Income Tax Appellate Tribunal - Chandigarh
Smt. Shashi Prabha Tripathi, Jind vs Ito-Ward-2, Bhiwani(Camp At Jind) on 14 June, 2022
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "एकल सद यीय', च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH
BENCH 'SMC' CHANDIGARH
ीमती दवा संह, या#यक सद य
BEFORE: SMT. DIVA SINGH, JM
आयकर अपील सं./ ITA No. 135/CHD/2020
नधा रण वष / Assessment Year : 2010-11
Smt.Shashi Prabha Tripathi, बनाम The ITO,
W/o Dr.S.B.Tripathi, VS Ward 2,
90/15, Scheme No.5, Bhiwani.
Jind.
थायी लेखा सं./PAN No: AHKPT6551C
अपीलाथ /Appellant यथ /Respondent
नधा रती क! ओर से/Assessee by : Shri Vibhore Garg, CA
राज व क! ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR
सन
ु वाई क! तार&ख/Date of Hearing : 08.06.2022
उदघोषणा क! तार&ख/Date of Pronouncement : 14.06.2022
आदे श/ORDER
Th e pr e se n t a p pea l h a s b e e n f ile d by th e a s se s se e w h e re i n th e c or re ct ne s s of t he or de r d a te d 2 7 . 12 . 2 01 9 of CI T(A ) Hi ss a r p e r ta i ni n g to 2 0 1 0 -1 1 a ss e ss me n t ye a r is a s sa i le d on t he f oll ow i ng gr ou nd s :
"1. Because the action is under challenge on facts & law for upholding the reassessment u/s 147/148 of the Act for determining the assessed income at an amount of Rs 43,81,250/-.
2. Because the action is under challenge on facts & law for treating the amount of Rs 41,21,700/- as deemed income u/s 69 A of the Income Tax Act, 1961.
3. Because the action is under challenge on facts & law while ignoring the pleadings, regarding nexus, purpose, character of the receipts and payments resultingly all the transactions completely explained yet erroneous decision making.
ITA-135/CHD/2020 A.Y. 2010-11 Page 2 of 17
4. Because the action is under challenge on facts & law while the addition is being made then the deduction be allowed for the payment made and (or) the loss of capital be granted.
5. Because the action is under challenge on facts and law, the authorities below has never tried to issue notices u/s 131/133 to call & summon for the information/ affidavits from the management of the school and the students who has paid the fees to the appellant and subsequently the appellant's transfer of fees to the management of school which is substantiated through the ledger account of the appellant who was actually & factually receiving fees on behalf of the management of the school where she was a Principal during the year under consideration.
6. Because the prayer is for kindly allowing any addition, modification, deletion, amendment in the grounds of appeal along with the consequential benefit thereon before the disposal of the appeal in the interest of substantial justice for a decision in accordance with law.
2. Th e ld. AR in vi ti n g a tte n ti on to th e gr ou nd s r a i se d su b mit te d th a t vi d e gr ou nd N o. 1 t he c ha l le n ge i s p os e d on t he j ur i sd i cti ona l i s sue . Vi de gr ou nd N o.2 t he ch a ll e nge i s p os e d to th e me ri ts of the a d di ti on su sta i ne d a nd the o the r gr oun d s a re i n su pp or t of th e me r i ts of th e a ddi ti on .
3. I nv i tin g a tte nt ion to th e a sse ss me n t or de r i t w as h is su b mis si on t ha t h e i s n ot d i sp ut in g th e f a ct tha t n oti ce s as f oun d me n ti on e d i n p a ge 2 o f th e a s se s sme n t or d e r ma y h a ve b ee n se n t. On e a c h of t he se da t e s, i t w a s s ub mi tte d t he r e ma r k s of th e AO a re t ha t ne i the r a n yb od y a tten d e d nor a ny w r it te n commun i ca ti on h a s b e e n r e ce i ve d f ro m t he a s se s se e . Th e r e a f te r , it wa s su b mitt e d th a t th e A O's re c or ds i n th e o rde r th a t th e ca se w a s a s si gn e d to th e co nce r ne d AO e tc . a n d a cc or d in gl y fr e sh not ic e s we re se nt on 1 8 .1 0 .2 0 1 7 f or 2 5 .1 0 .2 0 1 7 wherein a ga i n no one wa s pr e sen t. It w as ITA-135/CHD/2020 A.Y. 2010-11 Page 3 of 17 su b mit te d th a t t he re a fte r , the AO r e cor d s i n h is or d e r " However, on 27.10.2017 again notice u/s 142(1) issued for 06.11.2017 and duly served upon the assessee at her new address i.e. H.No.12, Housing Board Colony, Jind. In response thereto, Sh. K.K.Arora, ITP, A.R. of the assessee appeared and filed 'Power of Attorney', which is placed on records and case adjourned to 14.11.2017 ..........." It w a s hi s su b mi s s io n tha t t he a ss e s see i n r e s pons e the re to fi led a r e p l y a s fo u n d me n ti one d a t p a ge 3 of t he a s se s sme n t or de r on 29 . 1 1. 2 01 7 .
4. On th e b a si s of thi s f a ct a va i la b le on re co rd i tse lf , i t w a s su b mit te d tha t as pe r the re c or d o f th e As se ssi ng O f fi ce r h ims e l f, the e a r lie r n oti ce s we re s e n t a t the i nc orr e ct a d d re s s. S up p or t wa s d r a w n f r om p a g e 1 of t he a s se s smen t or d e r a fte r r e fe r r i ng to the in cor r e c t a d d re ss. C or r e c t a d d re ss h a s be e n me n ti one d b y the AO . Th e sa me i s a s un de r :
Smt. Shashi Prabha Tripathi W/o Dr. S.B.Tripathy, 90/15, Scheme No.5, Jind Now R/O : H.No.12, Housing Board Colony, Jind.
H e n ce , a d mit te d ly e a r l ie r noti ce s w e re not re le va nt i n the e ye s of law. The se fa cts are re le va n t f or c ha l le n ge to t he a ss ump ti on of j u ri sd i cti on b y th e AO .
4 .1 I n t he a b ove c onte xt, i t w a s h ig hl i ght e d th a t al l th e ot he r n oti ce s wh i ch h a d be e n se n t a t a d d r e ss 9 0 /15 , S c h e me N o . 5, J ind w e re n ot re le va n t in t he e ye s of l a w . The A O ta k e s n ote of th e c or re ct a d d ress of the a sse ssee su b se q ue n tl y an d th e re a f te r ITA-135/CHD/2020 A.Y. 2010-11 Page 4 of 17 n oti ce w a s se n t to a s H o us e N o. 12 , H o us ing B oa r d C o lo ny , J ind w hi ch wa s re sp on de d t o a l s o. Ac cor d in gl y, i t w a s h is su b mis si on th a t th e a ssu mp tio n o f j u ri s di ct ion i s fa u lt y a s e f fe cti ve l y w i thi n ti me , n o n oti ce w a s s e n t to th e a s se s se e a t th e cor re c t a d d res s.
5. Re fe r r in g to t he i mp ug ne d or d e r , it w a s hi s s ub mis si on th a t thi s gr ou nd w a s ta k e n up b e f ore the C I T( A) w h o h a s not d is p ute d the f a ct th a t th e noti ce h a d b ee n se n t a t the i nc or re ct a d d r e ss a nd on ly on 0 6 . 11 . 2 01 7 , n oti ce w a s f in a l ly se n t to t he a ss e s see a t the co rr e ct a d d re ss . N o t d is pu ti ng the fa c t tha t it was the f ir s t noti ce se nt in th e e ye s of la w, th e CI T( A ) i nc or re ctl y re fe r ri n g to Se cti on 2 92 B B con cl ud e d tha t si nc e the a ss e s see pa r ti ci pa te d i n th e p r oce e d i ngs , a c cor d ingl y, th e sa i d gr ou nd w a s t o b e d i smi sse d .
6. I nv i tin g a tte n ti on to th e c op y o f the r e a s ons re cor d e d a t p a ge 2, it w a s a ga i n h ig hl ig hte d th a t w hi le re co rd i ng t he r e a s ons a ls o, th e AO ha s ta ke n n ote o f the ol d i nc or r e ct a d d r e ss a n d i n te r ms of th e de cis ion d a t e d 1 1 .0 9.2 0 2 0 of t he Ja i p ur B e n ch of th e I TA T i n th e c a se of G i r ir a j k r ipa D e ve l ope r s P vt. Ltd . V s I TO (I TA N o. 16 8 / JP /20 2 0 pl a c e d a t Pa p e r B o ok p a ge s 3 6 -6 6 ) it w a s hi s sub mi ss ion t ha t on the j u ri sd i cti on a l i ssu e it se l f , the a sse sse e de se r ve s to s ucc ee d .
ITA-135/CHD/2020 A.Y. 2010-11 Page 5 of 17 6 .1 I t w a s h is su b mis si on th a t th i s i ss ue ha s s pe ci fi cal l y b e en co ns id e re d a t Pap e r B ook , p a ge 63 i n te r na l pa ge 28 of th e or de r i n p a r a s 12 to 14. Acc or d in gl y, it w a s hi s p r a ye r th a t o n thi s gr ou nd a l on e , t he a p pe a l of th e a ss e ssee ma y b e a l lowe d by q u a shi n g the p r oc ee d i ng s. F or rea d y r e fe re n ce , pa r a 1 2 -1 4 of th e sa i d or de r is r e pr od u ce d he reun d e r :
12. After appreciating the facts of the present case, we are of the considered view that the facts contained in the present case are similar to the facts which are contained in the case of CIT Vs. Chetan Gupta (Supra), therefore, we are of the view that the question of service of notice U/s 148 of the Act is a jurisdictional requirement.
13. As per the facts of the present case, admittedly no attempt was made by the revenue to serve a notice to the assessee at the address provided by him. The revenue was also made aware of this lapse, as the assessee while filing of its return has made a note therein it was mentioned that no notice U/s 148 was served upon the assessee and moreover, the assessee have also served a letter to the revenue thereby categorically mentioning that no service of notice was effected upon the assessee and even the revenue in his reply dated 07/11/2017 has no where mentioned that notice U/s 148 of the Act was ever served upon the assessee. Hence, merely participation of the assessee in the proceedings is not a waiver to the service of notice U/s 148 upon the assessee. As per record, prior to completion of reassessment, the assessee has raised a categorical objection that he has not been duly served in accordance with Section 148 of the Act. Therefore, the 'proviso' to Section 292BB is attracted and Revenue cannot take advantage of the main portion of Section 292BB, This view has already been taken by the Special Bench of the Tribunal in Kuber Tobacco Products (P.) Ltd. v. Dy. CIT 20091 28 SOT 292 (Delhi) (SB).
14. After having gone through the judgment cited by both the parties and more particularly the decision of the Hon'ble Delhi High Court in the case of CIT Vs Chetan Gupta (supra), which is squarely applicable to the facts of the present case, we are also of the view that:
(i) Under Section 148 of the Act, the issue of notice to the Assessee and service of such notice upon the Assessee are jurisdictional requirements that must be mandatorily complied with. They are not mere procedural requirements.
(ii) For the AO to exercise jurisdiction to reopen an assessment, notice under Section 148 (1) has to be mandatorily issued to the Assessee.
Further the AO cannot complete the reassessment without service of the notice so issued upon the Assessee in accordance with Section ITA-135/CHD/2020 A.Y. 2010-11 Page 6 of 17 282 (1) of the Act read with Order V Rule 12 CPC and Order III Rule 6 CPC.
(iii) Although there is change in the scheme of Sections 147, 148 and 149 of the Act from the corresponding Section 34 of the 1922 Act, the legal requirement of service of notice upon the Assessee in terms of Section 148 read with Section 282 (1) and Section 153 (2) of the Act is a jurisdictional pre-condition to finalizing the reassessment.
(iv) The onus is on the Revenue to show that proper service of notice has been effected under Section 148 of the Act on the Assessee or an agent duly empowered by him to accept notices on his behalf. In the present case, the Revenue has failed to discharge that onus.
(v) The mere fact that an Assessee or some other person on his behalf not duly authorised participated in the reassessment proceedings after coming to know of it will not constitute a waiver of the requirement of effecting proper service of notice on the Assessee under Section 148 of the Act.
(vi) Reassessment proceedings finalised by an AO without effecting proper service of notice on the Assessee under Section 148 (1) of the Act are invalid and liable to be quashed."
From the entire crux of the matter, we found that the revenue has failed to bring on record any positive evidence to prove that the notice U/s 148 of the Act was served upon the assessee whereas the assessee has successfully placed on record letter dated 07/11/2017 issued by the department wherein it has no where been mentioned that the notice U/s 148 was ever served upon the assessee. In view of the above facts and circumstances, we can safely conclude that there was no 'proper service' of notice U/s 148 of the Act was effected in the present case before completion of reassessment u/s 147 r.w.s 143(3). Therefore, we set aside the orders of the lower authorities and quash the proceeding U/s 148 of the Act. This ground of appeal is allowed."
7. Atte nti on was a l so i n vi te d to th e de c i si on d a te d 3 0 .0 6 .2 0 1 5 of the I TA T, N e w D e lhi B e n ch in the ca se of I TO Vs Aj a y P a l Si n gh, N e w De l hi ( p l a ced a t P a p e r B o ok p a ge s 2 2 to 3 0 ) fo r si mi la r p r op os it io n.
8. On me r i ts , a t te n ti on w a s i nv it e d to a sse ssme nt or d e r p age 3 w h e re i n th e re pl y of th e a s se sse e h a s be e n e xtr a cte d . The sa me i s r e p r od uce d he re u nde r f or th e sa ke of c omp le te ne ss :
ITA-135/CHD/2020 A.Y. 2010-11 Page 7 of 17
9. Re l yi ng on th e sa me , it w a s s ub mi tte d t ha t the r e le v a nt d ocu me n ts w e re ma d e a v a il a b le to t he AO w ho con si d e r i ng th e se a s pe r p ag e 3 of the a ss e ss me n t or de r r e q u ire d t he a ss e s see to fi le F or m N o.1 6 f ro m h i s e mp l oye r a nd e vi de n ce i n r e s pe ct of ope n in g ba la n ce i n the C a s h B ook w hic h ha d b e en f ur ni sh e d a n d ha d a ls o be e n see n b y the A O. The A O a l so r e q u ire d the a sse sse e to f ile C e r ti f ic a te fr om Ra m Narain Ed uc a ti on Soc ie ty to sho w the amoun t h a d be e n de p osi te d a n d a l so r e q ui re d he r t o fi l e the r e t ur n . F or r e ad y r e fe re nce , ITA-135/CHD/2020 A.Y. 2010-11 Page 8 of 17 r e le v a nt e xtr a ct f ro m th e a ss es sme n t or d e r r e li e d up on is r e p r od uce d he re un de r :
" ... ... ... ... Vide order sheet dated 29.11.2017, assessee was asked to file Form 16 from employer. Evidence in respect of opening balance of Rs.3,38,508/- in cash book. Furnish certificate from Ram Narain Education Society / Ram Narain School of Education, Kinana Distt. Jind that you deposited fee of Rs.80,90,000/- and asked her to file 1TR online and case adjourned to 07.12.2017........"
(emphasis supplied)
10. Th e sa i d q u e r ie s w e re a ls o re pl i e d to b y the a s se s se e . I n vi ti ng a tte n ti on t o the a sse ssme nt or de r i t w a s s ub mi tte d , th a t t he fol l ow ing r e p ly to the AO a ls o s ta nd s e xt ra c te d a t p a ge 4 of the a s se s sme n t or de r . Th us , i t w a s hi s su bmi ss io n tha t a l l e x pl a n a tio ns c ons is te n tl y on r e cord w ith sup p or ti ng e vi de nce s h a ve b e e n s ho wn a n d a re a va i l a bl e . H e n ce , on me r i ts a l so, no a d d it ion , i t wa s s ub mi tte d, w a s ma i n ta i na b l e . The r e le v a nt e x tr a ct fr om th e a sse ssme nt or de r is r e p r od u ce d he re un de r :
To The Income Tax Officer Ward-2 Bhiwani, Camp at Jind Sub:- In continuation of Reply dated:
-Ref:- Shashi Prabha Tripati H.No. 12, Housing Board Colony, Jind Assessment Year 2010-11.
R/Sir Respectfully submitted that in response to Assessment Proceedings for the Assessment Year 2010-11, the goodself issue/demanded . Copy of ITR for the above said assessment year etc. The reply of the same as under:-
1. Copy of ITR for the year under Consideration is attached here to with.
2. Copy of form No. 16 is not avaible as the employer society has wind up its B.Ed College at Village Kinana. The employer Society paid 3 months salary to the assessee through bank a/c @ Rs. 30000/- p.m. Copy of Bank a/c is attached/already placed on the file for completion of assessment proceeding ledger.
3. Copies of fee receipts and paid to the society for admission of students whom fee received is attached here to with as required by the goodself.
It is therefore requested that keeping in view the above stated facts. Kindly decide the case & Oblige.
Thanking You Sd/-
Yours Faithfully Date:-
30.11.2017 Place:- Jind ITA-135/CHD/2020 A.Y. 2010-11 Page 9 of 17
11. De sp ite the se fa c ts a n d e vi de nces , th e A sse ssi n g O ff ic e r 's a ct ion in ma ki n g t he a d d it ion w as a ssa i l e d . Th e re ason i ng f or th e a d di ti on a s sai le d i s e xtr a c te d he re un de r :
2. The facts necessary for adjudication of the case are that as per AIR information, generated through ITD Application, assessee has made cash deposits amounting Rs. 41.21,700/- into her saving bank accounts maintained with Punjab National Bank, during the financial year 2009-10 relevant to the assessment year 2010-11.
The source of cash deposits so made has not been explained by the assessee in view of the position stated above. In the backdrop of these observations, I have no hesitation in arriving at a conclusion that the assessee has made the cash deposits amounting Rs.41,21,700/- in the saving bank account from her own undisclosed sources. Reliance is placed on the decision of Hon'ble Supreme Court rendered in the case of Roshan Di Hatti v/s CIT (1977) 107 ITR 938(SC), wherein it was held that :-
"The law is well settled that the onus of proving the source of a sum of money found to have received by an assessee is on him. Where the nature and source of a receipt, whether it be of money or other property, cannot be satisfactorily explained by the assessee, it is open to the Revenue to hold that it is the income of the assessee and no further burdon lies on the revenue to show that the income is from any particular source.
2.1 It was obligatory on the part of the assessee to explain the source(s) with documentary evidence(s) of deposits of cash amounting Rs.41,21,000/- into her saving bank accounts maintained with Punjab National Bank; which she failed to do so. Therefore, amount of Rs.41,21,700/- is held to be the deemed income of the assessee for the year under consideration in view of the provisions of section 69A of the I.T.Act, 1961 and the same is added to the total income of the assessee for the assessment year 2010-11.1 am satisfied that me assessee has concealed the particulars of his income at Rs.41,21,700/-. Accordingly, penalty proceedings u/s 274 r.w.s 271(l)(c) of the Income Tax Act, 1961 are initiated separately.
12. Th e s e is su e s, i t w a s sub mi tte d, w e re c a r r ie d i n a p pe al b e f ore the CI T( A ) con te n d in g th a t all n e ce ss ary f a cts and su b mis si ons s to od ma de b e f ore th e AO . H owe ve r, th e a dd i ti on w a s s us ta in e d i n a pp e a l . Agg r ie ve d , the l d. AR submi tte d tha t th e a d d i ti on wa s s ust a in e d by the l d. C I T(A ) on e n tir e ly d if f e re n t f a cts a n d r e a son s wh i ch w e re not e ve n the ca se o f t he AO . Th e d e ci si on o n fa c ts a r r i ved a t b y the CI T( A) w h i ch w a s ITA-135/CHD/2020 A.Y. 2010-11 Page 10 of 17 a ss a i le d b y the ass e ssee is e xtr a cte d he re u nd e r f or th e s a ke of co mpl e t e ne ss :
" 6.2 Ground No. 2 and 3 are regarding addition of Rs. 41,21,700/-unexplained cash deposited in bank account. The appellant submitted that cash deposited amounting to Rs. 41,21,700/- into her saving bank accounts maintained with PNB, Jind during the financial year 2009-10 relevant to A.Y. 2010-11 was in nature of fee deposited by the student during the year under consideration. The appellant during assessment proceeding submitted copy of salary certificate issued by Ram Narayan institute of Education Jind and copy of account of gross fee received. It is seen that Bank account and the books of account of the college were never shown or produced before the AO during assessment proceedings nor during appellate proceedings and the assessee never reconciled these deposits of fees with her bank account entries. It is not even known whether these receipts have been included in the gross receipts or not. The college fee paid by the students, the receipt issued by the college to students subsequently cannot be completely relied upon. The submission of appellant that since she was the principal of college in M/s. Ram Narayan Institute of Education, Jind and her account was used for deposit of all fee receipt in cash it is not appears to be convincing. The appellant is not given any reason as to how the fees were taken only in cash and deposited in her bank account even though the college has a bank account in its name, Moreover the salary was paid to appellant through banking channel and she would be fully aware of the transactions in her account. It is pertinent to mention here that it is not a case of some illiterate person who is not aware of the transactions in her account but principal of an educational institution. In the light of the above discussed fact, the addition made by the AO is justified a s the assessee has not been able to discharge the onus of proving the source of cash deposits i n her account............."
13. I n the c onte xt of t he se fa c ts a nd s ub mis si on s o n r e c or d i gn or in g th e f a ct s ta k e n i n to cons id e r a ti on b y th e AO , t he a d d it ion w a s s ust a in e d i n a p pe a l i gnor i n g fa c ts a n d e vi de n ce s. At te n ti on w a s i nvi te d to the c op y of the ba n k sta te me n t of t he a ss e s see f r om t he P N B Ac cou nt w h e re i n ca s h w a s d e p osi te d w hi c h i s p la ce d a t P a pe r B o ok p a g e 4 t o 9; C op y of t he Emp l oye r C e r ti fi ca t e s ub se q ue n tl y f i le d a va i la ble at P a p e r B o ok p a ge 9 ; C op y of the Ap p oin tme nt Le t te r of th e a ss e ssee i n t he a f or e sa i d p osi ti on , it w a s s ub mi t te d , i s a v a il a b le on re c or d p la ce d a t p a ge 10 ; C opy of th e C a sh B oo k of th e a s se s se e a t p a ge s 1 2 t o 4 3 w h e re i n the fe e s w a s r e ce ive d on be ha l f o f M/s ITA-135/CHD/2020 A.Y. 2010-11 Page 11 of 17 Ra m N a r a i n I n sti tu te of Ed u ca ti on i s a ls o a va i la b l e . The se d ocu me n ts w e re ma d e a v a il a b l e to the AO a s we l l a s th e CI T(A ) w a s h e a vi l y re l ie d u p on. C op y of th e re ce i p t is su e d b y the a ss e s see as e mpl oye d by M /s Ra m Narain I ns ti tute of Ed uc a ti on a va i l a bl e to t he AO a n d th e C I T( A) f o r e ac h o f t he p a yme n ts r e ce ive d f r om th e s tu de nts me n ti on ing t he na me of th e s tude n t a s w e l l a s the cour se a nd the d a te on w h i ch p a yme n t w a s r e ce i ve d b y the a sse ssee f or the I n sti tu te , i t was su b mit te d , i s a va i la b l e a t pa ge s 4 4 t o 7 1 . Ap a rt fr om th a t, co pi e s of re p l y su b mit te d to th e AO a t p a ge 7 1 -72 a nd w ri tten su b mis si ons b e for e the C I T( A) a t p a ge s 7 3 to 7 5 w e re r e l ie d up on .
1 3 .1 I t w a s h is submi ss i on th a t i n th e se fa c ts wh e n t he a ss e s see h a d e xp l a in e d c on si ste ntl y b y w a y of do cume nta r y e v ide nce s th a t th e p a yme n ts we re re ce ive d b y he r o n b e h a lf of M /s Ra m N a r a i n I n sti tu te of Edu ca t ion a nd the se h a d be en d e p osi te d in the ba n k a cc oun ts w hi ch i s be i ng q ue sti one d, C a s h B ook i n su pp or t of th e sa i d c la i m i s ma de a va i la b l e , t he S oci e ty d ocu men ts a va i la b l e con fi r min g t hi s p os it ion are a va i l a b le on re cor d . Th us , in t h i s b a c kg r oun d, a dd i ti on e ve n on me r i ts c oul d no t ha v e be e n ma de . R e fe r r in g to the fa c ts a va i l a b le on re c or d , i t w a s h is sub mi ss ion th a t i t ma y b e se en th a t th e a sse ssme nt ye a r un de r con si d e r a ti on i s 2 0 1 0- 11 i .e . th e f in a nc ia l ye ar 20 0 9 -1 0 a n d the a sse ss me nt or de r ha s be e n ITA-135/CHD/2020 A.Y. 2010-11 Page 12 of 17 p a ss e d on 1 3 . 12. 2 01 7 . Th e a s se sse e h a s re pe a te dl y p l a ce d on r e c or d th a t the so ci e ty w a s d i sba n de d s ub se q ue ntl y a n d t he d ocu me n ts s how i ng tha t the ca s h w a s h a nd e d o ve r to t he S oci e ty i s a fa c t n ot i n d is p ute . In th e ci r cums tan ce s , a dd i ti on co ul d n ot h a ve be e n ma d e .
14. I t w a s a l so hi s s ub mis si on t ha t e ve n o the r wi se Se cti on 6 9 A i s n ot a t tr a cte d a s ne it he r the a sse ssee is ow ne r of t he mon e y a n d it is no t a ca se th a t it i s n ot re c or de d in the b ook s of a cco un t. A s ca s h b ook r e co rd i ng tha t fe e s co lle c te d f or t he I n st itu te fr om t he stu de n ts has be e n p la c e d on r e c ord su p po rt e d b y c op ie s of Re ce ip t its e l f. Ne it he r th e ca s h bo ok n or the cop y of r e ce i pt s i ssued h a ve be e n fa u lte d wi th. Ac cor d i ng ly, it was hi s su b mis si on th a t t he tw o l imb s of S e ct ion 6 9A a r e n ot a ttr a c te d . Re li a n ce w a s pl a ce d up on d e c is ion of th e Apex C ou r t in the ca s e of CIT Vs S mt. P .K .N oo rj a h a n (P a p e r B ook p a ge 1 9-2 1 ) a n d de ci si on of the j ur i sd i cti ona l H i gh C our t i n the ca se of C I T & or s. Vs Ja w a h a r La l O sw a l & or s. ( 1 -1 8) .
15. I t w a s a l so hi s s u b mis si on r e f e r ri ng to t he C I T(A ) 's or de r th a t th e a sse s see ha s be e n fa u lt e d for n ot b e i ng a w a r e de sp ite b e i ng l i te r a te tha t th e fe e s re ce ive d for the I ns titut ion sh oul d h a ve be e n de p osite d in the b a n k a cc oun t of th e I ns ti tut ion a n d n ot i n h e r o wn i nd iv id u a l b a nk a c cou nt . I n re sp onse the re t o, it w a s h is su b mi ss i on th a t no dou b t th a t the a sse ssee i s l i te r a te ITA-135/CHD/2020 A.Y. 2010-11 Page 13 of 17 h ow e ve r , t he a sse ssee is n ot t a x lit e r a te . S in ce on b e h a l f of t he I n st itu ti on, s he w a s c ol le cti ng fee s fr om th e s tud e n ts, she w as un d e r b on a f id e b e l ie f tha t th e re i s n oth i ng w r on g i n tha t . It w a s h i s su bmi s si on th a t to g e t s tud e n ts to j oin the I n st itu ti on in th e hi n te r l and s , th e na me of th e I n sti tuti on and i ts si gn i fi ca n ce i s not so muc h the r e f or t he l oca l p opul a ti on a s f or th e l oca l p op ula ti on, it i s t he c om mon bon d of tr u st a n d un d e r st a nd i ng whi ch th e y ha ve w i th on e o f t he ir o wn . The p e r so na l c ont a cts a n d tr u st i n th e P r i nci p a l i .e . th e a sse ssee on a cc oun t of w hi ch f a ct th e a d mi ss ion s w e re be i ng ma de . I n the ci r cu msta n ce s, the a sse ssee n ot b e in g a w a re o f th e f i na n ci al si gn i fi ca n ce of de po si ti ng the mon e y in he r ow n a c cou nt i ns te a d of the a ccou nt of th e de pos it s i n the I n stitu ti on's B a n k Ac cou nt ma y h a ve ma de b on a f ide mi sta ke b u t as f a r a s t he a d d it ion u nd e r con si d e r a ti on is c once r ne d , it was not ma i nta in a b le i n th e fa ce of the f a ct s a s con si ste ntl y a va i l a b le on r e c or d s up p orte d by d oc ume n ts.
16. Ad d re ss in g the ju r is di c tio na l i ssu e f i r st, th e ld . Sr . DR r e l yi ng u pon the i mp ugn e d or de r su b mit te d th a t th e c a se l a w r e l ie d up on b y the l d . Sr .D R is n ot a pp l ic a b le . Th e a ss ump ti on of j u ri sd i cti on , i t was he r s ubmi ssi on was c or r e ct and in a cc or d a nc e w i th la w. I t w a s a rg ue d tha t th e c ha l l e n ge o f t he a ss e s see i s w it hou t a ny b a si s.
ITA-135/CHD/2020 A.Y. 2010-11 Page 14 of 17
17. On me ri ts , the l d. S r .D R he a vi ly r e l yi ng upon t he i mpu gn e d or d e r s ub mi tte d tha t sh e w ou ld fi r st wa n t t o r e p l y to th e a r gu me n t of t he a s se sse e p le a d in g th a t sh e w a s n ot ta x l it e r a te . I t wa s h e r s ub mis si on th a t i t n ot a q ue sti on of ta x l it e r a cy or o the rwi se a t a l l. I t w a s he r a r gu me n t th a t it i s a ca s e of commo n se n se a l one . S ince the I n sti tu ti on d id ha ve a b a nk a cco un t, the oc ca s ion f or t he a sse ssee to d e p osi t t he mon e y in h e r a c cou nt it w a s a r gue d , w a s a ga i nst a l l di ct a te s of co mmo n se nse its e l f. A s fa r a s th e re a s ons re cor d e d i n the i mpu gn e d or d e r it se l f , i t w a s he r sub mi ss ion th a t the a d di ti on on f a cts h a s cor r e c tl y be e n ma d e .
18. Th e ld . A R i n r e pl y su bmi tte d th a t the ta x a u thor i tie s h ave n ot di sp u te d the cor r e c tne ss of the C a s h B ook ma d e a va i l a ble to the A O. Th e AO h a s r e fe rre d to t hi s C a sh B ook e ve n i n p a ge 3 of hi s or de r w he re i n he ha s r e fe r re d th a t vi d e or de r shee t d a te d 2 9 .1 1 .2 0 17 t he a s se s se e w a s r e q u ire d to f i le F or m 1 6 f ro m e mp loy e r e tc . i nc lu di n g su p p or ti n g e vi de n ce in r e sp e c t of op e n i ng b a l a nce of Rs. 3 ,3 8 , 50 8 /- in c a sh b ook . F u rn i sh ce r tif i ca te fr om R a m N a r a in Ed uc a ti on S oci e t y / Ra m N a r a i n S ch ool of Ed u c a ti on, Ki na n a Di st t. Ji nd th a t fe e of Rs .8 0 ,9 0 ,0 0 0 /- ha d b ee n de p osite d a n d re q u ir i ng he r to f ile 1 TR onl i ne . I t w a s s ub mi tte d , t ha t i n hi n ds ig ht, one c a n sa y th a t c om mon s en se di ct a te s th at th e a s se s se e sh ou ld h a ve d e p osi te d t he f ee s col l e cte d on b eh a lf of t he I ns tituti on i n t he ITA-135/CHD/2020 A.Y. 2010-11 Page 15 of 17 a cc oun t of th e In st itu ti on, how e ve r , t he f a ct th a t sh e w a s not ta x l i te r a te a nd w a s a c tin g u nd e r b on a fi de bel i e f t ha t the st ud e n ts we re joi ni ng on a cc oun t of h e r ow n con ta ct s a n d co nn e ct iv it y. H ow e ve r , it w as hi s s ub mi ssi on th a t w hat st op pe d the AO f r om is sui n g n oti ce s u/s 1 33 ( 6 ) to any of t he p a r ti e s to ve r i fy i f th e co rre ctne ss of t he c la i m ma d e a ll a lo ng w a s d ou bt e d . The re is no e vi denc e or fa c t a va i la b le o n re c ord to r e f ute th a t fe e s was not co ll e c te d on b e ha l f of t he I n st itu ti on. The Emp lo ye r C e r ti f ic a te , the a p p ointme nt l e t te r , th e fe e s re ce ive d on b e h a lf of the I ns tit uti on a n d th e C a sh B o ok a l ong w ith the b an k a cc oun t, a l l d e mon st ra te the se f a cts . 1 8 .1 Acc or d in gl y, i t wa s h i s s ub mi ssi on th a t th e a d d i ti on b oth on a s su mpt ion o f ju r is d ic tio n a nd on me r i ts d es e r ve s t o be d e le te d .
19. I h a ve he a r d the s ub mi ssi on s a n d p e r us e d the ma te r i a l on r e c or d. Th e ca s e la w s re lie d up on h a ve be e n ta ke n i nto co ns id e r a ti on . I t i s a f a ct th a t the a sse ssee w a s ap po in te d a s a Le c tur e r a t R a m N a r a i n Sc hool o f E du ca t ion on 0 1 . 1 0 . 20 0 7 a n d th e Emp lo ye r C er ti fi ca t e t ha t sh e w a s w or ki n g a s P r i nc ip a l i n th e I ns ti tute d a te d 09 . 0 9. 2 0 09 i s a l so a v a il a b le on r e c or d . The C a s h B ook of th e a s se s se e men tio ni ng t he v ouc he r n umb e rs a n d the de p osi t in t he ba n k a cc oun t f or th e sp e c ifi c p e r i od s a t p a ge s 1 1 to 4 2 i s a va i la b le on re cor d . I t has b ee n ma d e a va i l a b le to the AO a ls o a s I h a ve not ice d th a t ref e re n ce to the ITA-135/CHD/2020 A.Y. 2010-11 Page 16 of 17 C a s h B ook ha s be e n ma d e b y h im i n h is q u e r ie s r a i se d to the a ss e s see a s pe r or d e r shee t d a ted 2 9 .1 1 .2 0 1 7 r e fe r re d to b y h im a t pa g e 3 of th e a sse s sme n t or d e r d a te d 13 . 12. 2 01 7 i tse lf . I t is a l so see n tha t th e Re ce ip t B ook of Ra m N a r a i n S oci e ty of Ed uc a ti on q ua the se de p osi ts f or B . Ed /C our s e s is a va i l a b le f ro m p a ge s 4 3 to 7 0 . N one of th ese d ocu me n ts, i t i s s ee n h a ve b ee n f a ul te d w i th b y th e Re ve n ue . C ons ide r in g th e re pl y ma d e b e f ore the A O a s w e l l a s th e CI T( A) on me r i ts, i t is s ee n tha t th e occ a si on to ma ke t he a d d iti on or su sta i n i t i n a p p e a l d i d n ot a r is e . The con si ste nt e vi de n ce on re cor d r e ma i ns un r e b ut te d . In t he a b se n ce of any i nc on si st e n cy in t he a ss e s see 's cl a im a nd non r e bu tta l o f sup p or ti ng d ocu me n ts, t he a d d it ion ca n not be s us ta i ne d a r b it ra ri l y. Th e a d d iti on is d ir e cte d to be de le te d . I t is a l so se e n tha t the asse ssee ha s r a i se d j ur i sd ic tiona l ch a l le nge . O n g oin g th r oug h th e fa cts a va i l a b le in t he a ss e ss me n t ord e r i tse lf w h i ch ha v e be e n e x tr a cte d i n the e a rl ie r p a r t of thi s or d e r i t i s see n t ha t on t he b a si s of w hi ch it ha s b e e n p le a de d t ha t the n otic e s is sue d a t th e i nc or re ct a d dr e ss a re no n e st. The se ha v e bee n e la b or a te d a t l e n gth w hi le r e c or di n g su b mis si ons a d va n ce d on be h a lf of th e a sse ssee , I f in d t ha t the b a l d f in d in g a r r ive d a t b y the ld. C I T( A ) th ough do e s n ot in sp ir e a ny co nf ide nce in t he co rr e ctne s s of th e con cl us ion dr a w n on a ssu mp ti on of j ur i sd i cti on, ho we ve r, si nce th e a d d it ion on me r its ha s b e en ITA-135/CHD/2020 A.Y. 2010-11 Page 17 of 17 d e le te d , the ju ris di ct ion a l i ss ue , a cc or di n gl y, d oe s n ot re q uire any s p e ci fi c a d jud ic a ti on. Ac cor d i ngl y, t he ap p e a l of the a ss e s see i s a l lowe d.
20. 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 i n t h e O p e n C o u r t o n 1 4 t h J u n e , 2 0 2 2 .
Sd/-
( दवा संह ) (DIVA SINGH) या#यक सद य/Judicial Member "पूनम"
आदे श क! त,ल-प अ.े-षत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant -
2. . यथ / The Respondent
3. .आयकर आयु/त/ CIT
4. आयकर आयु/त (अपील)/ The CIT(A)
5. -वभागीय त न2ध, आयकर अपील&य आ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानुसार/ By order, सहायक पंजीकार/ Assistant Registrar