Asstt.Commissioner of Income-tax Circle-5, Nagpur V. Shri. Prakash G. Agrawal, Nagpur

ITA 183/NAG/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9649 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 9 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2000-2001
• Appeal Filed On: 20-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR MILIND BHUSARI
• Keywords: Gift; Block assessment
• Section: 143(3); 260A; 148

Judgement Text

ITA NO. 183/NAG/2010 PRAKASH G. AGRAWAL, NAGP UR IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH , NAGPUR BEFORE: SHRI P.K. BANSAL , ACCOUNTANT MEMBER AND SHRI D.T. GARASIA , JUDICIAL MEMBER ITA NO. 183 / NAGPUR / 20 10 ASSESSMENT YEAR : 2000 - 01 ACIT, CIRCLE - 5 NAGPUR VS. PRAKASH G. AGRAWAL NAGPUR (APPELLANT) (RESPONDENT) PAN NO.ABDPA 5542P APPELLANT BY: DR. MILIND BHUSARI, CIT(DR) RESPONDENT BY: SHRI K.P. DEWANI, ADVOCATE DATE OF HEARING: 17 . 10.12 DATE OF PRONOUNCEMENT: 19.10.12 ORDER PER P.K. BANSAL, ACCOUNTANT MEMBER: - TH IS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) DATED 13.10.2010. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATE TO THE DELETION OF THE ADDITION OF RS.24,25,000/ - IN RESPECT OF THE GIFT RECEIVED BY THE MINOR CHILDREN OF THE ASSESSEE . 2. THE BRIEF FACTS OF THE CASE ARE THAT THERE HAS BEEN A SEARCH ON 29.11.2001 PURSUANT TO THE SEARCH ORDER U/S 158BC R .W.S. 143(3) OF THE INCOME - TAX ACT PASSED ON 28.11.2003. IN THE BLOCK ASSESSMENT, THE ADDITION OF RS.24,25,000/ - WAS MADE IN RESPECT OF THE GIFT RECEIVED BY MINOR CHILDREN OF THE ASSESSEE. THE ADDITION SO MADE WAS CHALLENGED BEFORE THE APPELLATE AUTHORITIES. THE ITAT NAGPUR BENCH, NAGPUR IN IT(SS)A NO.77/NAG/2005 VIDE ORDER DATED 25.1.2007 DELETED THE ADDITION MADE ON THE GROUND THAT THE ADDITIONS ARE OUTSIDE THE PURVIEW OF THE UNDISCLOSED INCOME AS PER THE DEFINITION OF THE UNDISCLOSED INCOME GIVEN U/S 158B(B). ON MERIT ALSO, IT HAS BEEN HELD THAT THE GIFTS RECEIVED BY THE MINOR CHILDREN ARE GENUINE. ITA NO.183/NAG/2010 PRAKASH G. AGRAWAL, NAGPUR 2 3. THE SAID ORDER OF THE TRIBU NAL HAS BEEN CHALLENGED BY THE REVENUE BY FILING AN APPEAL U/S 260A OF THE ACT BEFORE THE HON BLE HIGH COURT. SUBSEQUENTLY, ASSESSMENT FOR THE ASSESSMENT YEAR 2000 - 01 WAS REOPENED U/S 148 OF THE ACT FOR AN ESCAPEMENT OF INCOME IN RESPECT OF THE GIFT AMOUN TING TO RS.24,25,000/ - RECEIVED BY THE MINOR. THE ASSESSING OFFICER TREATED THE SUM OF RS.24,25,000/ - AS THE INCOME OF THE ASSESSEE WITHIN THE MEANING OF SECTION 2(24) OF THE ACT. 4 . THE ASSESSEE WENT IN APPEAL BEFORE THE CIT(A). THE CIT(A) ALLOWED TH E APPEAL OF THE ASSESSEE ON LEGAL GROUND AS WELL AS ON MERIT. 5 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY CONSIDERED THE SAME. WE NOTED THAT IN THE CASE OF THE ASSESSEE IN BLOCK ASSESSMENT IN IT(SS)A NO.77/NAG/2005 VIDE ORDER DATED 25.1.2007, TO OK THE VIEW THAT THE TRANSACTION OF THE GIFTS ARE GENUINE. THE CREDITWORTHINESS OF THE DONOR IS FULLY ESTABLISHED AND ACCORDINGLY DELETED THE ADDITION. THE RELEVANT FINDING OF THE TRIBUNAL ARE AT PAGE 32 OF ITS ORDER. WHEN THE TRIBUNAL HAS TAKEN THE VIE W THAT THE GIFTS ARE GENUINE AND THE ASSESSEE HAD PROVED THE SOURCE, IN OUR OPINION, NO INTERFERENCE IS CALLED FOR IN THE ORDER OF THE CIT(A) AND THE CIT(A) HAS RIGHTLY DELETED THE ADDITION. THE DECISION OF THE BENCH ON THE SAME ISSUE IS BINDING ON US. 6 . IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 19.10 .20 1 2 SD/ - SD/ - ( D.T. GARASIA ) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER VG/SPS NAGPUR DATED 19 TH OCT OBER , 20 1 2 ITA NO.183/NAG/2010 PRAKASH G. AGRAWAL, NAGPUR 3 COPY TO 1 ACIT, CIRCLE - 5, NAGPUR 2 SHRI PRAKASH G. AGRAWAL, A - 6, GANGASAGAR APPT. RAMDASPETH, NAGPUR 3 CIT - III, NAGPUR 4 THE CIT (A) , NAGPUR 5 THE DR, ITAT, NAGPUR 6 GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL NAGPUR