COMMISSIONER OF INCOME TAX-II, AMRITSAR vs. PARVESH MAHAJAN ETC.

ITA No.193 of 2012 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision: May 07, 2013 ITA No. 193 of 2012 (O&M)

The Commissioner of Income Tax-II, Amritsar …Appellant Versus Parvesh Mahajan …Respondent CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA HON’BLE MS. JUSTICE RITU BAHRI Present: Mr. Denesh Goyal, Advocate for the appellant. Ms. Radhika Suri, Advocate for the respondent. 1 To be referred to the Reporters or not? 2 Whether the Judgment should be reported in the Digest HEMANT GUPTA, J. (ORAL) The present appeal under Section 260-A of the Income Tax Act, 1961 (for short 'the Act') is directed against an order passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (for short 'the Tribunal') on 11.04.2012 for the assessment year 2007-08. The Revenue has claimed the following substantial questions of law: i) Whether the ITAT was justified in reversing the order of CIT (Appeals) wherein addition of Rs.53 lakhs was confirmed as unexplained investment for purchase of land? ii) Whether the ITAT, Amritsar Bench, Amritsar is right in holding that the assessee has discharged her onus of proving the sources of Rs.53 lakhs when the Kumar Vimal 2013.05.09 10:59 I attest to the accuracy and integrity of this document Chandigarh

ITA No.193 of 2012 (O&M) -2- documents relating Agreement Deed with SAR Stitchers Pvt. Ltd. were defective and that too was against the statement of assessee recorded under Section 131 of the Income Tax Act, 1961? iii) Whether the ITAT, Amritsar Bench, Amritsar is right in holding that the assessee has discharged her onus of proving unexplained investment when the assessee had stated in her statement recorded u/s 131 on 17.08.2009 that she had purchased land by raising a loan from M/s Shri Ram Chander Finance Co. Pathankot but at the end of proceedings on 21.12.2009 she changed her stand stating that the funds had been raised from M/s SAR Stitchers Pvt. Ltd. Delhi whereas the balance sheet of M/s SAR Stitchers Pvt. Ltd. Delhi shows closing balance of Rs. 6,58,644/- as cash balance as on 31.03.2007 and the sum of Rs. 52 Lakhs received back is not reflected in their statements? The assessee filed her return of income declaring income of `1,44,840 on 17.03.2008. Vide order dated 22.12.2009, the income was assessed at `54,44,839/-. The assessee filed an appeal before the learned Commissioner of Income Tax (Appeals). Learned Commissioner of Income Tax (Appeals) confirmed the addition of `53 lacs made by the Assessing Officer on account of unexplained investment for purchase of land from Radha Swami Satsang Beas, Karan Ban, Jammu. However, in further appeal, the Tribunal has deleted the addition as the assessee is said to have explained the sources for purchase of land during the year in question. Learned Tribunal has found that a sum of `52 lacs was received from M/s SAR Stitchers Pvt. Ltd. Delhi on 05.01.2007. The Tribunal also noticed that `60 lacs was paid in cash to Radha Swami Satsang Beas, Karan Ban, Jammu, which deposit finds Kumar Vimal 2013.05.09 10:59 I attest to the accuracy and integrity of this document Chandigarh

ITA No.193 of 2012 (O&M) -3- mention in the accounts of seller. The Tribunal has taken into consideration the record produced by the assessee in respect of transaction entered with copy of confirmations, PAN number, Income tax particulars and audited accounts of the lendor. We find that the finding that the investment of `52 lacs was duly explained by the assessee, is a finding of fact and such finding of fact does not give rise to any substantial question of law. Consequently, the appeal is dismissed. (HEMANT GUPTA)

JUDGE

(RITU BAHRI)

JUDGE 07.05.2013 Atul/Vimal Kumar Vimal 2013.05.09 10:59 I attest to the accuracy and integrity of this document Chandigarh