Rakesh Babbar, New Delhi V. ACIT, Central Circle- 2, New Delhi

ITA 7284/DEL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4785 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 06-12-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Gift

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI F BEN CH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. SUCHITRA KAMBLE, JUDICIAL M EMBER ITA NO. 7284/DEL/2017 [A.Y 2015-16] SHRI RAKESH BABBAR VS. THE A.C.I .T C 1/19, SAFDARJUNG DEVELOPMENT AREA CENTRAL CIRC LE 2 HAUZ KHAS, NEW DELHI NEW DELHI PAN: AAGPB 0508 C (APPLICANT) ( RESPONDENT) ASSESSEE BY : SHRI SALIL AG ARWAL, ADV DEPARTMENT BY : SHRI SURENDRA PAL , SR. DR DATE OF HEARING : 06.11.2019 DATE OF PRONOUNCEMENT : 07.11.2019 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] - 23, NEW DELH I DATED 30.08.2017 PERTAINING TO ASSESSMENT YEAR 2015-16. 2 2. THE SOLITARY GRIEVANCE RAISED BY THE ASSESSEE IN THIS APPEAL IS THAT THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITIO N OF RS. 7 LAKHS IN RESPECT OF CASH FOUND DURING THE COURSE OF SEARCH. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT S EARCH OPERATION AT THE RESIDENCE OF THE ASSESSEE WAS CARRIED OUT ON 10 .03.2015. RS. 11,50,000/- CASH WAS FOUND FROM THE RESIDENCE OF TH E ASSESSEE. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF CASH OF RS. 11.50 LAKHS. 4. IN HIS STATEMENT, THE ASSESSEE EXPLAINED THA T RS. 2.5 LAKHS WAS RECEIVED FROM SHRI V.K. SHARMA, RS. 2 LAKHS FROM HI S PERSONAL WITHDRAWINGS FROM LAST 10 DAYS, RS. 2.5 LAKHS WERE FROM SAVINGS FOR TEMPLE DONATION WHICH HAS BEEN ACCUMULATED FROM PER SONAL WITHDRAWAL AND RS. 3.5 LAKHS BELONGED TO HIS DAUGHT ER MS. ANKITA GOYAL, WHICH HAS BEEN ACCUMULATED FROM HER GIFTS OV ER A PERIOD OF ONE YEAR AND REMAINING CASH WAS FROM THE KITTY SAVINGS OF HIS WIFE. THE ASSESSEE ALSO FURNISHED COPY OF HIS CASH BOOK. 5. NOT CONVINCED WITH THE REPLY OF THE ASSESSEE , THE ASSESSING OFFICER MADE ADDITION OF RS. 11.50 LAKHS. 3 6. THE ASSESSEE CARRIED THE MATTER BEFORE THE L D. CIT(A) AND REITERATED HIS CONTENTIONS. 7. AFTER CONSIDERING THE FACTS AND SUBMISSIONS , THE LD. CIT(A) OBSERVED THAT THE ASSESSEE WAS HAVING CASH BALANCE OF RS. 2.72 LAKHS AS ON 01.03.2015. THE LD. CIT(A) WAS ALSO CONVINCED W ITH THE CLAIM OF RS. 1 LAKH EACH AS EXPENDITURE IN THE HANDS OF THE APPE LLANTS WIFE AND DAUGHTER. THE LD. CIT(A) WAS ALSO CONVINCED WITH T HE AVAILABILITY OF CASH OF RS. 2.50 LAKHS FROM OPENING CASH IN HAND AN D FINALLY CONFIRMED THE ADDITION OF RS. 7 LAKHS. 8. BEFORE US, THE LD. AR VEHEMENTLY STATED THAT HIS PRAYER IS LIMITED TO CREDIT OF RS. 22,000 OUT OF OPENING CASH IN HAND WHICH HAS BEEN ACCEPTED BY THE LD. CIT(A). 9. PER CONTRA, THE LD. DR SUPPORTED THE FINDINGS OF THE LD. CIT(A). 10. WE HAVE CAREFULLY CONSIDERED THE UNDERLYING FAC TS IN ISSUE. WE FIND THAT THE LD. CIT(A) HAS ACCEPTED THE OPENING C ASH BALANCE OF RS. 2.72 LAKHS AS ON 01.03.2015 AND SIMULTANEOUSLY HAS GIVEN CREDIT OF RS. 2.50 LAKHS OUT OF OPENING CASH IN HAND. WE FAIL TO UNDERSTAND WHY 4 THERE SHOULD BE ANY QUARREL IN RESPECT OF RS. 22,00 0/- AS THE SAME IS ALSO COVERED IN THE OPENING CASH BALANCE OF RS. 2.7 2 LAKHS. WE ACCORDINGLY DIRECT THE ASSESSING OFFICER TO GIVE RE LIEF OF RS. 22,000/-. THE BALANCE AMOUNT STANDS CONFIRMED. ACCORDINGLY, THE ASSESSEE GETS PARTIAL RELIEF. 11. IN THE RESULT, THE APPEAL OF THE ASSESSEE IN IT A NO. 7284/DEL/2017 IS PARTLY ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 07.11 .2019. SD/- SD/- [ SUCHITRA KAMBLE ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 07 TH NOVEMBER, 2019 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI 5 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P S/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER