NIRMAL SINGH,BAHADURGARH vs. ITO, W-6, PATIALA

आदेश/Order

The present appeal has been preferred by the assessee against the order dated 30.10.2018 of the Commissioner of Income Tax (Appeals), Patiala [hereinafter referred to as ‘CIT(A)’].

cash deposits which was found deposited in the account of the assessee. The Assessing Officer treated the said deposit as ‘unexplained income’ of the assessee.

ITA No. 1596-Chd-2018- Sh. Nirmal Singh, Patiala 2 3. In appeal before the CIT(A), it was explained that, in fact, the

said amount was deposited by the assessee in his account after receiving

the same from one Shri Rajinder Singh. The assessee further explained

that, in fact, the assessee intended to send his son to Australia on

study Visa, for which the assessee had to show his creditworthiness for

which the temporary deposits were made in the bank account after

arranging the same from Shri Rajinder Singh, who is a private financer.

The assessee took the help of Shri Munish Kumar and Vinod Kumar who

introduced the assessee to Shri Rajidner Singh. The assessee in this

respect filed the factual evidence in the shape of affidavits of the

concerned persons and also bank account statements of Shri Rajinder

Singh to prove the withdrawals of the said amount from his account

which was further deposited in the assessee’s account. The Ld. CIT(A)

called for the remand report from the Assessing Officer in this respect, Shri Rajinder Singh appeared before the Assessing Officer and confirmed that he had given the aforesaid amount to the assessee after

withdrawing the same from his bank account which was further

deposited by the assessee in his saving account. He also confirmed that

he was introduced to the assessee by Shri Munish Kumar and Shri Viond

Kumar. The Ld. CIT(A), however, confirmed the additions made by the

Assessing Officer on the ground that one of the middleman Shri Vinod

Kumar did not accept the summons and even told the concerned

Inspector, who had gone there to deliver the summons, that he had

nothing to do with the aforesaid transaction.

ITA No. 1596-Chd-2018- Sh. Nirmal Singh, Patiala 3 4. I have heard the rival contentions and have also gone through the

record. In this case, the concerned person namely Shri Rajinder Singh

has personally appeared and confirmed that he had paid the amount of

Rs. 18.43 lacs to the assessee. He has also confirmed / proved the

aforesaid fact by producing the bank account statement. Further, the

amount was paid back to him by the assessee after withdrawing the

same from his bank account after a short span of time. The assessee has

also explained the reasons for getting the said short term loan which

seems to be plausible. Merely because Shri Vinod Kumar has not turned

up, may be because of his own certain apprehensions, however, the

assessee, in my view, has been able to prove the source of deposits as

well as reason for the deposits and under the circumstances it does not

appear to be the unaccounted income of the assessee.

In view of this, I do not find any justification on the part of the

lower authorities in making the impugned addition and the same is

accordingly ordered to be deleted.

In the result, the appeal of the assessee is treated as allowed.

Order dictated and pronounced in the Open Court immediately on

completion of hearing

Sd/-

(संजय गग� / SANJAY GARG) �या�यक सद�य/ Judicial Member Dated : 10.06.2019 “आर.के.”

ITA No. 1596-Chd-2018- Sh. Nirmal Singh, Patiala 4 आदेश 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�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar