Ashok Kumar Gupta, Uttar Pradesh V. ITO, Saharanpur

ITA 4746/DEL/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6933 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 21-11-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 06-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Salary income
• Section: 143(3); 142(1); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-II, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 47 46 /DEL/201 6 A.Y. : 20 10 - 11 ASHOK KUMAR GUPTA B-40/3, BASANT VIHAR, DELHI ROAD SAHARANPUR-247001- UP (PAN: ABTPG4782D) VS. ITO, WARD - 1, SAHARANPUR (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. DINESH GUPTA, CA DEPARTMENT BY : SH. ANIL SHARMA, SR. DR ORDER THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 30/6/2016 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS), MUZAFFARN AGAR ON THE FOLLOWING GROUNDS:- 1. THAT THE PART OF THE APPELLATE ORDER DATED 30.6.2016 REGARDING THE CONFIRMATION OF ADDITION OF RS. 2,50,000/- OUT OF RS. 5,00,000/- BEING THE EXPENDITURE DONE BY THE MOTHER IN HER DAUGHTERS MARRIAGE, IS ERRONEOUS, INCORRECT AND WRONG. 2. THAT APART FROM THE FACT THAT CASH EXPENDITURE HAD BEEN MADE BY THE MOTHER IN HER DAUGHTERS MARRIAGE 2 OUT OF HER CAPITAL ACCOUNT, ADDITION IS ERRONEOUS, INCORRECT. 3. THEREFORE, IT IS PRAYED THAT ADDITION WHICH IS WRONG AND AGAINST THE LAW IS LIABLE TO BE SET ASIDE. 2. THE FACTS IN BRIEF ARE THAT IN THIS CASE A COMPLAI NT (TEP) WAS RECEIVED FROM THE ITO (INVESTIGATION), DEHRADUN THROUGH LD. CIT, MUZAFFARNAGAR THAT SH. ASHOK KUMAR GUPTA (ASSESSEE) H AS INVESTED RS. 28 LACS IN THE MARRIAGE OF HIS DAUGHTER ON 22.11. 2009. ASSESSEE COULD NOT EXPLAIN THE SOURCE AND EVIDENCES OF EXPENDITURE OF RS. 24 LACS BEFORE THE ITO(INV.), DEHRADUN. THE ITO((INV.) DEHRADUN TRANSFERRED THE CASE TO SAHARANPUR AND RECOM MENDED THE ACTION U/S. 147/148 OF THE I.T. ACT, 1961 AS SH. ASHOK KUMAR GUPTA HAS ACCEPTED THE INVESTMENT IN THE MARRIAGE OF HIS DA UGHTER BUT HE COULD NOT EXPLAIN THE SOURCE OF INVESTMENT. THEREFORE , ACTION U/S. 147 OF THE I.T. ACT, 1961 WAS TAKEN ON THE BASIS OF UNEXPLAINED INVESTMENT AND NOTICE U/S. 148 WAS ISSUED TO THE ASSES SEE ON 29.4.2013, AFTER RECORDING THE REASONS. FURTHER NOTI CES U/S. 142(1), 143(3) OF THE I.T. ACT, 1961 WERE ISSUED TO THE ASSESS EE FROM TIME TO TIME AND HE WAS ALSO REQUIRED TO FURNISH THE NECESSA RY INFORMATION VIDE ORDER SHEET ENTRIES ON DIFFERENT DATE S. IN RESPONSE TO NOTICE U/S. 148 OF I.T. ACT, THE ASSESSEE HAS FILE D HIS RETURN OF INCOME OF RS. 5,14,072/- FROM SALARY INCOME. FURTHE R STATUTORY 3 NOTICES U/S. 142(1) WERE ISSUED AND IN RESPONSE THERE TO THE COUNSELS OF THE ASSESSEE ATTENDED THE PROCEEDINGS FROM TIME TO TIME AND FILED THE REQUIRED DETAILS AND DOCUMENTS WHIC H WERE CHECKED BY THE AO. THE AO OBSERVED THAT THE AMOUNT OF CASH SHOWN TO BE PAID FROM SMT. ANURADHA GUPTA, THE WIFE O F THE ASSESSEE IS FROM HER CAPITAL ACCOUNT IS EXCESSIVE. TH EREFORE, KEEPING IN VIEW OF THE STATUS OF HER FAMILY, HE DISA LLOWED RS. 2,50,000/- OUT OF RS. 5,00,000/- AND COMPLETED THE A SSESSMENT U/S. 143(3)/48 OF THE I.T. ACT, 1961 VIDE HIS ORDE R DATED 27.3.2015 AND ASSESSED THE INCOME AT RS. 18,66,709/- BY MAKIN G VARIOUS ADDITIONS. 3. AGGRIEVED WITH THE AFORESAID ASSESSMENT ORDER, ASS ESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO VIDE HIS IMPUGNED ORDER DATED 30.6.2016 HAS PARTLY ALLOWED THE APPEAL A ND AFFIRMED THE ADDITION OF RS. 2,50,000/- OUT OF RS. 5,00,000/- ON ACCOUNT OF CASH EXPENDITURE. 4. AGGRIEVED WITH THE AFORESAID ORDER OF THE LD. CIT(A ), ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. AT THE TIME OF HEARING LD. COUNSEL OF THE ASSESSEE STATED THAT THE ADDITION OF RS. 2,50,000/- OF CASH EXPENDITURE B Y MOTHER IN HER DAUGHTER MARRIAGE IS NOT JUSTIFIED. HE STATED THAT MRS . ANURADHA 4 GUPTA, (MOTHER) AND THE ASSESEES WIFE IS AN INCOME T AX ASSESSEE FROM THE LAST MORE THAN 22 YEARS. ALL THE CAPITAL ACCO UNT AND STATEMENTS OF AFFAIRS ARE BEING FILLED EVERY YEAR WITH RELEVANT ITR. SHE SPENT RS. 5 LACS CASH ON HER DAUGHTER MARRIAGE OU T OF HER OWN CAPITAL A/C WHICH IS VERY OBVIOUS FOR ANY MOTHER. H E FURTHER STATED THAT THE AO MADE THIS ADDITION MERELY ON THE BASIS OF P RESUMPTION/ SPECULATION THAT IT IS EXCESSIVE IS AGAINST THE PROVIS IONS OF LAW. HENCE, HE REQUESTED THAT THE ADDITION OF RS. 2,50,000/- MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A) MAY BE DELETED AND APPEAL OF THE ASSESSEE MAY BE ALLOWED. 6. ON THE OTHER HAND, LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 7. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE REC ORDS, ESPECIALLY THE IMPUGNED ORDER PASSED BY THE LD. CIT (A). I FIND THAT THE ADDITION OF RS. 2,50,000/- OF CASH EXPENDITURE B Y MOTHER IN HER DAUGHTER MARRIAGE IS JUSTIFIED, BECAUSE MRS. ANURADHA GUPTA, (MOTHER), ASSESEES WIFE, IS AN INCOME TAX ASSESS EE FROM THE LAST MORE THAN 22 YEARS AND HAVING REGULAR RENTAL INCOME FROM HOUSE PROPERTY AND OTHER SOURCES. ALL THE CAPITAL ACCOUNT AND STATEMENTS OF AFFAIRS ARE BEING FILED EVERY YEAR WITH RELEVANT ITR BY SMT. ANURADHA GUPTA. I FURTHER FIND THAT SMT. ANURADHA GUP TA, WIFE OF 5 THE ASSESSEE SPENT RS. 5 LACS CASH ON HER DAUGHTER MAR RIAGE OUT OF HER OWN CAPITAL A/C WHICH IS VERY OBVIOUS FOR ANY MO THER. I NOTE THAT AO MADE THIS ADDITION AND LD. CIT(A) AFFIRMED TH E SAME MERELY ON THE BASIS OF PRESUMPTION/ ASSUMPTION. HOW EVER, IT IS SETTLED LAW THAT ANY ADDITION MADE ON THE BASIS OF PRE SUMPTION AND ASSUMPTION IS NOT SUSTAINABLE IN THE EYES OF LAW. HE NCE, IN MY OPINION, THE ADDITION OF RS. 2,50,000/- MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A) NEEDS TO BE DELETED, TH EREFORE, I DELETE THE SAME AND ACCORDINGLY, ALLOW THE APPEAL OF THE ASSE SSEE. 8. IN THE RESULT, THE APPEAL OF THE ASSESSSEE IS ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 20/01/2017. SD/- [H.S. SIDHU] JUDICIAL MEMBER DATE 20/01/2017 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR