INCOME TAX OFFICER, WARD-6(2) JAIPUR, NCRB, JAIPUR vs. SH. PANKAJ MEENA, JAIPUR

The appeal of the revenue and cross objection of the assessee were heard together and with the consent of the parties we considered it to dispose of by this consolidated order.

The grounds of the appeal filed by revenue are as under :- 1 On the facts and circumstances of the case and in law, the order of Ld. CIT (A) is contrary to the facts and also the law applicable to the facts of the case.

On the facts and circumstances of the case and in law, the Ld. CIT(A) is not correct in giving relief to the assessee and holding that the property pertaining to the firm in spite of the fact that the property was registered in the name of the assessee partner not the firm.

On the facts and circumstances of the case and in law, the Ld. CIT (A) erred in allowing the appeal of the assessee by holding that addition under section 56(2) of the Income-tax Act is not applicable in assessee's case as the property was purchased/payment was made prior to 01.04.2013 in spite of the fact that 3 ITA No. 769/JP/2023 & CO No. 01/JP/2024 Sh. Pankaj Meena the assessee has not made any agreement for purchasing the property prior to registration of this property.

The assessee has filed cross objection in CO No. 01/JPR/2024 against the revenue’s appeal, on the following grounds:- 1. On the facts and in the circumstances of the case and in law, Ld. CIT(A) has grossly erred in confirming the action of ld. AO in making addition of Rs. 11,25,000/- u/s 68 of the Income Tax Act, 1961 on account of cash deposits made in bank account of assessee, arbitrarily.

That the appellant craves the right to add, delete, amend or abandon any of the grounds of appeal either before or at the time of hearing of appeal.”

Succinctly, the fact as culled out from the records is that the assessee has e-filed his return of income for assessment year 2016-17 on 29.3.2017 declaring total income of Rs. 12,55,000/-. The return was processed u/s 143(1)(a) of Income Tax Act, 1961. The case was selected for scrutiny and notice u/s 143(2) of Income Tax Act, 1961 was issued on 18.9.2017. Notice u/s 142(1) was issued to the assessee on 11.4.2018. Another notice u/s 142(1) was issued along with questionnaire on 10.7.2018. Show cause notice was issued on 28.10.2018. In response to these notices, the assessee filed reply online/of line to the notices issued to the assessee from time to time and he submitted necessary details and explanations on line/off line, which are placed on record.

1 For the year under consideration the assessee has shown income from salary, business and income from other sources. During assessment proceedings the assessee was asked to furnish the source of cash deposit into his bank account and source of investment into the immovable property purchased through notice u/s 142(1) dated 11.4.2018 and 10.7.2018, but the assessee did not comply these notices, thereafter show cause notice was issued to the assessee on 28.10.2018 and served personally in the office of the assessee on 31.10.2018, In response the assessee furnished some details. 5.2 Ld. AO on perusal of the details noted that the assessee deposited cash of Rs. 11,25,200/- into his bank account. The assessee was requested to furnish source of the cash deposit into his bank vide notice dated 11.4.2018, 10.8.2018 and show cause notice dated 28.10.2018 but the assessee has not furnished any source of cash deposit. Ld. AO therefore considering the facts of the case made addition of Rs. 11,25,000/- to the total income of the assessee. 5.3 The assessee has made the investment in purchase of immovable property at Rs. 2,33,60,000/- plus transfer expenses. During assessment proceedings, the assessee was requested to furnish source of investment in property vide notice dated 11.4.2018 and 10.8.2018 and show cause