AVTAR SINGH GILL,SIRSA V. DCIT CIR, PANCHKULA, PANCHKULA

ITA 488/CHANDI/2025

AI Insights

The case involves an appeal by Shri Avtar Singh Gill against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which confirmed the addition of Rs.6.75 Lacs to the assessee's income for the Assessment Year 2014-15. The addition was initially made by the Assessing Officer under section 143(3) of the Income Tax Act, claiming the gifts received by the assessee from his sister and father-in-law were unexplained. The Tribunal found that the gifts were properly documented and sourced from legitimate agricultural income, and thus, the additions were unjustified.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716729 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 02-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN LD.
• Assessee Lawyers: NARENDER BANSAL
• Keywords: Gift
• Section: 143(3)

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.488 /CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2014-15) Shri Avtar Singh Gill H. No 2232-P, Sector 20 Huda Part III, Sirsa बनाम/ Vs. DCIT Circle Panchkula. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ABTPG-0437-D (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Narender Bansal (Advocate) & Shri Yogesh Bansal (CA) – Ld. ARs ŮȑथŎकीओरसे/Respondent by : Shri Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 07-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2014-15 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 21-03-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s. of the Act on 13-11-2019. The sole grievance of the assessee is confirmation of addition of gifts of Printed from counselvise.com 2 Rs.6.75 Lacs. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. It emerges that the assessee received gifts of Rs.3.75 Lacs from his sister and another gift of Rs.3 Lacs from his father-in-law. The assessee’s sister is stated to have given gift out of sale proceeds of agricultural land and the assessee being power of attorney holder received sale consideration of Rs.3.75 Lacs on his sister’s behalf. In support, a photocopy of the sale deed was furnished by the assessee. The gift of Rs.3 Lacs was received from father-in-law through NEFT and the same was also stated to be sourced out of agricultural income. However, Ld. AO rejected the explanations of the assessee and considered the amount of Rs.6.75 Lacs as the income of the assessee. 3. The Ld. CIT(A) rejected the explanation of the assessee on the ground that the gift deed from sister was not registered one. The power of attorney was not furnished. Similarly, there was immediate cash deposit in the bank account of assessee’s father-in-law before transfer of gift to the assessee through NEFT. Finally, the additions were confirmed. Aggrieved, the assessee is in further appeal before us. 4. In the above factual background, we find that the assessee has duly discharged the onus of receipt of gifts before lower authorities. The gift from sister is evidenced by gift deed which does not require mandatory registration since it was for moveable asset. Similarly, the gift from father-in-law is through banking channel and the donor is stated to have earned agricultural income. We find that no independent enquiry has been conducted by lower authorities from the donors to Printed from counselvise.com 3 fortify their case against the assessee. In the absence of any contrary evidences, the explanation of the assessee is to be accepted. In the result, the impugned addition of Rs.6.75 Lacs stand deleted. We order so. No other ground has been urged in the appeal. 5. The appeal stand partly allowed. Order Pronounced on 18-08-2025. Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-08-2025. आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "