011. SELLER - Sd/-
Witness No:1 Sd/- PURCHASER - Sd/-
[Pawan Kumar, H.No. 112/1, Manimajra] (emphasis supplied) 3 .4 Re fe r r in g to p a ge 9 of the imp ug ne d or d e r , it was su b mit te d th a t th e fa ct th a t th i s e v i de nce w a s a vai l a b le to t he AO w a s k now n t o the l d . P CI T a l so. Th e ld . P C I T a t p a ge 9 of h e r or de r i t w a s su bmi tte d , h e r se l f h a s o bs e r ve d, "Once again the assessing officer did not care to raise any query about this non-descript piece of paper, and simply placed the same on the assessment record on the date of the last hearing i.e 20.11.2019 while recording on the noting sheet "case discussed and assessed." The AO did not care to evaluate the evidentiary value of this piece of paper, or ascertain the identity of the so-called purchaser, his capacity to invest an amount of Rs. 9.25 lac in the property, his capacity to pay Rs. 3.25 lac as advance, and the genuineness of the entire transaction. The AO did not even try to enquire if the deal had actually materialized or not. Th e e vi de nce , it wa s su bmi tte d , w a s n ot u p se t b y t he ld . P CI T. I t w a s d is ca r de d h old i n g i t to b e " in h ou se prod u c ti on to c on c oc t a co c k an d bu l l sto r y". The fa c t tha t t he p r op e r ty c ont in ue s i n th e p os se ssi on of th e a s ses se e , i t w a s su b mit te d , h a s a ls o b ee n a cce p te d b y t he l d . P CI T. ITA 104 /CHD/2022 A.Y. 2012-13 Page 7 of 15 3 .5 Re fe rr i n g to pa r a 8 of the impu gn e d or d e r , it was su b mit te d , th a t th e ld . P CI T a ls o ta k e s n ote of th e fa ct th a t t he e v ide nce of gi f t, e a r ne st mo ne y an d sa vi n gs f r om r e n t e tc. we re f a cts e x pl a i ne d to th e AO a n d e nq u ir e d i nto b y the A O. Th is f a ct, it was s ub mi tte d , is e v ide nce d f ro m pa ra 8 of t he i mpu gn e d or d e r i ts e l f. F or re a d y r e fe re n ce , it is e xtr a cte d h e re u nde r :
"8. It is also pertinent to note that in her initial first response to the notices dated 16.7.2019 and 01.08.2019 of the assessing officer for the assessment proceedings, the assessee had submitted that she "had received income from rent and construction business during the relevant year." It was only in response to the last notice dated 12.11.2019 of the AO that the assessee presented her concocted story about the gift and the earnest money as the sources of cash that was invested in the given property."
3 .6 Th e ld . AR f ur th e r i nv i te d a tt e n tion to p a r a 9 to s h ow tha t th e ld . P CI T w a s a wa r e th a t the A O ha d e n q uir e d i n to t he i ssu e s e ve n on 2 0. 1 1 .2 0 1 9, a nd 2 3 . 06 . 2 01 9 wh e re in t he a ss e s see w a s foun d t o ha v e e xpla i ne d the re ma i ni ng ba l a n ce a va i l a b le ou t of p e rs ona l sa vi n gs. For re a d y re fe re nce , re le v a nt e x tr a ct fr om p a ra 9 r e a ds a s u nde r :
"9. It is further pertinent to note that during the course of the final hearing held by the AO on 20.11.2019, the assessee claimed that "the balance of Rs. 1,36,000/- was paid out of personal savings and income" on 23.06.2011. An amount of Rs. 8000/- was claimed to have been paid on 12.01.2011, and of Rs. 100 on 12.12.2011 out of personal savings....."
3 .7 Acc or d in gl y, it w a s hi s s ub mis s i on t ha t t he c on je ctu re s a n d su r mis e s r e sor te d t o b y th e ld. P C I T to se t a s id e the va l id l y p a ss e d a s se s sme nt or d e r i s n ot s up p or te d b y an y e v ide n ce .
ITA 104 /CHD/2022 A.Y. 2012-13 Page 8 of 15 Th e i mpu gn e d o r de r , i t w a s s ub mi tte d , op e r a te s p ur e ly on su sp i ci ons a s n o c on tr a r y fa c t su p p or ti ng the a cti on h a s b e e n b r oug ht on re c ord. The e vi de nce s f il e d , i t wa s s ubmi tte d, ha ve b ee n di s mi s se d as se l f se r vi ng b a ld ga me s. 3 .8 Th e d e ci s ion s r e l ie d u p on by the ld. P CI T, it was su b mit te d , a r e fa ct s p e ci f ic a nd w e re d i sti ng ui sh a b le o n f a cts. Re li a nce i nste a d w a s p l a ce d up on t he f oll ow i ng de cis io ns ;
1. Krypton Datamatics Ltd. V. DCIT, Central Circle, Patiala, (65 taxmann.com 324),(Chandigarh - Trib.)
2. CIT v. Krishna Capbox (2015) (Allahabad) 60 Taxmann.com 243
3. Principal Commissioner of Income-tax, Bathinda v. Jiwan Kumar (2017) 82 taxmann.com 221
4. Narain Singla v Principal Commissioner of Income-tax, (Central) Ludhiana (2015) 62 taxmann.com 255
5. Pawan Kumar Vs. ITAT (2015) 62 taxmann.com 260 (Chandigarh) 3 .9 Re l yi ng on the ab ove fa c ts a n d l a w, i t w a s hi s s u b mi ssi on th a t the R e vi si on a r y Pow e r h a s b ee n w r on gl y e xe rc ise d by the l d. P C I T i n a ca su a l ma n n e r wi th out p oi n ti ng ou t a ny e r ro r in th e or de r le t a lone s uch a n e rr or w h ic h ca n b e sa i d t o be p r e j ud i ci a l to the in te re sts of t he Re ve n ue . 3 .1 0 I n the fa c ts of the p re se nt ca se , i t w a s h i s sub mi ss ion tha t i t i s n ot a c a se o f n o e n q ui r y a s r e pe a te dl y t he ld . P C I T ma k e s a r e fe re n ce to th e va r i ou s d a te s on w h i ch h e a r i ng w a s f ixe d vi d e s pe ci fi c not ic e s i ss ue d to th e a sse s see . Th e AO co ns id e r i ng the sma l l ne ss of th e a mo un ts i nv ol ve d an d ITA 104 /CHD/2022 A.Y. 2012-13 Page 9 of 15 co ns id e r i ng the su pp or ti n g e v id e nce s c hose poss ib l y n ot to d is cu ss it in the o rde r. Th is fa c t ca nn ot be he ld aga i n st t he a ss e s see .
3 .1 1 It was a l so r e i te ra te d tha t me r e l y be ca u se t he a ss e s sme n t or d er i s sh or t, the fa c t r e ma i n s th a t t he sou rce s of mon e y ha v e be en e n q ui re d i nt o b y the AO . Th i s f a ct, i t w a s su b mit te d , i s e vid e n t f r om the i mp ugn e d or de r i tse lf wh i ch h a ve b ee n hi gh l ig hte d i n v a ri ou s p a r a s of th e or de r . A tte n ti on w as i nv it e d i n th e sai d ba c k gr oun d t o t he r e p l y of th e a sse ss ee to th e S how C a u se N oti ce is sue d b y th e l d. P C I T w h ic h i s a l so e x tr a cte d a t p a ge s 4 a nd 5 o f t he i mpu gn e d or d e r . Re fe r ri n g to th e s a me , i t w a s hi s su bmi ss i on t ha t th e p re se n t case is a c a se of a r b it ra r y e xe rci se of p owe r a nd b a se d e n ti re ly on s usp i ci on s. F or r e a d y r e fe re nc e , re p l y e xt r acte d in th e i mp ugn e d o rde r h e a vi l y re l ie d up on in th e p re se n t p r ocee d in gs is r e p ro du ce d h e re u nde r :
"this is in reference to your above stated letter and show cause letter u/s 263 wherein it has been show caused as to why the assessment order dated 23.11.2019 not be cancelled for making fresh assessment.
In this regard it is humbly submitted that we had cooperated with the department at the time of assessment proceedings and all the documents as demanded by the Id. AO were submitted.
As regards yours specific query, we submit the copy of allotment letter in the name of the assessee issued from the office of the Municipal Corporation Chandigarh duly evidencing the ownership of the said property. As regards the capital gains on the sale of the said property is concerned it is humbly submitted that the said earnest money was forfeited thereafter due to non-payment of balance amount. The said property is still in the possession of the assessee and has not been sold. Thus no capital gains arose to the assessee. The said fact was put to the Authorized Representative of the ITA 104 /CHD/2022 A.Y. 2012-13 Page 10 of 15 Assessee at the time of assessment and the fact was duly disclosed to the Ld. AO.
It must also be noted that the PAN of Sh. Sahil Gupta is duly mentioned in the affidavit submitted with department at the time of assessment proceedings and his identity was established by the affidavit on record, It is most humbly submitted that the Ld. AO had may many verbal queries at the time of assessment which were answered to her satisfaction. However, the same may not have been recorded in the assessment order.
Thus, it is not a case of no enquiry or non-application of mind by the Ld. AO and necessary evidence filed by the assessee was duly perused after which an opinion with respect to acceptance of evidence has been formed. The reason for re-opening of assessment was clearly laid down in the notice under section 148 of the Act and the same were put forth to the assessee at the time of assessment.
It is hereby submitted that the jurisdiction assumed by your good office under section 263 of the Act is bad in law as you are placing reliance on Explanation 2 of Section 263 of the Act to allege that enquiries have not been made in the subject case. The clear perusal of the assessment file shows that the Ld. AO had formed an opinion with respect to escapement of income, called for the necessary evidence, discussed the matter with the Authorized Representative of the assessee and after proper perusal arrived at the conclusion that there is no escapement of income. In the light of the above submissions on the facts and circumstances of the case, it is most humbly prayed that the proceedings under section 263 be dropped.
It is prayed that if any adverse action, prejudicial to the interest of the assessee is preferred after considering the reply above, an opportunity to represent and defend the revision of order through personal hearing may kindly be allowed in the interest of justice.
3 .1 2 Ac cor d i ng ly on the b a si s of th e se f a ct s and su b mis si ons , it w a s h is p r a ye r t ha t in the a bse n ce of a ny i nc or re ct fa c t tak e n i nto con si der a ti on b y th e A O to p a ss an or d e r a fte r d u e e nq u i ry , the imp ug ne d or de r ma y be q u a sh ed. Th e AO c ons id e r i n g th e sma l l ne ss of t he a moun t i n t he ca se of a gi f t of R s. 1 l a c f r om th e ne p he w w h ose PA N d e ta i l s were a va i l a b le to the A O a nd i n the a b s e nce of e vid e n ce to t he co ntr a r y w e re e nq u ir e d i nt o h as b ee n a cce p te d b y h im. No ITA 104 /CHD/2022 A.Y. 2012-13 Page 11 of 15 i nf ir mi ty in th e a c ce p ta n ce of th e s a id c la i m, it wa s s ub mi tte d , h a s b e e n p oi nte d ou t b y the l d . PC I T e xce p t f or the su sp i ci on of th e l d. PC I T. The a r b i tr a ry w h i m t ha t i t sh oul d h ave b e en e n q ui re d i n to to a gr e a te r de gre e , i t w a s s ub mi tte d , i s c ont ra r y to the l e ga l p os iti on . I t w a s h is su b mis si on tha t i n th e a bs e nce of a n y i nc or r e ct ne ss of a cce p ta nc e o f a sse sse e 's cl a i m b y t he AO , th e de ci si on of th e l d . PC I T f or h old i ng th e b e lie f th a t a gr e a te r e n q ui r y sh oul d ha v e b een ca r r i e d out w h e re i n p os si b ly so me th in g con tr a r y mi gh t b e un e a r the d is a n a r b i tr ary a n d w hi ms ic a l e xe rc ise of p owe r .
3 .1 3 . S imi l a rl y th e fa c t tha t t he e a r ne s t mon e y w as a va i l a ble to th e a s se sse e on a cc oun t of f or f e i ture a nd th e s pe ci fic p r op e r ty ow ne d b y the a s se s se e c ont in ue d to rema i n w ith t he a ss e s see . Th is c l a im, it wa s r e -i te r a te d ha s b e e n e xa mi ne d by th e AO . The e ntir e de t a il s we re a v a il a b l e to the ld . P C I T a l so a n d th i s cl a i m h a s n ot b ee n up se t. A cco rd i ng ly , th e d e si re to f ur th e r l ook in to th e ma t te r , i t wa s a r g ue d , i s a wh ims ic a l e xe r ci se of p owe r. I t w a s a r gue d th a t the p owe r has be en e xe r ci se d i n a ve r y ca su a l ma n ne r . Al l the d ocume n ts, it w a s su b mit te d , h a ve b ee n f oun d to b e a v a il a b le w i th th e A O . It w a s s ub mi tte d , t h a t th e a s se s se e c a nn ot d i cta te to t he AO h ow to w r ite the or de r . Th e A O l ook i ng in to th e s ma ll n e ss of t he a mou nts ma y ha v e c ho se n n ot to g o a n y f ur the r into di s cus si on e t c. on th e i ssu e s in the or de r . The ld. PCIT in t he ITA 104 /CHD/2022 A.Y. 2012-13 Page 12 of 15 ci r cu msta n ce s w a s r e q u ire d to show th e e r ro r commi tte d b y t he AO . The n a me of th e pe r so n who f or fe i te d the e a r ne st mon e y w a s a va i l a b le a nd the na me a n d a d d r e s s of the wi tne ss to t he sa i d Agr e e me n t w a s a l so a v a il a b l e . Th e ow ne r shi p of t he sp e ci fi c p r ope r ty w i th the a ss e ssee was not di sp u te d . Ac cor d i ng ly, i t w a s h is p r a ye r th a t th e i mp ugn e d or d e r ma y b e q u a she d .
4. Th e ld . C I T-D R o n the othe r ha n d he a vi l y re l yi n g u po n t he i mpu gn e d or d e r s ub mi tte d th a t t he AO i n t he fa c ts of t he p r e se nt ca se bl i nd l y a cce pte d w h a te ve r e vi de n ce w a s pl a ce d b e f ore h im. N o e f fo rt to ca r r y ou t a n y e n q ui r y u/s 1 33 ( 6 ) w a s ma d e b y the AO . I t w a s a l so h is s ub mi ssi on t ha t th e p r e se nt ca s e is n ot a ca se whe re the a sse ss ee ha s f ile d hi s r e tu rn . I t i s a ca s e w h e re i n o n a c cou nt of i nv e sti ga t ion in th e s pe ci fic p r op e r ty , not ice w a s i ss ue d to t he a s se sse e u/s 14 8 a n d a s a r e s ul t of t hi s, a s se s sme n t w a s co nc lu d e d u/s 1 4 3 ( 3 ) /14 7 o f t he Ac t. Thu s, i t w a s h i s p r a ye r tha t th e p re se nt ca s e i s a fi t c a se f or up h ol di n g t he or d e r p a s se d b y th e ld . P CI T i n e xe r c is in g he r Re vi si ona r y P owe r s. The or de r p a s se d b y the AO w a s p a sse d w i thou t ca r r yi ng ou t f ul l a n d p r op e r e n q ui r ie s.
5. We ha ve he a r d t he r iv a l sub mi ss ion s a nd p e r use d t he ma te ri a l a va i la b l e on re cor d . I n t he f a cts of t he p r e se n t ca se, a d mi tte d l y e n q uir ie s on the re le va nt f a cts w e re ca r r ie d ou t by ITA 104 /CHD/2022 A.Y. 2012-13 Page 13 of 15 th e A O . I t is s een th a t t he se ha v e be e n not ice d b y the l d. P CI T a l so i n he r or de r. H owe ve r , the se ha ve bee n d is ca r d e d on the gr ou nd s of be i ng b a l d d oc ume nts . The l d . P CI T h a vi ng go ne th r oug h t he re cor ds of the AO h a s noti ce d tha t s up p or ti ng d ocu me n ts h a ve b ee n c a ll e d f orth w hi ch ha ve b e e n e xa mi ne d a n d t he c a se of th e a s se sse e h a s b ee n a cce p te d. It i s i n fe rre d b y t he ld . P CI T th a t o n a c cou nt of thi s e xe rc ise, th e re is an e r r or i n the or de r w hi c h i s p re jud i ci a l to t he i nte re st s of t he Re ve n ue . We f i nd on goi ng thr ou gh the imp u gne d or de r tha t th e re i s n o ba s is f or t he sa i d i n fe re nce . Th e r e la ti on sh ip of Sh r i S a hi l G u pt a a s the ne p he w of t he a s se sse e ha s not b e e n a ss a i le d. H i s PA N de ta i ls ma d e a v a il a b le to the AO and p r e su ma b ly e n q ui r e d i nto ha ve n ot b ee n u ps et b y the ld . P CI T. Th e f a ct th a t h e h a s gi ve n a gi ft of Rs . O n e La c a c ce p te d b y t he AO h a s no t be e n s ho wn to b e a n i n cor r e ct de ci sion of th e AO. Th u s, th e de ci si on to f ur the r e nqu ir e in to the sa id i ssu e sta te d on a n a f f id a vi t w hi ch h a ve re ma in e d un re b utte d , we f i nd ca n not b e u p he ld . W it hou t u ps e tt in g th e con te n ts of t he aff i da v i t, t he e xe r ci se i n the pe c ul i a r f a cts of th e p re se nt ca se is a n a r b it ra r y e xe r ci se of p owe r . He n ce , can n ot be su sta ine d in law. S imi l a rl y, th e d o cu me n ts r e l ie d up on i n s up p or t o f the e a r ne st mon e y a v a il a b l e to th e a s se sse e, we fi n d a re dis mis se d a s a "co ck a nd b u ll sto ry " w it hou t a n y e v ide n ce to c ome to t he sa id co nc lu si on. Th e f a ct th a t t ra n sa c ti on fo r th e pr op e r ty w a s ITA 104 /CHD/2022 A.Y. 2012-13 Page 14 of 15 b e i ng c onte mp la t e d i s a n e vi de nc e on re c or d w hi c h re ma i ns un r e b ut te d . I n pu r su a nce the reof , e a r ne st mon e y h a s b e en r e ce i ve d w h i ch re ma i ns un r e b utte d . Th e na me of the p ur ch a se r a n d th e a dd re s s e tc . of the w i tn e ss a n d the pa rt ie s to t he d ocu me n t i s a vai l a bl e to the l d . PC I T a s w a s a va i lab l e to t he AO . Th e t e r ms a nd c on di ti on s s ta te d to ha ve be e n h onore d th e re i n vi s- a -vi s the p a r tie s to th e a g ree me nt is e vi de nce a va i l a b le on re cor d. The d ocu me nt re c or ds th a t t ha t in c ase th e se l le r b a ck s ou t, d oub l e th e a mo un t of e a r ne st mone y i s to b e p a i d a nd i n ca s e s a le i s n ot c omp le te d on a c coun t o f t he p ur c ha se r , the n e a r ne st mon e y i s to be for fe i te d . S a l e di d not f ru cti f y. Th e e vid e n ce is a v a il a b le on re cor d . The ow n e r sh i p of th e sa i d a sse t con ti nu e s to re ma i n ve ste d w it h the a s se sse e . I n th e a b se n ce o f any e vi de n ce or fa c t re b utti n g the cl a im of t he a ss e s see , t he or d e r p a sse d a f te r du e e nq u ir ie s a s pe r re co rd by th e AO c a nn ot be set a si de on me r e in fe re nce s and p r e su mp tio ns . The s us pi ci on s of t he l d . P CI T c a n no t be t he b a si s f or se tti ng a si d e a v a li d ly pa ss e d a sse ss me nt or d e r . La w r e q u ire s the ld . P C I T to me e t the tw i n con di ti on s of p oi nti n g to th e e rr or i n the or d e r p a s se d a n d th a t too suc h a n e rr or w h i ch ca n b e te r me d to b e p re ju d ic ia l t o th e in te re s ts of th e Re ve nue . Th e se ma n da t or y c ond i ti ons i n the f a cts of the p re se nt ca se a re n ot sa ti sf ie d . He n ce , on a con sid e r a ti on of t he p e c ul ia r fa c ts a n d ci r cu msta n c e s of the p re se nt ca s e w hi ch ar e b or ne out ITA 104 /CHD/2022 A.Y. 2012-13 Page 15 of 15 f ro m th e r e c ord, the imp ug ne d or d e r ca n no t be u p he ld . Ac cor d i ng ly, a ll ow i ng t he g ro un ds of the a sse s see , f or the r e a s ons g ive n her e i n a bove , t he i mpu gn e d o rde r i s q ua s he d .
6. I n the re su lt , the a pp e a l of the a ss e ssee i s a ll owe d.
O r d e r p r on o u n ce d o n 6 t h Ju l y , 2 0 2 2 .
Sd/- Sd/-
(VIKRAM SINGH YADAV) (DIVA SINGH)
लेखा सद य/ Accountant Member याियक सद य/ Judicial Member
"Poonam"
आदेश क ितिलिप अ ेिषत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant 2. यथ / The Respondent 3.आयकर आयु / CIT4.आयकर आयु (अपील)/ The CIT(A)5.िवभागीय ितिनिध, आयकर अपीलीय आिधकरण, च डीगढ़/ DR, ITAT, CHANDIGARH 6.गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar