Dr.avtar Singh v. Commissioner Of Income Tax, Jalandhar And Another

In the High Court of Punjab and Haryanaat Chandigarh ITA No.145 of 2007 Date of Decision: 09.09.2008 Dr.Avtar Singh ...... Appellant Versus Commissioner of Income Tax, Jalandhar and another ...... Respondents Coram:Hon'ble Mr. Justice Adarsh Kumar GoelHon'ble Mr. Justice Ajay Tewari 1. Whether Reporters of 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? Present:Mr.Akshay Bhan, Advocate for the appellant. Mr.Vivek Sethi, Advocatefor the respondents.**** Ajay Tewari, J. The assessee has filed the present appeal under Section 260of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') againstthe order dated 25.08.2006 passed by the Income Tax Appellate Tribunal,Amritsar Bench, Amritsar (hereinafter referred to as 'the Tribunal') in C.O.No. 9(ASR)/2004 in ITA No. 30(ASR)/2004 for the assessment year 1995-96, proposing following substantial questions of law:- a)Whether the action on the part of respondents authoritiesto initiate the proceedings under Section 147 of the Act withoutconsidering the material facts that the deposit made in the saving accounts are from the sale of agricultural land and henceagriculture income, is legally sustainable in the eyes of law? b) Whether the action on the part of respondents authoritiesnot to consider the donor's affidavit dated 22.4.2002 and theproof with regard to the identity of donor who is CanadianCitizen, is legally sustainable in the eyes of law? c)Whether the action on the part of respondents authoritiesto reject the cross objections of the Assessee-Appellant islegally sustainable in the eyes of law? Proceedings under Section 147 of the Act were initiated againstthe appellant by issuance of a notice under Section 148 of the Act.Reassessment was ordered for the reason that the assessee has not producedany evidence with regard to the source of payment of Rs.7,47,000/-beinginvested in property. In response to notices under Section 142(1) and 143(2)of the Act appellant submitted that the deposits made in the savings accountwere received from the sale of agricultural land, agricultural income andgifts. The Assessing Officer (A.O.) held that the gifts claimed were notgenuine and were thus treated as income from undisclosed sources underSection 69 of the Act. On appeal the learned Commissioner by order dated 13.10.2003deleted the addition made by the A.O. relying on certain additionalevidence. The matter was carried up in appeal by the revenue claiming thatthe Commissioner had erred in admitting additional evidence in deleting theaddition. In cross objections the appellant attacked the reassessmentproceedings. The Tribunal by the impugned order dated 25.8.2006 upheldthe finding of fact recorded by the Commissioner that the reasons forreassessment were according to the provisions of law. However, it did notfind favour with the acceptance of additional evidence by the ITA No. 145 of 2007 Commissioner and remanded the matter back to decide the appeal afreshafter affording due opportunity to the A.O. to rebut the additional evidence. We do not find any infirmity in the impugned order andconsequently hold that the proposed questions of law do not arise in thepresent appeal. Mr. Akshay Bhan, counsel for the appellant, however,argued that in view of the matter having been remanded back even thequestion regarding the validity of reassessment should have been left open.In our opinion the direction of the Tribunal to remand the matter back todecide the appeal afresh would not preclude a fresh decision on this aspect. Consequently the appeal is dismissed. No costs. (AJAY TEWARI)JUDGE (ADARSH KUMAR GOEL)JUDGE