SHRI. KUSHAL VIRENDRA TANDON, MUMBAI V. ACIT 16 (2) (2), MUMBAI

ITA 7573/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0049 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 10-12-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJAY J. SETHILD
• Assessee Lawyers: VIMAL PUNAMIYA LD
• Keywords: Unexplained cash credit; Gift; Tangible material
• Section: 68; 143(3)

Judgement Text

1 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , , BEFORE HONBLE SHRI AMARJIT SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.7573/MUM/2019 ( / ASSESSMENT YEAR: 2015-16) S HRI KAUSHAL VIRENDRA TANDON 802, RUSTOMJEE ENCLAVE, UPPER JUHU, BEHIND D.N. NAGAR POLICE STATION, ANDHERI WEST MUMBAI-400 058 / VS. ACIT - 1 6( 2 ) (2) ROOM NO.436A, 4 TH FLOOR AAYKAR BHAVAN, M.K. ROAD CHURCHGATE, MUMBAI-400 020 '# ./ ./PAN/GIR NO. ADXPT-7623-G ( !#% /APPELLANT ) : ( &'#% / RESPONDENT ) ASSESSEE BY : SHRI VIMAL PUNAMIYA-LD. AR REVENUE BY : SHRI SANJAY J. SETHI LD. DR / DATE OF HEARING : 08/07/2021 / DATE OF PRONOUNCEMENT : 08/07/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR 2015-16 CONTESTS THE ORDER OF LEARNED FIRST APPELLATE AUTHO RITY QUA CONFIRMATION OF CERTAIN ADDITION U/S 68 FOR RS.39.9 8 LACS. THE ASSESSMENT FOR THE YEAR UNDER CONSIDERATION WAS FRA MED BY LEARNED ASSESSING OFFICER (AO) U/S 143(3) ON 29/12 /2017. 2 2. WE HAVE CAREFULLY HEARD THE RIVAL ARGUMENTS AND PERUSED RELEVANT MATERIAL ON RECORD. OUR ADJUDICATION TO TH E SUBJECT MATTER OF APPEAL WOULD BE AS GIVEN IN SUCCEEDING PARAGRAPH S. 3. THE MATERIAL FACTS ARE THAT THE ASSESSEE IS A TV ARTIST BY PROFESSION. DURING THE COURSE OF ASSESSMENT PROCEED INGS, IT TRANSPIRED THAT THE ASSESSEE PURCHASED A FLAT OF RS .350.27 LACS WHICH WAS STATED TO BE PARTIALLY FUNDED OUT OF SALE OF CERTAIN JEWELLERY. IN SUPPORT OF SALE OF JEWELLERY, THE ASS ESSEE FURNISHED PURCHASE BILL DATED 26/06/2014 OF M/S SUNRISE GOLD ALLOYS PRIVATE LTD. HOWEVER, THE ENQUIRY AT THE PREMISES OF SAID D EALER REVEALED THAT SAID PREMISES ALWAYS REMAINED LOCKED. THEREFOR E, THE ASSESSEE WAS ASKED TO PRODUCE THE JEWELLER FOR CONF IRMATION OF TRANSACTION. HOWEVER, THE ASSESSEE COULD NOT DO SO BUT SUBMITTED CONFIRMATION OF THE JEWELLER. THE ASSESSEE SUBMITTE D THAT THE JEWELLERY WAS INHERITED FROM MOTHER AND THE SAME WA S REFLECTED IN ASSESSEES BALANCE SHEET. HOWEVER, SINCE NO WEALTH TAX RETURNS WERE FILED BY THE ASSESSEE IN EARLIER YEARS, IT WAS TO BE CONCLUDED THAT THE ASSESSEE FAILED TO SUBSTANTIATE THE SALE O F JEWELLERY. THEREFORE, AN AMOUNT OF RS.39.98 LACS REPRESENTING SALE OF JEWELLERY WAS ADDED AS UNEXPLAINED CASH CREDIT IN T HE HANDS OF THE ASSESSEE. THE ACTION OF LD. AO, UPON CONFIRMATION B Y LD. CIT(A), IS IN FURTHER CHALLENGE BEFORE US. 4. UPON PERUSAL OF DOCUMENTS ON RECORD, WE FIND THA T THE SALE OF JEWELLERY IS DULY SUPPORTED BY PURCHASE BILLS DATED 26/06/2014 WHEREIN GOLD ORNAMENTS WEIGHING AROUND 1825 GRAMS H AS BEEN SOLD BY ASSESSEE TO M/S SUNRISE GOLD ALLOYS PRIVATE LTD (SGPL). THE SALE CONSIDERATION HAS BEEN RECEIVED BY THE ASS ESSEE THROUGH 3 BANKING CHANNELS. THE CONFIRMATION OF ACCOUNT BY M/ S SGPL HAS BEEN PLACED ON RECORD. M/S SGPL IS A DULY REGISTERE D ENTITY UNDER THE COMPANIES ACT AND ITS FINANCIAL STATEMENTS, AS PLACED ON RECORD, WOULD REVEAL THAT THIS ENTITY HAS TURNOVER OF MORE THAN RS.49 CRORES. THE ACQUISITION OF JEWELLERY BY THE A SSESSEE FROM HIS MOTHER BY WAY OF GIFT IS DULY SUPPORTED BY THE AFFI DAVIT AS PLACED ON RECORD. THERE WAS NO REQUIREMENT TO FILE THE PERSON AL BALANCE SHEET AND THE ALLEGATION OF LD. AO THAT THE JEWELLE RY WAS INCORPORATED IN THE PERSONAL BALANCE SHEET ARE NOT SUPPORTED BY ANY TANGIBLE MATERIAL ON RECORD. UNDER THESE CIRCUM STANCES, THE ASSESSEE, IN OUR CONSIDERED OPINION, HAS DEMONSTRAT ED THE FULFILLMENT OF PRIMARY INGREDIENTS OF SECTION 68. H ENCE, BY DELETING THE IMPUGNED ADDITIONS, WE ALLOW GROUND NO.2. THE O THER GROUNDS ARE NOT PRESSED AND HENCE, DISMISSED. 5. THE APPEAL STANDS PARTLY ALLOWED. ORDER PRONOUNCED ON 08 TH JULY, 2021. SD/- SD/- (AMARJIT SINGH) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 08/07/2021 SR.PS, JAISY VARGHESE !'#' / COPY OF THE ORDER FORWARDED TO : 1. !#% / THE APPELLANT 2. &'#% / THE RESPONDENT 3. - ( ! ) / THE CIT(A) 4. - / CIT CONCERNED 5. ./&0 , !0 , / DR, ITAT, MUMBAI 6. /123 / GUARD FILE 4 / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.