RENU PARNAMI, Jaipur V. ITO, Jaipur

ITA 510/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5452 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 14-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DR DHK
• Keywords: Gift

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 510/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 SMT. RENU PARNAMI 178, PARNAMI BLOCK, ADARASH NAGAR JAIPUR CUKE VS. THE ITO WARD- 5 (2) JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AGYPP 5908 J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI MANISH AGARWAL, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJ MEHRA, JCIT - DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 20/01/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 3 /03/2016 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A)-II, JAIPUR DATED 28-05-2014 FOR THE ASSESSME NT YEAR 2008-09 WHEREIN FOLLOWING GROUNDS ARE RAISED. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE THE LD. CIT(A) HAS ERRED IN UPHOLDING THE ADDITION OF R S. 8,17,000/- MADE ON ACCOUNT OF CASH DEPOSITS ALLEGE D AS UNEXPLAINED ARBITRARILY WITHOUT APPRECIATING THE SU BMISSION MADE AND EVIDENCE ADDUCED, THUS ADDITION SO SUSTAIN ED DESERVES TO BE DELETED. ITA NO. 510/JP/2014 SMT. RENU PARNAMI VS. ITO , WARD- 5 (2), JAIPUR . 2 1.1 THAT THE LD. CIT(A) HAS FURTHER ERRED IN UPHOLD ING THE OBSERVATION OF THE AO THAT THE CASH WITHDRAWAL MADE BY THE ASSESSEE FROM HER BANK ACCOUNT WAS ON ACCOUNT OF S ELF PAYMENT MADE AND AMOUNT WITHDRAWN WERE NOT RECEIVED BACK BY THE ASSESSEE WHEN IN FACT THE SAME WAS WITH DRAWN AND RE-DEPOSITED INTO THE BANK ACCOUNT, THUS THE AS SESSEE HAS SUFFICIENT FUNDS TO DEPOSIT IN BANK AND THEREFORE, THE ADDITION OF RS. 8,17,000/- DESERVES TO BE DELETED. 1.2 THAT THE LD. CIT(A) AS WELL AS THE AO HAS FURTH ER ERRED IN NOT TREATING THE GIFT RECEIVED FROM RELATI VES AS GENUINE WHEN IN FACT ALL THE PLAUSIBLE EVIDENCES WE RE SUBMITTED TO SUBSTANTIATE THE GIFTS RECEIVED AND NO SUMMONS WERE ISSUED TO PERSONALLY EXAMINE THE DONORS TO VER IFY THE CONTENTS OF THE DEED. HENCE, THE ADDITION OF RS. 8, 17,000/- MADE WITHOUT PROPER ENQUIRY ON ASSUMPTIONS AND PRESUMPTIONS DESERVES TO BE DELETED. 2.1 BRIEF FACTS OF THE CASE ARE THE ASSESSEE FILED HER RETURN OF INCOME IN FORM ITR -2 ON 24-03-2009 DECLARING TOTAL INCOME AT RS. 2,90,770/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND NOTICE U/S 143(2) OF THE ACT WAS ISSUED WHICH WAS SERVED UPON THE ASSESSEE. THE AO OBSERVED THAT DURING THE COURSE OF EXAMINATION OF BANK ACCOU NT OF THE ASSESSEE, CASH DEPOSITS AMOUNTING TO RS. 8,17,000/- WERE FOUN D IN HER BANK ACCOUNT ON DIFFERENT DATES. THE ASSESSEE FILED A CASH FLOW STATEMENT ALONG WITH BANK ACCOUNT DEMONSTRATING THAT SHE HAS SUFFICIENT CASH BALANCE AT THE TIME OF RESPECTIVE DEPOSITS IN THE BANK ACCOUNT. IN MOST OF THE CASES, THE CASH AMOUNTS WERE WITHDRAWN FROM THE BANK FOR SOME REQUIREMENT WHICH ITA NO. 510/JP/2014 SMT. RENU PARNAMI VS. ITO , WARD- 5 (2), JAIPUR . 3 COULD NOT BE UTILIZED. SAME WERE RE-DEPOSITED IN TH E BANK ACCOUNT. THE REMAINING AMOUNT OF RS. 2.00 LACS WAS RECEIVED BY T HE ASSESSEE BY WAY OF GIFTS FOR WHICH ALL THE RELEVANT PARTICULARS WER E FURNISHED IN THE FORM OF CONFORMATIONS AND GIFT DEEDS. BEING NOT SATISFIED W ITH THE DETAILS FURNISHED BY THE ASSESSEE, THE AO MADE AN ADDITION OF RS. 8.17 LACS. 2.2 AGGRIEVED, THE ASSESSEE PREFERRED FIRST APPEAL BEFORE THE LD. CIT(A) WHO CONFIRMED THE ADDITION MADE BY THE AO BY FOLLOW ING OBSERVATIONS. DURING THE COURSE OF APPELLATE PROCEEDINGS NO NEW FACTS WERE PRODUCED BY THE A/R FOR THE APPELLAN T AND REITERATED THE SUBMISSION FILED BEFORE THE AO. FROM THE ABOVE, IT IS CLEAR THAT THE DEFECTS POINTED OUT BY THE AO IN THE DECLARATION OF GIFT, THE SOURCE OF GIFT GIVEN BY TH E DONOR REMAIN UNEXPLAINED. HENCE, CONSIDERING THESE FACTS IT IS CLEAR THAT THE ASSESSEE DID NOT HAVE ANY SOURCE OF CASH D EPOSITS IN HER BANK ACCOUNT. THE APPELLANT HAS TRIED TO CAMOUF LAGE THE SOURCES CLAIMING THEM TO BE FROM PAST WITHDRAWALS A ND RECEIPTS OF GIFTS, WHICH HAS HELD TO BE UNJUSTIFIED . HENCE, THE ADDITION MADE BY THE AO OF RS. 8,17,000/- IS HELD T O BE JUSTIFIED, THE SAME IS SUSTAINED. THE APPELLANT FAI LS ON THIS GROUND. 2.3 NOW BEING AGGRIEVED BY THE ORDER OF THE LD. CIT (A), THE ASSESSEE IS BEFORE ITAT. 2.4 THE LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT IT IS NOT DISPUTED THAT THE DONORS ARE RELATIVES OF THE ASSESSEE AND GIFT D EEDS IN QUESTION ARE NOTORISED. THE LD. AR OF THE ASSESSEE CONTENDS THAT THERE IS NO BAR IN ITA NO. 510/JP/2014 SMT. RENU PARNAMI VS. ITO , WARD- 5 (2), JAIPUR . 4 GIVING CASH GIFTS AND THERE BEING A PARTICULAR OCCA SION IS NOT MANDATORY. QUA THE GIFT DEED RECEIVED FROM HUSBAND BY OVERSIGH T, THE WORD SON HAS BEEN MENTIONED AT ONCE PLACE WHICH HAS BEEN MISCONS TRUED. IT HAS BEEN CONVENIENTLY IGNORED THAT IN OTHER PLACES, THERE IS CLEARLY MENTION OF RENU PARNAMI W/O SHRI SHYAM PARNAMI AS DONEE. NONE OF TH E DONORS HAVE BEEN SUMMONED AND EXAMINED BY THE AO. THE LD. AR PLACED IN THE CASE OF NEK RAM VS. ACIT , 274 ITR 575 (RAJ.) WHEREIN IT HAS BEEN HELD AS UNDER:- A CLOSE STUDY OF THE SAID JUDGEMENT REVEALS THAT TO PROVE GENUINENESS OF THE GIFT DOES NOT REQUIRE ANY RELATI ONSHIP NOR ANY OCCASION FOR GIVING SUCH GIFT. THE DECISION CLEARLY SPELLS OUT THAT IDENTITY, CWS AND TRANSACTION, IF PROVED, THE GIFT CANNOT IN ANY CIRCUMSTANCES BE HELD AS GENUINE. THE LD. AR OF THE ASSESSEE ALSO PLACED FOLLOWING RE LIANCE. (1) MEHTA PARIKH & CO., 30 ITR 181 (SC) (2) BHAWANI OIL MILLS REPORTED IN 49 DTR PAGE 212 (RAJ) (3) NARINDER KUMAR SEKHRI VS. DCIT, 152 TAXMAN 3 ( ASR. MAG.) 4. MANJU DEVI NAWAL VS. ACIT, 34 TW 253 (JAIPUR ) ITA NO. 510/JP/2014 SMT. RENU PARNAMI VS. ITO , WARD- 5 (2), JAIPUR . 5 2.5 THE LD. DR RELIED ON THE ORDERS OF THE LOWER AU THORITIES. 2.6 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT EMERGES FROM THE RECORD THA T CASH FLOW STATEMENT OF THE ASSESSEE WAS DISREGARDED BY THE AO AT THE TI ME OF ASSESSMENT THAT THERE WAS NO JUSTIFICATION ON THE PLEA OF THE ASSES SEE THAT CASH WITHDRAWN WAS REDEPOSITED IN THE BANK ACCOUNT. IN MY CONSIDER ED VIEW, THE INFERENCE DRAWN BY THE AO BECOMES PRESUMPTUOUS AND IMAGINARY IN NATURE. UNLESS SOMETHING MATERIAL IS BROUGHT ON RECORD TO SUGGEST THAT THE AMOUNTS WITHDRAWN BY THE ASSESSEE WERE USED ELS EWHERE, SUCH INFERENCE BECOMES UNTENABLE. THUS ASSESSEE'S CASH F LOW STATEMENT CANNOT BE DISREGARDED WITHOUT EFFECTIVE REBUTTAL AND ON PR ESUMPTIONS. 2.7 APROPOS REMAINING ADDITION ABOUT GIFTS OF RS. 2 .00 LACS, THE ASSESSEE HAS FILED NOTARIZED GIFTS DEEDS AND CONFIR MATIONS GIVING NAMES AND ADDRESSES OF THE DONORS WHICH IS NOT DISPUTED. IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND RESPECTFULLY FOLL OWING THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF NE K RAM VS. ACIT (SUPRA), THAT MERELY BECAUSE THERE IS NO OCCASION FOR GIVING THESE SMALL GIFTS, THEY CANNOT BE HELD AS NON-GENUINE GIFTS. IN VIEW THEREOF, THE IMPUGNED ADDITION OF RS. 8.17 LACS IS DELETED. THUS THE APPEAL OF THE ASSESSEE IS ALLOWED. ITA NO. 510/JP/2014 SMT. RENU PARNAMI VS. ITO , WARD- 5 (2), JAIPUR . 6 3.0 IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 03 / 03 /2016 SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 03/03/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SMT. RENU PARNAMI, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- 5 (2), JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 510/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR