Shri Latu Ram Khubnani, Gwalior V. The I.T.O., Range- 2(2), Gwalior

ITA 422/AGR/2010

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0369 (ITAT-AGRA)
• Duration Of Justice: 8 year(s) 6 month(s) 13 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2001-2002
• Appeal Filed On: 03-11-2010
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Keywords: Gift
• Section: 68; 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, SMC, AGRA BEFORE SHRI P.K. BANSAL, ACCOUNTANT MEMBER ITA NO.422/AGR/2010 ASST. YEAR: 2001-02 SHRI LATU RAM KHUBNANI, VS. INCOME TAX OFFICER, PROP. M/S. METRO PIPES, RANGE 2(2), GWALIOR. SINDHI COLONY, GWALIOR (M.P.) (PAN : ADJPK 8721 C) (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI A.K. SHARMA, JR. D.R. ORDER THIS APPEAL HAS BEEN FIELD BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) DATED 24.08.2010 BY WHICH THE CIT(A) HAS CONFIRMED THE AC TION OF THE ASSESSING OFFICER, MAKING THE ADDITION OF ` 1,00,000/- IN RESPECT OF UNEXPLAINED GIFTS AS SURRE NDERED BY THE ASSESSEE. 2. THE CASE WAS FIXED FOR HEARING TODAY. NONE APPE ARED ON BEHALF OF THE ASSESSEE. THEREFORE, THE APPEAL IS DISPOSED OF AFTER HEARING THE LD. D.R. 3. THE LD. D.R. VEHEMENTLY CONTENDED THAT SECTION 6 8 OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) LAYS DOWN THE RULE OF EVIDENCE AN D IT IS OBLIGATORY ON THE PART OF THE ASSESSEE TO PROVE THE IDENTITY, CREDITWORTHINESS AND THE GENUIN ENESS OF THE TRANSACTION IN CASE ANY CASH CREDIT IS IN THE BOOKS OF THE ASSESSEE REGULARLY MAINTAINE D BY HIM. THE ASSESSEE HAS RECEIVED THE GIFTS AMOUNTING TO ` 1,00,000/-. THE ASSESSING OFFICER HAS GIVEN SUFFIC IENT OPPORTUNITY TO THE ASSESSEE TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINE NESS OF THE GIFTS, BUT THE ASSESSEE, INSTEAD OF 2 DISCHARGING HIS ONUS, ULTIMATELY VIDE WRITTEN SUBMI SSION FILED ON 13.03.2006 AT THE DAK COUNTER DURING THE COURSE OF ASSESSMENT PROCEEDINGS, VOLUNT ARILY SURRENDERED THE GIFT AND ACCORDINGLY THE ASSESSING OFFICER MADE THE ADDITION. THIS CLEARLY SHOWN THAT THE ASSESSEE DID NOT DISCHARGE HIS ONUS. THEREFORE, IT WAS CONTENDED THAT THE ORDER O F THE CIT(A) BE SUSTAINED. 4. I HAVE CAREFULLY CONSIDERED THE SUBMISSIONS MADE BY THE LD. D.R. I HAVE GONE THROUGH THE ORDERS OF THE TAX AUTHORITIES BELOW. SECTION 6 8 OF THE ACT CLEARLY LAYS DOWN THAT WHERE ANY SUM IS FOUND CREDITED IN THE BOOKS OF AN ASSESSEE M AINTAINED FOR ANY PREVIOUS YEAR, AND THE ASSESSEE OFFERS NO EXPLANATION ABOUT THE NATURE AND SOURCE THEREOF OR THE EXPLANATION OFFERED BY ASSESSEE IS NOT, IN THE OPINION OF THE ASSESSING OF FICER, SATISFACTORY, THE SUM SO CREDITED MAY BE CHARGED TO INCOME TAX AS THE INCOME OF THE ASSESSEE OF THAT PREVIOUS YEAR. FROM THE PERUSAL OF THE AFORESAID SECTION, IT IS APPARENT THAT THE ONUS IS ON THE ASSESSEE TO PROVE THE NATURE AND SOURCE OF THE CASH CREDIT FOUND IN HIS BOOKS OF ACCOUNTS T O THE SATISFACTION OF THE ASSESSING OFFICER. THE ASSESSEE HAS RECEIVED THE GIFT DURING THE YEAR AMOU NTING TO ` 1,00,000/-. THE ASSESSING OFFICER HAS GIVEN HIM NUMBER OF OPPORTUNITIES TO PROVE THE IDENTITY OF THE DONOR, HIS CREDITWORTHINESS AS WELL AS GENUINENESS OF THE TRANSACTION. THE ASSESS EE SIMPLY FILED COPY OF THE GIFT DEED IN WHICH SOME OF THE COLUMNS WERE BLANK BUT DID NOT PRODUCE ANY EVIDENCE SO THAT THE IDENTITY OF THE DONOR, HIS CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION COULD BE PROVED. THE ASSESSEE, RATHER HIMSELF, INSTEAD OF DISCHARGING HIS ONUS, VI DE HIS WRITTEN SUBMISSION, AS PER THE ASSESSMENT ORDER, FILED ON 13.03.2006 AT THE DAK COUNTER, VOLUNTARILY OFFERED THESE GIFTS TO BE THE INCOME OF THE ASSESSEE. THE ASSESSING OFFICER, ACCORDINGLY, MADE THE ADDITION. BEFORE ME ALSO THE ASSESSEE DID NOT APPEAR. EVEN NO EVIDENCE, TO PROVE THE IDENTITY OF THE DONOR, HIS CREDITWORTHINESS AS WELL AS GENUINENESS OF THE GIFT , WERE FILED. UNDER THESE FACTS AND 3 CIRCUMSTANCES OF THE CASE, IN MY OPINION, NO INTERF ERENCE IS CALLED FOR IN THE ORDER OF THE CIT(A), CONFIRMING THE ACTION OF THE ASSESSING OFFICER. I, ACCORDINGLY, CONFIRM THE ORDER OF THE CIT(A) AND DISMISS THE APPEAL FILED BY THE ASSESSEE. 5. IN THE RESULT, APPEAL FIELD BY THE ASSESSEE STAN DS DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 26.11.2010 ). SD/- (P.K. BANSAL) ACCOUNTANT MEMBER PLACE: AGRA DATE: 26 TH NOVEMBER, 2010. PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT BY ORDER 3. CIT CONCERNED 4. CIT (APPEALS) CONCERNED 5. DR, ITAT, AGRA BENCH, AGRA 6. GUARD FILE ASSIST ANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY