Kona Laxmi Vanaja, Bhubaneswar V. ITO, Rayagada

ITA 246/CTK/2011

• Counselvise Citation: 24622114 RSA 2011
• Duration Of Justice: 4 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2015
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 21-05-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 05-05-2011
• Court: TRIBUNAL
• Assessee Lawyers: P C SETHI
• Keywords: Gift

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH , CUTTACK , . . , BEFORE SHRI SUNIL KUMAR YADAV , J M & SHRI B.P.JAIN , A M ./ ITA NO. 2 4 6 / CTK /20 1 1 ( / ASSESSMENT YEAR : 200 6 - 07 ) KONA LAXMI VANAJA, W/O K. PRABHAKAR RAO, GOUTAM NAGAR, 5 TH LANE, RAYAGADA. VS. ITO, RAYAGADA WARD, RAYAGADA ./ ./ PAN/GIR NO. : A VNPK 4382 K ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI P.C.SETHI /REVENUE BY : SHRI K.K.NATH / DATE OF HEARING : 2 1 ST MAY , 201 5 / DATE OF PRONOUNCEMENT 22 ND MA Y ,2015 / O R D E R PER SU NIL KUMAR YADAV (J.M) : THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT (A ) , DATED 1 - 2 - 2011 FOR THE ASSESSMENT YEAR 200 6 - 07 , THEREBY CONFIRMING THE ADDITION OF RS.3 LAKHS MADE ON ACCOUNT OF BOGUS GIFT. 2. THE FACTS IN BRIEF BORNE OUT FROM THE RECORD ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS RECEIVED CASH OF RS.3 LAKHS FROM HER BROTHER - IN - LAW (BROTHER OF HIS HUSBAND , SHRI K.JANARDAN RAO), WHO IS A RETIRED RAILWAY DRIVER. THOUGH THE ASSESSEE HAS FURNISHED THE SOURCE OF GIFT, BUT IT WAS NOT ACCEPTED BY THE AO AND HE MADE THE ADDITION OF THE SAME. 3. BEING AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), HOWEVER, THE ASSESSEE DID NOT FIND FAVOUR WITH HIM. NOW, THE ASSE SSEE IS IN FURTHER APPEAL BEFORE US. ITA NO. 24 6 /1 1 2 4. DURING THE COURSE OF HEARING, LD. COUNSEL FOR THE ASSESSEE INVITED OUR ATTENTION TO THE FACT THAT THE ASSESSEE HAS RECEIVED THE GIFT IN CASH AT RS.3 LAKHS ON 10 - 7 - 2005 . BEFORE THE AO HE HAS FILED BANK STATEMENT SHOWI NG BALANCE OF RS. 10,46,273/ - AS ON 22 - 6 - 2005. THE DONOR HAS MADE A CASH WITHDRAWAL OF RS.6 LAKHS ON 25 - 6 - 2005 AND RS.2,00,000/ - ON 1 - 7 - 2005. THEREFORE, THE DONOR HAD SUFFICIENT CASH BALANCE OUT OF WHICH RS.3 LAKHS WAS GIFTED TO THE ASSESSEE. A GIFT DEED WA S ALSO EXECUTED IN SUPPORT OF THE GIFT. IT WAS FURTHER CONTENDED THAT SINCE THE GIFT WAS MADE OUT OF LOVE AND AFFECTION THE SAME CANNOT BE TREATED TO BE NON - GENUINE. 5. LD. DR PLACED RELIANCE UPON THE ORDER OF THE CIT(A). 6. HAVING CAREFULLY EXAMINED THE O RDER OF LOWER AUTHORITIES, WE FIND THAT UNDISPUTEDLY THE DONOR HAS WITHDRAWN CASH OF RS.6 LAKHS AND RS.2 LAKHS ON 25 - 6 - 2005 AND 1 - 7 - 2005, RESPECTIVELY. THE CASH GIFT OF RS.3 LAKHS WAS GIVEN TO ASSESSEE ON 10 - 7 - 2005, THEREFORE, AT THE TIME OF GIVING GIFT OF RS.3 LAKHS, THE DONOR WAS HAVING SUFFICIENT CASH BALANCE, THEREFORE, THE CREDITWORTHINESS OF THE DONOR CANNOT BE DOUBTED. IT IS ALSO UNDISPUTED FACT THAT THE GIFT WAS RECEIVED FROM BROTHER - IN - LAW BY THE ASSESSEE. THE GIFT DEED WAS EXECUTED AND THE SAME WA S PRODUCED BEFORE THE AO, THEREFORE, IN THE LIGHT OF THE GIFT DEED AND AVAILABILITY OF CASH OF THE DONOR, THE GENUI NEN ESS OF THE GIFT CANNOT BE DOUBTED. MOREOVER, WHEN EVER THE GIFT IS RECEIVED FROM THE RELATIVE, THE GENUINE NE SS SHOULD BE ACCEPTED UNLESS AN D UNTIL IT IS PROVED THAT THE MONEY CAME TO THE ASSESSEE BELONGS TO THE ASSESSEE ITSELF AND IT HAS CO ME TO IT THROUGH A CIRCUITOUS MEANS. ITA NO. 24 6 /1 1 3 WE, THEREFORE, FIND NO MERIT IN THE ADDITION SO MADE AND ACCORDINGLY WE SET ASIDE THE ORDER OF THE CIT(A) AND DELETE T HE ADDITION. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 22/05 / 201 5 . SD/ - SD/ - ( . . ) ( B. P. JAIN ) ( ) ( SUNIL KUMAR YADAV) / ACCOUNTANT MEMBER / JUDICIAL MEMBER CUTTACK ; DATED 22/05 /2015 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, CUTTACK 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT , CUTTACK 6. / GUARD FILE. //TRUE COPY//