Vinod Harishchand Awatare, Nagpur V. Income Tax Officer Ward -6(1), Nagpur

ITA 174/NAG/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1925 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 1 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2002-2003
• Appeal Filed On: 22-11-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: H WANARE
• Assessee Lawyers: M MANI
• Keywords: Gift; Income from undisclosed sources; Additional evidence

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR , BENCH , ( E - COURT), MUMBAI , BEFORE SHRI R.K.GUPTA , J M & SHRI RAJENDRA , A M ITA NO. 17 4 / N AG / 20 1 0 ( ASSESSMENT YEAR : 200 2 - 0 3 ) VINOD HARISHCHAND AWATARE, 261, NANDANWAN, NAGPUR - 440 009 (MAHARASHTRA) VS. ITO WARD - 6(1), NAGPUR - 440 001 PAN/GIR NO. : A CBPA 20311 I ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : MR. M. MANI /REVENUE BY : MR. H.WANARE DATE OF HEARING : 20 TH DEC ., 2012 DATE OF PRONOUNCEMENT : 2 ND JAN . ,201 3 O R D E R P ER SHRI R.K.G UPTA, JM : TH E ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE ITAT NAGPUR BENCH, NAGPUR, AGAINST THE ORDER OF LEANED CIT (A) - I I , NAGPUR (MAHARASHTRA) , WHICH HAS BEEN HEARD THROUGH E - COURT, MUMBAI . 2 . THE ASSESS EE IN ITS APPEAL RAISES OBJECTION IN REGARD TO REOPENING OF THE ASSESSMENT UNDER SECTION 147/148 AND ALSO OBJECTING THE CONFIRMATION OF ADDITION OF RS. 2 LAKHS AS INCOME FROM UNDISCLOSED SOURCES. ITA NO . 174 /20 1 0 2 3 . THE ASSESSMENT IN THIS CASE WAS REOPENED ON RECEIVING INF ORMATION FROM ITO WARD 4(1), NAGPUR THAT THE ASSESSEE HAD MADE GIFTS OF RS. 2 LAKHS TO ONE SHRI RAMESH SINGHEE AND, THEREFORE, THE SOURCE OF GIFT HAS TO BE VERIFIED. IT WAS ALSO INFORMED TO THE PRESENT ITO BY THE ITO WARD 4(1), NAGPR THAT THE ADDITION IN H ANDS OF RAMESH SINGHEE HAS BEEN MADE ON THE PROTECTIVE BASIS. IN VIEW OF THESE FACTS, THE AO REOPENED THE ASSESSMENT OF THE ASSESSEE AFTER RECORDING REASONS. THE ASSESSEE WAS REQUIRED TO FILE RETURN. THEREAFTER DURING THE ASSESSMENT PROCEEDING, THE ASSESS EE WAS REQUIRED TO EXPLAIN THE SOURCE OF GIFT MADE TO ONE SHRI RAMESH SINGHEE. IN VIEW OF THE AO, THE ASSESSEE FAILED TO EXPLAIN THE SOURCE OF GIFT OF RS. 2 LAKH. ACCORDINGLY, HE ADDED THE SAME AS UNDISCLOSED INCOME OF THE ASSESSEE. 4 . THE ASSESSEE PREFE RRED AN APPEAL BEFORE THE LEARNED CIT(A) CHALLENGING THE REOPENING OF THE ASSESSMENT AS WELL ADDITION ON MERIT. LEARNED CIT(A) REJECTED THE LEGAL GROUND AS WELL AS GROUND ON MERIT BY RECODING ITS FINDING IN PARA 7 AT PAGES 4 & 5. 5 . AGGRIEVED THEREBY, THE ASSESSEE IS IN APPEAL HERE BEFORE THE TRIBUNAL. 6 . THE CONTENTIONS RAISED BEFORE THE CIT(A), WERE REITERATED HERE BEFORE THE TRIBUNAL BY THE LEARNED AR OF THE ASSESSEE . 7. ON THE OTHER HAND, LEARNED D R PLACED RELIANCE ON THE ORDER OF CIT(A) ITA NO . 174 /20 1 0 3 8 . AFTER CO NSIDERING THE ORDER OF THE AO AND THE CIT(A) , WE FOUND THAT THE REOPENING OF THE ASSESSMENT AS WELL AS ADDITION ON MERIT MADE BY THE AO WAS JUSTIFIED. IT IS SEEN THAT STATEMENT OF ONE SHRI RAMESH SINGHEE WAS RECORDED BY HIS ITO, HOWEVER, SHRI RAMESH SINGHE E FAILED TO EXPLAIN SEPARATELY THE SOURCE OF GIFT MADE BY THE ASSESSEE, THEREFORE, THE ITO OF SHRI RAMESH SINGHEE WROTE A LETTER TO THE PRESENT ITO TO TAKE NECESSARY ACTION IN RESPECT TO THE GIFT OF RS. 2 LAKH MADE BY THE ASSESSEE. THE AO HAS RECORDED REASO NS BASED ON THE INFORMATION RECEIVED FROM THE ITO WARD 4(1), NAGPUR, THEREFORE, IT CANNOT BE SAID THAT THERE WAS NO MATERIAL FOR REOPENING OF THE ASSESSMENT. ACCORDINGLY, WE HOLD THAT THE REOPENING OF THE ASSESSMENT WAS VALID. 9 . ON MERIT ALSO, WE NOTED T HAT ADDITIONAL EVIDENCE WAS FILED BEFORE THE LEARNED C IT (A) ALONG WITH AFFIDAVIT THAT THE ASSESSEE HAS JOINT SAVING OF FAMILY FROM WHICH THE GIFT OF RS. 2 LAKHS WAS MADE, HOWEVER, NO EXPLANATION IN REGARD TO JOINT SAVING OF THE FAMILY WAS GIVEN, NEITHER DET AIL OF SAVING BY FAMILY WAS GIVEN. THEREFORE, THE CIT(A) REJECTED THE ADDITION AL EVIDENCE AND DECIDED THE ISSUE AGAINST THE ASSESSEE. THE FINDING OF THE LEARNED CIT(A) REMAINED UNCONTROVERTED, THEREFORE, WE FIND NO REASON TO INTERFERE IN THE FINDING OF THE L EARNED CIT(A) IN THIS REGARD. ACCORDINGLY, WE CONFIRM THE ADDITION SUSTAINED BY THE LEARNED CIT(A) . 10 . IN THE RESULT , APPEAL OF THE ASSESSEE IS DISMISSED . ITA NO . 174 /20 1 0 4 ORDER PRONOUNCED IN THE E - COURT ON THIS 2 ND DAY OF JAN . 201 3 . - 201 3 SD/ - SD/ - ( ) ( RAJENDRA ) ( ) ( R.K.GU PTA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 02 / 01 / 201 3 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) , MUMBAI / NAGPUR . 4. / CIT 5. / DR, ITAT, MUMBAI / NAGPUR . 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI