Shri Sunil Kumar Jain, Advocate, New Delhi V. ITO, New Delhi

ITA 199/DEL/2010

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5462 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2006-2007
• Appeal Filed On: 14-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: O P SAPRA
• Keywords: Gift
• Section: 143(3); 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G : NEW DELHI BEFORE SHRI C.L.SETHI, JM AND SHRI R.C.SHARMA, AM ITA NO.199/DEL/2010 ASSESSMENT YEAR : 2006-07 SHRI SUNIL KUMAR JAIN, ADVOCATE, 99, MANSAROVER, STREET NO.1, CIVIL LINES, MEERUT (UP). PAN NO.AANPJ1162F. VS. INCOME TAX OFFICER, WARD-2(3), MEERUT. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI O.P.SAPRA, ADVOCATE. RESPONDENT BY : MS.SHYMANA SEN, SR.DR. ORDER PER R.C.SHARMA, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF CIT(A) DATED 24.11.2009 FOR THE AY 2006-07, IN THE MATTER OF ORD ER PASSED U/S 143(3) OF THE IT ACT. 2. ONLY GRIEVANCE OF THE ASSESSEE RELATES TO ADDITI ON OF RS.2,11,000/- MADE BY THE AO IN RESPECT OF GIFT RECEIVED FROM FATHER IN L AW. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. FACTS IN BRIEF ARE THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSES SEE WAS IN RECEIPT OF GIFT OF RS.2,11,000/- FROM HIS FATHER IN LAW SHRI HARI OM P RAKASH AGARWAL S/O LATE SHRI JYOTI PRAKASH AGARWAL ON 8.7.2005. TO VERIFY THE G ENUINENESS OF GIFT, THE AO CALLED FOR THE DONOR AND HE WAS EXAMINED BY ISSUING SUMMONS U/S 131. HIS STATEMENT HAD BEEN RECORDED WHEREIN HE HAS STATED T HAT HE IS ABOUT 70 YEARS OLD ENGAGED IN FARMING SINCE HIS BIRTH. HE IS OWNER OF ABOUT 2.9 HECTARES OF ITA-199/DEL/2010 2 AGRICULTURAL LAND AND ALSO HOLDING LAND AT BADAUN ( UP). DURING THE COURSE OF STATEMENT, IN REPLY TO QUESTION NO.5, THE DONOR STA TED THAT HE WAS HAVING AGRICULTURAL INCOME OF RS.6,70,000/- IN A YEAR AND AFTER MEETING THE HOUSEHOLD EXPENSES ETC., THERE WAS A SAVING OF RS.5.50 LAKHS WHICH IS KEPT AT HOUSE IN CASH. AN AFFIDAVIT WAS ALSO FILED TO THIS EFFECT. HOWEVE R, THE AO DID NOT ACCEPT THE GENUINENESS OF THE GIFT AND BY ALLEGING THAT AGRICU LTURAL INCOME STATED BY THE DONOR IS NOT CORRECT AND IN VIEW OF THE LANDHOLDING MAXIM UM INCOME WHICH CAN BE EARNED BY THE DONOR AFTER MEETING ALL THE EXPENSES IS ABOUT RS.75,000/- P.A. THE AO FURTHER STATED THAT ON GOING THROUGH THE KHASRA KHATAUNI OF AGRICULTURAL HOLDING, IT WAS FOUND THAT DONOR HAS TAKEN LOAN FRO M PUNJAB NATIONAL BANK AFTER HYPOTHECATION OF HIS AGRICULTURAL LAND. DURING THE COURSE OF STATEMENT, THE DONOR WAS ALSO ASKED THE REASON WAS ASKED FOR GIVING SUCH AMOUNT OF GIFT AND IN REPLY, IT WAS SUBMITTED THAT THERE WAS MARRIAGE ANNIVERSARY O F HER DAUGHTER, SO HE HAS GIVEN THIS AMOUNT TO HIS SON IN LAW AND IN SPECIFIC QUERY BY THE AO TO THE EFFECT THAT WHETHER SHRI HARI OM PRAKASH AGARWAL (DONOR) H AD GIVEN ANY SUCH GIFT TO HER OTHER THREE DAUGHTERS, IT WAS CATEGORICALLY REPLIED THAT HAD THERE BEEN SUCH OCCASION, HE WILL DEFINITELY GIVE GIFT TO HIS OTHER DAUGHTERS ALSO. HOWEVER, THE AO DID NOT AGREE WITH ASSESSEES CONTENTION AND ADDED THE GIFT AMOUNT. CIT(A) CONFIRMED AOS ACTION, AGAINST WHICH ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. IT IS CRYSTAL CLEAR FROM THE ORDER OF THE AO THA T TO ESTABLISH THE GENUINENESS OF GIFT, THE ASSESSEE HAS NOT ONLY PRODUCED ITS BOO KS OF ACCOUNT WHEREIN GIFT WAS DEPOSITED BUT ALSO PRODUCED THE DONOR FOR VERIFICAT ION WHOSE STATEMENT WAS RECORDED U/S 131 WHEREIN HE HAS CATEGORICALLY STATE D REGARDING HIS SOURCE OF INCOME, QUANTUM OF INCOME, OCCASION FOR WHICH GIFT WAS GIVEN ETC. GIFT WAS GIVEN BY FATHER IN LAW OF ASSESSEE. THE AO HAS NEI THER DISPUTED THE RELATION OF THE ASSESSEE WITH DONOR NOR THE OCCASION FOR WHICH GIFT WAS GIVEN. UNDER THESE FACTS AND CIRCUMSTANCES, THE ASSESSEE HAS DISCHARGED ITS INITIAL ONUS OF ESTABLISHING NOT ONLY IDENTITY OF THE DONOR BUT ALSO GENUINENESS OF THE TRANSACTION AND THE OCCASION FOR WHICH GIFT WAS GIVEN. WE ARE THEREFORE INCLINE D TO AGREE WITH THE LEARNED AR ITA-199/DEL/2010 3 THAT ORDERS OF THE LOWER AUTHORITIES DECLINING THE GENUINENESS OF THE GIFT ARE DEVOID OF ANY MERIT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF HEARING ON 15 TH MARCH, 2010. SD/- SD/- (C.L.SETHI) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 15.03.2010. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR ITA-199/DEL/2010 4