TaxTMI 
TaxTMI 
2021 (8) TMI 277
X X X X Extracts X X X X
X X X X Extracts X X X X
....is against the law and facts of the case." 3. The brief facts as of the case as per written submissions of the Assessee are as under That the assessee is working with Kabana Infrastructure (P) Ltd. as an assistant at a salary of Rs. 12000/- per month and is barely meeting his own & family's expenses out of that salary. Other than the salary income there is no other income of the assessee and hence he was not filling any return of income. As per the AO he had AIR information available with the department that assessee has entered into a financial transaction of Rs. 15960000/- and to verify that transaction the AO claims that ITO Ward-3(5) Ludhiana issued a verification letter u/s. 133(6)(Copy enclosed). The AO recorded the reasons for initiating the proceedings u/s. 147 on 21.03.2017. The assessee filed objections to the reasons recorded, AO ignored the objections of the assessee and by ignoring the facts of the transactions made an addition of Rs. 1,59,60,000/-. The appeal against the order of ITO was filed before CIT(A) who again by ignoring the vital and alarming facts of the case dismissed the appeal of the assessee and confirmed the addition. 4. It was furthe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....count in HSBC Bank is also not understandable when the assessee has his own saving bank account with PNB Phagwara where his salary is being credited. Copy of account is enclosed. 8. This fact was duly brought to the notice of the AO by the assessee vide his letter dated 17.05.2017 in respect of the objections to the reasons recorded and despite this proven Benami transaction no action was taken or no notice was issued to Mr. Sulkhan Ram for the reasons best known to the department. 9. From the facts stated above it appears that Mr. Raunaki Ram has carried out these transactions to avoid the Capital Gain Tax on the property sold and also to avoid enquiry in respect of this property by the department. It is again reiterated that when the department had an information of this cash transaction of Rs. 15960000/- therefore in that case why no notice was issued to the alleged seller Mr. Raunki Ram regarding Capital Gain and utilization of this huge cash. 10. Ld. Ar had further submitted in the Ws that on the recent enquiry made by the assessee it has been found that Sulkhan Ram has made a salacious house at village Masani Tehsl Phillaour Distt. Jalandhar and also he is constructi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the whole transaction was required to be examined by the Ld. Assessing Officer and the reopening made by the Assessing Officer against the assessee was without any basis. In fact, it was submitted that the proceedings under the Benami Property Act 1986 along with the other necessary inquiry should have been made by the Assessing Officer from Sh. Sulakhan Ram to bring the unaccounted money of long term capital gain, arising on account of the transaction arches Ted by Sh. Sulakhan Ram by growing the sham transaction of the sale of the property on 12.08.2009. 13. The Ld. AR had submitted that the above said transactions has not been examined by the lower authorities and therefore the matter is required to remand back to the file of the Assessing Officer and the examining officer for the denova of the above said charge, the Ld. AR that she has no objection for remanding back to the file of the Assessing Officer however she paid and gave a suitable direction be issued by the bench so that the actual person liable for paying the tax should be brought to the book. 14. The Ld. DR for the revenue relied upon the order passed by the lower authorities. It was submitted that the registe....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., therefore which is clear from the affidavit filled by him before the Executive magistrate and subsequent transfer of entire sale consideration into his account immediately after the sale of land by the assessee. 21. In our considered opinion, this is a case and where innocent citizen seems to have been duped by Sulakhan Ram and therefore in dept inquiries were required to be made by the Assessing Officer. However despite the above said facts were brought to the notice of the Assessing Officer/CIT(A). Nothing has been done and in a cryptic and stereotype manner, the additions are made by the Assessing Officer and confirmed by the Ld. CIT(A). 22. In the light of the above, the case of the assessee is remanded back to the file of the assessing officer with the following directions I. To consider the documents filed by the assessee during the assessment proceeding alleging that the transaction were benami and the legal owner of the property was Sh. Sulakhan Ram. II. AO is directed to conduct the inquiry against Sh. Sulakhan Ram and find out the real nature of the transaction/s. III. The Assessing Officer is also directed to initiate the proceedings u/....