Balwan Singh Rana, Bahadurgarh V. DCIT, Rohtak

ITA 4105/DEL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7133 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 15-09-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 23-06-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: DINESH NANGRU

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.4105/DEL/2015 ASSESSMENT YEAR : 2007-08 BALWAN SINGH RANA, 24/271, NEHRU PARK, DSP WALI GALI, BAHADURGARH. PAN: ABSPR9044G VS. DCIT, ROHTAK. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI DINESH NANGRU, CA DEPARTMENT BY : SHRI N.K. BANSAL, SR. DR DATE OF HEARING : 15.09.2016 DATE OF PRONOUNCEMENT : 15.09.2016 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER PASSED BY THE CIT(A) ON 28.4.2015 IN RELATION TO THE ASSES SMENT YEAR 2007-08. 2. GROUND NOS.1 TO 3 ARE NOT PRESSED. I, THEREFO RE, DISMISS THE SAME. ITA NO.4105/DEL/2015 2 3. GROUND NO.4 IS AGAINST THE CONFIRMATION OF A DDITION OF RS.12,03,838/. BRIEFLY STATED, THE FACTS OF THE CAS E ARE THAT THE ASSESSEE IS A RETIRED HEAD MASTER, WHO MARRIED HIS DAUGHTER ON 13 TH DECEMBER, 2006. HE RETIRED ON 31.1.2006 AND, ADMITTEDLY, RECEIVED R ETIREMENT BENEFITS AMOUNTING TO RS.16.65 LAC. ON THE BASIS OF SOME CO MPLAINT (TEP) RECEIVED BY THE AO QUA THE INCURRING OF EXPENSES BY THE ASSESSEE ON THE MARRIAGE OF HIS DAUGHTER, THE AO INITIATED REASSESS MENT PROCEEDINGS. DURING THE COURSE OF SUCH PROCEEDINGS, THE ASSESSEE ADMITTED THAT HE INCURRED MARRIAGE EXPENSES OF RS.15,80,838/- WHOSE DETAILS WERE GIVEN. REGARDING THE SOURCE OF THIS AMOUNT, HE SUBMITTED T HAT RETIREMENT BENEFITS OF RS.16.65 LAC WERE RECEIVED APART FROM SHAGUNS E TC. AMOUNTING TO RS.2,36,247/- AND LOANS OF RS.1 LAC FROM SHRI LABH SINGH DALAAL AND RS.2 LAC FROM SHRI MAHESH KUMAR. THE AO OBSERVED THAT O UT OF RETIREMENT BENEFITS RECEIVED BY THE ASSESSEE, A SUM OF RS.4 LA C WAS WITHDRAWN ON 11.3.2006 WHICH WAS PAID TO SHRI DEEP CHAND AND SHR I DEEP CHAND RETURNED AN AMOUNT OF RS.2 LAC BEFORE MARRIAGE. HE FURTHER NOTICED THAT A SUM OF RS.3 LAC WAS WITHDRAWN ON 2.5.2006, OUT OF W HICH A SUM OF RS.2 LAC WAS GIVEN TO SHRI JAI KISHAN WHICH WAS RETURNED BY SMT. SUMITRA DEVI ITA NO.4105/DEL/2015 3 W/O SHRI JAI KISHAN AT THE TIME OF THE MARRIAGE. T HE ASSESSEE WAS CALLED UPON TO FURNISH DOCUMENTARY EVIDENCE IN SUPPORT OF HIS CLAIMS AND PRODUCE THE PERSONS TO PROVE THEIR IDENTITY AND CRE DIT WORTHINESS ETC. ON 22.11.2012, THE ASSESSEE PRODUCED SHRI LABH SINGH D ALAAL AND SMT. SUMITRA DEVI, WHOSE STATEMENTS WERE RECORDED ON OAT H. SMT. SUMITRA DEVI ADMITTED TO HAVE RETURNED A SUM OF RS.1 LAC TO THE ASSESSEE ON 8.5.2006 FROM HER BANK ACCOUNT AFTER TAKING A LOAN OF RS.55,000/- FROM SHRI DAYA KISHAN. THE AO OBSERVED FROM HER BANK ST ATEMENT THAT SHE WITHDREW ONLY A SUM OF RS.16,000/-. IN THE ABSENCE OF ANY EVIDENCE ABOUT HOW THE REMAINING AMOUNT WAS MANAGED, THE AO REFUSED TO ACCEPT THAT SHE REPAID RS.1 LAC TO THE ASSESSEE. SIMILARL Y, SHRI LABH SINGH STATED THAT HE GAVE RS.1 LAC INTEREST FREE LOAN IN CASH TO THE ASSESSEE ON 28.10.2006. HE SUBMITTED THAT HE WAS A PENSIONER. SINCE HIS BANK ACCOUNT DID NOT HAVE SUFFICIENT FUNDS, THE AO REFUS ED TO ACCEPT THE ASSESSEES VERSION ON THIS SCORE AS WELL. DISREGAR DING THE ASSESSEES CLAIMS, THE AO NOTICED THAT THE ASSESSEE WITHDREW A SUM OF RS.3,77,000/- FROM HIS BANK ACCOUNTS BETWEEN 1.6.2006 AND 31.12.2 006. THE REMAINING ITA NO.4105/DEL/2015 4 AMOUNT OF RS.12,03,838/- (RS.15,80,838 RS.3,77,00 0/-) WAS ADDED TO THE ASSESSEES INCOME. THE LD. CIT(A) SUSTAINED THE AD DITION. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. IT IS NOTICED THAT THE ASSESSEE MARRIED HIS DAUGHTER ON 13.12.2006 AND, ADMITTEDLY, INCURRED A SUM OF RS.15 .8 LAC. THIS FACT HAS NOT BEEN CONTROVERTED BY THE AO. IT IS ALSO A MATTE R OF RECORD THAT THE ASSESSEE RETIRED ON 31.1.2006 AND RECEIVED RETIREME NT BENEFITS AMOUNTING TO RS.16.65 LAC. APART FROM THESE RETIREMENT BENEF ITS, THE ASSESSEE ALSO RECEIVED SHAGUNS ETC. ON THE MARRIAGE AMOUNTING TO RS.2.36 LAC. THE AO APPEARS TO HAVE BEEN NEEDLESSLY SWAYED BY TECHNICAL ITIES IN REJECTING THE ASSESSEES VERSION OF MEETING MARRIAGE EXPENSES OF HIS DAUGHTER FROM THE AMOUNT AVAILABLE. SOME AMOUNT OUT OF THE RETIREMEN T BENEFITS WAS GIVEN AS ADVANCE BY THE ASSESSEE WHICH WAS CLAIMED TO HAV E BEEN RECEIVED BACK ON THE OCCASION OF MARRIAGE. THE AO HAS NOT POINTED OUT ANY UTILIZATION OF RETIREMENT BENEFITS IN SOME NON-RETRIEVABLE ASSETS. WHEN THE FACTS ARE CONSIDERED IN ENTIRETY, IT BECOMES PATENT THAT AS A GAINST THE RETIREMENT BENEFITS RECEIVED BY THE ASSESSEE AMOUNTING TO RS.1 6.65 LAC, THE MARRIAGE EXPENSES WERE INCURRED TO THE TUNE OF RS.15.80 LAC. IN ADDITION TO THAT, IT ITA NO.4105/DEL/2015 5 IS CUSTOMARY TO RECEIVE SHAGUNS ETC. ON THE EVE OF MARRIAGE OF A DAUGHTER. UNDER THE GIVEN CIRCUMSTANCES, I AM SATISFIED THAT THE ASSESSEE INCURRED MARRIAGE EXPENSES OUT OF HIS EXPLAINED SOURCE OF IN COME. THE ADDITION SO MADE AND SUSTAINED IS HEREBY DELETED. 5. THE ONLY OTHER ISSUE IS AGAINST THE CONFIRMATION OF ADDITION OF RS.2,34,262/- ON ACCOUNT OF ALLEGED INTEREST INCOME ON THE BASIS OF A PAGE OF A DIARY WRITTEN BY THE ASSESSEE. APART FROM MAK ING ADDITION OF RS.12,03,838/-, THE AO HELD THAT INTEREST @ 1.5% PE R MONTH WAS EARNED BY THE ASSESSEE ON A LOAN OF RS.10 LAC GIVEN TO VAR IOUS PERSONS. ACCORDINGLY, INTEREST INCOME OF RS.2,34,262/- WAS C OMPUTED AND ADDED TO THE ASSESSEES INCOME. THIS ADDITION WAS CONFIRMED IN THE FIRST APPEAL. 6. HAVING REGARD TO THE FACTS OF THE INSTANT CASE, IT IS FOUND THAT THE ADDITION OF RS.2,34,262/- IS ONLY HYPOTHETICAL. TH E AO SIMPLY PRESUMED THAT THE ASSESSEE ADVANCED LOANS TO VARIOUS PARTIES ON WHICH INTEREST @ 18% WAS EARNED. THERE IS NO MATERIAL WORTH THE NAM E ON RECORD TO SUBSTANTIATE THIS CHARGE LEVELED BY THE AO. I, THE REFORE, DELETE THIS ADDITION MADE BY THE AO ON HYPOTHESIS. ITA NO.4105/DEL/2015 6 7. IN THE RESULT, THE APPEAL IS PARTLY ALLOWE D. THE ORDER PRONOUNCED IN THE OPEN COURT ON 15.09.2 016. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 15 TH SEPTEMBER, 2016. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.