Sri V.Sakthivadivel, Vellakoil V. ACIT, Erode

ITA 240/CHNY/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5217 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 20-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 02-03-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: TAPAS KUMAR DUTTA
• Assessee Lawyers: R MAHADEVAN
• Keywords: Gift
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH C : CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER] I.T.A NO. 240/MDS/2009 ASSESSMENT YEAR : 2006-07 SHRI V.SAKTHIVADIVEL S/O SRI K.VISWANATHAN 108, KATCHERI VALASU VELLAKOIL 638 111 VS THE ACIT CIRCLE II ERODE [PAN - AVZPS1341C] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.MAHADEVAN RESPONDENT BY : SHRI TAPAS KUMAR DUTTA O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE, FOR ASSESSMENT YE AR 2006-07, IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), COIMB ATORE, DATED 23.12.2008. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS REGARD ING SUSTENANCE OF AN ADDITION OF ` 4.50 LAKHS. THE ASSESSEE HAS ADMITTED TOTAL INCOM E OF ` 18 LAKHS IN THE RETURN FILED FOR THIS YEAR, BUT THE ASSESSING OFFICER HAS DETERMINED THE TOTAL INCOME AT ` 22,50,000, THUS, MAKING AN ADDITION OF ` 4.50 LAKHS REPRESENTING UNPROVED GIFTS AND UNPROVE D LOAN ITA 240/09 :- 2 -: FROM HUF. THE LD. CIT(A) HAS ALSO CONFIRMED THIS ADDITION. THE ASSESSEE IS FURTHER AGGRIEVED AND HAS PRAYED FOR TH E DELETION OF THIS ADDITION. 3. THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO FUR NISH THE DETAILS OF LOAN/GIFT RECEIVED ALONGWITH NECESSARY P ROOF OF EVIDENCE. THE ASSESSEE OBLIGED AND FILED THE INFORMATION. IT WAS NOTICED BY THE ASSESSING OFFICER THAT THE ASSESSEE HAD SHOWN A GIF T OF ` 8,50,000/- FROM HIS MOTHER, SMT. SARASWATHY OUT OF WHICH NECES SARY PROOF HAS BEEN FILED ONLY FOR ` 7,50,000/-. IN RESPECT OF GIFT OF ` 2 LAKHS RECEIVED FROM HIS GRANDMOTHER, SMT SAMIATHAL, FULL PROOF WAS NOT FURNISHED. THE ASSESSING OFFICER ACCEPTED THE GIFT OF ` 1 LAKH ONLY. THE ASSESSEE HAS SHOWN ` 7,50,000/- HAVING BEEN TAKEN FROM VISWANATHAN-HUF. THE ASSESSEE HAS FILED PROOF ONLY OF ` 5 LAKHS. IN FACT, A SURVEY ACTION WAS CONDUCTED U/S 133A OF THE ACT AT THE BUSINESS P REMISES OF M/S SAVERA SPINNERS, ERODE, IN WHICH THIS ASSESSEE AND HIS FATHER, SHRI K.VISWANATHAN WERE PARTNERS. DURING THE SURVEY, BO TH THE PARTNERS WERE UNABLE TO EXPLAIN THE SOURCES OF INVESTMENT/CA PITAL INTRODUCED BY THEM IN THIS FIRM. IN A LETTER CONJOINTLY ADDRESSE D BY THEM, THEY MADE AN ADMISSION TO OFFER ADDITIONAL ` 36 LAKHS I.E ` 18 LAKHS IN THIS ASSESSEES HANDS AND ` 18 LAKHS IN HIS FATHERS HANDS PERTAINING TO THE PERIOD RELEVANT TO ASSESSMENT YEAR 2006-07. BUT IN THE RETURN FILED ON 31.7.2007, SUBSEQUENT TO THE SURVEY ACTION DONE ON 9.2.2007, THE ITA 240/09 :- 3 -: ASSESSEE HONOURED ADDITIONAL INCOME OF ` 14 LAKHS ONLY AS AGAINST ` 18 LAKHS ADMITTED EARLIER. THE DIFFERENTIAL AMOUNT WAS EXPLAINED TO BE THE RESULT OF GIFT TAKEN FROM CLOSE RELATIVES AND B ORROWINGS FROM VISWANATHAN-HUF. THE ASSESSING OFFICER DID NOT ACC EPT BOTH THESE AND THE ASSESSING OFFICER BROUGHT TO TAX ` 1 L LAKH OF UNPROVED GIFT TAKEN FROM SMT SARASWATHY ; ` 1 LAKH OF UNPROVED GIFT FROM SMT SAMIATHAL; AND ` 2.5 LAKHS ON ACCOUNT OF UNPROVED LOAN FROM VISWANATHAN, HUF, TOTALING TO ` 4.50 LAKHS AND ADDED THE SAME IN ASSESSEES HANDS. FOR THIS ADDITION, THE LD.AR OF THE ASSESSEE MADE NO OBJECTION WHICH WAS RECORDED IN THE ORDER SHEET DAT ED 20.6.2008, WHICH READS AS UNDER: 20.6.2008 SHRI SIVASUBRAMANIAM, AR APPEARED AND WAS HEARD. THE ASSESSEE HAS ADMITTED ` 18 LAKHS ADMISSION BUT ONLY ` 14,10,000 HAS BEEN ADMITTED IN THE RETURN OF INCOME FILED. THE ASSESSEE HAS NOT FURNISHED PROO F FOR RECEIPTS OF LOAN/GIFTS OF ` 1,00,000 FROM THE MOTHER V.SARASWATHI, ` 2,50,000 FROM HUF OF SHRI VISWANATHAN. ALSO THE SOURCE FOR GIFT RECEIVED FROM GRANDMOTHER IS ACCEPTABLE FOR ONLY ` 1,00,000. HENCE THE ASSESSEE TO SET RIGHT THE SHORTFALL IN THE ADDITIONAL INCOME HAS NO W COME FORWARD FOR ADDITION OF ` 4.50 LAKHS BEING LOANS/GIFTS RECEIVED TO THE EXTENT OF ` 1,00,000 FROM V.SARASWATHI; ` 2,50,000 FROM VISWANATHAN(HUF) AND ` 1,00,000 FROM GRANDMOTHER. SD/- SD/- A.O AR 4. UNDER THESE CIRCUMSTANCES, THE LD. CIT(A) HAS CONFI RMED THE IMPUGNED ADDITION AND DISMISSED THE APPEAL. NOW TH E ASSESSEE HAS CHALLENGED THIS CONFIRMED ADDITION. ITA 240/09 :- 4 -: 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND THE GRO UNDS OF APPEAL, WE ARE OF THE CONSIDERED OPINION THAT THE C IRCUMSTANCES OF THIS CASE WHICH ARE CRYSTAL CLEAR, OSTENSIBLY SPEAK AGAI NST THE CASE OF THE ASSESSEE. WHATEVER AMOUNT HAS BEEN ESTABLISHED TO HAVE BEEN TAKEN FROM THE CONCERNED PARTIES, THE SAME HAS BEEN DELET ED BY THE ASSESSING OFFICER HIMSELF. THE ASSESSING OFFICER H AS BEEN VERY REASONABLE IN HIS APPROACH. TO THE EXTENT THE ASSE SSEE WAS UNABLE TO PROVE THE GIFTS AND, ALSO THE LD.AR AGREED FOR THIS DIFFERENTIAL AMOUNTS ADDITION, THE ASSESSING OFFICER HAS MADE ADDITION A ND THE LD. CIT(A) HAS CONFIRMED THE SAME. WE DO NOT FIND ANY REASON TO INTERFERE IN THE IMPUGNED FINDING. THEREFORE, WE CANNOT ALLOW THE G ROUND OF THE APPEAL AND CANNOT DELETE THE IMPUGNED ADDITION, HEN CE, THE IMPUGNED ADDITION IS FURTHER CONFIRMED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STAND S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05.05.11. SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (HARI OM MARATHA) JUDICIAL MEMBER DATED: 5 TH MAY, 2011 RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR