Mr.B.Kunhi Ahmed , Mangalore V. Deputy Commissioner of Income Tax Central Circle, Mangalore

ITA 386/BANG/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7628 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 20-02-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G R REDDY I
• Keywords: Gift

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.386/BANG/2017 ASSESSMENT YEAR : 2012-13 MR. B. KUNHI AHMED, HASNAIN NADIR, OPP. FR. MULLERS HOSTEL, DERLAKATTE, MANGALORE-575018. PAN : ABLPA9471B VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, MANGALORE-575001. APPELLANT RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI. G. R. REDDY, CIT-DR-I DATE OF HEARING : 14.09.2017 DATE OF PRONOUNCEMENT : 15.09.2017 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST T HE ORDER OF CIT(A), INTER ALIA , ON THE FOLLOWING GROUNDS: THE COMMISSIONER OF INCOME(APPEALS) HAS ERRED IN N OT FOLLOWING THE PRESCRIBED PROCEDURE WHILE TAKING THE UNEXPLAINED J EWELLERY IN THE CASE OF THE APPELLANT OWNED BY HIS DAUGHTERS-IN-LAW ON THE FOLLOWING GROUNDS:- A) NO STATEMENT HAS BEEN RECORDED BY THE APPELLANT AT THE TIME OF SEARCH REGARDING THE JEWELLERY OWNED BY HIS DAUGHTE RS-IN-LAW MRS.NADIA AMIN/MRS.MEHTAB. ITA NO. 386/BANG/2017 PAGE 2 OF 3 B) NO STATEMENT HAS BEEN RECORDED INDIVIDUALLY FROM MR S.NADIA AMIN AND MRS.MEHTAB AT THE TIME OF SEARCH. C) NADIA AMIN IS AN INCOME-TAX ASSESSEE AS SHE IS A DOCTOR EMPLOYED IN YENEPOYA MEDICAL COLLEGE DRAWING A SALA RY OF RS.1,20,000/- PER ANNUM. SHE HAS RECEIVED GIFT OF J EWELLERY FROM HER FATHER (AS CONFIRMED BY THE FATHER SRI.ABDULLA MOIDEEN) AT THE TIME OF MARRIAGE AND AFTER MARRIAGE RECEIVED GIFTS THROUGH CHEQUES AND THE SAME WAS ENCASHED BY HER THROUGH ICICI BANK , A COPY OF WHICH IS FILED BEFORE THE CIT(A). THE DAUGHTER-IN-L AW HAD BROUGHT THE JEWELLERY BELONGING TO HER SEPARATELY FROM HER ROOM. SHE SPECIFICALLY IDENTIFIED THE JEWELLERY BEFORE THE I. T.AUTHORITIES. INSPITE OF ALL THESE FACTORS, AN ADDITION OF 600 GR AMS HAS BEEN SUSTAINED BY CIT(A). D) THE BOARD CIRCULAR IN MAY 1994 CLEARLY STATES THA T 500 GRAMS OF GOLD IN THE HANDS OF A MARRIED WOMAN MAY BE CONS IDERED AS 'STREEDHAN'. SUBSEQUENTLY A VIEW HAS DEVELOPED WHEREIN POSSESSIO N OF JEWELLERY UPTO QUANTITIES MENTIONED IN THE CIRCU LAR NEED NOT BE QUESTIONED. IN THE CASE OF MRS.MEHTAB, THE TOTAL GO LD BEING ONLY 303 GRAMS, THE SAME SHOULD NOT HAVE BEEN QUESTIONED/ADD ED. HOWEVER AN ADDITION OF 100 GRAMS HAS BEEN SUSTAINED BY THE CIT (A). THUS THE CIT(A) WITHOUT CONSIDERING THE ABOVE PROCE DURE, HAS DETERMINED THE VALUE OF JEWELLERY TO BE TAXED IN TH E HANDS OF THE APPELLANT AT 700 GRAMS. THIS DIRECTION IS NOT VALID AS THE APPELLATE AUTHORITY HAS NOT APPLIED HIS MIND PROPERLY TO THE PROCEDURE LAID DOWN IN THE ACT AND THUS THE ABOVE ADDITION IS LIAB LE TO BE DELETED. 2) THE ASSESSING OFFICER HAS ALSO ERRED IN AS MUCH AS WHILE SUBMITTING HIS REPORT, HE HAS NOT CONSIDERED THE PO INT RAISED BY THE FATHER OF SMT.NADIA AMIN ACCORDING TO RULES. 2. THIS APPEAL CAME UP FOR HEARING ON 14.09.2017 BU T NONE APPEARED DESPITE VALID SERVICE OF NOTICE OF HEARING. WE THEREFORE HAD NO OPTION B UT TO HEAR THE APPEAL EX-PARTE AND ACCORDINGLY REVENUE WAS HEARD. 3. WE HAVE CAREFULLY EXAMINED THE ORDER OF THE CIT( A) IN THE LIGHT OF THE RIVAL SUBMISSIONS AND WE FIND THAT CIT(A) HAD ADJUDICATED THE ISSUE RAISED BEFORE IT IN DETAIL AND SINCE WE DO NOT FIND ANY INFIRMITY THEREIN, WE CONF IRM HIS ORDER. ITA NO. 386/BANG/2017 PAGE 3 OF 3 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 15 TH SEPTEMBER, 2017. SD/- SD/- BANGALORE. DATED: 15 TH SEPTEMBER, 2017. /NSHYLU/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. GUARD FILE BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE. (INTURI RAMA RAO) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER