NEENA AGGARWAL vs. COMMISSIONER OF INCOME TAX

ITA/368/2015HC Punjab & HaryanaPHHC01110015201517 November 20158 pages
AI SummaryDismissed

What were the facts?

The assessee, Neena Aggarwal, an appellant, is challenging an order passed by the Income Tax Appellate Tribunal (Tribunal) for the assessment year 2008-09. The assessee, who runs a boutique, sold a piece of land for ₹10,00,000 in September 2007, receiving a cheque. This cheque was cancelled, and two bearer cheques totaling ₹9,00,000 were drawn from her savings account. She withdrew this amount and deposited it in installments into her bank account. During the period September 2007 to March 2008, she deposited a total of ₹12,12,000 in her bank account, comprising sale proceeds from the plot and her boutique business. The Assessing Officer (AO) treated ₹12,12,000 as unexplained deposits and made an addition. The Commissioner of Income Tax (Appeals) [CIT(A)] and the Tribunal affirmed this addition. The assessee appealed to the High Court.

What did the High Court hold?

The High Court held that the appeal lacked merit and no substantial question of law arose. The Court found that the Assessing Officer, CIT(A), and the Tribunal had concurrently recorded that ₹12,12,000 constituted unexplained deposits/investment in the assessee's bank account. The authorities below had considered the sale of the plot and the boutique business receipts but found that the dates of deposit and availability of cash did not tally. The Tribunal specifically noted that even if the bearer cheques were issued, it was not possible to encash them on the same day as the sale deed execution, and the subsequent installment-based deposits of the remaining amount were not satisfactorily explained. The Court concluded that the approach of the lower authorities was plausible and based on material on record, warranting no interference. Therefore, the appeal was dismissed.

What were the issues?

1. Whether the impugned order of the Tribunal is perverse and contrary to the record? (Question of law) 2. Whether the Tribunal passed the impugned order on assumption and surmises? (Question of law) 3. Whether the appellant is liable to pay income tax when she undisputedly sold a piece of land? (Question of mixed law and fact) Arguments: Assessee: The assessee argued that the Tribunal's order was not legally sustainable as it was based on surmises and conjectures and that the Tribunal had acted arbitrarily in holding that the deposits could not be satisfactorily explained. The assessee relied on the fact that she had sold a piece of land. Revenue: The revenue did not present any arguments as recorded in the judgment. The judgment states, "After hearing learned counsel for the appellant-assessee, we do not find any merit in the appeal."

Which sections of the Income-tax Act were involved?

Section 260A,Section 143(1)(a),Section 143(2),Section 143(3),Section 44AF

AI-generated summary — verify with the full judgment below

-1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CM Nos. 20803 to 05-CII of 2015 Date of Decision: 17.11.2015 Neena Aggarwal ....Appellant. Versus Commissioner of Income Tax, Panchkula ...Respondent.

1.

Whether the Reporters of the local papers may be allowed to see the judgment?

2.

To be referred to the Reporters or not?

3.

Whether the judgment should be reported in the Digest? CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE RAMENDRA JAIN. PRESENT: Mr. Jagmohan Bansal, Advocate for the appellant. AJAY KUMAR MITTAL, J. CM No. 20803-CII of 2015 Application is allowed and the delay of 277 days in refiling

the appeal is condoned. CM No. 20804-CII of 2015 Learned counsel for the appellant submitted that the deficiency in court fee has been made good, the delay, if any, be condoned. Application is allowed and the delay, if any, in making good the deficiency in court fee, is condoned.

1.

This appeal has been preferred by the assessee under GURBACHAN SINGH 2015.11.28 12:43 I attest to the accuracy and authenticity of this document High Court Chandigarh -2

The order continues below.

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