RAMUBEN L SHAH, MUMBAI V. ITO 14(2)(3), MUMBAI

ITA 8732/MUM/2011

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2106 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 15-09-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 26-12-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B S BIST
• Keywords: Unexplained cash credit; Gift
• Section: 143(3); 68; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH , MUMBAI BEFORE SRI MAHAVIR SINGH, JM AND SRI RAJESH KUMAR , AM ITA NO . 8732 /MUM/201 1 (A.Y: 2007 - 08 ) RAMUBEN L SHAH 13/17, KANCHAN BHAVAN, D.A. LANE, MUMBAI - 400002 VS. INCOME TAX OFFICER WARD 14(2)(3), EARNEST HOUSE, NARIMAN POINT, MUMBAI PAN: APOPS6876F APPELLANT .. RESPONDENT ASSESSEE BY .. SHRI ASHOK MEHTA, AR REVENUE BY .. SHRI B.S. BIST , SR. DR DATE OF HEARING .. 10 - 11 - 2016 DATE OF PRONOUNCEMENT .. 10 - 11 - 2016 O R D E R PER MAHAVIR SINGH , JM : THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF CIT (A) - 2 5 , MUMBAI IN APPEAL NO.CIT (A) 25/IT - 479/14(2) - 3/10 - 11 DATED 13 - 10 - 2011 . THE ASSESSMENT WAS FRAMED BY ITO WARD 14(2)(3), MUMBAI FOR THE A.Y. 2007 - 08 VIDE HIS ORDER DATED 29 - 12 - 2009 U/S 143 (3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). 2. THE FIRST ISSUE IN THIS APPEAL OF ASSESSEE IS AGAINST THE ORDER OF CIT (A) CONFIRMING THE ADDITION MADE BY AO OF GIFT RECEIVED FROM HUSBAND OF THE ASSESSEE AS UNEXPLAINED CASH CREDIT U/S 68 OF THE A CT. 3. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. BRIEF FACTS OF THE CASE ARE THAT THE AO NOTICED FROM THE ASSESSEE S BANK A/C MAINTAINED WITH COSMOS CO - OPERATIVE BANK LTD., PUNE BRANCH THAT SHE HAS DEPOSITED A SUM OF RS.10 ,13,500 / - IN CASH. THE ASSESSEE EXPLAINED THE CASH DEPOSIT S EXCEPT A SUM OF RS.9,51,000/ - AND AO ADDED THE SAME AS UNDISCLOSED INCOME U/S 68 OF THE ACT. THE CIT (A) ALSO CONFIRMED THE ACTION OF THE AO. AGGRIEVED , NOW THE ASSESSEE IS IN SEC OND APPEAL BEFORE TRIBUNAL. 4. BEFORE US, AS WELL AS LOWER AUTHORITIES IT WAS EXPLAINED THAT THE ASSESSEE WAS RECEIVED A GIFT FROM HIS HUSBAND SHRI LAKHAMSHI M. SHAH AS GIFT AMOUNTING TO ITA NO.8732/MUM/2011 2 RS. 9.51 LAKHS OUT OF CASH WITHDRAWALS MADE BY HIM FROM HIS BANK A/ C 036 20420121008 MAINTAINED WITH COSMOS CO - OPERATIVE BANK LTD., PUNE BRANCH. THE ASSESSEE PRODUCED HIS STATEMENT OF BANK A/C WHEREIN THE AMOUNTS WERE WITHDRAWN AND ALSO SUBMITTED CASH BOOK ALONGWITH THE BANK STATEMENT OF HUSBAND TO SHOW THAT THE HUSBAND HAS W ITHDRAWN A TOTAL SUM OF RS. 30,00,000/ - FROM BANK ON 12 - 04 - 2006 AND OUT OF WHICH THIS GIFT OF RS.9,51,000/ - WAS RECEIVED BY ASSESSEE IN CASH AND THE SAME WAS DEPOSITED IN THE BANK A/C ON 13 - 04 - 2006. THE HUSBAND OF ASSESSEE IS ASSESSED TO TAX UNDER PAN NO. A POPS6880B AND SCRUTINY ASSESSMENT WAS CARRIED OUT BY THE DEPARTMENT FOR THE YEAR UNDER CONSIDERATION IN THE CASE OF THE HUSBAND U/S 143(3) OF THE ACT. DURING SCRUTINY ASSESSMENT OF HUSBAND, IT WAS ALSO EXPL AINED THAT THIS AMOUNT OF RS. 9. 51 LAKH WAS GIFTED TO THE WIFE SMT. RUMUBEN L. SHAH. WE FIND FROM THE ORDERS OF THE LOWER AUTHORITIES THAT NONE OF AUTHORITIES BELOW HAVE ESTABLISHED THAT CASH WITHDRAWAL BY HUSBAND WAS UTILIZED SOMEWHERE ELSE OR INVESTED. ACCORDINGLY, WE ARE OF THE VIEW THAT THE ASSESSEE IS ABLE TO PROVE THAT THE AMOUNT WITHDRAWN BY THE HUSBAND IN CASH ON 12 - 04 - 2006 AMOUNTING TO RS. 30,00,000/ - AND OUT OF THE SAME A GIFT WAS GIVEN TO HER AMOUNTING TO RS. 9.51 LAKHS. ACCORDINGLY, THIS GIFT IS EXPLAINED. WE DELETE THE ADDITION AND ALLOW THIS A PPEAL OF THE ASSESSEE. 5. THE NEXT ISSUE IN THIS APPEAL OF ASSESSEE IS AS REGARDS TO THE ADDITION CONFIRMED BY THE CIT ( A) AMOUNTING TO RS. 62,500 / - U/S 68 OF THE ACT. 6. AT THE TIME OF HEARING THE LEARNED COUNSEL FOR THE ASSESSEE HAS NOT PRESSED THIS ISSUE UNDE R THE INSTRUCTIONS OF THE ASSESSEE. ACCORDINGLY, THE SAME IS DISMISSED AS NOT PRESSED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 10 - 11 - 2016 . SD/ - ( RA JESH KUMAR ) ACCOUNTANT MEMBER MUMBAI, DATED: 10 - 11 - 2016 SUDIP SARKAR /SR.PS SD/ - ( MAHAVIR SINGH ) JUDICIAL MEMBER ITA NO.8732/MUM/2011 3 BY ORDER, ASSISTANT REGISTRAR ITAT, MUMBAI COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE R ESPONDENT. 3. THE CIT (A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//