Case Law Details
Shri Praveen Kumar Vs ITO (ITAT Jaipur)
As per facts of the present case, the assessee was student and studying for said period in Birla Institute of Technology as a regular student of M.Sc. Animation and Design and was tenant of Shri Abhishek Agarwal, who was into business of real estate in name and style of M/s Shri Krishna Star Realter. According to the asssessee, he was not having any sufficient income, therefore, not filed Income tax return since the income was Nil. The assessee was maintaining a savings bank account with Axis Bank bearing account No. 402010100033503 for receiving monthly expenses from his father as the assessee belongs to Haryana State. In this respect, our attention was drawn by the ld AR to the paper book which contains bank account statement, available at page No. 19 to 24 of the paper book. Since the assessee was tenant of Shri Abhishek Agarwal who was involved in the business of real estate in the name of style of firm M/s Shri Krishna Star Realter and whose PAN No. is AGUPA0751C. As per the ld AR, the said Shri Sh. Praveen Kumar Vs ITO Abhishek Agarwal, approached the assessee to open a new savings bank account with Axis bank and the said Abhishek Agarwal become the introducer and consequently, a new bank account bearing No. 909010036473994 was opened. The assessee has also placed on record the bank statement showing the transactions during the period were exclusively carried out in the new bank account by Shri Abhishek Agarwal in favour of his family members i.e., father, mother, wife and friends and all transactions were made by said Shri Abhishek Agarwal by depositing cash and consequently issuing cheques to his family members. The ld AR also submitted that said Shri Abhishek Agarwal produced his affidavit before the A.O. and made statement on oath that all transactions in the said bank account were carried out by him and admitted that entries belong to his company/firm M/s Shri Krishna Star Realter. On the contrary, the revenue authorities rejected the contentions of the assessee.
After having gone through the entire documents placed on record and the statement made by Shri Abhishek Agarwal before the A.O., we found that it is an undisputed fact that the assessee was student and was having two bank accounts i.e. one bank account No. 402010100033503 where the entire transactions during the year under consideration were of Rs. 1,71,500/-which was deposited by his father for college fee and maintenance expenses of Rs. 5,000/- per month which were withdrawn by him and the copy of the said bank statement is at page No. 19 to 24 of the paper book. Whereas the subsequent new bank account bearing No. 909010036473994 was got opened subsequently in which Abhiskeh Agarwal was the introducer and from the statement of accounts of this account.
The revenue authorities should have given due regard and latitude to human conduct and behaviour while considering the validity and truthfulness of an explanation. One should not consider and reject an explanation as concocted and contrived by applying prudent man’s behaviour test. The principle of preponderance of probability as a test is to be applied and is sufficient to discharge onus. Probability means likelihood of anything to be true. Probability refers to appearance of truth or likelihood of being realized which any statement or event bears in light of the present evidence (Murray’s English Dictionary). Evidence can be oral even then the same cannot be discarded. More particularly, in the present case, when the assessee has fully discharged his onus by calling Shri Abhishek Agarwal who appeared before the A.O. and got recorded his admission statement coupled with affidavit and the bank statements to the effect that all transactions in the bank account 909010036473994 were of Shri Abhishek Agarwal which have not been rebutted by the department. Therefore, in our view, there was no reason to discard the admission of Shri Abhishek Agarwal.
Therefore, keeping in view the totality of facts and circumstances of this particular case, we are of the view that the assessment order and the appellate order falls foul and have disregarded the preponderance of probability test. For reaching to the above conclusion, we draw strength from the decision of Hon’ble Delhi High Court in the case of Jaya Agarwal Vs ITO in ITA No. 315/2005 decision dated 13th March, 2018, therefore, keeping in view our above observations and also keeping in view the principles laid down by the Hon’ble Delhi High Court in the case of Jaya Agarwal Vs ITO (supra), we direct the A.O. to delete the addition. However, the Revenue is at liberty to initiate any action, if so desired or advised against Shri Abhishek Agarwal on the basis of his admission statement, affidavit and bank statement. We order accordingly.
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