Alia Begum Represented by L/R Of Azizulla Sharief, Visakhapatnam V. The Income Tax Officer, Ward-1(2), , Visakhapatnam

ITA 147/VIZ/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7703 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 28-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: G V N HARI AR S MT SUMAN MALIK
• Keywords: Gift; Accommodation entries; Set aside
• Section: 201; 68; 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER& SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ I.T. A.NO. 14 7 /VIZ/201 9 ( / A SSESSMENT Y EAR : 20 1 3 - 14 ) SMT.ALIA BEGUM REP. BY L/R OF AZIZULLA SHARIEF D.NO.9 - 34 - 9/1, OPP.LANE TO KALABHARATHI PITHAPURAM COLONY MADDILAPALEM VISAKHAPATNAM [ PAN : A PFPA7533J ] VS. INCOME TAX OFFICER WARD - 1(2) VISAKHAPATNAM ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI G.V.N.HARI, AR / RESPONDENT BY : S MT.SUMAN MALIK, DR / DATE OF HEARING : 30 . 10 . 201 9 / DATE OF PRONOUNCEMENT : 3 1 . 10 . 201 9 / O R D E R P ER SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER : TH IS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A ) ] - 6, HYDERABAD IN 2 I.T.A. NO . 14 7 /VIZ/201 9 , A.Y.20 1 3 - 14 SMT.ALIA BEGUM, REP BY AZIZULLA SHARIEF, VISAKHAPATNAM F. NO. CIT(E)/HYD/91(09)/12A/2018 - 19 DATED 27 .0 3 .201 9 FOR THE ASSESSMENT YEAR (A.Y.) 20 19 - 20. 2. GROUND NO.1 AND 6 ARE GENERAL IN NATURE WHICH DOES NOT REQUIRE SPECIFIC ADJUDICATION. 3. GROUND NO.2 IS RELATED TO THE ISSUE OF NOTICE U/S 148 OF THE INCOME ACT (IN SHORT ACT) WHICH WAS NOT PRESSED BY THE ASSESSEE. THEREFORE GROUND NO.2 IS DISMISSED AS NOT PRESSED. 4. GROUN D NO.3 IS RELATED TO THE ADDITION OF RS.3,05,000/ - SUSTAINED BY THE LD.CIT(A) OUT OF THE TOTAL ADDITION OF RS.5,00,000/ - MADE BY THE ASSESSING OFFICER (AO) TOWARDS UNEXPLAINED CASH DEPOSITS. DURING THE ASSESSMENT PROCEEDINGS, THE AO FOUND THAT THE ASSESSE E HAD MADE CASH DEPOSITS OF RS.6,02,500/ - IN BANK ACCOUNT FOR WHICH THE AO HAS CALLED FOR EXPLANATION AND FOUND THAT CASH DEPOSIT OF RS.5,00,000/ - WAS MADE ON 20.10.2012 FOR WHICH THERE WAS NO SATISFACTORY EXPLANATION FROM THE ASSESSEE. THE ASSESSEE EXPLA INED THE SOURCES OF CASH DEPOSITS WITH THE CASH BOOK AND AO BELIEVED THAT SOME OF THE ENTRIES WERE ACCOMMODATION ENTRIES AND DID NOT BELIEVE THE GIFTS RECEIVED FROM HER SON, CAPITAL 3 I.T.A. NO . 14 7 /VIZ/201 9 , A.Y.20 1 3 - 14 SMT.ALIA BEGUM, REP BY AZIZULLA SHARIEF, VISAKHAPATNAM WITHDRAWAL, GIFT RECEIVED FROM DAUGHTER - IN - LAW AND ACCORDINGLY MADE THE AD DITION OF RS.5.00 LAKHS TO THE RETURNED INCOME. 5. AGAINST THE ORDER OF THE AO, THE ASSESSEE WENT ON APPEAL BEFORE THE LD.CIT(A) AND THE LD.CIT(A) ACCEPTED THE SOURCE FROM M/S CLASSIC BUILDERS OF RS.1,10,000/ - AND OPENING BALANCE OF RS.85,000/ - AND CONFI RMED THE SUM OF RS.3,05,000 I.E. GIFTS RECEIVED FROM SMT.GHOUSIA PARVEEN, DAUGHTER - IN - LAW OF RS.1,30,000/ - AND FROM SHRI AZIZULLA SHARIEF, SON OF RS.1,75,000/ - . THE LD.CIT(A) OBSERVED THAT THERE WAS INCONSISTENCY IN THE CONFIRMATION LETTER GIVEN BY HER SO N, SHRI AZIZULLA SHARIEF AND DISBELIEVED THE GENUINENESS OF THE GIFT. SIMILARLY IN THE CASE OF SMT.GHOUSIA PARVEEN, DAUGHTER - IN - LAW, THE LD.CIT(A) OBSERVED THAT THE ASSESSEE RECEIVED CASH GIFT OF RS.1,30,000/ - BUT ALSO RECEIVED FURTHER AMOUNT OF RS.2,70,0 00/ - AGGREGATING TO RS.4,00,000/ - BUT NOT PRODUCED THE DOCUMENTARY EVIDENCE, HENCE, DISBELIEVED THE GIFT FROM DAUGHTER IN LAW AND CONFIRMED THE ADDITION OF RS.3,05,000/ - (175000+130000) U/S 68 OF THE ACT. 6. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), THE ASSESSEE FILED APPEAL BEFORE THIS TRIBUNAL. 4 I.T.A. NO . 14 7 /VIZ/201 9 , A.Y.20 1 3 - 14 SMT.ALIA BEGUM, REP BY AZIZULLA SHARIEF, VISAKHAPATNAM 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. THE LD.CIT(A) HAS CONFIRMED THE GIFTS RECEIVED FROM SHRI AZIZULLA SHARIEF, SON FOR A SU M OF RS.1,75,000/ - AND FROM SMT. GHOUSIA PARVEEN, DAUGHTER - IN - LAW FOR A SUM OF RS.1,30,000/ - AGGREGATING TO RS.305000/ - . SHRI AZIZULLA SHARIEF HAS GIVEN A CONFIRMATION LETTER STATING THAT HE HAS GIVEN THE GIFT OF RS.1,75,000/ - TO HIS MOTHER SMT.ALIA BEGUM , SCANNED COPY OF CONFIRMATION LETTER WAS EXTRACTED IN PAGE NO.16 OF THE ORDER OF THE LD.CIT(A). SHRI AZIZULLA SHARIEF IS AN INCOME TAX ASSESSEE, ASSESSED WITH PAN, ACFPA6876P. HAVING FURNISHED THE CONFIRMATION LETTER, THE AO OUGHT TO HAVE EXAMINED THE S OURCES OF SHRI AZIZULLA SHARIEF TO ASCERTAIN THE CREDIT WORTHINESS OF SHRI AZIZULLA SHARIEF FOR GIVING GIFT OF RS.1,75,000/ - TO THE ASSESSEE. NO SUCH EXERCISE WAS MADE BY THE AO. HAVING FURNISHED THE CONFIRMATION LETTER AND THE DONOR BEING AN INCOME TAX A SSESSEE, THE ASSESSEE HAD D ISCHARGED ONUS AND BURDEN SHIFTED TO THE DEPARTMENT , THUS THERE IS NO CASE FOR DEPARTMENT TO MAKE THE ADDITION WITHOUT SHIFTING THE ONUS TO THE ASSESSEE . THEREFORE WE, DO NOT FIND ANY REASON TO DISBELIEVE THE GIFT TRANSACTION , HA VING ESTABLISHED THE IDENTITY AND THE GENUINENESS OF TRANSACTION. HENCE, WE DELETE THE ADDITION AND SET ASIDE THE ORDER OF THE LD.CIT(A) ON THIS ISSUE. 5 I.T.A. NO . 14 7 /VIZ/201 9 , A.Y.20 1 3 - 14 SMT.ALIA BEGUM, REP BY AZIZULLA SHARIEF, VISAKHAPATNAM 7.1. THE NEXT ISSUE IS GIFT RECEIVED FROM SMT. GHOUSIA PARVEEN, DAUGHTER - IN - LAW OF THE ASSESSEE. SMT .GHOUSIA PARVEEN HAS FURNISHED THE CONFIRMATION LETTER, HAVING GIVEN GIFT OF RS.1,30,000/ - TO THE ASSESSEE, SHE IS ALSO ASSESSED TO INCOME TAX. THE ASSESSEE HAS FURNISHED THE COPIES OF INCOME TAX RETURNS, CAPITAL ACCOUNT AND CONFIRMATION LETTERS WHICH WER E PLACED IN PAPER BOOK. ON GOING THROUGH THE FINANCIAL STATEMENTS OF SMT.GHOUSIA PARVEEN, WE FIND THAT SMT.GHOUSIA PARVEEN, DAUGHTER - IN - LAW OF THE ASSESSEE HAS GIVEN GIFT OF RS.1,30,000/ - . HAVING FURNISHED NECESSARY DOCUMENTS VIZ, CONFIRMATION LETTER, IN COME TAX RECORDS OF THE DONOR, THE ASSESSEE HAS DISCHARGED THE BURDEN AND THE AO DID NOT MAKE ANY ENQUIRY TO ASCERTAIN THE CORRECTNESS OF THE GIFT AND SOURCES OF THE DONOR , THUS , THE TRANSACTION STANDS EXPLAINED IN THE HANDS OF THE ASSESSEE AND THERE IS NO CASE FOR SUSPECTING THE GIFT TRANSACTION. THEREFORE, WE SET ASIDE THE ORDER OF THE LD.CIT(A) AND DELETE THE ADDITION MADE BY THE AO. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED ON THIS GROUND. 8. GROUND NO.4 AND 5 ARE RELATED TO THE INVOKING OF PROVISIONS U/S 115BBE OF THE ACT. SINCE WE HAVE DELETED THE ADDITIONS AND SET ASIDE THE ORDER OF THE LD.CIT(A), WE CONSIDER IT IS NOT NECESSARY TO ADJUDICATE THE REMAINING GROUNDS RAISED BY THE ASSESSEE. 6 I.T.A. NO . 14 7 /VIZ/201 9 , A.Y.20 1 3 - 14 SMT.ALIA BEGUM, REP BY AZIZULLA SHARIEF, VISAKHAPATNAM 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST OCTOBER, 2019 S D/ - S D/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 31 . 10 .2019 L.RAMA, SPS + / COPY OF THE ORDER FORWARDED TO: - 1. / THE ASSESSEE SMT.ALIA BEGUM , REP. BY L/R OF AZIZULLA SHARIEF , D.NO.9 - 34 - 9/1, OPP.LANE TO KALABHARATHI , PITHAPURAM COLONY, MADDILAPALEM, VISAKHAPATNAM 2 . / THE REVENUE - INCOME TAX OFFICER, WARD - 1(2), VISAKHAPATNAM 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX - 1 , VISAKHAPATNAM 4. THE COMMISSIONER OF INCOME TAX (APPEALS) - 6, HYDERABAD 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM