Ishwarlal K. Doshi, Wankaner V. The IncomeTax Officer, Ward-1(2), RAJKOT-GUJARAT

ITA 416/RJT/2012

• Counselvise Citation: 41624914 RSA 2012
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 11-09-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 22-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR JAYANT B JHAVERI DR O
• Keywords: Gift; Income from undisclosed sources
• Section: 143(3)

Judgement Text

O A , E IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT . . $ < A . . A A BEFORE SHRI T. K. SHARMA JM AND SHRI D. K. SRIVASTAVA AM ITA NO. 416 /RJT/201 2 L L / ASSESSMENT YEAR : 2005 - 06 ISHWARLAL K. DOSHI, C/O. M/S. INDIAN CERAMIC IND., NR. RAILWAY STATION, WANKANER PAN : ABXPD 8619 G ( / APPELLANT) THE INCOME - TAX OFFICER WARD 1(2), RAJKOT GR / RESPONDENT L / ASSESSEE BY SHRI CHETAN AGARWAL, CA / REVENUE BY DR. JAYANT B. JHAVERI, DR O / DATE OF HEARING 11 . 0 9 . 2013 O / DATE OF PRONOUNCEMENT 13 . 0 9 . 2013 / ORDER . . $ , < A / T. K. SHARMA, J. M. : TH IS APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER DATED 01 . 03 .2012 OF CIT (A) - GANDHINAGAR, AHMEDABAD, CONFIRMING THE ADDITION OF RS.4,00,000/ - MADE BY THE ASSESSING OFFICER IN RESPECT OF UNEXPLAINED GIFT FOR THE ASSESSMENT YEAR 200 5 - 06. 2. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS AN INDIVIDUAL. FOR THE ASSESSMENT YEAR UNDER APPEAL, HE FILED THE RETURN OF INCOME ON 31.08.2005 DECLARING TOTAL INCOME AT RS.1,86,860/ - . THE ASSESSING OFFICER FRAMED ASSESSMENT U/S 143(3) OF THE INCO ME - TAX ACT ON 28.12.2007 AT A TOTAL INCOME OF RS.5,83,830/ - . IN THE ASSESSMENT YEAR UNDER APPEAL, THE ASSESSING OFFICER TREATED THE GIFT OF RS.4,00,000/ - ALLEGED TO BE RECEIVED BY THE ASSESSEE FROM THE NRI, SHRI DIVYESH M. KAMDAR AS NON - GENUINE GIFT OBSERV ING THAT THE ASSESSEE INTRODUCED HIS UNACCOUNTED INCOME INTRODUCED IN THE GUISE OF GIFT. THE ASSESSING OFFICER FURTHER HELD THAT THE ASSESSEE HAS FAILED TO ESTABLISH THE CREDITWORTHINESS AND CAPACITY OF THE DONOR AND THE GENUINENESS OF THE AMOUNT OF RS.4,0 0,000/ - FOUND TO BE CREDITED IN THE BOOKS OF THE ASSESSEE. 416 - RJT - 2012 - ISHWARLAL K DOSHI 2 3. ON APPEAL BEFORE THE LD CIT(A), THE ASSESSEE FILED WRITTEN SUBMISSIONS WHICH HAS BEEN REPRODUCED BY THE LD CIT(A) IN PARAGRAPH NO. 4.1 OF THE IMPUGNED ORDER . AFTER CONSIDERING THESE SUBMISSION S, THE LD CIT(A) UPHELD THE ACTION OF THE ASSESSING OFFICER RELYING ON THE DECISION OF ITAT IN THE CASE OF DINESH BABULAL THAKKAR, 39 SOT 332 . AGGRIEVED WITH THE ORDER OF THE LD CIT(A), THE ASSESSEE IS NOW IN APPEAL BEFORE THIS TRIBUNAL. 4. AT THE TIME OF HEARING BEFORE US, ON BEHALF OF ASSESSEE SHRI CHETAN AGARWAL, CA APPEARED AND POINTED OUT THAT THE STATEMENT OF THE ASSESSEE RECORDED BY THE ASSESSING OFFICER IN RESPECT OF GIFT OF RS.4,00,000/ - RECEIVED BY THE ASSESSEE FROM HIS NRI FRIEND SHRI DIVYESH M. KAMDAR, WAS NEVER MADE AVAILABLE TO THE ASSESSEE. THE LD COUNSEL SUBMITTED THAT ON ACCOUNT OF NON - AVAILABILITY OF STATEMENT RECORDED BY THE ASSESSING OFFICER, HE COULD NOT EFFECTIVELY REPRESENT THE ASSESSEES CASE BEFORE THE FIRST APPELLATE AUTHORITY; T HEREFORE HE SUBMITTED THAT, IN THE INTEREST OF JUSTICE THE MATTER BE REMANDED TO THE FILE OF THE LD CIT(A) WITH THE DIRECTION THAT A COPY OF STATEMENT RELIED BY THE ASSESSING OFFICER BE MADE AVAILABLE TO THE ASSESSEE AND THEREAFTER AFTER CONSIDERING THE AR GUMENTS OF BOTH THE SIDES, LD CIT(A) MAY DECIDE THE APPEAL OF THE ASSESSEE AFRESH. 5. AS AGAINST THE AFORESAID SUBMISSIONS MADE BY THE LD COUNSEL; DR. JAYANT B. JHAVERI, DR APPEARED ON BEHALF OF THE REVENUE, VEHEMENTLY SUPPORTED THE ORDER OF THE LD CIT(A ). HE SUBMITTED THAT CONSIDERING THE GIST OF STATEMENT RECORDED WHICH IS REPRODUCED BY THE LD CIT(A) IN THE IMPUGNED ORDER, THE VIEW TAKEN BY THE LD CIT(A) BE UPHELD. HE FURTHER SUBMITTED THAT NO USEFUL PURPOSE WILL BE SERVED IF GIVING ONE MORE INNINGS T O THE ASSESSEE. 6. AFTER HEARING BOTH THE SIDES, WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AUTHORITIES BELOW. PRIMA - FACIE IT APPEARS THAT THE STATEMENT OF THE ASS ESSEE WHICH WAS RECORDED U/S 133(1) WAS NEVER MADE AVAILABLE TO THE ASSESSEE. BE THAT I T MAY BE, KEEPING IN VIEW OF THE CONSPICUOUS FACTS OF THE CASE, WE ARE OF THE 416 - RJT - 2012 - ISHWARLAL K DOSHI 3 VIEW THAT THE LD CIT(A) HAS GIVEN COGENT REASON FOR CONFIRMING THE ADDITION OF RS.4,00,000/ - , WHICH WAS MADE BY THE ASSESSING OFFICER BY TREATING THE GIFT OF RS.4,00, 000/ - ALLEG EDLY RECEIVED FROM AN NRI, SHRI DIVYESH M. KAMDAR, IS FAIR AND REASONABLE. WE, THEREFORE, DECLINE TO INTERFERE. 7. IN THE RESULT, THE APPE AL OF THE ASSESSEE IS DISMISSED. THIS O RDER PRONOUNCED IN O PEN COURT ON THE DATE MENTIONED HEREINABOVE. SD/ - SD/ - ( . . . D. K. SRIVASTAVA ) ( O . . L / T. K. SHARMA) HIS / ACCOUNTANT MEMBER E / JUDICIAL MEMBER K / ORDER DATE 13 . 0 9 . 2013. /RAJKOT *BT 3 JO AO / COPY OF ORDER FORWARDED TO: - 1 . / APPELLANT - ISHWARLAL K. DOSHI, C/O. M/S. INDIAN CERAMIC IND., NR. RAILWAY STATION, WANKANER 2 . GR / RESPONDENT - ITO, WARD 1(2), RAJKOT 3 . A / CONCERNED CIT , AHMEDABAD 4 . AHME ABAD - / CIT (A) - GANDHINAGAR, AHMEDABAD 5 . GA , O A , / DR, ITAT, RAJKOT 6 . L / GUARD FILE / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT