KU. SHWETA SONI, Indore V. THE ITO WARD 2(2), Indore

ITA 748/IND/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5729 (ITAT-INDORE)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 22-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K BHATIA
• Keywords: Gift

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO.748/IND/2015 A.Y. : 2005-06 KU. SHWETA SONI, ITO, INDORE. VS. 2(2), INDORE. APPELLANT RESPONDENT PAN NO. APVPS0101G A PPELLANT S BY : SHRI VIJAY BANSAL, CA RESPONDENT BY : SHRI R.K. BHATIA, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-I, INDORE, DATED 04.09.2015 FOR THE ASSES SMENT YEAR 2005-06. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE H AS RECEIVED GIFT OF RS. 1,00,000/- FROM SMT. PIKKU BHA TIA BY WAY DATE OF HEARING : 25 .02. 20 16 DATE OF PRONOUNCEMENT : 25 .0 2 . 201 6 SHWETA SONI, INDORE VS. ITO, WD. 2(2), INDORE I.T.A.NO. 748/IND/2015 - A.Y. 2005-06 2 2 OF CHEQUE NO.449188 DATED 7.5.2004 OF IDBI BANK, A. B. ROAD, INDORE. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS ASKED TO FURNISH THE DETAILS OF THE GI FT. IN RESPONSE TO THE LETTER, THE ASSESSEE SUBMITTED THAT SMT. PIKKU BHATIA IS OLD FAMILY FRIEND. THE ASSESSEE ALSO STAT ED THE PAN NUMBER OF SMT. PIKKU BHATIA AND ENCLOSED COPY TO TH E BANK ACCOUNT FOR THE RELEVANT PERIOD AND STATED THAT THE COPY OF THE RETURN OF INCOME TAXED OF DONOR WILL BE SUBMITTED I N NEXT OPPORTUNITY. THE ASSESSEE HAS SUBMITTED THE GIFT DE ED. THE AO TRIED TO VERIFY THE GENUINENESS OF THE GIFT. THE AO HAS ASKED THE ASSESSEE TO PRODUCE THE COPY OF THE RETURN OF S MT. PIKKU BHATIA, BUT THE ASSESSEE DID NOT PRODUCE THE RETURN . THEREFORE, THE AO WAS OF THE VIEW THAT THE DONEE IS NOT RELATED TO THE ASSESSEE. THEREFORE, THIS GIFT MIGHT HAVE BE EN ARRANGED AFFAIRS IN ORDER TO INCREASE CAPITAL AVAILABILITY O F THE ASSESSEE. THEREFORE, THE SAME WAS ADDED TO THE TOTAL INCOME O F THE ASSESSEE. 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS DISMISSED THE APPEAL. SHWETA SONI, INDORE VS. ITO, WD. 2(2), INDORE I.T.A.NO. 748/IND/2015 - A.Y. 2005-06 3 3 5. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. AUTHORIZED REPRESENTATIVE WAS ASKED WHETHER THE ASS ESSEE IS READY TO PRODUCE THE DONOR BEFORE THE AO OR NOT. TH E ASSESSEE STATED THAT THE DONOR HAS ALREADY GONE TO CHANDIGAR H. SHE MAY OR SHE MAY NOT BE AVAILABLE. MOREOVER, THE ASSE SSEE IS ALSO OUT OF INDIA. THE ASSESSEE LASTLY SUBMITTED TH AT SMT. PIKKU BHATIA WILL BE PRODUCED BEFORE THE AO. 6. THE LD. DR HAS NO OBJECTION IF SMT. PIKKU BHATIA IS PRODUCED BEFORE THE AO AND IF THE ASSESSEE PROVES HER CLAIM. 7. HAVING HEARD BOTH THE PARTIES AND LOOKING TO THE FA CTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT THE AO H AS SIMPLY REJECTED THE CLAIM ON THE GROUND THAT DONOR IS NOT RELATED TO THE ASSESSEE. MOREOVER, THE ASSESSEE HAS NOT PRODUC ED THE RETURN OF INCOME OF DONOR. THEREFORE, THE CLAIM WAS DISALLOWED. I AM OF THE OPINION THAT IT IS NOT NECESSARY THAT E VERY DONOR MIGHT HAVE FILED THE RETURN OF INCOME OR DONORS IN COME MAY BE BELOW TAXABLE INCOME. THEREFORE, ONLY ON THE BAS IS OF NOT PRODUCING THE RETURN OF DONOR, CLAIM CANNOT BE DISA LLOWED. THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PLAY , I AM OF THE OPINION THAT IF THE DONOR IS PRODUCED BEFORE THE AO , THE SHWETA SONI, INDORE VS. ITO, WD. 2(2), INDORE I.T.A.NO. 748/IND/2015 - A.Y. 2005-06 4 4 ASSESSEE CAN PROVE HER CLAIM. THE ASSESSEE IS DIREC TED TO PRODUCE THE DONOR BEFORE THE AO AND AO IS DIRECTED TO DECIDE THE MATTER AFRESH AS PER LAW. 8. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICA L PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 25 TH FEBRUARY, 2016, SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 25 TH FEBRUARY, 2016. CPU*