Mohamad Ali Rijwana Parveen, CHENNAI V. CIT, CHENNAI

ITA 286/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6344 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 06-07-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 31-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: K G RAGHUNATH
• Keywords: Gift
• Section: 68

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL , SMC B BENCH, CHENNAI . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.286/MDS/2017 ( / ASSESSMENT YEAR: 2012-13) SMT. MOHAMAD ALI RIJWANA PARVEEN, NO.1 ST FLOOR, PATNOOL SARDAR JUNG STREET, PERIAMET, CHENNAI 600 039. VS THE INCOME TAX OFFICER, NON CORPORATE WARD 6(1), CHENNAI 34. PAN: BADPR4491J ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI K.G. RAGHUNATH, ADVOCATE /RESPONDENT BY : SHRI B. SAGADEVAN, JCIT /DATE OF HEARING : 06.07.2017 !' /DATE OF PRONOUNCEMENT : 28.08.2017 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS)-5, CHENNAI DATED 02.12.2016 IN ITA NO.53/CIT(A)-5/2015 -16 FOR THE ASSESSMENT YEAR 2012-13 PASSED U/S.250(6) R.W.S.143 (3) OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN HER A PPEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.CIT(A) HAS ERRED IN CONFIRMING THE ORDER OF THE LD.AO WHO HAD MADE ADDI TION OF RS.20 LAKHS TOWARDS UNEXPLAINED INTRODUCTION OF CAPITAL. 2 ITA NO.286/MDS/2017 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL ENGAGED IN LEATHER BUSINESS, FILED HER RETURN OF IN COME FOR THE ASSESSMENT YEAR 2012-13 ON 28.02.2013 ADMITTING TOT AL INCOME OF RS.4,86,650/-. INITIALLY THE RETURN WAS PROCESSED U /S.143(1) OF THE ACT. SUBSEQUENTLY THE CASE WAS SELECTED FOR SCRUTIN Y UNDER CASS AND FINALLY ASSESSMENT ORDER WAS PASSED U/S.143(3) OF THE ACT ON 31.03.2015, WHEREIN THE LD.AO MADE ADDITION OF RS.2 0,00,000/- TOWARDS UNEXPLAINED CAPITAL AND ASSESSED THE TOTAL INCOME OF THE ASSESSEE AT RS.24,68,650/-. 4. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEED INGS, IT WAS NOTICED BY THE LD.AO THAT THE ASSESSEE HAD INTRODUC ED CAPITAL OF RS.20 LAKHS DURING THE RELEVANT FINANCIAL YEAR. ON QUERY, THE LD.AR COULD NOT EXPLAIN THE SOURCE FOR INTRODUCING THE CA PITAL OF RS.20 LAKHS. THEREFORE, THE LD.AO ADDED THE AMOUNT OF RS. 20 LAKHS AS UNEXPLAINED INCOME U/S. 68 OF THE ACT. BEFORE THE LD.CIT(A), THE ASSESSEE MADE THE FOLLOWING SUBMISSIONS:- (I) THE ASSESSEES FAMILY CONSISTING OF 11 MEMBERS WHO WERE CASUAL LABORS WORKING IN THE LEATHER INDUSTRY FOR A BOUT FIVE DECADES, THEREAFTER STARTED LEATHER BUSINESS ON THE IR OWN FROM THEIR ACCUMULATED SAVINGS. 3 ITA NO.286/MDS/2017 (II) THE ASSESSEES FAMILY ALSO OWNED BUILDING AT D INDIGUL FETCHING ANNUAL RENTAL INCOME OF RS.4,50,000/-. (III) THE ASSESSEE HAD OBTAINED GOLD LOAN FROM LOCA L PAWN LENDERS FOR RS.2,25,000/-. (IV) THE COLLECTIVE SAVINGS OF THE ASSESSEES FROM THE DAILY WAGES IS RS.7,50,000/-. (V) GOLD LOAN FROM LOCAL CO-OPERATIVE BANK WAS RS.5 ,00,000/-. 5. THE LD.CIT(A) REJECTED THE SUBMISSION OF THE ASS ESSEE BECAUSE THE ASSESSEE HAD NOT PRODUCED ANY DOCUMENTA RY EVIDENCE. THEREAFTER THE LD.CIT(A) CONFIRMED THE O RDER OF THE LD.AO. 6. BEFORE ME THE LD.AR SUBMITTED A PAPER BOOK CONTA INING 15 PAGES WHICH CONTAIN THE CONFIRMATION LETTER FROM THE 11 MEMBERS OF THE ASSESSEES FAMILY FOR HAVING ADVANCE D CASH TO THE ASSESSEE AS DETAILED HEREIN BELOW:- SL.NO. NAME OF RELATIVE RELATIONSHIP TO ASSESSEE AMOUNT RECEIVED AS GIFT, BY ASSESSEE (RS.) 1 MUMTAJ BEGUM MOTHER-IN LAW OF ASSESSEE 4,50,000/- 4 ITA NO.286/MDS/2017 2 A. BILAL HUSAIN BROTHER OF ASSESSEES HUSBAND 2,40,000/- 3 A. NAJUMDEEN BROTHER IN LAW OF THE HUSBAND OF THE ASSESSEE 2,50,000/- 4 M. ABDUL AJIS BROTHER IN LAW OF THE HUSBAND OF THE ASSESSEE 2,50,000/- 5 M. AMEER JOHN BROTHER IN LAW OF THE HUSBAND OF THE ASSESSEE 50,000/- 6 MR. A. IQBAL BROTHER IN LAW OF THE HUSBAND OF THE ASSESSEE 1,00,000/- 7 A. SUBAITHA SISTER-IN-LAW OF ASSESSEE 50,000/- 8 A. NIZAR HUSAIN BROTHER-IN-LAW OF HUSBAND OF ASSESSEE 1,00,000/- 9 J. SAHABTHEN BROTHER IN LAW OF ASSESSEES HUSBAND 1,00,000/- 10 A. BILAL HUSAIN BROTHER IN LAW OF THE ASSESSEE 1,00,000/- 11 ACCUMULATED SAVINGS OF ASSESSEE SAVINGS FROM MONEY GIVEN TO ASSESSEE FOR HOUSEHOLD EXPENSES BY HER HUSBAND 2,10,000/- TOTAL 20,00,000/- 7. FURTHER AFTER VERIFYING THE FACTS OF THE CASE, I FIND THAT THE FAMILY CONSISTING OF 11 MEMBERS WHICH IS NOT IN DIS PUTE. THE LD.D.R ALSO COULD NOT CONTROVERT THE SAME. EVEN IF A MEMBER OF THE FAMILY CONTRIBUTES AN AMOUNT OF RS.2 LAKHS, THE ASSESSEE WOULD BE ABLE TO GENERATE CAPITAL OF RS.20 LAKHS. F URTHER CONSIDERING THE FACT THAT THE ASSESSEE AND HER FAMI LY BEING ILLITERATE, CASUAL LABORS WORKERS, WORKING IN THE L EATHER INDUSTRY FOR NUMBER OF YEARS, AND HAD MADE SAVINGS DURING TH E LONG PERIOD, IN ORDER TO ESTABLISH THE BUSINESS IN A HUM BLE WAY, IM OF 5 ITA NO.286/MDS/2017 THE VIEW THAT THE ADDITION MADE BY THE LD.AO FOR RS .20 LAKHS U/S.68 OF THE ACT, WHICH WAS FURTHER CONFIRMED BY T HE LD.CIT(A) IS NOT WARRANTED. THEREFORE, I HEREBY DIRECT THE L D.AO TO DELETE THE ADDITION MADE IN THE HANDS OF THE ASSESSEE FOR RS.20 LAKHS U/S.68 OF THE ACT. 8. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON THE 28 TH AUGUST, 2017. SD/- ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER #$ /CHENNAI, %& /DATED 28 TH AUGUST, 2017 RSR & () *) /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. - ( )/CIT(A) 4. - /CIT 5. )./ 0 /DR 6. /1 /GF