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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. N.S.SAINI & SH. N.K.CHOUDHRY
IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR
BEFORE SH. N.S.SAINI, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER
ITA No.270(Asr)/2017 Assessment Year:2013-14
Income Tax Officer Vs. Sh. Sandeep Aggarwal, Ward-3, Pathankot S/o Sudesh Kumar Aggarwal, Prop. M/s. Navin Steel &, M/s. Shivam Enterprises, Mission Road, Pathankot. [PAN:AAOPA 5021H] (Appellant) (Respondent)
Appellant by: Smt. Ratinder Kaur (Ld. DR) Respondent by: Sh. J.S. Bhasin (Ld. Adv.) Date of hearing: 19.02.2019 Date of pronouncement: 21.02.2019
ORDER PER N.K.CHOUDHRY, JM: The instant appeal has been preferred by the Revenue Department against the order dated 27.02.2017 passed by the Ld. CIT(A)-2, Amritsar, u/s 250(6) of the I.T. Act, 1961 (hereinafter called as ‘the Act’).
The assessee has raised the following grounds of appeal. 1. Whether or the facts and circumstances, the Ld. CIT(A) is right in not appreciating the fact that AO had made addition of Rs.1,67,73,105/- after making a detailed enquires.
Whether or the facts and circumstances, the Ld. CIT(A), Amritsar is right in heavily relying on the judgment of Punjab 86 Haryana High Court in the case of M/s. Amar Chand & Sons in ITA facts No. 243 of 2011 dated 25.11.2017. Whereas the facts of the case are entirely different the case from present case because unlike the case of High Court case, this case has cash deposit just one day before the transfer through RTGS.
ITA No.270 /Asr/2017 (A.Y.2013-14) 2 ITO vs. Sandeep Aggarwal, Pathankot
Whether or the facts and circumstances, the Ld. CIT(A) is right in deleting the addition of expenses made marriage of daughter in which assessee failed to satisfactorily explain sources.
At the outset, it was observed that there is a delay of seven days in filing of the instant appeal. Considering the delay of seven days as meager, we feel it appropriate to condone the delay and therefore the same is condoned, hence proceeded with the merit of the case.
The Revenue Department is aggrieved against the deletion of additions of Rs.1,67,73,105/-. The Ld. DR out rightly submitted that the Ld. CIT(A) has erred in not appreciating the correct fact that in the instant case the AO had made addition after making detailed enquiries. Further the Ld. CIT(A) erred in relying the judgment of Punjab and Haryana High Court in the case of CIT-II, Ludhiana vs. M/s. Amar Chand & Sons in ITA No. 243 of 2011 dated 25.11.2017, whereas the facts of the case are entirely different from the said case decided by the Hon’ble High Court.
On the contrary, the Ld. AR heavily relied upon the order passed by the Ld. CIT(A) and submitted that the order passed by the Ld. CIT(A) is not only in confirmation of the order passed by the Jurisdictional High Court in the aforesaid case, but also based on the independent analyzations and conclusions.
Having heard the parties at length and perused the orders passed by the authorities below. The Ld. CIT(A) while deleting the additions has observed that in all additions, the evidences qua identities of the creditors and genuineness of transactions have been explained and the assessee had discharged his primary onus by furnishing the required documents to the AO and if the AO still doubted the genuineness of the amounts under
ITA No.270 /Asr/2017 (A.Y.2013-14) 3 ITO vs. Sandeep Aggarwal, Pathankot
consideration and creditworthiness of the concerned parties, then should have passed on the information to the concerned AO of the parties for taking necessary action. While deleting the additions, the Ld. CIT(A) also relied upon the decision of the Hon’ble Punjab & Haryana High Court in the case of CIT-II, Ludhiana vs. M/s. Amar Chand & Sons (supra) , whereby it was held " That the assessee cannot be asked to show creditworthiness of his creditors and the AO of the creditor can add the said amount to the income of that creditor, if he has not satisfied by the explanation given and it is not plausible for the assessee to prove the source of the creditors. It has also been recorded as a matter of fact that the amounts have been received by way of bank channel and therefore, it was for the AO of the said creditors to question the said creditors, who were Income Tax assessee and in absence of any evidence, the AO could not have treated the said amount as belonging to the assessee from his undisclosed sources". Having heard the parties at length and perused the orders passed by the authorities below, we are of the considered view that the Ld. CIT(A) thoroughly gone through the peculiar facts and circumstance of the case and considered the amount routed through proper banking channel and satisfied himself about the identities of the creditors and genuineness of the transactions and also perused the required documents and while respectfully following the judgment passed by the Jurisdictional High Court in the case of CIT-II, Ludhiana vs. M/s. Amar Chand & Sons (supra), deleted the additions which are under consideration before us. We do not find any infirmity, illegality, perversity and impropriety in the impugned order , hence we are not inclined to interfere.
ITA No.270 /Asr/2017 (A.Y.2013-14) 4 ITO vs. Sandeep Aggarwal, Pathankot
In the result, the appeal filed by the Revenue Department stands dismissed.
Order pronounced in the open Court on 21.02.2019.
Sd/- Sd/- (N.S.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated:21.02.2019 /PK/ Ps. Copy of the order forwarded to: (1) Sh. Sandeep Aggarwal, S/o Sudesh Kumar Aggarwal, Prop. M/s. Navin Steel &, M/s. Shivam Enterprises, Mission Road, Pathankot. (2) The ITO, Ward-3, Pathankot (3) The CIT(A)-2, Amritsar (4) The CIT concerned (5) The SR DR, I.T.A.T., Amritsar True copy By order
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