MRS. BHAVANA BHARAT PATODIA, MUMBAI V. DY CIT CC-1(1), MUMBAI

ITA 6020/MUM/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9197 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 22-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA JANG PA NGI LD
• Assessee Lawyers: HIRAL SEJPAL LD
• Keywords: Gift
• Section: 143(3); 153A

Judgement Text

MRS. BHAVANA BHARAT PATODIA ASSESSMENT YEARS: 2014 - 15 & 2015 - 16 1 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , , BEFORE HONBLE SHRI AMARJI T SINGH , JM AND HONBLE SHRI MANO J KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO. 60 20 /MUM/201 8 ( / ASSESSMENT YEAR : 2014 - 15 ) & ./ I.T.A. NO. 60 21 /MUM/2018 ( / ASSESSMENT YEAR : 2015 - 16 ) MRS. BHAVANA BHA RAT P ATODIA C - 5/3/2 SECTOR - 5 CBD BELAPUR NAVI MUMBAI 4 00 614 / VS. DCIT CC 1(1), R. NO. 903, 9 TH FLOOR, OLD CGO BUILDING, M. K. ROAD, MUMBAI - 400 020 ./ ./ PAN/GIR NO . A DEPP - 8759 - N ( / APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : MS. HIRAL SEJPAL LD. AR REVENUE BY : SHRI NARENDRA JANG PA NGI LD. CIT - DR / DATE OF HEARING : 26 /07 /2021 / DATE OF PRONOUNCEMENT : 06/08/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. 1 THE GRIEV ANCE OF THE ASSESSEE IN AFORESAID APPEALS FOR ASSESSMENT YEARS (AY) 2014 - 15 & 2015 - 16 IS COMMON. IT IS ADMITTED POSITION THAT ADJUDICATION OF ANY ONE APPEAL SHALL EQUALLY APPLY TO THE OTHER APPEAL ALSO. THESE APPEALS WERE HEARD ON 26/07/2021 ALONG WITH APP EALS OF OTHER FAMILY MEMBERS OF THE GROUP SINCE ISSUES WERE MRS. BHAVANA BHARAT PATODIA ASSESSMENT YEARS: 2014 - 15 & 2015 - 16 2 COMMON. FOR THE PURPOSE OF ADJUDICATION, THE APPEAL FOR AY 2014 - 15 IS TAKEN AS THE LEAD YEAR WHICH ARISES OUT OF THE ORDER OF LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) - 47 , MUMBAI [CIT(A)], DATE D 31/07 /20 18 IN THE MATTER OF ASSESSMENT FRAMED BY LD. ASSESSING OFFICER (AO) U/S 143(3) R.W.S. 153A OF THE ACT ON 2 2 /12/2016. THE ASSESSEE IS AGGRIEVED BY CONFIRMATION OF CERTAIN ADDITIONS IN THE IMPUGNED ORDER. 1. 2 HAVING HEARD RIVAL SUBMISSIONS AND UPO N PERUSAL OF RELEVANT MATERIAL ON RECORD, OUR ADJUDICATION WOULD BE AS GIVEN IN SUCCEEDING PARAGRAPHS. 2. THE MATERIAL FACTS ARE THAT PURSUANT TO SEARCH ACTION ON BALAJI GROUP ON 28/01/2015, THE PREMISES OF THE ASSESSEE WERE ALSO COVERED UNDER THE SEARCH. IN RESPONSE TO NOTICE U/S 153A, THE ASSESSEE OFFERED RETURNED INCOME OF RS. 4 . 78 LACS WHICH WAS THE SAME AS OFFERED U/S 139(1). THE ASSESSEE WAS SADDLED WITH ADDITION OF GIFT FOR RS.2.96 LACS WHICH ARE ADJUDICATED AS UNDER: - 3. GIFTS 3.1 THE ASSESSEE RECEI VED GIFTS OF RS.0.9 9 LACS & RS.0.97 LACS FROM H ER BROTHERS SHRI RAMESH D. GAJERA AND SHRI KISHORE D. GAJERA. ANOTHER GIFT OF RS.1 LAC WAS RECEIVED FROM HER MOTHER - IN - LAW. THESE GIFTS WERE ADDED TO ASSESSEES INCOME FOR WANT OF SUFFICIENT EVIDENCES. THE ADD ITION, UPON CONFIRMATION BY LD. CIT(A), IS IN FURTHER CHALLENGE BEFORE US. 3.2 WE FIND THAT SIMILAR ISSUE OF GIFT FROM AFORESAID DONORS HAS BEEN DECIDED BY US IN ASSESSEES FAVOR IN ITA NO.6012/MUM/2018 AS FOLLOWS: - 3.5 UPON PERUSAL OF DOCUMENTS ON RECORD, WE FIND THAT THE MOTHER OF THE ASSESSEE HAS DECLARED INCOME OF RS.1.78 LACS DURING THE YEAR AS MISCELLANEOUS INCOME. HOWEVER, UPON PERUSAL OF HER BALANCE SHEET AS ON 31/03/2014, AS PLACED ON RECORD, IT COULD BE SEEN THAT SHE HAS CAPITAL BALANCE OF RS.1287 .32 LACS WHICH MRS. BHAVANA BHARAT PATODIA ASSESSMENT YEARS: 2014 - 15 & 2015 - 16 3 HAS BEEN INVESTED IN VARIOUS FORMS. THIS CAPITAL BALANCE IS ARRIVED AT AFTER REDUCING GIFTS OF RS.4.94 LACS AND WITHDRAWALS OF RS.10.47 LACS. THE SOURCE OF GIFT, IN OUR OPINION, COULD NOT SOLELY BE THE CURRENT YEARS INCOME PARTICULARLY IN V IEW OF THE FACT THAT THE MOTHER OF THE ASSESSEE WAS ON OLD LADY AND LIVING IN A JOINT FAMILY. THERE IS NO ADVERSE MATERIAL TO PROVE THE GIFTS. THEREFORE, THE CONCLUSION DRAWN BY LD. CIT(A) COULD NOT BE SUSTAINED AND WE ARE INCLINED TO DELETE THE ADDITION O F RS.1 LACS. 3.6 SO FAR AS THE TWO OTHER DONORS ARE CONCERNED, WE FIND THAT BOTH OF THEM ARE AGRICULTURIST WHICH IS SUPPORTED BY THEIR LAND HOLDINGS. THE AMOUNTS OF GIFTS ARE LESS THAN RS.1 LACS IN EACH OF THE CASES WHICH WAS BELOW EXEMPTION LIMIT OF RS.2 LACS. THEREFORE, THERE WOULD BE NO OBLIGATION ON THE DONORS TO FILE THE RETURN OF INCOME. THE GIFTS ARE DULY SUPPORTED BY THE AFFIDAVITS OF THE DONORS. THE DETAILS OF AGRICULTURAL LAND HAVE BEEN WELL ENUMERATED IN THEIR RESPECTIVE AFFIDAVITS. REGARDING A LLEGATION OF IMMEDIATE CASH DEPOSIT, THE DONORS BEING AGRICULTURIST WORKING IN REMOTE VILLAGE WOULD RECEIVE THE PROCEEDS OF AGRICULTURE IN CASH. THE CASH DEPOSIT NEED NOT MATCH WITH HARVESTING SEASON SINCE THERE IS NO SUCH REQUIREMENT UNDER LAW. THEREFORE, THESE TWO ADDITIONS WOULD STAND DELETED. WE ORDER SO. FACTS BEING PARI - MATERIA THE SAME, WE DELETE THE IMPUGNED ADDITION AND ALLOW THE APPEAL. 4. ITA NO.6021/MUM/2018, AY 2015 - 16 4.1 THE FACTS AS WELL AS ISSUES ARE SUBSTANTIALLY THE SAME IN THIS YEAR. T HE ASSESSEE WAS SADDLED WITH ADDITION OF GIFT RECEIVED FROM HER MOTHER - IN - LAW FOR RS.0.97 LACS. THE ADDITION WAS CONFIRMED BY LD. CIT(A). SINCE WE HAVE DELETED SIMILAR ADDITION IN AY 2014 - 15, TAKING THE SAME VIEW, THE SAME STAND DELETED IN THIS YEAR ALSO. 4.2 THE LAST ADDITION IS U/S 41(1) FOR RS. 0.81 LACS ON ACCOUNT OF SUNDRY CREDITORS. THIS ISSUE STAND COVERED IN ASSESSEES FAVOR BY OUR ADJUDICATION IN ITA NO. 6012/MUM/2018 AS FOLLOWS: - 6.2 WE FIND THAT IN TERMS OF SEC.44AD, THE INCOME IS COMPUTED ON PRE SUMPTIVE BASIS AND THERE IS NO NEED TO MAINTAIN BOOKS OF ACCOUNTS. THEREFORE, THE IMPUGNED ADDITION, AS MADE U/S 41(1), IN OUR CONSIDERED OPINION, COULD NOT BE SUSTAINED IN THE EYES OF LAW. BY DELETING THE SAME, WE ALLOW THIS GROUND OF APPEAL. ACCORDI NGLY, THIS ADDITION STANDS DELETED. THE APPEAL STANDS ALLOWED. MRS. BHAVANA BHARAT PATODIA ASSESSMENT YEARS: 2014 - 15 & 2015 - 16 4 CONCLUSION 5 . BOTH THE APPEALS STAND ALLOWED. ORDER PRONOUNCED ON 6 TH AUGUST, 2021. SD/ - SD/ - ( AMARJIT SINGH) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 06/08/2021 SR.PS, DHANANJAY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMB AI.