Goraksha Ravindra Bahira, Raigad V. Income-tax Officer, Ward - 1, Panvel

ITA 1224/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3686 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 16-07-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M K VERMA
• Assessee Lawyers: DEEPA DEBEY
• Keywords: Gift; Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.1224/PUN/2018 / ASSESSMENT YEAR : 2014-15 GORAKSHA R. BAHIRA, H.NO.1593/A, M.G. HOUSE, NEAR MHASOBA TEMPLE, TAKKA-PANVEL, RAIGAD, MAHARASHTRA 410 206 PAN : AUFPB8777Q VS. ITO, WARD -1, PANVEL (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-2, PUNE ON 08-01-2018 IN RELATION TO THE ASSESSMENT YEAR 2014-15. 2. THERE IS A DELAY OF 20 DAYS IN PRESENTING THE APPEAL BEFORE THE TRIBUNAL. THE LD. AR EXPLAINED THE REASON FOR DELAY. I AM SATISFIED WITH THE REASON SO GIVEN. ACCORDINGLY , THE DELAY IS CONDONED AND THE APPEAL IS ADMITTED FOR DISPOSA L. APPELLANT BY MS. DEEPA DEBEY RESPONDENT BY SHRI M.K. VERMA DATE OF HEARING 21-02-2019 DATE OF PRONOUNCEMENT 22-02-2019 ITA NO.1224/PUN/2018 GORAKSHA R. BAHIRA 2 3. THE ONLY ISSUE PRESSED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.7.00 LAKH MADE BY THE ASSESSING OFFICER (AO) IN RESPECT OF GIFT RECEIVED BY THE ASSESSEE FROM HIS GRANDFATHER. 4. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESS EE IS ENGAGED IN THE BUSINESS OF RUNNING A PHOTO STUDIO. GROSS BUSINESS RECEIPTS OF RS.6,04,800/- WERE SHOWN. ON PER USAL OF BANK ACCOUNTS, THE AO OBSERVED THAT THE ASSESSEE MADE SEVERAL CASH DEPOSITS IN BANK ACCOUNTS. SOURCE OF SUCH DEPOSITS WAS TRIED TO BE EXPLAINED, INTER ALIA, BY STATING THAT A SUM OF RS.7.00 LAKH WAS RECEIVED BY THE ASSESSEE FROM HIS GRANDFATHER. NOT CONVINCED WITH THE ASSESSEES EXPLANATION AND CONSIDERING THE AMOUNT OF TURNOVER AT RS.6,04,800/-, THE AO MADE AN ADDITION OF RS.23.00 LAKH, REPRESENTING UNEXPLAINED CASH DEPOSITS IN THE BANK ACCOUNT TO THAT EXTEN T. THE LD. CIT(A) SUSTAINED THE ADDITION. 5. THE ONLY ISSUE PRESSED IN THE INSTANT APPEAL BY THE LD. AR IS AGAINST THE CONFIRMATION OF ADDITION OF RS.7.00 LAKH. IT IS THUS CLEAR THAT THE OTHER ADDITION IS NOT CHALLENGED. ITA NO.1224/PUN/2018 GORAKSHA R. BAHIRA 3 6. IN SO FAR AS THIS ADDITION IS CONCERNED, THE ASSESSEE SUBMITTED THAT HE RECEIVED A CASH GIFT FROM HIS GRANDFATHER WHICH WAS DEPOSITED IN THE BANK ACCOUNT. I HAVE GONE THRO UGH THE COPY OF BANK ACCOUNT OF THE ASSESSEES GRANDFATHER, NAMELY, SH. MINUMATH GANPAT BAHIRA, IN WHICH A SUM OF RS.7.00 LAKH WAS DEPOSITED ON 29-08-2013 BY MEANS OF A TRANSFER ENTRY. FROM SUCH AN AMOUNT OF DEPOSIT, A SUM OF RS.3.00 LAKH WAS WITHDRAWN ON 05-09-13 AND ANOTHER SUM OF RS.4.0 LAKH WAS WITHDRAWN ON 07-10-2013. THE SOURCE O F SUCH DEPOSIT OF RS.7.00 LAKH IS RECEIPT PERTAINING TO THE GRANDFATH ER ALONG WITH SEVERAL OTHER FAMILY MEMBERS, ENTERING INTO AN AGREEMENT FOR TRANSFER OF THEIR ANCESTRAL PROPERTY. A CO PY OF AGREEMENT UNDER WHICH THE AMOUNT WAS PROPOSED TO BE TRANSFERRED, HAS BEEN PLACED ON RECORD. FURTHER, A COP Y OF RECEIPT SHOWING A SUM OF RS.7.00 LAKH IS ALSO AVAILABLE ON RECORD. STILL FURTHER, THIS DEPOSIT OF RS.7.00 LAKH IN THE ACCO UNT OF THE ASSESSEES GRANDFATHER WAS THROUGH A BANKING ENTR Y. THE ASSESSEE, WHOSE FATHER IS NO MORE ALIVE, RECEIVED THE SAID AMOUNT OF RS.7.00 LAKH IN TWO INSTALMENTS OF RS.3.00 LAKH AND RS.4.00 LAKH EACH FROM HIS GRANDFATHER ON 05-09-2018 A ND 07-10-2018. A COPY OF THE BANK ACCOUNT OF THE ASSESS EE IS ITA NO.1224/PUN/2018 GORAKSHA R. BAHIRA 4 ALSO PLACED ON RECORD, WHICH SHOWS THAT THE AMOUNTS WERE DEPOSITS IN HIS BANK ACCOUNT CORRESPONDING TO SUCH RECEIP TS. THIS SHOWS THAT THE ASSESSEE HAD GENUINELY RECEIVED GIFT FR OM HIS GRANDFATHER FOR A SUM OF RS.7.00 LAKH, WHICH WAS D EPOSITED IN HIS BANK ACCOUNT. TO THAT EXTENT, THE SOURCE OF THE DEPO SIT IN BANK ACCOUNT IS FULLY PROVED. I, THEREFORE, ORDER TO D ELETE THE ADDITION OF RS.7.00 LAKH. 7. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED TO THAT EXTENT. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND FEBRUARY, 2019. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 22 ND FEBRUARY, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-2, PUNE 4. THE PR. CIT-2, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.1224/PUN/2018 GORAKSHA R. BAHIRA 5 DATE 1. DRAFT DICTATED ON 21-02-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 21-02-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *