Shri Ankit Gupta, Uttar Pradesh V. ITO, Sambhal

ITA 266/DEL/2014

• Counselvise Citation: 26620114 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
• Keywords: Gift
• Section: 68; 69

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 . .. . 266/DEL/2014 266/DEL/2014 266/DEL/2014 266/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2002 2002 2002 2002 - -- - 03 0303 03 SHRI ANKIT GUPTA, SHRI ANKIT GUPTA, SHRI ANKIT GUPTA, SHRI ANKIT GUPTA, S/O SHRI ANIL KUMAR, S/O SHRI ANIL KUMAR, S/O SHRI ANIL KUMAR, S/O SHRI ANIL KUMAR, MOHALLA KATRA, MOHALLA KATRA, MOHALLA KATRA, MOHALLA KATRA, DHANAURA, DHANAURA, DHANAURA, DHANAURA, DISTRICT J.P. NAGAR, DISTRICT J.P. NAGAR, DISTRICT J.P. NAGAR, DISTRICT J.P. NAGAR, UTTAR PRAD UTTAR PRAD UTTAR PRAD UTTAR PRADESH. ESH. ESH. ESH. PAN : ACQPG5572M. PAN : ACQPG5572M. PAN : ACQPG5572M. PAN : ACQPG5572M. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, SAMBHAL. SAMBHAL. SAMBHAL. SAMBHAL. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE. 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 : 03.0 03.0 03.0 03.08.2015 8.2015 8.2015 8.2015 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)-II, DEH RADUN DATED 23 RD OCTOBER, 2013. 2. AT THE TIME OF HEARING BEFORE ME, NONE APPEARED ON BEHALF OF THE ASSESSEE-APPELLANT AND, THEREFORE, THE APPEAL OF THE ASSE SSEE IS BEING DECIDED EX PARTE QUA THE ASSESSEE-APPELLANT ON MERITS AFTER HEARING THE ARGUMENTS OF LEARNED DR. 3. THE GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UNDER:- ITA-266/DEL/2014 2 1. THE LD.CIT(APPEALS) ERRED IN LAW AND ON FACTS IN DISMISSING THE APPEAL FILED BY THE ASSESSEE. 2. THE LD.CIT(APPEALS) ERRED IN LAW AND ON FACTS IN N OT APPRECIATING THE JUDICIAL PRONOUNCEMENTS RELIED UPON BY THE ASSESSEE AGAINST ACTION OF THE A.O. IN ASSUMING JURISDICTION U/S 147. 3. THE LD.CIT(APPEALS) ERRED IN LAW AND ON FACTS IN N OT CONSIDERING THE WRITTEN SUBMISSIONS AND RELEVANT EVIDENCES FILED BY THE ASSESSEE WITH THE APPEAL PAPERS WHICH SUPPORTED THE STAND OF THE ASSESSEE AGAINST THE ADDITION MADE BY THE ASSESSING OFFICER. 4. THE LD.CIT(APPEALS) ERRED IN LAW AND ON FACTS IN N OT APPRECIATING THE FACTS OF THE CASE WITH THAT OF VARIO US CASES RELIED UPON BY THE ASSESSEE INCLUDING THAT OF MS. MAYAWATI (AFFIRMED BY DELHI HIGH COURT) WHEREIN THE ITAT HAD ACCEPTED THE STAND OF THE ASSESSEE THAT EVEN STRANGERS CAN GIVE GIFTS DESPITE THE FACT THAT MANY OF THE DONORS TOOK LOANS AND BOUGHT THE PROPERTIES TO GIFT T HE SAME TO MS. MAYAWATI. 5. THE LD.CIT(APPEALS) ERRED IN LAW AND ON FACTS IN N OT APPRECIATING THE FACT THAT UNDER THE IDENTICAL FACT S, THE LD.CIT(APPEALS), BAREILLY HAS ACCEPTED THE GIFTS IN TH E CASE OF SHRI DEEPAK KARNWAL IN APPEAL NO.262/ITO.1/NAJIBABAD.08-09 PERTAINING TO A.Y. 200 2-03. 6. THE LD. CIT(APPEALS) ERRED IN LAW AND ON FACTS IN NOT APPRECIATING THE FACT THAT THE ASSESSEE HAVING NOT MAINTAINED BOOKS OF ACCOUNTS, THE PROVISIONS OF SECTION 68 OR 69 RESORTED TO BY THE ASSESSING OFFICER WERE NOT APPLICABLE IN THE CASE OF THE ASSESSEE. 7. THE ORDER OF THE CIT(APPEALS) MAY BE CANCELLED AN D THE ORDER OF THE ASSESSING OFFICER MAY BE MODIFIED BY DELETING THE ADDITION OF RS.2,00,000/-. 4. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A) AND REFERRED TO THE RELEVANT POR TION OF THE ORDER OF THE LEARNED CIT(A) IN SUPPORT OF THE CASE OF THE REVE NUE. ITA-266/DEL/2014 3 5. I HAVE CONSIDERED THE SUBMISSIONS MADE BY THE LEARNED DR AND HAVE PERUSED RELEVANT MATERIAL PLACED ON RECORD. I FIND THAT THE TRANSACTION OF GIFT WAS MADE BY ONE SHRI SUBHASH GUPTA , S/O SHRI R.S. GUPTA, RESIDENT OF PITAM PURA, DELHI AND WAS CONFIRME D BY THE DONOR. THE CONFIRMATION OF THE DONOR WAS NOT ACCEPTED BY TH E ASSESSING OFFICER AS THE SOURCE OF THE GIFTED AMOUNT WAS CLAIME D TO BE A DEBIT ENTRY IN THE BANK ACCOUNT OF THE ASSESSEE WITH STATE BA NK OF INDIA ON RECEIPT OF CHEQUE FROM ONE SHRI VINOD GARG, S/O SHR I R.S. GARG, RESIDENT OF SHASTRI NAGAR, DELHI. THE ASSESSING OFFICER AND THE LEARNED CIT(A) REJECTED THE PLEA OF THE ASSESSEE ON THE GROUND THAT SINCE THE DRAFT IN QUESTION WAS MADE BY SHRI VINOD GARG OUT OF HIS CURRENT ACCOUNT NO.6776 WITH STATE BANK OF PATIALA, NEW DEL HI THROUGH CHEQUE NO.004245 DATED 11.10.2001 PLACED ON RECORD AND NOT WITH THE ASSESSEE, THE SAME IS NOT ACCEPTABLE. IN MY VIEW, THIS RE ASONING OF THE REVENUE AUTHORITIES IS NOT SUSTAINABLE. THE ENTRIE S ARE THROUGH BANKING CHANNELS AND MERELY BECAUSE THE SOURCE OF GIF TED AMOUNT ULTIMATELY ENDS WITH THE ACCOUNT OF ONE SHRI VINOD GARG, IT COULD NOT BE SAID THAT THE GIFT TRANSACTION ITSELF WAS BOGUS AND NOT SUPPORTED BY ANY SOURCE. IN THIS VIEW OF THE MATTER, I AM UNABLE TO SU STAIN THE ADDITION MADE BY THE ASSESSING OFFICER, WHICH IS DELETED AND THE GROUNDS OF APPEAL OF THE ASSESSEE 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. ITA-266/DEL/2014 4 COPY FORWARDED TO: - 1. APPELLANT : SHRI ANKIT GUPTA, SHRI ANKIT GUPTA, SHRI ANKIT GUPTA, SHRI ANKIT GUPTA, S/O SHRI ANIL KUMAR, MOHALLA KATRA, S/O SHRI ANIL KUMAR, MOHALLA KATRA, S/O SHRI ANIL KUMAR, MOHALLA KATRA, S/O SHRI ANIL KUMAR, MOHALLA KATRA, DHANAURA, DISTRICT J.P. NAGAR, DHANAURA, DISTRICT J.P. NAGAR, DHANAURA, DISTRICT J.P. NAGAR, DHANAURA, DISTRICT J.P. NAGAR, UTTAR PRADESH. UTTAR PRADESH. UTTAR PRADESH. UTTAR PRADESH. 2. RESPONDENT : INCOME TAX OFFICER, SAMBHAL. INCOME TAX OFFICER, SAMBHAL. INCOME TAX OFFICER, SAMBHAL. INCOME TAX OFFICER, SAMBHAL. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR