Sri K Srinivasa Reddy, Visakhapatnam V. The JCIT, Central Circle-1, Visakhapatnam

ITA 428/VIZ/2006

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0122 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 30-10-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBRATA SARKAR
• Keywords: Gift; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.428/VIZAG/2006 ASSESSMENT YEAR : 2003-04 K. SRINIVASA REDDY, VISAKHAPATNAM JT. CIT, CENTRAL CIRCLE-1, VISAKHAPATNAM (APPELLANT) VS. (RESPONDENT) PAN NO.ADBPK 2903Q APPELLANT BY: SHRI C. SUBRAHMANYAM, CA RESPONDENT BY: SHRI SUBRATA SARKAR, DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL OF THE ASSESSEE IS FILED AGAINST THE O RDER OF THE CIT(A) ON VARIOUS GROUNDS BUT THEY ALL RELATE TO THE GENUINEN ESS OF THE GIFT OF AN IMMOVABLE PROPERTY TO THE ASSESSEES. 2. DURING THE COURSE OF HEARING OUR ATTENTIONS WAS INVITED TO THE FACT THAT ASSESSEE HAS CLAIMED TO HAVE RECEIVED AN IMMOVABLE PROPERTY FROM MRS. G. VIJAYA W/O SHRI PRAKASH REDDY WORKING AS A SUPERVIS OR WITH M/S. V. DHANA REDDY & CO. SOME DOCUMENTS RELATING TO GIFT WERE F OUND DURING THE COURSE OF SEARCH CONDUCTED AT THE PREMISES OF THE ASSESSEE S AND THEREAFTER MRS. G. VIJAYA WAS EXAMINED AND DURING THE COURSE OF HER ST ATEMENT, SHE DEPOSED THAT THE IMPUGNED PROPERTY WAS NEVER PURCHASED BY H ER NOR WAS GIFTED TO THE ASSESSEES. RELYING UPON THIS STATEMENT, THE AS SESSING OFFICER HAS TREATED THE VALUE OF THE PROPERTY AT RS.25 LAKHS AS UNDISCL OSED INCOME OF THE ASSESSEES AND MADE THE ADDITION OF THE SAME IN THE IMPUGNED ASSESSMENT YEAR. 3. BEFORE THE CIT(A), THE ASSESSEE FILED AN AFFIDAV IT OF MRS. G. VIJAYA IN WHICH SHE ADMITTED THE GIFT OF THE IMMOVABLE PROPER TY. SINCE THE PROPERTY WAS GIFTED BY EXECUTING A GIFT DEED, DULY REGISTERE D WITH THE SUB-REGISTRAR, THE ASSESSEE PLACED A HEAVY RELIANCE UPON THE GIFT DEED AS WELL AS THE 2 AFFIDAVIT FILED BY THE DONOR TO JUSTIFY THE GENUINE NESS OF THE GIFT. THE CIT(A) DID NOT ACCEPT THE CONTENTIONS OF THE ASSESSEES AND CONFIRMED THE ORDER OF THE A.O. NOW THE ASSESSEE HAS PREFERRED AN APPEAL BEFORE THE TRIBUNAL WITH THE SUBMISSIONS THAT THE IMMOVABLE PROPERTY WAS GIF TED THROUGH A PROPER EXECUTION OF A GIFT DEED DULY REGISTERED WITH THE S UB-REGISTRAR AND IN ORDER TO FALSIFY THE STATEMENT RECORDED BY THE A.O., THE DON OR HAS FILED THE AFFIDAVIT ADMITTING THE GIFT OF THE PROPERTY. COPY OF THE AF FIDAVIT AND GIFT DEED ARE PLACED ON RECORD. 4. FROM A CAREFUL EXAMINATION OF THE DOCUMENTS, WE ARE OF THE VIEW THAT TWO CONTRADICTORY STATEMENTS OF THE DONOR ON OATH A RE PLACED ON RECORD. UNDISPUTEDLY THE GIFT DEED WAS EXECUTED AND DULY RE GISTERED WITH THE SUB- REGISTRAR. BUT THE STATEMENT OF THE DONOR THROUGH WHICH HE DENIED THE EXECUTION OF THE GIFT CANNOT BE IGNORED. UNDER THE SE CIRCUMSTANCES, WE ARE OF THE VIEW THAT LET THE DONOR BE EXAMINED BY THE A SSESSING OFFICER WITH REGARD TO THE GIFT OF THE IMMOVABLE PROPERTY IN THE PRESENCE OF THE ASSESSEES TO ASCERTAIN THE TRUTH IN THIS REGARD. IF THE DONO R ADMITS THE EXECUTION OF THIS GIFT, THE A.O. MAY MAKE FURTHER INVESTIGATION IF HE IS NOT CONVINCED WITH THE STATEMENT OF THE DONOR. WE THEREFORE, SET ASIDE TH E ORDER OF THE CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE A.O. FOR FRES H ADJUDICATION OF THE ISSUE IN TERMS INDICATED ABOVE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 02.09.2009 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 2 ND SEPTEMBER, 2009 3 COPY TO 1 SRI K. SRINIVASA REDDY, C/O SRI C. SUBRAHMANYAM, CHARTERED ACCOUNTANT, 102, LAKSHMI APARTMENTS, FACOR LAYOUT, WALTAIR UPLA NDS, VISAKHAPATNAM- 530 003. 2 JOINT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE- 1, O/O THE INCOME TAX, M.V.P. COLONY, VISAKHAPATNAM 3 THE CIT, VISAKHAPATNAM 4 THE CIT(A)-I, VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM