Dr. Arpan Khan, Kolkata V. ITO, Ward - 55(3), Kolkata, Kolkata

ITA 2060/KOL/2009

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74953 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2014
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 27-04-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 04-12-2009
• Court: TRIBUNAL
• Department Lawyers: NIRANJAN SATPATI
• Assessee Lawyers: SOUMITRA CHOW DHURY
• Keywords: Gift
• Section: 143(3)

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE , /AND . . . . ' '' ''# '#'# '#, $% ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI ABRAHAM P. GEORGE, AM] & & & & / I.T.A NO. 2060/KOL/2009 '( )* '( )* '( )* '( )*/ // / ASSESSMENT YEAR: 2004-05 DR. ARPAN KHAN VS. INCOME-TAX OFFICER, WD-55(3) , KOLKATA (PAN:AFYPK9796A) (,- /APPELLANT ) (./,-/ RESPONDENT ) DATE OF HEARING: 08.01.2014 DATE OF PRONOUNCEMENT: 10.01.2014 FOR THE APPELLANT: SHRI SOUMITRA CHOWDHURY FOR THE RESPONDENT: SHRI NIRANJAN SATPATI, JCIT, SR. DR $0 / ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XXXVI, KOLKATA IN APPEAL NO. 12/CIT(A)-XXXVI/KOL/AFYPK9796A/08-09/KOL DATED 15.12.2008. ASSESSMENT WAS FRAMED BY ITO, WARD-55(3), KOLKATA U/S. 143(3) OF T HE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2004- 05 VIDE HIS ORDER DATED 27.12.2006. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) IN RESTRICTING THE ADDITION OF UNEXPLAINED GIFT RECEIVED BY ASSESSEE F ROM HIS FATHER LATE SUSHIL KUMAR KHAN AMOUNTING TO RS.2,50,000/- OUT OF THE TOTAL ADDITIO N MADE BY AO AT RS. 4,00,000/-. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS MADE ADDITION OF UNEXPLAINED GIFT OF RS. 4 LAC RECEIVED BY ASSESSEE FROM HIS FATHER SUSHIL K UMAR KHAN DURING FY 2003-04. THE ASSESSEE COULD NOT PRODUCE THE DONOR BECAUSE HE DIE D ON 29.01.2006. THE ASSESSEE EXPLAINED BEFORE THE AO THAT HIS FATHER WAS RETIRED AND HAS G IVEN THIS GIFT OUT OF ACCUMULATED FUNDS FROM RETIREMENT BENEFITS. ACCORDING TO ASSESSEE, THE GI FT WAS MADE BY HIS FATHER IN CASH AT THE TIME OF PURCHASE OF FLAT AMOUNTING TO RS.1,50,000/- AND BALANCE GIFT OF RS.2,50,000/- ON DIFFERENT DATES. THE ASSESSEE PRODUCED COPY OF BANK STATEMEN T OF HIS FATHER MAINTAINED WITH HSBC BANK AND ALSO SUPPORTED BY AN AFFIDAVIT DATED 19.07 .2004. ACCORDING TO AO NO WITHDRAWAL AMOUNTING TO RS.4 LAC WAS MADE BY ASSESSEES FATHER . HENCE, HE TREATED THE ENTIRE GIFT AS BOGUS AND UNEXPLAINED. HE MADE ADDITION OF THIS RS. 4 LAC TO ASSESSEES RETURNED INCOME BEING UNDISCLOSED INCOME. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO RESTRICTED THE ADDITION AT RS.2.5 LAC BY OBSERVING AS UNDER: 2 ITA NO. 2060/K/2009 DR. ARPAN KHAN , AY:2004-05 I HAVE CAREFULLY CONSIDERED THE ABOVE SUBMISSIONS I HAVE ALSO PERUSED BANK STATEMENT COPY PRODUCED BEFORE ME. CONSIDERING ABOVE FACTS I T CAN BE SAID THAT THE DONOR HAD SOURCE FOR MAKING GIFT OF RS.150000/- ONLY. FURTHE R, THERE IS NO OTHER SOURCE FOR THE DONOR TO MAKE SUCH GIFTS OTHER THAN THE BALANCES WI TH THE ABOVE MENTIONED BANK. IN VIEW OF THE ABOVE, GIFT MADE TO THE EXTENT OF RS .150000/- IS TREATED AS SUBSTANTIATED AND THE BALANCE OF RS.250000/- REMAINS UNSUBSTANTIA TED. ACCORDINGLY, THE AO IS DIRECTED TO DELETE THE ADDITION OF RS.150000/- ON A /C. OF THE CLAIM OF THE GIFT WHILE THE BALANCE ADDITION OF RS.250000/- IS CONFIRMED. AGGRIEVED, ASSESSEE CAME IN APPEAL BEFORE US. 3. WE FIND THAT THE ASSESSEE HAS FILED BANK ACCOUN T FROM WHERE IT HAS WITHDRAWN THREE CHEQUES OF RS.50,000/- ISSUED IN FAVOUR OF ASSESSEE AND ALSO MADE CASH WITHDRAWAL OF RS.150000/- ON 05.05.2003. FURTHER, THE ASSESSEES FATHERS BANK ACCOUNT WAS HAVING A BALANCE AS ON 01.01.2003 AT RS.3,73,489/- AND APART FROM TH AT THE ASSESSEES FATHER WAS HAVING CASH WITHDRAWALS. IN VIEW OF THE ABOVE, WE ARE OF THE V IEW THAT THE SOURCE OF THIS CASH GIFT IS EXPLAINED AND THIS IS A GIFT BETWEEN FATHER AND SON . MOREOVER, ASSESSEES FATHER SHRI SUSHIL KUMAR KHAN EXPIRED ON 29.01.2006. IN OUR VIEW THES E ARE SUFFICIENT EVIDENCE TO PROVE THE GENUINENESS OF THIS GIFT AND WE DELETE THE ENTIRE A DDITION. APPEAL OF ASSESSEE IS ALLOWED. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. 5. ORDER IS PRONOUNCED IN THE OPEN COURT ON 10.01.2 014 SD/- SD/- . . . . ' '' ''# '#'# '# , $% , (ABRAHAM P. GEORGE) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 10TH JANUARY, 2013 12 '3' 4 JD.(SR.P.S.) $0 5 . 6$ )7- COPY OF THE ORDER FORWARDED TO: 1 . ,- / APPELLANT DR. ARPAN KHAN, 128/1A, SARAT GHOSH GAR DEN ROAD, KOLKATA-700 031. 2 ./,- / RESPONDENT ITO, WARD-55(3), KOLKATA 3 . 0' ( )/ THE CIT(A), KOLKATA 4. 5. 0' / CIT KOLKATA <= .' / DR, KOLKATA BENCHES, KOLKATA / ./ TRUE COPY, $0'>/ BY ORDER, ' /ASSTT. REGISTRAR .