Bhupal Anna Vibhute, Kolhapur V. Income-tax Officer, Ward - 2, Ichalkaranji

ITA 465/PUN/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0661 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2003-2004
• Appeal Filed On: 12-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.465/PUN/2018 / ASSESSMENT YEAR : 2003-04 BHUPAL ANNA VIBHUTE, 7, NAGARPALIKA HOUSING SOCIETY, JAYASINGHPUR TAUKA SHIROL, DIST. KOLHAPUR PAN : ACWPV3766G VS. ITO, WARD-2, ICHALKARANJI (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-2, KOLHAPUR ON 05-02-2018 IN RELA TION TO THE ASSESSMENT YEAR 2003-04. 2. THE FIRST GROUND IS AGAINST CONFIRMATION OF ADDITION OF RS.5 LAKHS. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE AO RECEIVED CERTAIN INFORMATION REGARDING REPAYMENT OF BANK LOA N OF RS.6,30,000/- BY THE ASSESSEE. ON ISSUANCE OF NOTI CE U/S. APPELLANT BY SHRI SANJAY M. VHANBATTE RESPONDENT BY SHRI RAJESH GAWALI DATE OF HEARING 03-12-2018 DATE OF PRONOUNCEMENT 04-12-2018 ITA NO.465/PUN/2018 BHUPAL A. VIBHUTE 2 148 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED `TH E ACT), THE ASSESSEE FURNISHED A RETURN DECLARING TOTAL INCOME OF RS.1,17,807/-. DURING THE COURSE OF ASSESSMENT PROCEE DINGS, THE AO REQUIRED THE ASSESSEE TO FURNISH DETAILS OF THE SOURC E OF REPAYMENT OF LOAN OF RS.6,30,000/-. THE ASSESSEE SUB MITTED THAT A SUM OF RS.5 LAKHS WAS RECEIVED AS SMALL GIFTS FROM H IS FRIENDS AND RELATIVES FOR ENABLING HIM TO REPAY THE LOAN. DETAILS OF THE PERSONS WHO GAVE GIFTS TO THE ASSESSEE WERE SUBMITTED, WHICH HAVE BEEN CAPTURED IN PARA NO. 6.1 OF THE ASSESSMENT ORDER. THE AO REQUIRED THE ASSESSEE TO PROD UCE THE PERSONS. MOST OF THE PERSONS WERE PRODUCED, ALL OF WHOM ACCEPTED THE FACT OF HAVING GIVEN GIFTS TO THE ASSESSEE. NO T CONVINCED, THE AO MADE ADDITION. THE LD. CIT(A) UPHELD THE SAME. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE ASSESSEE RECEIVED A SUM OF RS.5 LAKHS BY WAY OF SMALL GIFTS FROM HIS FRIENDS AND RELATIVES. ALL OF SUCH PERSONS, EXCEPT, SHRI PRAKASH B. PATIL, WERE PRODUCED BEFORE THE AO. THEY ACCEPTED THE FACT OF HAVING GIVEN GIFTS TO THE ASSESSEE. TH E AO DOUBTED THEIR GENUINENESS ON CERTAIN FRIVOLOUS ISSUES. ITA NO.465/PUN/2018 BHUPAL A. VIBHUTE 3 SHRI PRAKASH B. PATIL, COULD NOT APPEAR IN PERSON BEFORE THE AO, BUT FURNISHED A CONFIRMATION LETTER ON 13-12-2010 ACCEPTING THE MAKING OF GIFT AND A COPY OF HIS BANK ACC OUNT TO SUPPORT THE WITHDRAWAL OF CASH AND GIVING OF GIFT. IN MY CONSIDERED OPINION, THE ASSESSEE CANNOT BE SAID TO HAVE N OT SUCCESSFULLY DISCHARGED THE BURDEN CAST UPON HIM TO PROVE THE GENUINENESS OF THE CREDITS. I, THEREFORE, ORDER TO DELETE THE ADDITION OF RS.5 LAKHS. 5. THE ONLY OTHER GROUND WHICH SURVIVES IN THIS APPEAL IS AGAINST CONFIRMATION OF ADDITION OF RS.1,30,000/- MADE BY THE AO. 6. APART FROM THE RECEIPT OF GIFTS OF RS.5 LAKHS, THE ASS ESSEE SUBMITTED THAT A SUM OF RS.1,30,000/- WAS RECEIVED BY HI M FROM SALE OF PLOT OF LAND. THE AO DID NOT ACCEPT THE EXPLANATION AND MADE THE ADDITION, WHICH CAME TO BE UPHELD IN THE FIRST APPEAL. 7. HAVING REGARD TO THE FACTS OF THE INSTANT GROUND, IT IS SEE N THAT THE ASSESSEE CATEGORICALLY STATED BEFORE THE AO THAT HE SOLD A PLOT OF LAND FOR RS.1,30,000/-. A COPY OF PROFIT A ND LOSS ACCOUNT OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATIO N ALSO ITA NO.465/PUN/2018 BHUPAL A. VIBHUTE 4 DEPICTS THE SALE OF PLOT AMOUNTING TO RS.1,30,000/-. ONCE THE INCOME FROM SALE OF PLOT HAS BEEN ACCEPTED BY THE AO, HE COULD NOT HAVE REJECTED THE EXPLANATION OF THE ASSESSEE TOWAR DS RECEIPT OF RS.1,30,000/- FOR REPAYMENT OF LOAN WITHOUT ANY VALID REASON. I, THEREFORE, OVERTURN THE IMPUGNED ORDE R ON THIS SCORE. 8. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH DECEMBER, 2018. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 04 TH DECEMBER, 2018 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-2, KOLHAPUR 4. / THE PR. CIT-2, KOLHAPUR 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.465/PUN/2018 BHUPAL A. VIBHUTE 5 DATE 1. DRAFT DICTATED ON 03-12-18 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 03-12-18 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 5. APPROVED DRAFT COMES TO THE SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON 7. FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. *