DEEPA RAJIVNAYAN BAJAJ,WARDHA V. ACIT-CIRCLE -3, NAGPUR

ITA 453/NAG/2024

AI Insights

The case revolves around an appeal by Ms. Deepa Rajivnayan Bajaj against the order of the CIT(A)-National Faceless Appeal Centre, which confirmed the addition of Rs.3,20,400 to her income for the assessment year 2018-2019. The addition was initially made by the Assessing Officer, who was not satisfied with the assessee's explanation that the amount represented a transaction between her and her husband. Both the CIT(A) and the Tribunal found that the addition was inappropriate as it could result in double taxation, given that the money was transferred from her husband.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32307 (ITAT-NAGPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY Y. MARATHE
• Section: 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR “SMC” BENCH : NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER ITA.No.453/NAG./2024 [E-APPEAL] Assessment Year 2018-2019 Ms. Deepa Rajivnayan Bajaj, Bachhraj Bhawan, Gandhi Chowk, Bachhraj Road, WARDHA – 442 001. PAN AFAPB6660G Maharashtra. vs. The JAO/DCIT/ACIT, Circle-3, BSNL, RTTC Bldg., NAGPUR. (Appellant) (Respondent) For Assessee : -None- For Revenue : Shri Abhay Y. Marathe, Sr. DR Date of Hearing : 27.01.2025 Date of Pronouncement : 29.01.2025 ORDER PER V. DURGA RAO, J.M. : This appeal has been filed by the assessee against the order dated 08.07.2024, of the learned CIT(A)-National Faceless Appeal Centre, Delhi, relating to assessment year 2018-2019. 2. Briefly stated facts of the case are that the assessee filed her return of income on 20.07.2018 declaring income of Rs.16,89,480/-. Statutory notices u/sec.143(2) and 142(1) were issued to the assessee calling for the explanation. In response 2 ITA.No.453/NAG./2024 thereto, the assessee furnished details with respect to Cross Border FCY charges received of Rs.3,20,400/-. During the course of assessment proceedings, the assessee submitted that the said sum is a transaction pertaining to running account between husband and wife and therefore, the impugned proposed addition be dropped. However, the Assessing Officer has not satisfied with the explanation of the assessee and made the addition of Rs.3,20,400/- as income in her hands and determined the total income of the assessee at Rs.20,09,880/- as against the returned income of Rs.16,89,480/- vide order dated 01.02.2021 passed u/sec.143(3) r.w.s.143(3A) and 143(3B) of the Act. 3. Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before the learned CIT(A) and reiterated her submissions made before the Assessing Officer. However, the learned CIT(A) was also not satisfied with her explanation and confirmed the order of Assessing Officer. 4. On being aggrieved by the order of the learned CIT(A), the assessee is in appeal before the Tribunal. 3 ITA.No.453/NAG./2024 5. During the course of hearing, none appeared on behalf of the assessee. I, therefore, proceed to decide the appeal on merits after hearing the Learned DR. 6. From careful perusal of the orders of the lower authorities and the arguments advanced by the Learned DR, I find that the authorities below are not properly appreciated the factual matrix of the case and made the addition in the hands of the assessee. It is a fact that in the instant case the husband has send money to his wife through banking channel. By making the impugned addition in the hands of assessee will lead to double addition. I find that without appreciating the factual position, the authorities made the impugned addition of Rs.3,20,400/- in the hands of the assessee. It is relevant to state here that it is the settled position of law that the income tax has to be taxed in the correct hands but not making double additions one in the hands of husband and one in the hands of wife. I, therefore, satisfied with the explanation offered by the assessee and delete the impugned addition of Rs.3,20,400/-. I hold and order accordingly. 4 ITA.No.453/NAG./2024 Order pronounced in the open Court on 29.01.2025. Sd/- (V. DURGA RAO) JUDICIAL MEMBER Nagpur, Dated 29th January, 2025 VBP/- Copy to 1. The appellant 2. The respondent 3. The CIT(A), Nagpur concerned 4. The CIT, Nagpur concerned 5. The D.R. ITAT, Nagpur SMC-Bench, Nagpur 6. Guard File. //By Order// True Copy Sr. Private Secretary : ITAT : Nagpur Bench NAGPUR. "