Smt. Kalawati Hansraj Garg, Baroda V. The ACIT.,Cent.Circle-1, Baroda

ITA 2945/AHD/2009

• Counselvise Citation: [2010] 137 COUNSELVISE.COM (IT) 0085 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-01-2010
• Assessment Year: 2007-2008
• Appeal Filed On: 29-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOVIND SINGHAL SENIOR
• Keywords: Gift; Income from undisclosed sources
• Section: 132

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'SMC' (BEFORE SHRI N S SAINI ACCOUNTANT MEMBER) ITA NO.2945/AHD/2009 (ASSESSMENT YEAR:- 2007-08) SMT. KALAWATI HANSRAJ GARG, HIG, VIKAS NAGAR, DEWAS PAN: AGRPG 8067 A V/S THE ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, BARODA [APPELLANT] [RESPONDENT] APPELLANT BY :- NONE RESPONDENT BY:- SHRI GOVIND SINGHAL, SENIOR DR O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-VI , AHMEDABAD [THE CIT(A)] DATED 22 ND SEPTEMBER, 2009 PASSED IN APPEAL NO.CIT(A)-IV/158-B/CC-1/08-09 FOR ASSESSMENT YEAR 2 007-08. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1 THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE AD DITION OF RS.51,000/- BEING VALUE OF SILVER UTENSILS FOUND OUT DURING THE COURSE OF SEARCH AS UNACCOUNTED INCOME OF THE APPELLANT IN THE AY 2007- 08. IT IS SUBMITTED THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE IT IS NOT AT ALL UNACCOUNTED INCOME OF THE YEAR AND THEREFORE THE AD DITION MADE ILLEGALLY AND INCORRECTLY BE DELETED. 2 WITHOUT PREJUDICE TO THE ABOVE, IT IS SUBMITTED T HAT THE LEARNED CIT(A) ERRED IN NOT APPRECIATING THAT THE VALUE OF SILVER UTENSILS FOUND OUT DURING THE COURSE OF SEARCH WORTH RS.51,000/- IS IN CLUDED IN THE TOTAL DISCLOSURE MADE BY THE APPELLANT GROUP OF RS.60 LAK HS. IT IS SUBMITTED THAT THE DISCLOSURE IS TO BE SEEN IN TOTALITY AND E ARNING OF THE INCOME AND ITS APPLICATION; AND SILVER UTENSILS BEING COVE RED THEREIN IN THE TOTAL DISCLOSURE OF THE INCOME, NO SEPARATE ADDITION CAN BE MADE IN THE HANDS OF THE ASSESSEE. IT IS SUBMITTED THAT THE ADD ITION SO CONFIRMED BE DELETED . 2 2 NOTICE OF HEARING WAS SENT THROUGH REGISTERED PO ST WITH A D ON 7-1-2010 FIXING THE CASE FOR HEARING ON 18-1-2 010. THE SAID NOTICE WAS NOT RETURNED BACK BY THE POSTAL AUTHORITIES UN- SERVED. HENCE IT IS DEEMED THAT THE NOTICE OF HEARING WAS SERVED ON THE ASSESSEE. NONE APPEARED ON BEHALF OF THE ASSESSEE WHEN THE CASE WA S CALLED FOR HEARING AND NEITHER ANY ADJOURNMENT APPLICATION WAS FILED. THE BENCH WAS OF THE VIEW THAT THE APPEAL CAN BE DISPOSED OF WITHOUT THE PRESENCE OF THE ASSESSEE AND THEREFORE THE APPEAL WAS HEARD EX PART E QUA THE RESPONDENT ASSESSEE AND DISPOSED OF CONSIDERING THE ARGUMENTS OF THE LEARNED DEPARTMENTAL REPRESENTATIVE AND THE MATERIAL AVAILA BLE ON RECORD. 3 THE BRIEF FACTS OF THE CASE ARE THAT DURING THE COURSE OF SEARCH U/S 132 OF THE INCOME-TAX ACT, 1961 CARRIED OUT IN THE CASE OF IN THE CASE OF ASSESSEE ON 11-10-2006 AND GOLD JEWELL ERY WEIGHING 340.50 GRAMS VALUED AT RS.2,72,400/- AND SILVER UTENSILS W EIGHING 3000 GRAMS VALUED AT RS.51,000/- WERE FOUND FROM LOCKER NO.27 WITH CENTRAL BANK OF INDIA, DAHOD. THE ASSESSEE EXPLAINED IN HER STAT EMENT RECORDED U/S 132(4) OF THE ACT ON 11-10-2006 AT 4-30 PM THAT GOL D JEWELLERY AND SILVER UTENSILS WERE RECEIVED FROM HER FATHER-IN-LA W. FURTHER, DURING THE ASSESSMENT PROCEEDINGS THE ASSESSEE SUBMITTED THAT GOLD JEWELLERY WAS COVERED IN THE DISCLOSURE OF RS.60,00,000/- MADE BY M/S LAXMI MILLS. THEREFORE, THE LEARNED ASSESSING OFFICER DID NOT MA KE ADDITION FOR THE GOLD JEWELLERY BUT MADE ADDITION OF SILVER UTENSILS VALUED AT RS.51,000/- AS THE SAME WAS NOT COVERED IN THE DISC LOSURE MADE BY M/S LAXMI MILLS. 4 IN APPEAL, THE LEARNED COMMISSIONER OF INCOME-TA X (APPEALS) OBSERVING THAT GOLD JEWELLERY RECOVERED F ROM THE LOCKER OF THE ASSESSEE WAS ADMITTED AS UNACCOUNTED INCOME BY THE BROTHERS OF THE 3 ASSESSEE AND INCLUDED IN THE DISCLOSURE OF RS.60,00 ,000/-. WHEN THE SAME WAS CLAIMED BY THE ASSESSEE TO HAVE BEEN RECEI VED BY HER FROM HER FATHER-IN-LAW, THEREFORE, THE SILVER UTENSILS ARE A LSO ACQUIRED OUT OF UNACCOUNTED INCOME AND THE STATEMENT GIVEN BY THE A SSESSEE U/S 132(4) WAS FALSE, CONFIRMED THE ADDITION MADE BY THE LEARN ED ASSESSING OFFICER. 5 THE LEARNED DEPARTMENTAL REPRESENTATIVE FULLY SU PPORTED THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS). 6 I HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTA TIVE AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND MAT ERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, SILVER UTENSILS OF RS .51,000/- WAS FOUND POSSESSED BY THE ASSESSEE DURING THE COURSE OF THE SEARCH CARRIED ON 11- 10-2006. THE SAID AMOUNT OF RS.51,000/- WAS ADDED B Y THE LEARNED ASSESSING OFFICER TO THE INCOME OF THE ASSESSEE AS HER UNDISCLOSED INCOME. DURING THE APPEAL BEFORE THE LEARNED COMMIS SIONER OF INCOME- TAX (APPEALS), THE ASSESSEE EXPLAINED THE SAME AS H ER NORMAL STRIDHAN WHICH WAS RECEIVED BY HER AT THE TIME OF HER MARRIA GE. HOWEVER, THE CLAIM OF THE ASSESSEE WAS NOT ACCEPTED BY THE LEARN ED COMMISSIONER OF INCOME-TAX (APPEALS) AND THE ENTIRE AMOUNT WAS CONF IRMED. I FIND THAT KEEPING IN VIEW THE SOCIAL STATUS OF THE ASSESSEE I N WHICH CASE PROCEEDING U/S 132 WAS TAKEN IT WILL BE OPPOSED TO THE REAL LIFE FACT TO HOLD THAT NO SILVER UTENSILS WOULD HAVE BEEN RECEIV ED BY THE ASSESSEE AT THE TIME OF HER MARRIAGE AND THE TOTAL SILVER UTENS ILS OF RS.51,000/- ONLY COULD NOT HAVE BEEN HER STRIDHAN. IN VIEW OF THE AB OVE, IN MY CONSIDERED VIEW, IT SHALL BE FAIR AND JUST TO ACCEP T THAT THE AFORESAID SILVER UTENSILS OF RS.51,000/- WAS THE STRIDHAN OF THE ASSESSEE RECEIVED 4 BY HER AS GIFT AT THE TIME OF HER MARRIAGE. I, THER EFORE, DELETE THE ADDITION OF RS.51,000/- AND ALLOW THE APPEAL OF THE ASSESSEE. ORDER, SIGNED AND PRONOUNCED IN THE COURT TODAY ON 22-01-2010. SD/ - (N S SAINI) ACCOUNTANT MEMBER DATE : 22-01-2010 COPY OF THE ORDER FORWARDED TO : 1. SMT. KALAWATI HANSRAJ GARG, HIG, VIKAS NAGAR, DE WAS 2. THE ACIT, CENTRAL CIRCLE-1, BARODA 3. CIT CONCERNED 4. CIT(A)-IV, AHMEDABAD 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER DEPUTY REGISTRAR ASSISTANT REGISTRAR ITAT, AHMEDABA