Income Tax Appellate Tribunal - Chandigarh
Ssmt. Tripta Rani, Ambala City vs Acit-Cc-1, Ludhiana on 13 June, 2022
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "बी", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH 'B, CHANDIGARH
BEFORE: SHRI N.K. SAINI, VICE PRESIDENT
AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER
ITA No. 135/Chd/2021
(Assessment Year: 2017-18
Smt. Tripta Rani, बनाम The Assistant. Commissioner of
881/7, Urban Estate, Income Tax, Central Circle-1,
Ambala City - 134003. Ludhiana.
थायी लेखा सं./PAN NO: ABJPR6009C
अपीलाथ / Applicant यथ / Respondent
नधा रती क ओर से/Assessee by: Shri Sudhir Sehgal, Adv.
राज व क ओर से/ Revenue by : Shri Sarabjeet Singh, CIT DR
सन
ु वाई क तार"ख/Date of Hearing: 21.03.2022
उदघोषणा क तार"ख/Date of Pronouncement: 13.06.2022
आदे श/ORDER
Per Sudhanshu Srivastava, Judicial Member:
This appeal is preferred by the assessee against the order dated 30.04.2021 passed by the Learned Commissioner of Income Tax (A p p e a ls ) -5, Lud hi a n a [ i n sh or t th e 'Ld. C I T( A) '] , for the assessment year 2017-18.
2.0 Th e br ief facts of the case a re tha t this case pe rtai ns to M/s Rajan group of case s whe re search and se izure ope ration u/s 132(1) of t he I ncome Tax A ct, 1961( he reinafte r calle d 2 ITA No.135/Chd/2021 A.Y.2017-18 'the Ac t') wa s con d uc te d on 0 1. 1 1 .2 0 17 and va r i ous in cr i min a ti ng d o cu me n ts w e re fo un d a n d se iz e d from va r i ous bu si ne ss and r e si de n ti a l p r e mi se s of t he g r oup . Su bs e q ue nt ly , n oti ce u/s 1 53 A of the Ac t w a s is sue d a nd i n re sp on se the re to the a sse ssee fi l e d re tu r n of i n come de cl a r in g i nc ome a t Rs. 1 0 ,3 0 ,07 0 /- w hi c h w a s the same in come as had be e n re fle cte d in the or i gi na l r e tu r n of in come fi le d e a rl ie r on 2 1 .0 9 .2 0 1 7. The a sse ssee de c la re d in come f r om s a la r y, bu si ne ss a n d oth e r sou r ce s .
2. 1 D ur i ng the cou r se of a s se s sme n t p r oce e d i ngs , t he AO (A ss e ss in g O ff ic e r ) o bse r ve d t ha t d ur i ng t he de mone ti za ti on pe r i od t he a sse ssee h a d de p osi te d Rs .1 0 l a cs in h e r p r op r ie torsh i p con ce r n M / s S yn a C r e a tio ns a n d Rs. 1 7 la c s i n a no the r co nce r n M/s W o ol W or l d . Th e AO r e q u ire d the a sse ssee to s ub mi t d e ta i l s of a l l the ca s h de posi ts ma de du r in g th e p e r i od f r om 0 9. 1 1 .2 0 16 to 3 1 .1 2 . 20 1 6 a lon gw i th ce r ti f ie d c op ie s of b a nk a cc oun ts for f in a nc ia l ye ar 20 1 6 -1 7 a nd a l so mon th - wi s e ca s h b ook a n d c a sh sa l e s le dge r for fi na n ci a l ye a r 2 01 6 -17 . The a s ses se e wa s a l so req ui re d to e xp la in the so ur ce of c a sh d e p os it ma d e a nd a l so e xp l a in t he re a son f or ma k in g suc h ca sh d ep os it s a l on gw it h d e ta i ls of pe r son s f r om wh om ca sh h a d b e e n re ce ive d a nd d e pos i te d, e tc. I n re s p onse , the a sse ssee fi le d de ta i le d sub mi ss io n a n d no a d ve r se v ie w w a s ta k e n b y the A O in the c ase o f M/s 3 ITA No.135/Chd/2021 A.Y.2017-18 Woo l W or ld b ut in the c a se of ca sh d e p os ite d i n M /s S yn a C r e a ti ons , a s pe r the AO , t he a sse sse e f a ile d to s ub mi t a ny sa ti sf a cto ry r e p ly r e ga r d i ng ca sh d e p osi te d a nd , th e re f ore , the A O w e n t on t o h ol d th a t t he a ss e s see h a d i ntr od u ce d he r ow n u na c cou nte d mone y i n the g a r b o f s a le dur in g t he de mone ti za ti on p e r i od . Th e A O ob s e r ve d t ha t the a sse ssee wa s the ow ne r of th e mon e y a p pea r i ng i n t he b a nk a c cou nt a nd , th e re f ore , the sa me w a s c ha r ge a b le to ta x u/s 6 9 A of the A ct . The AO a ls o in vo ke d t he p r ov is ion s of se cti on 11 5 B B E o f th e A ct a n d he ld th a t ta x wa s i mp os a b le @ 6 0 %. Th e a ss e s sme n t was comp l e te d at an inc ome of Rs. 20 , 3 0, 0 7 0/-.
2. 2 N ow th e a sse ss ee has a p pr oa c he d th i s Tri b un a l cha ll e n gi ng the or d e r of t he Ld . C I T( A) by r a i si ng t he fol l ow in g gr oun d s:
"1. That the Ld. CIT(A)-5, Ludhiana, has erred in confirming the action of the Ld. Assessing Officer in computing the income at Rs. 20,30,070/- against the returned income of Rs. 10,30,070/-.
2. That the Ld. CIT(A)-5, Ludhiana, while confirming the addition of Rs.10,00,000/- on account of deposit of cash in the regular bank account of the assessee and has ignored the facts that the assessee is maintaining regular books of accounts, which are duly audited and no defects have been found either by the AO or by the worthy CIT(A)-5, and, therefore, rejection of the valid documented evidence has been ignored summarily by the Worthy ClT(A)-5, Ludhiana and which is against the facts & circumstances of the case.4 ITA No.135/Chd/2021
A.Y.2017-18
3. That the Ld. CIT(A)-5, Ludhiana has erred in confirming the addition without rejecting the regular books of accounts u/s 145(3) and, therefore, that the books of accounts having not been rejected, it is settled law that the addition cannot be sustained and which fact have been ignored by the CIT(A).
4. That the Ld. CIT(A), have failed to appreciate that due to the need of business i.e. embroidery work is done by assessee. She is consistently engaged for the last number of years in this business model with M/s Rajan Enterprises, whereby, cloth is purchased from Rajan Enterprises & then after embroidery work, sale of cloth with embroidery is again made to 'M/s. Rajan Enterprises' and others and, such, entries have been accepted both in the hands of M/s. Rajan Enterprises and in the case of the assessee and, therefore, the findings of the CIT(A) that it is just an arrangement between the two parties and confirming the addition of Rs. 10,00,000/- is not proper.
5. That the CIT(A) has also erred in confirming the applicability of provision of Section 115BBE, of the Income Tax Act, 1961.
6. That the appellant craves leave to add or to amend any of the grounds of appeal before the appeal is finally heard or disposed-off."
3. 0 Th e Ld . A R a l so d r e w o ur a tt e ntion to the a d d iti on a l gr oun d of a p p e a l fi l e d b y the a sse ss ee w hi ch re a ds a s u nd e r:
"Notwithstanding the above said ground of appeal, the assessment as framed by the Assessing Officer deserves to be quashed since "Mandatory Approval" as given by the Ld. Addl. CIT u/s 153D is without any application of mind and being a 'Mechanical Approval" only, the assessment as framed by the Assessing Officer at an income of Rs. 20,30,070/- deserves to be quashed in view of the binding judgment of Hon'ble Jurisdictional Bench of ITAT, in the case of Inder International in ITA No.1573/Chd/2018."5 ITA No.135/Chd/2021
A.Y.2017-18
3. 1 Th e Ld. AR s ub mi tte d th a t th i s a d d iti on a l g r oun d g oe s to th e ve r y r oot of t he ma tte r a nd i s a le g a l g roun d a nd , the re fo re , the same sh oul d be a dmi tte d a nd a dj udi ca t e d in vi e w of the j ud gme nt of th e H on'b l e Ape x C our t i n t he c ase of N a ti ona l Th e r ma l P ow e r C o. Ltd . Vs. C I T, re p or te d in (1 9 9 8) 22 9 I TR 3 8 3 (S C ) .
3. 2 . Th e Ld .C I T DR opp os e d the p r aye r o f a d mi ssi on of a dd i ti ona l gr oun d .
3. 3 . Af te r con si de r in g the su b mis si ons of b oth the p ar ti e s a nd lo ok in g i nto t he n a tu re of g r oun d r a i se d by t he a sse sse e , we a gr e e w i th t he con te n ti on of t he Ld. AR tha t it is a l e ga l g ro un d w hi ch goe s i n to t he ve ry r oot o f the ma tte r a nd , th e re f ore , we a d mi t t he sa me .
4. 0 Ar g ui ng th e a dd iti on a l gr oun d r a i se d b y the a s ses se e, the Ld. AR sub mi tte d th a t the a sse sse e w a s c ha l le n gi ng t he a sse ssme nt on th e gr oun d t ha t th e ma n d a tor y a p pr ov al giv e n u /s 15 3 D o f t he Ac t b y th e Ld. Ad d l .C I T ha d b ee n g iv e n wi th out a ny a pp l i ca ti on of mi n d a n d thu s t he a sse ssme nt or de r de se r ve d to b e q ua s he d. In t hi s re ga r d , re li a n ce w as pl a ce d on t he or d e r of the I TA T C ha n d iga rh B en ch i n t he ca se of M/s I n de r I nte r na tio na l Vs. A CIT in I TA N o.1 5 7 3 /C hd /2 0 1 8 vi de or de r d a te d 07 . 0 6. 2 0 21 . 6 ITA No.135/Chd/2021
A.Y.2017-18
4. 1 In re s pon se , the Ld . C I T DR su bmi tte d tha t t he con te n ti on o f the Ld. A R r e ga r d i ng me ch a n ic a l a p p r ova l w a s fa ct ua l l y i nc or r ect . It was s ub mi tte d tha t a l t h ough t he a pp r ov a l mi gh t h a ve not be en in e la b or a te te r ms , the a pp r ov a l w a s gr a nt e d a fte r d ul y c ons id e r i n g th e f acts of the ca se a nd a f te r due a pp l ic a ti on o f mi nd b y th e Ld . A d dl . C I T. Th e Ld. C I T D R s ub mit te d t ha t th e a s se sse e sho uld a r gu e t he ca se on me r i ts ra th e r th a n tr yi ng to e sc a pe t he r ig our s of in come tax by ta k in g a feeb l e le ga l gr ound l a ck i ng fou nd a ti on
5. 0 O n me r i ts of th e c a se , t he Ld . A R su bmi tte d th a t t he a sse sse e , du r ing th e ye a r un d e r con si de r a ti on , was pr op r i e tor of tw o c onc e r n s n a me ly/s W oo l W or l d , w h ic h w a s e ng a ge d i n t he b u si ne ss o f tr a d i ng o f te xti le , an d of M /s Syn a C re a ti ons , w hi ch wa s e ng a ge d in t he bu si ne s s of pu r ch a se and sa l e of c lo th a nd was a ls o ca rr yi ng on bu si ne ss of e mb r oi d e r y whe re in th e cl oth w a s p ur ch ase d fr om th e ma r k e t a nd w a s s old to one of t he fa mi l y con ce r ns M /s R a ja n Ente r pr i se s. I t w a s s ub mi tte d tha t th e a ss e ssee ha d be e n re gul ar l y fi li n g he r ret ur n of in come y e a r a fte r ye a r and had a ls o b ee n ma i nta i n in g r e g ul a r boo ks of a ccou nt wh i ch we re d ul y a ud i te d a n d the a sse ssee w as ma in ta i ni ng suc h b ook s of a cc oun t fo r b oth th e con ce r ns se p a r a te ly. Dr a wi ng ou r a tt e n tion to the a s se s sme nt or d e r, 7 ITA No.135/Chd/2021 A.Y.2017-18 the Ld . AR su b mi tt e d th a t the A O ha s n ot po in te d out to a ny di sc r e p a nc y i n th e b ook s of a cc oun t b e in g ma in ta i ne d b y t he a sse sse e a nd f ur th e r t he b ook s of a cc oun t ha ve a ls o not be e n re je c te d in e it he r of th e tw o con ce r n s. He a l so d re w our a tte n ti on to the ob se r va ti on of th e A O th a t t he sa id b ook s of a ccou nt ha d b ee n p r od uc e d be fo re the AO a n d t he re q ui si te in for ma t ion , de ta i ls a nd e xpl a n ati on ha d b ee n f il e d be fore the A O . I t w a s fu rt he r su b mit te d th a t a lth ou gh th e A O h a d a cce pte d the de pos i t of Rs. 1 7 la cs i n the b ook s o f M /s W ool Wor l d , he d i d n ot a cce p t t he ca sh d e p osi t of Rs .1 0 l a c s i n M /s Sy na C r e a tion s, a nd tha t too, w i th out a ss igni n g a ny re a son . He d re w ou r a tte nt ion to th e re p l y da te d 20 .1 1 .2 0 1 9 sub mi tte d to t he AO in th i s r e ga r d w he re i n the a sse s see h a d pr od u ce d de ta il s of ca s h s a le s, mon thl y c a sh bo ok , mon th ly ca sh i n ha n d , c a s h s a l e a s w e l l a s th e d e t a il s of amoun ts re ce i ve d f r om the v a r io us de b to rs b e fore de mo ne t iz ati on pe r iod . Th e L d . A R r e i te ra te d th a t not hi ng i n th is r e ga r d ha s be e n d oub te d b y th e AO . O ur a tte n tio n wa s a l so d ra w n to a noth e r re p ly submi tte d b y th e a sse ssee da te d 1 8 .1 1 .2 0 1 9 wh e re in t he a sse s see had f i le d co py of a ccou nt of t he a sse sse e i n the b ook s of M /s R a ja n Ent e r p ri se s w i th w h om ma jor t r a ns a cti o n w ith re spe c t to pu r ch a se of cl oth h ad ta k e n p l a ce a n d i t w a s p oi nte d ou t th a t the AO h a d not dou b te d the ve ra ci ty of th e same . Th e Ld . AR su bmi tt e d 8 ITA No.135/Chd/2021 A.Y.2017-18 tha t , th us , i n e f fe ct , the A O h a d ma de the a dd i ti on w i th out poi n ti ng out a ny di sc r e p a nc y in the b ook s of a c cou nt e spe c ia ll y w he n a ll th e ca s h e nt rie s ha d b ee n d u ly in cor p or a te d i n the re gul a r b ook s of a ccou nt .
5. 1 Th e Ld . A R a ls o d r e w our a t te n tion t o the su bmi s s io ns ma de b e fo re th e Ld . C I T( A) w he re in the a s se s se e h ad sub mi tte d th e de ta il s of sa l e s f r om a s se s sme nt yea r 2 01 4 -1 5 to a ss e ss me n t ye a r 20 1 8 -1 9. Th is ch a rt is r e p r od uce d he re in un de r f or re a d y re fe re nce :
Assessment Year Sales
2014-15 56.95 Lacs
2015-16 59.98 Lacs
2016-17 90.39 Lacs
2017-18 97.47 Lacs
2018-19 450.77 Lacs
5. 2 I t w a s p oi n te d out t ha t a l l s a le s h a d b ee n a c ce pte d i n
e a r lie r ye a r s a s w e l l a s t he i mme d ia t e l y s uccee di ng y e a r a n d tha t e ve n the sa l e s ma d e d ur i ng th e ye a r u nde r con si de r a ti on had b e e n a cce p te d by the AO . I t w a s al so sub mi tte d t ha t, th us , w h e n the sa l e s h a ve be e n a cce p te d , pu r ch a se s h a ve b ee n a cce pte d , jo b w or k ch a r ge s , jo b w or k re ce i p ts and re a li z a tio n fr om s u nd r y d e b tor s h a ve be en a cce pte d a n d t he b ook s of a c count h a ve no t be en r e je c te d , no a d d i ti on cou ld h a ve bee n ma d e w i th re s pe ct to c ash de po si t.
9 ITA No.135/Chd/2021
A.Y.2017-18
5. 3 D r a w in g o ur a tte n ti on to t he or d e r o f the Ld . Fi r st Aut hor i ty, th e Ld . A R sub mi tt e d th a t th e Ld .C I T( A) ha s con fi r me d t he a dd iti on on l y o n a c co un t of t he f a ct tha t th e re wa s no c a sh sa l e s in e a r l ie r ye a rs a s co mp a r e d to t hi s ye a r bu t he h a d tot a ll y i gno re d th a t th e re we re ca s h r e al iz a ti on fr om th e d e b tor s in e a rl ie r as well as the ca p ti one d a sse ssme nt ye a r. It w a s s ub mit te d th a t t he Ld. C I T( A) a l so dou b te d the ge nu in e ne s s of the tr a ns a cti on wi th M /s Ra j a n Ent e r pr i se s re gar d in g t he a mou nt of Rs. 1, 2 0 ,0 00 /- b e i ng re cove r y o f outs ta n di n g, b ut a ga in, th e re w a s n o b as is f or dou b ti ng t hi s f a ct w h e n a l l the oth e r e n tr ie s h a d b e e n d u ly a cce pte d . Th e L d . A R ve he me n tl y a r gue d t ha t the lowe r a uth or it ie s h a d me r e l y a c te d on su r mi s e s a n d c on j e ctu re s a nd th e a d d i tio n b a s e d on su ch sur mi se s a n d co n je ctu res cou ld not b e su sta i ne d .
6. 0 I n re sp on se t o t he a r gu me n ts r a i se d b y the Ld . A R on the me r it s of the ca s e , t he Ld. C I T D R p l a ce d e x te n si ve re li a n ce on the ob s e r va ti on of th e AO as we l l as t he Ld. C I T( A) on the is su e . Th e Ld . C I T D R ve he me ntly a r gue d tha t the Ld .C I T( A ) h a s r i gh tly ob se r ve d th a t ther e w a s no pa s t h is tor y o f the a sse ssee re gula r l y d e p os it in g c a sh i n t he ba n k a cc oun t of M /s S yn a C r e a ti on s a n d su dd e nl y i n t he wa k e of de mon e t iz a ti on, ca s h of Rs .1 0 la c s had b e en de po si te d w h i ch r a i se d se r ious d ou bt s a b ou t t he 10 ITA No.135/Chd/2021 A.Y.2017-18 ge n ui ne ne ss of the tr a n sa c tio n. Th e Ld .C I T D R p o in te d out pa g e 3 4 of t he imp u gne d or de r wh e re in the Ld .C I T(A ) ha s obs e r ve d th a t most of the ca sh re ce ip ts we re f r om M/s Ra j a n Ent e r pr i se s, whi ch was a not h e r f a mil y co nc e r n, a nd , a pp a r e n tl y, the re w a s a n a r r a nge me nt to r ou te the c a sh be twee n the d i ffe re n t fa mi l y c onc e r n s w i th out cond uc ti ng re gul a r b us ine s s a ct ua l ly . H e al so p oi nt e d out tha t t he Ld. C I T( A) has ri gh tl y o bs e rve d th a t the re was no re q ui re me n t to r e ce ive a n d de p osi t th e c a sh e ve r y d a y w h e n bot h the p a r tie s i. e . M/s Ra j a n Ent e r p ri se s a nd M /s S yn a C re a ti ons we re s it ua te d a t the sa me p l a ce a nd , the re f ore, the se tr a n sa ct io ns w e re a ct ua l ly me a ns to i nt ro du ce un a ccou n te d c a sh i n th e b ook s of a cc oun t un de r th e ga r b of job w or k . Th e Ld .C I T DR s ub mi tte d th a t, the r e fo re , the a pp e a l of the a sse ssee de se r ve d to t he d i smi sse d an d he a l so sup p or te d t he a cti on of th e A O in i nv ok in g t he pr ov is i ons of se 1 15 B B E of t he A ct.
7. 0 W e ha ve he a r d the r i va l s ub mi ssi on s a nd h a ve a l so gon e th ro ugh the r e co rd s . F ir s t we w oul d li ke to pr oc ee d to a dj ud i ca t e on t he me r i ts of the ca se . I n gr oun d N os .2 , 3 a n d 4, th e a ss e ssee ha s c ha l le nge d th e a cti on of th e L d. C I T( A) i n con fi r min g th e a d d iti on of Rs .1 0 la c s on a cco un t of d e p os it of ca sh d u ri n g th e de mon e ti za tio n p e ri od . It has be e n a rg ue d b y t he Ld . AR th a t the asse ssee ha s be en r e g ul a r ly 11 ITA No.135/Chd/2021 A.Y.2017-18 ma in ta i ni ng the bo oks of a c cou nt w h ic h a r e d ul y a u d ite d a nd a l l th e ca sh de po si ts, w h ic h th e A O h a s he l d to b e sh a m tr a ns a cti on s, w e r e r oute d thr ough the bo oks of a c cou nt ma in ta i ne d b y t he a ss e ssee . I t ha s b e e n fu r the r a r gu e d by the Ld . AR th a t no d e fe ct i n the se b ook s of a c cou nt ha s be e n poi n te d ou t b y the A O a nd n e i the r the se b ook s ha v e be en re je cte d . I t h a s a ls o b ee n a r gue d b y th e Ld . AR that th e re i s no b a r a ga i n st h a v in g fi na nci a l d e a l i ng s wi th s is ter con ce r ns a nd , t he re fore , to re je ct t he c onte n tio n of th e a sse ssee tha t ca sh d e p os it s ema n a te d f r om r e c e i p ts fr om si ste r con ce r ns or s a le s, wa s not c or r e ct i n the e ye s of l a w . I n th i s r e ga r d, we f ul ly a gr ee w ith the con te nti on of th e Ld . AR t ha t th e A O ha d n o soun d r e a son to r e je ct the con te n ti on of th e a sse ssee vi s-à -v is the sou r ce of c a sh d ep osi ts ma de i n th e b a n k a ccou nt of M /s S yn a C r e a ti on s e sp e ci a l l y w he n the de p osi ts ha v e b ee n r ou te d thr ou gh th e r e g ul a r b ook s of a ccou nt of the a sse s see . I t is a l so a c a se in p oi n t th a t bo ok s of a c cou nt ha v e n ot be e n re je c te d a n d the AO h a s a cc e p te d t he sa le s a s we ll a s p u r ch a se s a n d a l so the e xpe n se s c l a ime d b y t he a sse sse e a n d h a s o nl y f oun d f a ul t w i th th e q u a nt um of c a sh de po si ts du r ing th e de mo ne tiz a ti on pe r i od . Thu s, a pp a r e n tl y, th i s imp u gne d a d d it ion h a s b ee n ma de w i th out a ny fou nd a ti on a n d in ou r co nsi d e re d vie w , the A O ha s a cte d on me re sur mi se and con j e ctu re s w ithou t d u ly 12 ITA No.135/Chd/2021 A.Y.2017-18 a pp r e c ia t in g the u nd i sp ut e d fa ct th a t he hi ms e l f has a cce pte d t he b ook s of a c cou nt a s w e l l a s t he b ook re su lt s. Th e Ld .C I T( A ) ha s a l so up h e l d th e fi n di n gs of th e A O w i th out a ssi gn in g a ny c oge nt re a s on a nd h e a l so se e ms to h a ve si mpl y a p p r ove d the a d d iti on w i thou t p r op e r a p p rec ia ti on of fa ct s. I t i s a ls o to b e n ote d tha t on t he sa me se t of fa c ts, t he AO h a s a cc e p te d th e c a sh d e pos it of Rs. 1 7 l a cs in ano the r pr op r i e tor s hi p con ce r n o f t he ass e ssee na me ly M /s W ool Wor l d b ut ha s pr oc ee de d to d ou bt the ca s h d e pos ite d i n t he pr op r i e tor s hi p conc e r n M/s S yna C r e a t ion s w ithou t any coge nt re a s on. Th e re f ore , on ov e ra l l fa c ts of th e c a se , we are of co ns id e re d v ie w th a t the i mp ugn e d a d di ti on wa s not ca l le d for e spe c ia ll y w h e n th e a sse sse e 's b ook s o f a c cou nt ha v e n ot b ee n rej e cte d a n d a ll th e in come a nd e xp e n se s a n d the b ook r e s ul ts ha v e b e e n a cce p te d e xce p t th e ca sh d e p os it wi th out the re be in g a ny io ta of e vi d e n ce , w hi c h w ou ld p oi nt out tha t th e a s ses se e h a d d e p osi te d he r un a cco un te d mon ey un de r t he ga r b of sa l e s or re ce ip ts fr om s is te r conce r n M/s Ra ja n E nte r pr i se s. Thu s, i n our c on si de re d v ie w , the AO ha s pr oc ee de d i n a ve r y h a st y a n d an i ll og ic a l ma nn e r w i th out ta k in g a h oli st ic vi e w of th e e nt ire ca s e r e cor d be f or e hi m. I t is a ls o to be n ote d t ha t t he c a pti one d c a se wa s a se a r ch ca se a nd e ve n du r in g th e c our se of se a r ch no i n cr i min a ti ng ma te r i a l w a s f o un d w h ic h w ou l d p oin t out t o w a rd s t he 13 ITA No.135/Chd/2021 A.Y.2017-18 a sse sse e in tr od uc in g h e r un a ccoun te d c a sh i nto th e b ook s of a c cou nt un d er th e g a r b of s al e s o r re ce ip ts fro m si ste r con ce r n . Th e r e f or e , we fi n d ou r se lv e s u na b le to c on fi r m t he vi e w t a ke n b y th e Ld .C I T( A ) i n up h old i n g t he ad d i tio n of Rs. 10 la c s a nd w e se t a si d e t he ord e r of th e Ld . C I T( A) on t he is sue a n d d i re ct th e AO to de le te th e s a me .
7. 1 As f a r a s th e a sse sse e 's le ga l grou nd c ha l l e ng ing t he va l id i ty of a ss e ss me n t p r oc ee d i ngs f or wa n t of va l i d a p pr ov a l u/s 1 5 3 D of th e A ct i s con ce r ne d, we a re n ot i nc li n e d to go in to t hi s i s sue at t he p re se nt mome n t a s w e h ave a l lowe d comp l e te re l ie f to th e a sse ssee on th e me ri ts of the ca se a n d thi s a d d it ion a l g ro un d has be come a c a d e mi c in na tu r e . Acc or d in gl y, thi s g ro un d i s d i s mi ss e d a s h a vi ng be come in fr u ctu ous .
8. I n t he fi n a l r e sult , the a p pe a l of th e a ss e ssee sta n d s pa r tl y a l low e d.
O r d e r p r on o u n ce d o n 1 3 .0 6 . 2 0 22 .
Sd/- Sd/-
(N.K. SAINI) (SUDHANSHU SRIVASTAVA)
उपा य /Vice President याय क सद य/Judicial Member
Dated: 13.06.2022
*रती*
14 ITA No.135/Chd/2021
A.Y.2017-18
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 न1ध, आयकर अपील"य आ1धकरण, च3डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar