Sujit Agarwal , Hyderabad V. Dy. Commissioner of Income Tax , Central Circle-2(2), Hyderabad

ITA 1620/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 7112 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 09-02-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 02-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SRINIVAS REDDY
• Assessee Lawyers: KIRAN
• Keywords: Gift
• Section: 143(3); 153A; 68; 132

Judgement Text

ITA NOS 1619 AND 1620 OF 2018 SUJIT AGARWAL HYDERA BAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER ITA NOS.1619 & 1620/HYD/2018 ASSESSMENT YEARS: 2010-11 & 2013-14 SHRI SUJIT AGARWAL HYDERABAD PAN:ACLPA3197P VS. DY. CIT CENTRAL CIRCLE 2(2) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI KIRAN REVENUE BY : SRI SRINIVAS REDDY, DR DATE OF HEARING: 09/02/2021 DATE OF PRONOUNCEMENT: 07/04/2021 ORDER PER A. MOHAN ALANKAMONY, A.M. THESE TWO APPEALS ARE FILED BY THE ASSESSEE, AGGRIE VED BY THE ORDER OF THE LEARNED CIT (A)-12, HYDERABAD, IN APPEAL NOS.10401 & 10402/2017-18 FOR THE A.YS 2010-11 & 20 13-14 RESPECTIVELY, BOTH DATED 30.05.2018. 2. IN BOTH THE APPEALS, THE ASSESSEE HAS RAISED IDE NTICAL GROUNDS VIZ., THE LEARNED CIT (A) HAS ERRED IN CONF IRMING THE ADDITIONS MADE BY THE LEARNED AO FOR RS.2,30,000 FO R THE A.Y 2010-11 AND RS.6,00,000 FOR THE A.Y 2013-14 TREATIN G THE GIFT RECEIVED FROM THE ASSESSEES SISTER AS CASH CREDIT U/S 68 OF THE I.T. ACT. ITA NOS 1619 AND 1620 OF 2018 SUJIT AGARWAL HYDERA BAD PAGE 2 OF 3 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND MANAGING DIRECTOR OF M/S. SAWARIA PI PES (P) LTD. A SEARCH U/S 132 OF THE ACT WAS CONDUCTED IN THE CASE OF THE ASSESSEE AND HIS GROUP AND SUBSEQUENTLY NOTICE U/S 153A OF THE ACT WAS ISSUED. THEREAFTER, THE ASSESSMENT WAS COMP LETED U/S 143(3) R.W.S. 153A OF THE ACT ON 24.11.2017 FOR THE A.YS 2010-11 AND 2013-14 WHEREIN THE LEARNED AO MADE ADDITION OF RS.2,30,000 AND RS.6,00,000 RESPECTIVELY INVOKING T HE PROVISIONS OF SECTION 68 OF THE ACT BY TREATING THE GIFT RECEI VED FROM THE ASSESSEES SISTER AS HIS UNDISCLOSED INCOME, WHICH WAS FURTHER UPHELD BY THE LEARNED CIT (A). 4. THE LEARNED REVENUE AUTHORITIES ARRIVED AT THIS CONCLUSION BECAUSE SUFFICIENT EVIDENCE WAS NOT PROD UCED BEFORE THE REVENUE TO ESTABLISH THE SOURCE OF SMT. SARIKA AGARWAL. 5. AT THE OUTSET, WE DO NOT SEE MUCH MERIT IN THE O RDER OF THE LEARNED REVENUE AUTHORITIES. CONSIDERING THE ST ATUS AND FINANCIAL POSITION OF SMT. SARIKA AGARWAL, THE MEAG RE AMOUNT OF RS.2,30,000 AND RS.6,00,000 GIFTED BY HER TO HER BR OTHER, IS NOT A DIS-BELIEVABLE PROPOSITION. THE GIFT MADE BY SMT. S ARIKA AGARWAL TO HER BROTHER WAS ALSO CONFIRMED BY HER. HENCE THE ADDITIONS MADE IN THE HANDS OF THE ASSESSEE INVOKING THE PROV ISIONS OF SECTION 68 OF THE ACT IS NOT APPROPRIATE. THEREFORE , IN THE INTEREST OF JUSTICE, WE HEREBY DIRECT THE LEARNED AO TO DELE TE THE ADDITIONS MADE FOR RS.2,30,000 AND RS.6,00,000 IN THE HANDS O F THE ASSESSEE U/S 68 OF THE ACT FOR THE A.YS 2010-11 AND 2013-14 RESPECTIVELY. 6. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ITA NOS 1619 AND 1620 OF 2018 SUJIT AGARWAL HYDERA BAD PAGE 3 OF 3 ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH APRIL, 2021. SD/- SD/- (S.S. GODARA) JUDICIAL MEMBER (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER HYDERABAD, DATED 7 TH APRIL, 2021. VINODAN/SPS COPY TO: 1 SRI SUJIT AGARWAL C/O R.JASRAJ & CO. ADVOCATES, 1 5-1-91/4/A/1, 2 ND FLOOR, PAPALA PLAZA, OLD FEELKHANA, HYDERABAD 5000 12 2 DY. CIT, CENTRAL CIRCLE 2(2) 6 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 500004 3 CIT (A)-12 HYDERABAD 4 PR. CIT CENTRAL, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER