Shri C.E.Fernandes, Bhopal V. The ACIT, 1(1), Bhopal

ITSSA 226/IND/2012

• Counselvise Citation: [2012] 124 COUNSELVISE.COM (IT) 7372 (ITAT-INDORE)
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 31-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 04-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DARSHAN SINGH
• Assessee Lawyers: H P VERMA MS SAKSHI VERMA S
• Keywords: Gift
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARM A, A.M. PAN NO. : AADPF7878E I.T. (SS) A.NO. 226 /IND/201 2 . A.Y. : 2007 - 08 SHRI C. E. FE RNANDES, ACIT, 1(1), 26A, INDUSTRIAL AREA, GOVINDPURA, BHOPAL VS BHOPAL APPELLANT RESPONDENT APPELLANT BY : SHRI H.P.VERMA, MS. SAKSHI VERMA, ADVOCATES RESPONDENT BY : SHRI DARSHAN SINGH, CIT DR DATE OF HEARING : 1 . 1 1 .2012 DATE OF PRONOUNCEMENT : . 1 2 .201 2 O R D E R PER R. C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) DATED 28.3.2012, FOR THE ASSESSMENT YEAR 2007-08, IN -: 2: - 2 THE MATTER OF ASSESSMENT FRAMED U/S 153C OF THE INC OME-TAX ACT, 1961. 2. THE ASSESSEE IS AGGRIEVED FOR ADDITION OF RS. 8350/ - MADE ON ACCOUNT OF GIFT RECEIVED BUT NOT ACCEPTED B Y THE ASSESSING OFFICER AND ADDED U/S 68 OF THE INCOME-TA X ACT, 1961. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND FOUND FROM RECORD THAT DURING THE RELEVANT ASSESSMENT YEA R 2007-08, THE ASSESSEE HAS FILED RETURN OF INCOME AT RS. 20,9 5,330/-. DURING THIS YEAR, THE ASSESSEE HAD SHOWN RECEIPT OF GIFT OF RS. 8350/-, WHICH WAS NOT ACCEPTED BY THE ASSESSING OFF ICER AND THE SAME WAS ADDED U/S 68. KEEPING IN VIEW THE RETU RNED INCOME OF THE ASSESSEE, THE AMOUNT OF GIFT OF RS. 8 350/- SHOWN BY THE ASSESSEE APPEARS TO BE REASONABLE. WE, THERE FORE, DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION MADE U /S 68 OF THE INCOME-TAX ACT, 1961, 4. THE ASSESSING OFFICER HAS ALSO MADE ADDITION OF RS. 5,79,738/- ON ACCOUNT OF JEWELLERY. CONTENTION OF T HE ASSESSEE WAS THAT HE WAS MARRIED ON 25 TH SEPTEMBER, 1965, AND AS PER THE MALYALI CUSTOM, THE ASSESSEE WAS IN RECEIPT OF JEWELLERY AT -: 3: - 3 THE TIME OF MARRIAGE AND ALSO ON VARIOUS OTHER OCCA SIONS FROM TIME TO TIME FROM THEIR IN-LAWS AND RELATIVES AND F RIENDS AND SUCH JEWELLEY WAS APPROXIMATELY 2800 GMS. HOWEVER, THE ASSESSING OFFICER DID NOT ACCEPT THE ASSESSEES CON TENTION AND ADDED 50% OF JEWELLERY AS FOUND FROM THE RESIDENCE AND LOCKER IN ASSESSEES INCOME. THE ACTION OF THE ASSESSING O FFICER WAS CONFIRMED BY THE LD.CIT(A) AGAINST WHICH THE ASSESS EE IS IN APPEAL BEFORE US. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND FOUND FROM RECORD THAT THE ASSESSEE HAS SHOWN VALUE OF JE WELLERY AS ON 31.3.1995 AT RS. 2,07,000/-. DURING THE FINANCIA L YEAR 2005-06, THE ASSESSEE HAS ALSO PURCHASED 138 GMS. J EWELLERY, WHICH WAS DULY DISCLOSED AND THE SOURCE OF THE SAME WAS ALSO EXPLAINED. HOWEVER, THE ASSESSING OFFICER HAS NOT G IVEN ANY CREDIT FOR THE JEWELLERY RECEIVED FROM IN-LAWS ON M ARRIAGE AND THEREAFTER. KEEPING IN VIEW THE STATUS OF THE ASSES SEE AND THE MALYALI CUSTOMS TO WHICH THE ASSESSEE BELONGED, IT WOULD BE REASONABLE TO ACCEPT JEWELLERY OF 200 GMS. AS HAVIN G BEEN RECEIVED FROM IN-LAWS. ACCORDINGLY, WE DIRECT THE A SSESSING OFFICER TO GIVE CREDIT OF 200 GMS. OF JEWELLERY AS RECEIVED FROM -: 4: - 4 IN-LAWS AND CREDIT OF 130 GMS. OF JEWELLERY, WHICH WAS PURCHASED BY THE ASSESSEE IN THE FINANCIAL YEAR 200 5-06. AFTER GIVING CREDIT OF 200 GMS. AND 130 GMS., THE ASSESSI NG OFFICER IS TO RECOMPUTE THE AMOUNT OF ADDITION AFTER CONSID ERING THE IMPURITIES IN GOLD JEWELLERY SO FOUND. WE DIRECT AC CORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D IN PART. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 31 ST DECEMBER, 2012. SD/ - SD/ - (JOGINDER SINGH) (R. C. SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 31 ST DECEMBER, 2012. CPU* 2612