Smt.Tejo Rani, Hospet V. Deputy Commissioner of Income-Tax, Bangalore

ITA 2064/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7148 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 23-02-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 25-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PALANI KUMAR
• Keywords: Gift

Judgement Text

IN THE INCOME TAX APPELLATE TRI BUNAL BANGALORE BENCH SMC-B, BANGALORE BEFORE SHRI A.K.GARODIA, ACCOUNANT MEMBER ITA NO.2064 (BANG) 2016 (ASSESSMENT YEAR : 2009 10) SMT. TEJO RANI, APPELLANT SANSKRUTHI, 5 TH MAIN CROSS, BASAVESHWARA BADAVANE, HOSPET, BELLARY DISTRICT PAN. AJLPT7099Q VS THE DCIT, CENTRAL CIRCLE 1 (3), BENGALURU RESPONDENT ASSESSEE BY : SHRI BALACHANDRAN, ADVOCATE REVENUE BY : SHRI PALANI KUMAR, ADDL. CIT DATE OF HEARING : 20-11-2017 DATE OF PRONOUNCEMENT : 2 4-11-2017 O R D E R PER A. K. GARODIA, A.M.: THIS APPEAL IS FILED BY THE ASSESSEE WHICH IS DIRE CTED AGAINST THE ORDER OF CIT (A) 11, BANGALORE DATED 31.08.2016 FOR A. Y. 2009 10. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS BUT ONLY TWO ISSUES ARE INVOLVED. FIRST ISSUE IS ABOUT VALIDITY OF ASSESSME NT ORDER PASSED U/S 153C AND THE ISSUE ON MERIT IS ABOUT ADDITION OF RS. 11 LACS BEING GIFT RECEIVED BY THE ASSESSEE FROM HER HUSBAND. 3. AT THE VERY OUTSET, IT WAS POINTED OUT BY THE BE NCH THAT IN THE TECHNICAL GROUNDS RAISED ABOUT VALIDITY OF ASSESSME NT ORDER PASSED U/S 153C, TWO ASPECTS ARE RAISED THAT 1) NO INCRIMINATI NG MATERIAL WAS FOUND AND NO SATISFACTION WAS RECORDED BY THE AO OF THE S EARCHED PERSON BUT NO SUCH GROUND WAS RAISED BEFORE CIT 9A) AND THEREFORE , THE SAME CANNOT BE RAISED BEFORE THE TRIBUNAL EXCEPT BY FILING ADDITIO NAL GROUND. IN REPLY, LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE ISSUE ON MERIT MAY BE DECIDED. REGARDING MERIT, HE SUBMITTED THAT THE GIF T IS SHOWN BY THE DONOR I.E. THE HUSBAND OF THE ASSESSEE SHRI G. RAVIKUMAR AND HE IS ALSO ASSESSED BY THE SAME AO. HE SUBMITTED A COPY OF THE ASSESSME NT ORDER DATED ITA NO. 2064(BANG)2016 2 28.03.2013 PASSED BY THE SAME AO AND ALSO FILED A C OPY OF HIS CAPITAL ACCOUNT AND BALANCE SHEET. HE POINTED OUT THAT THE HUSBAND OF THE ASSESSEE IS HAVING A CAPITAL OF RS. 703.52 LACS AS ON 31.03. 2009 AND HENCE, HIS CREDITWORTHINESS CANNOT BE DOUBTED. IDENTITY ALSO C ANNOT BE DOUBTED BECAUSE HE IS ASSESSED BY THE SAME AO AND GENUINENE SS IS ALSO NOT DOUBTFUL IN VIEW OF THE RELATIONSHIP OF SPOUSE. LEA RNED DR OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. I FIND THAT THE OBJECTION OF THE AO IS THIS THAT SINCE THE GIFT IS CLAIMED BY WAY OF CASH AND THROUGH BANKING CHANNEL, TRANSACTION IS NOT GENUINE. IN MY OPINION, THIS CANNOT BE SAID THAT A GIFT TRANSACTION IS NOT GENUINE MERELY BECAUSE IT IS IN CASH. NO OTHER REASON IS GIVEN BY THE AO FOR HOLDING IT AS NON GEN UINE. IDENTITY AND CREDIT WORTHINESS CANNOT BE DOUBTED BECAUSE HE IS ASSESSED BY THE SAME AO AND HE IS HAVING CAPITAL OF RS. 703.52 LACS AS ON 31.03 .2009. HENCE, I DELETE THIS ADDITION. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- (A.K. GARODIA) ACCOUNTANT MEMBER BANGALORE: D A T E D : 24.11.2017 /MS/ COPY TO: 1. APP ELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.