M/s. Janki Shugani, Pune V. Income-tax Officer, Ward - 8(4), Pune

ITA 1330/PUN/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6927 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 20-08-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Gift
• Section: 6; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.1330/PUN/2018 / ASSESSMENT YEAR : 2013-14 MRS. JANKI S. SHUGANI, NEAR CHANDAN MEDICAL, 228, SIMRUTI NIWAS, TAPOWAN MANDIR ROAD, PIMPRI, PUNE 411 017 PAN : DKOPS9768A VS. ITO, WARD-8(4), PUNE (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-13, PUNE ON 02-05-2018 IN RELATION TO THE ASSESSMENT YEAR 2013-14. 2. THE ONLY EFFECTIVE ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.25,12,613/- MADE BY THE ASSESSING OFFICER (AO) ON ACCOUNT OF CASH DEPOSITS IN THA NE JANTA SAHAKARI BANK LTD. AND BANK INTEREST INCOME. APPELLANT BY SHRI KISHOR PHADKE RESPONDENT BY SHRI M.K.VERMA DATE OF HEARING 01-05-2019 DATE OF PRONOUNCEMENT 02-05-2019 ITA NO.1330/PUN/2018 MRS. JANKI S. SHUGANI 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE AO RECE IVED INFORMATION ABOUT THE ASSESSEE HAVING MADE CASH DEPOSITS IN HER BANK ACCOUNT DURING THE YEAR UNDER CONSIDERATION. IT WAS N OTICED THAT NO RETURN OF INCOME WAS FILED FOR THE YEAR. HE ISSUED NOTICE U/S.148 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLE D `THE ACT). IN THE ABSENCE OF THE ASSESSEE PARTICIPATING IN THE ASSESSMENT PROCEEDINGS, THE AO COMPLETED THE ASSESSMENT U/S.144 OF THE ACT BY MAKING AN ADDITION OF RS.25,07,680/- , BEING, THE AMOUNT OF CASH DEPOSITED IN THE BANK ACCOUNT AN D INTEREST INCOME THEREON TO THE TUNE OF RS.4,933/-. THE LD. CIT(A) ECHOED THE ASSESSMENT ORDER AGAINST WHICH THE ASSE SSEE HAS COME UP IN APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELE VANT MATERIAL ON RECORD. IT HAS BEEN RECORDED IN THE IMPUGNED ORDER THAT THE ASSESSEE IS A WIDOW AND HER HUSBAND PASSED AWA Y IN 2010-11. AT THE MATERIAL TIME, SHE WAS 55 YEARS OF AGE HA VING PASSED 13 TH CLASS. AT THE TIME OF DEATH OF HER HUSBAND, SHE WAS RESIDING IN KOTA, RAJASTHAN. AFTER BECOMING WIDOW, SHE PLANNE D TO MIGRATE TO PIMPRI. SHE DISCUSSED THE ISSUE WITH HER RELATIVES IN RAJASTHAN AND IN PIMPRI. WITH THE HELP OF HER RELATIVES, SHE ACQUIRED A SMALL HOUSE PROPERTY ADMEASURING 689 SQ.FT. IN ITA NO.1330/PUN/2018 MRS. JANKI S. SHUGANI 3 PIMPRI. AGREEMENT FOR SUCH PURCHASE WAS ENTERED INTO O N 29- 08-2011. PAYMENT WAS MADE IN THE YEAR UNDER CONSIDERATIO N AMOUNTING TO RS.25.00 LAKH AFTER MAKING WITHDRAWALS FROM THANE JANTA SAHAKARI BANK LTD. SHE EXPLAINED THE SOURCE O F RS.25.00 LAKH AS UNDER : I. HER PERSONAL SAVINGS OVER 25 YEARS OF SERVICE AS A TEACHER RS.5.00 LAKH II. FUNDS AVAILABLE FROM HER DECEASED HUSBAND RS .1.00 LAKH III. SALE OF JEWELLERY/ORNAMENTS RS.6.50 LAKH IV. GIFTS/ASSISTANCE FROM HER CLOSE RELATIVES RS. 12.50 LAKH 5. THE SAID AMOUNTS WERE DEPOSITED IN THE BANK AMOUNT FROM TIME TO TIME STARTING FROM APRIL, 2012 WHICH PROCESS CONTINU ED TILL MARCH, 2013. A CASH FLOW STATEMENT HAS BEEN PLACED O N RECORD WHICH SHOWS THAT SHE DEPOSITED A SUM OF RS.4.00 LAKH IN BANK ACCOUNT IN APRIL, 2012 AND GAVE EQUAL AMOUNT TO GOBIN D BUILDERS & DEVELOPERS. IN THE MONTH OF MAY, 2012, SHE DEPOSITED RS.15.00 LAKH IN BANK ACCOUNT. A SUM OF RS.10 .00 LAKH WAS GIVEN TO THE BUILDER IN THE SAME MONTH AND REMAINING SUM OF RS.5.00 LAKH WAS GIVEN IN THE NEXT MONTH. SIMILAR IS THE POSITION REGARDING OTHER CASH DEPOSITS IN THE BANK WHICH CAN BE EASILY CORRELATED WITH THE PAYMENTS MADE BY THE ASSESSEE TO TH E BUILDER. THE AO HAS RECORDED A CATEGORICAL FINDING IN THE ITA NO.1330/PUN/2018 MRS. JANKI S. SHUGANI 4 ASSESSMENT COMPLETED U/S.144 OF THE ACT, THAT : IT IS SEEN THAT THERE ARE ONLY CASH DEPOSITS IN THE BANK ACCOUNT AND NO V ISIBLE SIGN OF ANY BUSINESS TRANSACTIONS. FROM THE ABOVE DISCUS SION, IT IS EVIDENT THAT THE ASSESSEE WAS NOT INTO ENGAGED IN ANY BUS INESS ACTIVITY WHATSOEVER. AFTER THE DEATH OF HER HUSBAND, SHE D ECIDED TO SHIFT TO PIMPRI FOR WHICH SHE PURCHASED A SMALL HOUSE. NOT ONLY HER PALTRY SAVINGS AND ALSO PAST SAVINGS OF HER EXPIRE D HUSBAND WERE UTILIZED, SHE ALSO GOT FINANCIAL ASSISTANCE FRO M HER RELATIVES IN HELPING HER TO ACQUIRE THE HOUSE. IN THE GIVEN CIRCUMSTANCES, MORE PARTICULARLY, WHEN THE ASSESSEE IS NOT ENGAGED INTO ANY BUSINESS ACTIVITY WHATSOEVER, I AM SATISFIED THAT THE ASSESSEE SUCCESSFULLY EXPLAINED THE SOURCE OF DEP OSITS IN THE BANK ACCOUNT, WHICH AMOUNT WAS UTILIZED FOR PURCHASING A FLAT IN PIMPRI. I, THEREFORE, ORDER TO DELETE THE ADDITION OF RS.25,07,680/-. 6. IN SO FAR AS THE INTEREST INCOME OF RS.4,933/- FROM B ANK IS CONCERNED, THE SAME IS HELD TO BE RIGHTLY INCLUDED IN HER TOTAL INCOME. 7. GROUND REGARDING REOPENING WAS NOT PRESSED BY THE LD. AR. THE SAME IS, THEREFORE, DISMISSED. ITA NO.1330/PUN/2018 MRS. JANKI S. SHUGANI 5 8. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 02 ND MAY, 2019. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 02 ND MAY, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-13, PUNE 4. THE PR. CIT-5, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.1330/PUN/2018 MRS. JANKI S. SHUGANI 6 DATE 1. DRAFT DICTATED ON 01-05-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 01-05-2019 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. *