DCIT, Salem V. S.Sowmya, Salem

ITA 2840/CHNY/2014

• Counselvise Citation: 284021714 RSA 2014
• Duration Of Justice: 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2015
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 09-06-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 17-11-2014
• Court: TRIBUNAL
• Department Lawyers: N RENGARAJ
• Assessee Lawyers: G BASKAR
• Keywords: Gift

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . . , . !' , # $ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.2840/MDS/2014 / ASSESSMENT YEAR : 2004-05 THE DY. COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE SALEM VS. SMT. S. SOWMYA 251A, OMALUR ROAD SALEM - 4 [PAN AEYPS 0117 Q ] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : SHRI N. RENGARAJ, CIT /RESPONDENT BY : SHRI G. BASKAR, ADVOCATE / DATE OF HEARING : 09-06-2015 ! / DATE OF PRONOUNCEMENT : 19-06-2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), SALEM, D ATED 28.8.2014 AND PERTAINS TO ASSESSMENT YEAR2004-05. 2. SHRI N. RENGARAJ, LD. DEPARTMENTAL REPRESENTATIVE S UBMITTED THAT THERE WAS A SEARCH IN THE CASE OF SHRI A.B.S UDARSANAM, FATHER- IN-LAW OF THE ASSESSEE ON 29.1.2009. FOR THE ASSE SSMENT YEAR UNDER ITA NO.2840/14 :- 2 -: CONSIDERATION, THE ASSESSEE FILED RETURN OF INCOME IN THE REGULAR COURSE ON 29.7.2004 DISCLOSING THE TWO GIFTS RECEIV ED BY THE ASSESSEE FROM NON-RESIDENTS. THE ASSESSING OFFICER FOUND TH AT THE MEMBERS OF THE ASSESSEES FAMILY RAMPANTLY RECEIVED GIFTS OF SUBSTANTIAL AMOUNT FROM SEVERAL FOREIGN DONORS WHO ARE CLAIMED TO BE F RIENDS. SUCH GIFTS ARE RECEIVED WITHOUT ANY APPARENT REASON. ACCORDIN G TO THE LD. DR, GIFTS ARE NORMALLY RECEIVED ON THE OCCASIONS SUCH A S MARRIAGES, BIRTHDAYS ETC. IN THIS CASE, IN THE ROUTINE COURSE , THE ASSESSEE CLAIMED THAT SHE RECEIVED GIFTS. ON A QUERY FROM THE BENCH WHETHER ANY MATERIAL WAS FOUND DURING THE COURSE OF SEARCH, THE LD. DR VERY FAIRLY CONCEDED THAT NO MATERIAL WAS FOUND DURING T HE COURSE OF SEARCH. THE CIT(A) HAS CLARIFIED THAT THE TIME LIM IT FOR ISSUING NOTICE U/S 143(2) ON THE BASIS OF RETURN FILED BY THE ASS ESSEE ON 29.7.2004 BEFORE THE DATE OF SEARCH I.E 29.1.2009 HAS ALSO EX PIRED ON THE DATE OF SEARCH. 3. ON THE CONTRARY, SHRI G. BASKAR, LD. COUNSEL FOR TH E ASSESSEE SUBMITTED THAT THE ASSESSING OFFICER MADE ADDITION WITH REGARD TO FOREIGN GIFTS WHICH WAS DISCLOSED BY THE ASSESSEE IN THE RETURN OF INCOME FILED ON 29.7.2004 IN THE REGULAR COURSE BEF ORE THE DATE OF SEARCH. ACCORDING TO THE LD. COUNSEL, THE TIME LI MIT FOR ISSUING NOTICE U/S 143(2) HAS EXPIRED AND NO MATERIAL WAS FOUND DU RING THE COURSE OF ITA NO.2840/14 :- 3 -: SEARCH OPERATION. THEREFORE, ACCORDING TO THE LD. COUNSEL, THE CIT(A) HAS RIGHTLY DELETED THE ADDITION. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMI TTEDLY, SEARCH WAS CONDUCTED IN THE CASE OF SHRI A.B.SUDARSANAM, FATHE R-IN-LAW OF THE ASSESSEE. THE ASSESSEE IS A PERSON OTHER THAN THE SEARCHED PERSON. THE TWO ADDITIONS MADE BY THE ASSESSING OFFICER WIT H REGARD TO GIFTS RECEIVED FROM NON-RESIDENTS WERE DISCLOSED IN THE RETURN OF INCOME FILED BY THE ASSESSEE IN THE REGULAR COURSE ON 29 .7.2004 BEFORE THE DATE OF SEARCH. IT IS ALSO NOT IN DISPUTE THAT THE TIME LIMIT FOR ISSUING NOTICE U/S 143(2) HAS ALSO EXPIRED. THEREFORE, TH IS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ASSESSMENT PROCEEDINGS ON THE BASIS OF THE RETURN FILED ON 29.72004 WHEREIN THE ASSESSEE DISCLOSED THE RECEIPT OF TWO FOREIGN GIFTS HAS TERMINATED BY OPER ATION OF LAW. ONCE THE ASSESSEE HAS DISCLOSED RECEIPT OF GIFTS IN THE RETURN FILED IN THE REGULAR COURSE BEFORE THE DATE OF SEARCH, AND THE A SSESSMENT PROCEEDINGS WERE TERMINATED BY OPERATION OF LAW, TH IS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE GIFTS DISCLOSED IN THE RETURN CANNOT BE EXAMINED IN THE ASSESSMENT PROCEEDINGS CONSEQUENT T O THE SEARCH OPERATION IN THE ABSENCE OF ANY MATERIAL FOUND DURI NG THE COURSE OF SEARCH OPERATION. IN THE CASE BEFORE US, ADMITTEDL Y, THERE IS NO MATERIAL FOUND DURING THE COURSE OF SEARCH TO ESTAB LISH THAT THE GIFTS ITA NO.2840/14 :- 4 -: WHICH WERE DISCLOSED IN THE ORIGINAL RETURN WERE BO GUS. IN THE ABSENCE OF ANY SUCH MATERIAL FOUND DURING THE COURS E OF SEARCH, THE CIT(A) HAS RIGHTLY DELETED THE ADDITIONS. THIS TRI BUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). A CCORDINGLY, THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH OF JUNE, 2015, AT CHENNAI. SD/- SD/- ( . !' ) (A. MOHAN ALANKAMONY) # / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 19 TH JUNE, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF