Sh. Hemant Khatuja, New Delhi V. ITO, New Delhi

ITA 240/DEL/2014

• Counselvise Citation: 24020114 RSA 2014
• Duration Of Justice: 1 year(s) 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 14-07-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 13-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVI SHARAN SINGH
• Assessee Lawyers: SALIL AGGARWAL
• Keywords: Unexplained cash credit; Gift
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH SMC SMC SMC SMC : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO . .. . 240/DEL/2014 240/DEL/2014 240/DEL/2014 240/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2002 2002 2002 2002 - -- - 03 0303 03 SHRI HEMANT KHATUJA, SHRI HEMANT KHATUJA, SHRI HEMANT KHATUJA, SHRI HEMANT KHATUJA, A AA A- -- -131, LOK VIHAR, 131, LOK VIHAR, 131, LOK VIHAR, 131, LOK VIHAR, PITAMPURA, PITAMPURA, PITAMPURA, PITAMPURA, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 034. 110 034. 110 034. 110 034. PAN : AKOPK7755Q. PAN : AKOPK7755Q. PAN : AKOPK7755Q. PAN : AKOPK7755Q. VS. VS. VS. VS. IN ININ IN COME TAX OFFICER, COME TAX OFFICER, COME TAX OFFICER, COME TAX OFFICER, WARD WARD WARD WARD- -- -25(1), 25(1), 25(1), 25(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SALIL AGGARWAL, ADVOCATE. RESPONDENT BY : SHRI DEVI SHARAN SINGH, SR.DR. DATE OF HEARING : 14.07.2015 14.07.2015 14.07.2015 14.07.2015 DATE OF PRONOUNCEMENT : 03.08.2015 03.08.2015 03.08.2015 03.08.2015 ORDER ORDER ORDER ORDER THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2002-0 3 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVII, N EW DELHI DATED 1 ST NOVEMBER, 2013. 2. THE LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUTSET, S UBMITTED THAT THE ONLY EFFECTIVE GROUNDS OF APPEAL OF THE ASSESSE E ARE GROUND NO.5 & 5.1, WHICH ARE REPRODUCED HEREUNDER:- 5. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS FURTHER ERRED BOTH IN LAW AND ON FACTS I N SUSTAINING AN ADDITION OF RS.1,00,000/- COMPRISING OF AMOUNT RECEIVED FROM SH. JAGBEER SINGH AS GIFT AN D HELD TO BE UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT. 5.1 THAT IN DOING SO, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS FAILED TO APPRECIATE THE BASI C FACT THAT ALL THE DOCUMENTARY EVIDENCES WERE FILED B Y THE APPELLANT IN SUPPORT OF THE GIFT RECEIVED FROM THE A BOVE ITA-240/DEL/2014 2 SAID DONOR, WHICH WERE ARBITRARILY BRUSHED ASIDE BY L EARNED ASSESSING OFFICER WITHOUT CONDUCTING ANY ENQUIRY/INVESTIGATION AND AS SUCH, THE ADDITION SO MADE HAS NO LEGS TO STAND AND SHOULD BE DELETED. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT IT HAS FILED THE EVIDENCE IN SUPPORT OF THE GIFT RECEIVED BY IT OF `1 LAKH ONLY IN THE FORM OF AFFIDAVIT OF THE DONOR SHRI JAGBEER SINGH, COPY OF HIS INCOME TAX RETURN, COPY OF HIS WEALTH TAX RETURN, COPY OF MEMO RANDUM OF GIFT BETWEEN THE DONOR AND THE DONE, COPY OF THE BANK STA TEMENT OF THE DONOR SHRI JAGBEER SINGH WITH ORIENTAL BANK OF COMM ERCE, COPY OF HIS IDENTITY PROOF, COPY OF ACKNOWLEDGMENT OF RETURN FI LED BY SHRI JAGBEER SINGH FOR THE ASSESSMENT YEAR 2001-02 BEFORE THE ASSESSING OFFICER AND, THEREFORE, NO PENALTY SHOULD HAVE BEEN SUSTAINED BY THE LEARNED CIT(A). 4. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A). 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PERU SED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A) A ND ALSO THE COPIES OF VARIOUS DOCUMENTS FILED IN THE COMPILATION B EFORE THE TRIBUNAL IN SUPPORT OF THE CASE OF THE ASSESSEE. I FIND THAT THE ASSESSEE HAS FILED THE COPY OF THE INCOME TAX RETURN OF THE DONOR SHRI JAGBEER SINGH, COPY OF HIS WEALTH TAX RETURN, COPY OF MEMORANDUM OF GIFT BETWEEN THE DONOR AND THE DONE, COPY OF THE BA NK STATEMENT OF THE DONOR SHRI JAGBEER SINGH WITH ORIENTAL BANK OF COMMERCE, COPY OF HIS IDENTITY PROOF, COPY OF ACKNOWLEDGMENT OF RETURN FILED BY SHRI JAGBEER SINGH FOR THE ASSESSMENT YEAR 2001-02 BEFORE TH E ASSESSING OFFICER, AND COPIES OF THE SAME HAVE BEEN FILED IN T HE COMPILATION BEFORE THE TRIBUNAL. IN THE ABSENCE OF ANY MATERIAL PLACED ON RECORD ON BEHALF OF THE REVENUE FOR NOT BELIEVING THE EVID ENCE FILED BY THE ITA-240/DEL/2014 3 ASSESSEE, I HOLD THAT THE ASSESSEE HAS DISCHARGED ITS ONUS OF PROVING THE IDENTITY OF THE DONOR, CREDITWORTHINESS OF THE DO NOR AS WELL AS THE GENUINENESS OF THE TRANSACTION OF GIFT AND, ACCORDINGL Y, THE ADDITION OF `1 LAKH MADE IS DELETED. GROUND NOS.5 & 5.1 OF THE A SSESSEES APPEAL ARE ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 3 RD AUGUST, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : SHRI HEMANT KHATUJA, SHRI HEMANT KHATUJA, SHRI HEMANT KHATUJA, SHRI HEMANT KHATUJA, A AA A- -- -131, LOK VIHAR, PITAMPURA, 131, LOK VIHAR, PITAMPURA, 131, LOK VIHAR, PITAMPURA, 131, LOK VIHAR, PITAMPURA, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 034. 110 034. 110 034. 110 034. 2. RESPONDENT : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -25(1), NEW DELHI. 25(1), NEW DELHI. 25(1), NEW DELHI. 25(1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR