B.Srinivasa Rao, , Vijayawada V. The Income Tax Officer, Ward-2(1), Vijayawada

ITA 76/VIZ/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3688 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 21-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift; Set aside
• Section: 68; 69A; 20

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER& SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ I.T. A.NO. 76 /VIZ/201 9 ( / A SSESSMENT Y EAR : 20 15 - 16 ) B HIMANA SRINIVASA RAO #23, SATYA COMPLEX KALESWARA RAO ROAD GOVERNORPET VIJAYAWADA [PAN :ACDP B6128K ] VS INCOME TAX OFFICER WARD - 2(1) VIJAYAWADA ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHR I D.L.NARASIMHA RAO, AR / RESPONDENT BY : S HRI V.RAMA MOHAN, DR / DATE OF HEARING : 2 6 .02.2020 / DATE OF PRONOUNCEMENT : 04 .0 3 . 20 20 / O R D E R P ER SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER : TH IS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] , VI JAYAWADA IN A PPEAL NO.1 0054 /C IT ( A )/ VJA/ 17 - 18 DATED 2 0 . 12 .201 8 FOR THE ASSESSMENT YEAR (A.Y.) 20 15 - 16 . 2 I.T.A. NO. 76 /VIZ/201 9 , A.Y.20 15 - 16 BHIMANA SRINIVASA RAO , V IJAYAWADA 2. ALL THE GROUNDS OF APPEAL ARE RELATED TO THE ADDITION OF RS.5,00,000/ - MADE BY THE ASSESSING OFFICER (AO) WHICH WAS CONFIRMED BY THE LD.CIT(A). BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS DEPOSITED A SUM OF RS.5,13,000/ - IN CASH, IN HIS SAVINGS BANK ACCOUNT NO.52208960232, STATE BANK OF HYDERABAD, GAYATRI NAGAR, VIJAYAWADA ON 30.03.2015. THE AO CALLED FOR THE EXPLANATION OF THE ASSESSEE TO EXPLAIN THE SOURCE FOR THE DEPOSIT OF RS.5,13,000/ - AND THE ASSESSEE HA D EXPLAINED THAT THE SUM OF RS.5,16,000/ - WAS GIVEN BY HIS SON , SRI BHIMANA SUJIT RAVITEJA , WHICH WAS GIFTED BY HIS FATHE R - IN - LAW , SRI ADIKA MANOHAR RAO , OUT OF HIS ACCUMULATED SAVINGS FROM HIS INCOME AND DRAWN FROM HIS SAVINGS BANK ACCOUNT NO.52160910769 WITH SBI KOTHAGUDEM. TH E ABOVE GIFT WAS GIVEN TO THE ASSESSEES SON IN CONNECTION WITH MARRIAGE OF HIS SON WITH DR.MOUNICA WHO HAPPENS TO BE THE DAUGHTER OF SRI AD IKA MANOHAR RAO. IN BRIEF, THE GIST OF EXPLANATION WAS THAT THE ASSESSEE HA D RECEIVED THE SUM OF RS.5,13,000/ - FROM HIS SON FOR PURCHASE OF CAR WHICH WAS DEPOSITED IN HIS BANK ACCOUNT. HIS SON, SRI BHIMANA SUJIT RAVITEJA HAD RECEIVED THE ABOVE SUM, BY WA Y OF GIFT FROM HIS FATHER - IN - LAW, SRI ADIKA MANOHAR RAO. THE GIFT WAS RECEIVED IN CONNECTION WITH THE MARRIAGE OF HIS SON WITH DAUGHTER OF SRI ADIKA MANOHAR RAO. HOWEVER, THE AO DID NOT ACCEPT THE EXPLANATION OBSERVING THAT THERE WERE NO SUFFICIENT WITHD RAWALS MADE BY SRI ADIKA MAN OHAR RAO 3 I.T.A. NO. 76 /VIZ/201 9 , A.Y.20 15 - 16 BHIMANA SRINIVASA RAO , V IJAYAWADA IN HIS BANK ACCOUNT. THEREFORE, REJECTED THE ASSESSEE S EXPLANATION AND MADE THE ADDITION U/S 68 R.W.S. 115BBE OF THE ACT. 3. AGAINST WHICH THE ASSESSEE FILED THE APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) CONFIRMED THE ADDITION HOLDING THAT THE ASSESSEE HAS FAILED TO PROVE THE GENUINENESS OF THE TRANSACTION AND HENCE , THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. IN THE INSTANT CASE, THE ASSESSEE HAS DEPOSITED A SUM OF RS.5,13,000/ - IN HIS BANK ACCOUNT. THE SAID SUM WAS EXPLAINED TO BE RECEIVED FROM HIS SON. THE SOURCE FOR RECEIPT OF HIS S ON WAS GIFT BY HIS FATHER IN LAW , SRI ADIKA MAN OHAR RAO AND T HE OCCASION FOR THE RECEIPT OF THE GIFT WAS THE MARRIAGE OF ASSESSEES SON WITH DR.MOUNICA, DAUGHTER OF SRI ADIKA MAN OHAR RAO. FROM THE ORDER OF T HE LD.CIT(A) , WE HAVE OBSERVED THAT SRI ADIKA MAN OHAR RAO HAS WITHDRAWN THE SUM OF RS.16,75,000/ - FROM 09.12.2013 TO 13.03.2015 WHICH IS SUFFICIENT TO MEET THE GIFT. IN THE INSTANT CASE, THE AO DID NOT DOUBT THE GENUINENESS OF THE GIFT RECEIVED FROM HIS SON. THE AOS SUSPICION WAS THE SOURCE OF SOUR CE I.E. DONOR, SRI ADIKA MAN OHAR RAO. SINCE THE ASSESSEE HAS DISCHARGED HIS BURDEN BY PLACING EVIDENCE WITH REGARD TO RECEIPT OF GIFT FROM HIS SON, WE DO NOT FIND ANY REASON TO MAKE 4 I.T.A. NO. 76 /VIZ/201 9 , A.Y.20 15 - 16 BHIMANA SRINIVASA RAO , V IJAYAWADA ADDITION IN THE HANDS OF THE ASSESSEE. THE SOURCE WAS ESTABLISHED BY THE ASSESSEE, THE OCCASION OF THE GIFT RECEIVED BY THE ASSESSEES SON WA S ALSO EXPLAINED. T HEREFORE, WE DO NOT FIND ANY REASON TO DOUBT THE GENUINENESS OF THE RECEIPT OF GIFT BY HIS SON , SRI BHIMANA SUJIT RAVITEJA . HENCE, WE SET ASIDE THE ORDER OF THE LD.CIT(A ) AND ALLOW THE APPEAL OF THE ASSESSEE. 5. THE ASSESSEE RAISED ADDITIONAL GROUND STATING THAT THE CASE WAS SELECTED FOR LIMITED SCRUTINY FOR MISMATCH OF SALES TURNOVER AND MADE THE ADDITION OF RS.5,13,000/ - U/S 68 OR 69A OF THE ACT WITHOUT THE PRIOR AP PROVAL OF THE PRINCIPAL CIT, VIJAYAWADA. THEREFORE, ARGUED THAT AS PER THE PROVISIONS OF LAW, THE CASE CANNOT BE CONVERTED TO FULL SCRUTINY AS PER THE INSTRUCTIONS OF CBDT WITHOUT THE APPROVAL OF THE LD.CIT. HENCE, ARGUED THAT THE ADDITION MADE BY THE A O REQUIRED TO BE DELETED ON THIS GROUND ALSO. 6. SINCE WE HAVE ADJUDICATED THE GROUND ON MERITS AND ALLOWED THE APPEAL OF THE ASSESSEE, WE CONSIDER IT IS NOT NECESSARY TO ADJUDICATE THE ADDITIONAL GROUND RAISED BY THE ASSESSEE. ACCORDINGLY, THE APPEAL IS OF THE ASSESSEE IS ALLOWED. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . 5 I.T.A. NO. 76 /VIZ/201 9 , A.Y.20 15 - 16 BHIMANA SRINIVASA RAO , V IJAYAWADA ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH MARCH , 2020. S D/ - S D/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 04 . 0 3 .20 20 L.RAMA, SPS / COPY OF THE ORDER FORWARDED TO : - 1. / THE ASSESSEE B HIMANA SRINIVASA RAO , #23, SATYA COMPLEX , KALESWARA RAO ROAD , GOVERNORPET , VIJAYAWADA 2 . / THE REVENUE INCOME TAX OFFICER, WARD - 2(1), VIJAYAWADA 3. THE PR.COMMISSIONER OF INCOME TAX, VI JAYAWADA 4. THE COMMISSIONER OF INCOME TAX (APPEALS), VI JAYAWADA 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM