BHAVIKA HARJANI, MUMBAI V. ACIT 12(3), MUMBAI

ITA 4491/MUM/2013

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8322 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 13-07-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 04-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR
• Keywords: Gift
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH B,MUM BAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO.4491/MUM/2013 (ASSESSMENT YEAR- 2009-10) M/S. BHAVIKA HARJANI 1412, DALAMAL TOWER, 14 TH FLOOR, 211, NARIMAN POINT, MUMBAI 400021. PAN: AAAPH1963P VS. ACIT-12(3), AAYAKAR BHAVAN, MUMBAI-400020. (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI SUMAN KUMAR (DR) DATE OF HEARING : 07.11.2017 DATE OF PRONOUNCEMENT : 29.11.2017 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE U/S.253 OF THE INCOME T AX ACT IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX [LD. CI T(A)] (APPEALS)-23, MUMBAI DATED 28.03.2013 FOR ASSESSMENT YEAR (AY) 20 09-10. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN I. UPHOLDING SHARE BENEFIT FROM BHAGCHANDANI TRUST (AOP) AT RS.29,89,850/- INSTEAD OF RS.21,61,269/- AS SHOWN IN THE COMPUTATI ON OF INCOME OF THE APPELLANT UNDER THE HEAD 'OTHER SOURCES' ON THE GROUND THAT T HE DEDUCTION CLAIMED @ 30% AMOUNTING TO RS.8,28,681/- U/S. 24(A) OF THE I T AC T, IS APPLICABLE ONLY IF THE SAID SHARE BENEFIT IS TAXED IN THE HANDS OF THE APPELLAN T UNDER THE HEAD 'HOUSE PROPERTY INCOME' IGNORING THE FACT THAT THE HOUSE P ROPERTY INCOME HAS BEEN SHOWN IN COMPUTATION OF INCOME OF BHAGCHANDANI TRUS T (AOP) AND THE NET SHARE BENEFIT ON ALLOCATION OF AOP INCOME IS TAXED IN THE HANDS OF THE APPELLANT. II. HOLDING AND TREATING THE GIFT OF RS.17,50,000/- GIVEN BY THE APPELLANT TO THE DONEE AS UNEXPLAINED INCOME IGNORING THE FACT THAT THE SAID AMOUNT OF GIFTS WERE 2 ITA NO.4491/M/2013 M/S. BHAVIKA HARJANI GIVEN OUT OF HER CAPITAL ACCOUNT AS EVIDENT FROM TH E STATEMENT OF AFFAIRS AS ON 31 ST MARCH 2009 ALREADY PLACED ON RECORD. IT IS PRAYED T HAT THE HON'BLE TRIBUNAL MAY KINDLY PERMIT THE APPELLANT TO PRODUCE THE DETAILS OF GIFT EITHER BEFORE AO OR BEFORE CIT(A) AND FOR THAT PURPOSE REMIT THE MATTER BEFORE THE APPROPRIATE LOWER AUTHORITY. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FI LED RETURN OF INCOME FOR RELEVANT AY ON 03.12.2009 DECLARING TOTAL INCOME OF RS. 20,61,344/-. THE ASSESSMENT WAS COMPLETED UNDER SECTION 144. THE ASS ESSING OFFICER (AO) WHILE PASSING THE ASSESSMENT ORDER BESIDES THE OTHER ADDI TION AND DISALLOWANCE DISALLOWED THE DEDUCTION @ 30% CLAIMED UNDER SECTIO N 24(A) AND TREATED THE GIFT OF RS. 17,50,000/- AS UNEXPLAINED INCOME. ON APPEAL BEFORE THE LD. CIT(A) BOTH THE ADDITION/DISALLOWANCE WAS CONFIRMED. THUS, FURT HER AGGRIEVED BY THE ORDER OF LD. CIT(A), THE ASSESSEE HAS FILED THE PRESENT APPE AL BEFORE US. 3. NONE APPEARED ON BEHALF OF ASSESSEE DESPITE SERV ICE OF NOTICE. THE PERUSAL OF THE RECORD REVEALS THAT ASSESSEE HAS SOUGHT ADJO URNMENT ON 07.10.2015, 25.10.2016 AND AGAIN ON 03.11.2016 THEREAFTER NEITH ER THE ASSESSEE NOR HER REPRESENTATIVE APPEARED BEFORE US. WE LEFT NO OPTIO N EXCEPT TO HEAR THE LD. DEPARTMENTAL REPRESENTATIVE (DR) FOR THE REVENUE AN D TO DECIDE THE APPEAL ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. THE LD. DR FOR THE REVENUE ARGUED THAT ASSESSEE WAS NON-CO-OPERATIVE DURING THE ASSESSMENT PROCEEDING AND AS WELL AS BEFORE THE FIRST APPELLATE PROCEEDING. IT WAS FURTH ER ARGUED THAT ASSESSEE HAS NOT FILED ANY DOCUMENTARY EVIDENCE TO SUBSTANTIATE HIS CLAIM WITH REGARD TO DISALLOWANCE OF DEDUCTION UNDER SECTION 24(A) AS W ELL AS DISALLOWANCE OF GIFT OF RS. 17,50,000/-. 3 ITA NO.4491/M/2013 M/S. BHAVIKA HARJANI 4. WE HAVE CONSIDERED THE SUBMISSION OF LD. DR FOR THE REVENUE AND PERUSED THE ORDERS OF AUTHORITIES BELOW. GROUND NO.1 RELATE S TO UPHOLDING SHARE BENEFIT FROM BHAGCHANDANI TRUST(AOP) AT RS. 29,89,850/- IN PLACE OF RS.21,61,269/- SHOWN IN COMPUTATION UNDER THE HEAD OTHER SOURCE . THE AO COMPLETED THE ASSESSMENT UNDER SECTION 144 AND MADE THE ADDITION/ DISALLOWANCE UNDER SECTION 24(A) AND TREATED THE GIFT AS INCOME OF THE ASSESSE E FROM OTHER SOURCES. BEFORE THE FIRST APPELLATE AUTHORITY NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APPEARED ON THE DATE OF HEARING FIXED ON 15.05.2012, 10.07.2 012, 25.07.2012 AND 30.08.2012 AND FINALLY ON 25.10.2012. THE LD CIT(A) CONFIRMED THE ADDITION HOLDING THAT THE ASSESSEE HAS NOT FILED ANY DOCUME NTARY EVIDENCES TO SUBSTANTIATE ITS CONTENTIONS. BEFORE US NEITHER THE REPRESENTATI VE OF ASSESSEE CAME FORWARD TO EXPLAIN THE FACT NOR ANY EVIDENCE IS FILED THUS WE DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDINGS OF THE LD CIT(A), HENCE THIS GROUND OF APPEAL IS DISMISSED. 5. GROUND NO.2 RELATED TO CONFIRMING THE ADDITION ON ACCOUNT OF GIFT. THE AO DISALLOWED THE GIFT IN ABSENCE OF ANY DOCUMENTARY E VIDENCES. BEFORE FIRST APPELLATE AUTHORITY AGAIN NO EVIDENCE WAS FURNISHED , THUS THE ACTION OF AO WAS CONFIRMED. BEFORE US NEITHER THE ASSESSEE HAS A PPEARED NOR FILED ANY DETAILED SUBMISSION OR ANY DOCUMENTARY EVIDENCE TO SUBSTANTI ATE THEIR CLAIM. THUS, WE DO NOT FIND ANY ILLEGALITY OR INFIRMITY IN THE ORDER P ASSED BY LD. CIT(A). HENCE , THIS GROUND OF APPEAL IS ALSO FAILED. 5. IN THE RESULT, APPEAL FILED BY ASSESSEE IS DISMI SSED. . 4 ITA NO.4491/M/2013 M/S. BHAVIKA HARJANI ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF NOVEMBER, 2017. SD/- SD/- (G.S. PANNU) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED 29/11/2017 S.K.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT.REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY/