Mr. Ashok Kapur, New Delhi V. DCIT, New Delhi

ITA 5087/DEL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52499 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-08-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 18-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUSHA KHURANA
• Keywords: Unexplained cash credit; Gift; Opportunity of being heard
• Section: 68

Judgement Text

ITA NO. 5087/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 5087/DEL/2010 A.Y. : 2005-06 ASHOK KAPUR, B-5, CHIRAG ENCLAVE, NEW DELHI 110 048 (PAN/GIR NO. : AAJPK0341H) VS. D CIT, CIRCLE 5 (1), NEW DELHI (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. A MAR JEE T SINGH, CA DEPARTMENT BY : SMT. ANUSHA KHURANA, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 27.9.2 010 PERTAINING TO ASSESSMENT YEAR 2005-06. 2. THE ISSUE RAISED READS AS UNDER:- THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LA W WHILE CONFIRMING AN ADDITION OF ` 25,00,000/- RECEIV ED BY THE ASSESSEE DURING THE OCCASION OF MARRIAGE OF HI S DAUGHTER, AS UNEXPLAINED CASH CREDIT UNDER SECTION 68 ON THE GROUND THAT THE ASSESSEE COULD NOT SATISFACTORI LY EXPLAIN THE SOURCE OF DEPOSIT OF ` 25,00,000/- ON 30.7.2004 SINCE THE ASSESSEE COULD NOT PRODUCE BILLS ETC. FOR THE EXPENSES INCURRED. ITA NO. 5087/DEL/2010 2 3. IN THIS CASE ASSESSING OFFICER NOTED THAT ASSES SEE HAS RECEIVED CASH GIFT OF ` 25 LACS IN THE CAPITAL ACCOUNT. IT WAS SUBMITTED THAT THE CASH GIFTS WERE RECEIVED FROM SEVERAL PERSONS ON TH E OCCASION OF MARRIAGE OF HIS DAUGHTER. A LIST OF GUESTS WAS ALS O FILED. IT WAS FURTHER STATED THAT CASH GIFTS RECEIVED IN THE OF FE BRUARY, 2004 WAS DEPOSITED IN CASH IN HIS ACCOUNT IN LORD KRISHNA BA NK ON 30.7.2004. IT WAS STATED THAT THE ASSESSEE ENJOYED VERY HIGH STATU S IN SOCIETY AND THE GUESTS WERE ALSO HIGHLY REPUTED IN SOCIAL STRAT A. ASSESSING OFFICER DID NOT ACCEPT THE ABOVE EXPLANATION AND HELD THAT THE SAME WAS UNEXPLAINED U/S. 69-A OF THE IT ACT. 4. BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS ) ASSESSEE SUBMITTED THAT ASSESSEE HAS INCURRED A SUM OF ` 8 1,14,500/- ON THE MARRIAGE OF HIS DAUGHTER. LD. COMMISSIONER OF INCOME TAX (APPEALS) OBSERVED THAT ASSESSEE HAS NOT MADE AVAILABLE COMPLET E INFORMATION IN RESPECT OF THE EXPENDITURE OF THE ASSESSEES DAU GHTERS MARRIAGE. LD. COMMISSIONER OF INCOME TAX (APPEALS) PROCEEDED TO UPHOLD THE ASSESSING OFFICERS ACTION. 5. AGAINST THE ABOVE ORDER, THE ASSESSEE IS IN APPE AL BEFORE US. 6. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. WE FIND THAT IT IS THE CASE OF THE ASSESSEE THAT ASSES SEE HAS INCURRED A SUM OF ` 81,14,500/- ON THE OCCASION OF MARRIAGE OF HIS DAUGHTER. IT IS ALSO A CASE OF ASSESSEE THAT ASSESSEE HAS RECEIV ED ` 25 LACS IN CASH ON THE OCCASION OF MARRIAGE OF DAUGHTER FROM THE VAR IOUS GUESTS AND THE SAME WAS DEPOSITED IN ASSESSEES BANK ACCOUNT . WE FIND THAT WHEN THE ASSESSEE IS INCURRING SUCH HUGE EXPENSE ON THE OCCASION OF MARRIAGE, IT IS INEVITABLE THAT SOME GIFTS WILL BE RECEIVED BY THE ASSESSEE ON THE OCCASION OF MARRIAGE. IN OUR CON SIDERED OPINION, THIS ITA NO. 5087/DEL/2010 3 ASPECT HAS NOT BEEN PROPERLY EXAMINED BY THE AUTHORI TIES BELOW. BOTH THE COUNSEL FAIRLY AGREED THAT THE ISSUE MAY BE REMIT TED TO THE FILES OF THE ASSESSING OFFICER TO CONSIDER THE ISSUE AFRES H. ACCORDINGLY, WE REMIT THIS ISSUE TO THE FILES OF THE ASSESSING OFFIC ER TO CONSIDER THE SAME AFRESH. NEEDLESS TO ADD THAT THE ASSESSEE SH OULD BE GIVEN ADEQUATE OPPORTUNITY OF BEING HEARD. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 03/8/2011, UP ON CONCLUSION OF HEARING. SD/- SD/- [R.P. TOLANI] [R.P. TOLANI] [R.P. TOLANI] [R.P. TOLANI] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 03/8/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3.CIT 4.CIT (A) 5. DR, IT AT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES