Anil Kumar, Una V. ITO, Una

ITA 330/CHANDI/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8003 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 19-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SUDERSHAN
• Assessee Lawyers: ANOOP K SHARMA
• Keywords: Unexplained expenditure; Gift; Charitable institution

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, SMC, CHANDIGARH , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 330/CHD/2019 / ASSESSMENT YEAR : 2010-11 SHRI ANIL KUMAR, S/O SHRI TRILOKI NATH, MOHALLA BAGH MATA, D.C. COLONY, UNA VS. THE ITO, UNA ./PAN NO. AAYPK3841M / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI ANOOP K SHARMA, CA ' ! / REVENUE BY : SH. ARVIND SUDERSHAN, SR. DR # $ % /DATE OF HEARING : 01.01.2020 &'() % / DATE OF PRONOUNCEMENT : 01.01.2020 / ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 24.12.2018 OF THE COMMISSIONER OF INCO ME TAX (APPEALS)- PALAMPUR [HEREINAFTER REFERRED TO AS CIT(A)] 2. THE ASSESSEE IN THIS APPEAL HAS AGITATED THE CONFIRMATION OF ADDITION OF RS. 4,08,330/- INTO THE INCOME OF THE A SSESSEE ON ACCOUNT OF UNEXPLAINED EXPENDITURE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E INCURRED AN EXPENDITURE OF A SUM OF RS. 13.70 LACS FOR ADMISSIO N OF HIS DAUGHTER IN ITA NO. 330/CHD/2019- SHRI ANIL KUMAR, UNA 2 MBBS COUSE IN AN EDUCATIONAL INSTITUTION NAMELY ROH ILKHAND MEDICAL COLLEGE UNDER THE TRUST I.E. M/S ROHILKHAND EDUCATI ONAL CHARITABLE TRUST. ON BEING ASKED TO EXPLAIN THE SOURCES OF THE AFORESAID EXPENDITURE INCURRED ON FEE OF HIS DAUGHTER, THE AS SESSEE COULD EXPLAIN THE SOURCE OF THE AMOUNT OF RS. 9,61,670/-. SO FA R AS THE REMAINING AMOUNT OF RS. 4,08,330/- WAS CONCERNED, THE ASSESSE E EXPLAINED THAT THE AMOUNT OF RS. 3 LACS WAS RECEIVED BY HIM FROM HIS S ISTER-IN-LAW WHICH WAS FURTHER WITHDRAWN BY HER FROM HER BANK ACCOUNT. FURTHER, THE REMAINING AMOUNT OF RS. 1,08,330/- WAS WITHDRAWN FR OM HIS BANK ACCOUNT. HOWEVER, THE LD. ASSESSING OFFICER DID NOT AGREE WITH THE AFORESAID EXPLANATION GIVEN BY THE ASSESSEE. HE OB SERVED THAT THE SISTER-IN-LAW OF THE ASSESSEE HAS WITHDRAWN THE AMO UNT AT THE BEGINNING OF THE FINANCIAL YEAR, WHEREAS, THE PAYMENT WAS DEP OSITED AFTER FOUR MONTHS OF THE WITHDRAWAL MADE. SO FAR AS THE REMAIN ING AMOUNT OF RS. 1,08,330/- WAS CONCERNED, THE ASSESSING OFFICER OBS ERVED THAT THE ASSESSEE HAD MADE SO MANY PAYMENTS SUCH AS HOUSING LOAN, LIC PREMIUM ETC. AND, THEREFORE, THERE WAS NO LIKELIHOO D THAT THE ASSESSEE WAS POSSESSED OF THE SAID FUNDS TO MAKE THE AFORESA ID EXPENDITURE ON FEES OF HIS DAUGHTER. THE ASSESSING OFFICER CONCLU DED THAT THE ASSESSEE COULD NOT PROVE THE SOURCE OF THE AFORESAID FUNDS, HE, THEREFORE, MADE THE IMPUGNED ADDITION INTO THE INCOME OF THE ASSESS EE BEING EXPENDITURE INCURRED FROM UNDISCLOSED SOURCES. THE LD. CIT(A) CONFIRMED THE ADDITION SO MADE BY T HE ASSESSING OFFICER. ITA NO. 330/CHD/2019- SHRI ANIL KUMAR, UNA 3 4. I HAVE HEARD THE RIVAL CONTENTIONS OF THE LD. AU THORIZED REPRESENTATIVES OF BOTH THE PARTIES AND HAVE GONE T HROUGH THE RECORD. A PERUSAL OF THE IMPUGNED ASSESSMENT ORDER REVEALS TH AT THE ASSESSING OFFICER HIMSELF HAS DRAWN A CHART, WHEREIN, AT COLU M NO. 6, HE HAS DULY ACKNOWLEDGED THAT SMT. NIRMAL DEVI HAD WITHDRAWN TH E AMOUNT OF RS. 3 LACS FROM HER BANK ACCOUNT ON 2.4.2009. THE ASSESS EE HAS PLEADED THAT THE AFORESAID AMOUNT OF RS. 3 LACS WAS GIFTED BY HI S SISTER-IN-LAW SO AS TO FINANCIALLY HELP THE ASSESSEE TO ADMIT HER DAUGH TER FOR MBBS COURSE. THE ASSESSING OFFICER REJECTED THE ABOVE EXPLANATIO N ONLY ON THE GROUND THAT THE AMOUNT WAS WITHDRAWN FIVE MONTHS BACK AND BY THAT DATE THE RESULT OF 10+2 EXAMINATION, WHICH WAS THE BASIC QUA LIFICATION FOR ADMISSION TO THE MBBS COURSE, HAD NOT BEEN DECLARED . IN MY VIEW, THE ASSESSING OFFICER HAS WRONGLY REJEC TED THE CONTENTIONS OF THE ASSESSEE. THE PARENTS OF A CHILD , NOW A DAYS, EVEN PRIOR TO THE DECLARATION OF RESULT OF 10TH CLASS OF THE CHILD, START PLANNING FOR THE FUTURE OF THEIR CHILD / CHILDREN. SINCE THE ASSESSEES DAUGHTER HAD APPEARED FOR 10+2 EXAMINATION AND THE ASSESSEE WANT ED HIS DAUGHTER TO DO MBBS COURSE, HENCE, TO PAY THE REQUIRED FEE, THE ASSESSEE MIGHT HAVE STARTED ARRANGING FOR FUNDS IN ADVANCE SO AS TO MAK E THE PAYMENT ON THE STIPULATED DATE OF ADMISSION. FURTHER, THE ASSESSE ES SISTER-IN-LAW HAD WITHDRAWN AN AMOUNT OF RS. 3 LACS FROM HER BANK ACC OUNT, WHICH THE ASSESSEE CLAIMED TO HAVE BEEN CONTRIBUTED BY HER FO R HELPING THE ASSESSEE TO GET ADMISSION OF HIS DAUGHTER IN MBBS COURSE. UNDER SUCH ITA NO. 330/CHD/2019- SHRI ANIL KUMAR, UNA 4 CIRCUMSTANCES, MERELY BECAUSE THE MONEY WAS WITHDRA WN 4 5 MONTHS EARLIER, IS NOT A GROUND TO DISBELIEVE THE CONTENTI ON OF THE ASSESSEE. SO FAR AS THE ADDITION OF THE AMOUNT OF RS. 1,08,33 0/- IS CONCERNED, THE ASSESSEE DULY EXPLAINED THAT EVEN AF TER MEETING OF THE EXPENDITURE INCURRED ON LIC PREMIUM ETC., THE ASSES SEE WAS POSSESSED OF THE SAID FUNDS. IT WAS ALSO EXPLAINED THAT THE A SSESSEES WIFE ALSO CONTRIBUTED SOME AMOUNT FROM HER PAST SAVING OUT OF HOUSEHOLD EXPENSES. CONSIDERING THE PLEA OF THE ASSESSEE THAT IT WAS OUT OF WITHDRAWAL MADE FROM THE BANK AND THE SAID AMOUNT W AS SAVED AFTER MEETING THE HOUSEHOLD EXPENDITURE & OTHER LIABILITI ES AND ALSO CONSIDERING THE SMALLNESS OF THE AMOUNT, THE ADDITI ON, IN MY VIEW, IS NOT JUSTIFIED ON THIS ISSUE ALSO. IN VIEW OF THIS, THERE IS NO JUSTIFICATION ON THE P ART OF THE LOWER AUTHORITIES IN MAKING AND CONFIRMING THE ADDITION O F RS. 4,08,330/- AND THE SAME IS ACCORDINGLY ORDERED TO BE DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS HEREBY ALLOWED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING ON 01.01.2020. SD/- ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 01.01.2020 .. ITA NO. 330/CHD/2019- SHRI ANIL KUMAR, UNA 5 '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR