Shri Vinod Iyer, Bhopal V. The ITO, 3(1), Bhopal

ITA 153/IND/2011

• Counselvise Citation: 15322714 RSA 2011
• Duration Of Justice: 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 1998-1999
• Appeal Filed On: 07-07-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ARUN DEWAN
• Assessee Lawyers: R S IYER FATHER
• Keywords: Gift; Additional evidence
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARM A, A.M. PAN NO. : AAIPI - 1067P I.T.A.NO. 153 /IND/2011 A.Y. : 1998 - 99 SHRI VINOD IYER, ITO, FLAT NO.5, D.K. SURABHI APARTMENTS, GOMTI COLONY, NEHRU NAGAR, BHOPAL. VS 3(1), BHOPAL APPELLANT RESPONDENT APPELLANT BY : SHRI R.S.IYER, FATHER & ASSESSEE RESPONDENT BY : SHRI ARUN DEWAN, SR. DR DATE OF HEARING : 17.04.2012 DATE OF PRONOUNCEMENT : 19 . 0 4 .201 2 O R D E R PER R. C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) DATED 15.2.2011 FOR THE ASSESSMENT YEAR 1 998-99. 2. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO ADDIT ION OF RS. 2,25,000/- U/S 68 OF THE INCOME-TAX ACT, 196 1. -: 2: - 2 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE PURCH ASED A HOUSE AT B-35, SHASTRI NAGAR, BHOPAL, VIDE SALE DEE D DATED 20.11.1998 FOR RS. 2,27,910/-. THE SOURCE OF THIS P URCHASE WAS SHOWN OUT OF SALE PROCEEDS OF HOUSE OF HIS FATH ER, WHICH WAS SOLD VIDE REGISTERED SALE DEED DATED 19.11.1999 FOR RS. 4,95,000/- AGAINST WHICH FATHER OF THE ASSESSEE HAD RECEIVED RS. 4.50 LAKHS VIDE CHEQUE NO.286513 DATED 6.2.1998 AND WHICH WAS CREDITED IN THE BANK ACCOUNT OF FATHER WI TH CENTRAL BANK OF INDIA. IN THE COURSE OF ORIGINAL ASSESSMENT PROCEEDINGS, OUT OF TOTAL PURCHASE CONSIDERATION OF RS. 2,27,910/-, THE ASSESSING OFFICER MADE AN ADDITION OF RS. 2.25 LAKHS IN RESPECT OF AMOUNT ALLEGED TO BE RECEIVED F ROM FATHER AND RS. 25,000/- ALLEGED TO BE RECEIVED AS GIFT, WH ICH COULD NOT BE EXPLAINED BY THE ASSESSEE. IN THE APPEAL FIL ED BEFORE THE CIT(A), HE DELETED THE ADDITION OF RS. 2,25,000/-. AGAINST THE ABOVE ORDER OF CIT(A), THE REVENUE WAS IN FURTHER A PPEAL BEFORE THE TRIBUNAL AND THE TRIBUNAL VIDE ORDER DAT ED 30 TH JUNE, 2005, RESTORED THE MATTER BACK TO THE FILE OF CIT(A) BY OBSERVING THAT THE ASSESSEE HAS PRODUCED ADDITIONAL EVIDENCE -: 3: - 3 BEFORE THE CIT(A) AND THE CIT(A) HAS NOT GIVEN ANY OPPORTUNITY TO THE ASSESSING OFFICER UNDER RULE 46A OF THE INCO ME TAX RULES. 4. AFTER THE MATTER WAS REMANDED TO THE CIT(A), THE LD . CIT(A) CALLED FOR THE REMAND REPORT FROM THE ASSESS ING OFFICER, WHEREIN VIDE REMAND REPORT DATED 1.2.2007 ISSUED BY JT. CIT, IT WAS ACCEPTED THAT THE ASSESSEE HAD FURNISHED DET AILS OF CHEQUE BY WHICH AMOUNT OF RS. 4.50 LAKHS WAS RECEIV ED BY THE ASSESSEES FATHER AND THE SALE PROCEEDS AT INDORE H AD BEEN RECEIVED BY THE FATHER OF THE ASSESSEE MUCH BEFORE THE HOUSE AT BHOPAL WAS PURCHASED BY ASSESSEE ON 21.11.1998. 5. AFTER CONSIDERING THE REMAND REPORT, THE LD. CIT(A) HELD THAT THE ASSESSEE WAS UNABLE TO SUBSTANTIATE HIS CL AIM THAT AMOUNT FOR FLAT REGISTERED ON 21.11.1998 IN HIS NAM E HAD BEEN RECEIVED FROM HIS FATHER SHRI R. S. IYER. HOWEVER, HE HAS ACCEPTED THAT SALE CONSIDERATION OF THE HOUSE AT IN DORE OF RS. 4.50 WAS DEPOSITED IN HIS FATHERS BANK ACCOUNT ON 7.2.1998 I.E. PRIOR TO THE AMOUNT OF RS. 2,20,000/- RECEIVED FOR PURCHASE OF FLAT AT INDORE. -: 4: - 4 6. AGAINST THE ABOVE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US. 7. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND FOUND THAT IN THE ORIGINAL ASSESSMENT ORDER ADDITION WAS MADE ON THE PLEA THAT PURCHASE OF HOUSE BY THE ASSESSEE WAS PRIOR TO THE SALE OF HOUSE BY HIS FATHER, WHEREIN FATHER HAS RECEIVED CHEQUE OF RS. 4.50 LAKHS AS A SALE CONSIDERATION. I N THE APPEAL FILED BEFORE CIT(A), AFTER VERIFYING THE DETAILS, T HE LD. CIT(A) HAS DELETED THE ADDITION AND IN FURTHER APPEAL FILED BY REVENUE BEFORE THE TRIBUNAL, THE MATTER WAS RESTORED TO THE FILE OF CIT(A) ON THE PLEA OF VIOLATION OF RULE 46A. WE FOU ND THAT IN THE SET-ASIDE PROCEEDINGS, THE LD. CIT(A) AGAIN CAL LED FOR A REMAND REPORT, WHEREIN IT WAS CLEARLY STATED BY JCI T THAT THE SALE OF HOUSE AT INDORE WAS PRIOR TO THE PURCHASE O F HOUSE AT BHOPAL ON 20.11.1998. IT WAS ALSO FOUND THAT SALE P ROCEEDS OF HOUSE BY FATHER WAS RECEIVED BY CHEQUE AMOUNTING TO RS. 4.50 LAKHS VIDE CHEQUE NO. 286513 DATED 6.2.1998 ON ACCO UNT OF SALE AGREEMENT DATED 6.2.1998. SINCE THE MATTER WAS RESTORED BY TRIBUNAL TO THE FILE OF CIT(A) WITH THIS LIMITED OBSERVATION OF VERIFYING THE FACTUM OF SALE OF HOUSE BY FATHER PRI OR TO THE PURCHASE OF HOUSE BY ASSESSEE AT BHOPAL, WHEREIN IT IS CLEARLY ESTABLISHED AS PER THE REMAND REPORT CALLED BY CIT( A) THAT HOUSE AT INDORE WAS SOLD PRIOR TO PURCHASE OF HOUSE AT BHOPAL AND THE CHEQUE AMOUNT OF RS. 4.50 LAKHS WAS CREDITE D IN THE BANK ACCOUNT ON 6.2.1998, WHICH IS MUCH PRIOR TO TH E DATE ON -: 5: - 5 WHICH HOUSE WAS PURCHASED AT BHOPAL VIDE REGISTERED DEED DATED 20.11.1998. OUT OF THIS RS. 4.50 LAKHS, THE F ATHER HAS GIVEN A SUM OF RS. 2 LAKHS TO THE ASSESSEES SON. A CCORDINGLY, THERE IS NO JUSTIFICATION FOR TREATING THE SUM OF R S. 2 LAKHS AS ADVANCED BY FATHER, AS UNEXPLAINED. HOWEVER, THE AS SESSEE COULD NOT EXPLAIN SATISFACTORILY THE AMOUNT OF GIFT OF RS. 25,000/- RECEIVED BY HIM AND UTILIZED FOR PURCHASE OF HOUSE. ACCORDINGLY, WE CONFIRM THE ADDITION TO THE EXTENT OF RS. 25,000/- OUT OF THE TOTAL ADDITION OF RS. 2.25 LAKH S MADE BY THE ASSESSING OFFICER U/S 68 OF THE INCOME-TAX ACT, 1961. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D IN PART. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 19 TH APRIL , 2012. (JOGINDER SINGH) ( R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 19 TH APRIL, 2012. CPU* 17184