Smt. Mohini Mehara, Kolkata V. D.C.I.T CC - XVIII,kolkata, Kolkata

ITSSA 50/KOL/2013

• Counselvise Citation: [2014] 119 COUNSELVISE.COM (IT) 3104 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 9 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 02-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 23-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAVID Z CHAWNGTHU
• Assessee Lawyers: N O N E
• Keywords: Gift

Judgement Text

I.T.(SS)A. NO.: 50/ KOL. / 2013 ASSESSMENT YEAR : 2005-2006 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER I.T.(SS)A. NO.: 50/ KOL./ 2013 ASSESSMENT YEAR : 2005-2006 SMT. MOHINI MEHRA,................................. ...................APPELLANT 69, GIRISH PARK (NORTH), KOLKATA-700 006 [PAN : AEUPM 0550 P] -VS.- DEPUTY COMMISSIONER OF INCOME TAX,............... ...RESPONDENT CENTRAL CIRCLE-XVIII, KOLKATA 110, SHANTI PALLI, KOLKATA-700 107 APPEARANCES BY: N O N E, FOR THE APPELLANT SHRI DAVID Z. CHAWNGTHU, ADDL.CIT, SR. D.R., FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : AUGUST 19, 2014 DATE OF PRONOUNCING THE ORDER : 2 ND SEPTEMBER, 2014 O R D E R PER SHRI MAHAVIR SINGH, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS ARISING OUT O F THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), CENTRAL-II, K OLKATA IN APPEAL NO. 131/CC-XVIII/CIT(A),C-II/10-11 DATED 25.02.2013 FOR THE ASSESSMENT YEAR 2005-06. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF LD. CIT(APPEALS) CONFIRMING THE ADDITION MADE BY THE AS SESSING OFFICER ON ACCOUNT OF UNACCOUNTED JEWELLERY GIFTED TO RELATIVE S FOR THE VALUE OF RS.1,75,859/- AND THE ASSESSING OFFICER TREATED THE SAME AS UNDISCLOSED INCOME. I.T.(SS)A. NO.: 50/ KOL. / 2013 ASSESSMENT YEAR : 2005-2006 PAGE 2 OF 3 3. I HAVE HEARD LD. SR. D.R. AND GONE THROUGH THE F ACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE ASSESSIN G OFFICER WHILE VERIFYING AND MATCHING THE ENTIRE JEWELLERY OF DIFFERENT MEMB ERS OF MEHRA GROUP OF CASES FOUND FROM THEIR RESIDENCE AND THREE LOCKERS OF THE BANK OF ALLAHABAD, PARK STREET BRANCH, VIS-A-VIS OTHER DOCU MENTS LIKE WEALTH-TAX RETURNS, VDIS DOCUMENTS, GIFT DEEDS, ETC. NOTICED T HAT THE ASSESSEE HAS GIFTED JEWELLERY TO THREE PERSONS NAMELY KARTIK MEH RA WORTH RS.80,700/-, KARAN MEHRA WORTH RS.27.461/- AND MAHESH MEHRA, HUF WORTH RS.1,75,859/-. THE JEWELLERY GIFTED TO SHRI KARTIK MEHRA AND SHRI KARAN MEHRA WAS FOUND EXPLAINED. ONLY JEWELLERY GIFTED TO MAHESH MEHRA, HUF WORTH RS.1,75,859/- WAS NOT REDUCED FROM THE JEWELL ERY DECLARED IN THE BALANCE-SHEET FOR THE ASSESSMENT YEAR 2005-06. THE ASSESSING OFFICER HAS ALSO GONE THROUGH THE BALANCE-SHEETS AS ON 31.03.20 03 AND 31.03.2004 WHEREIN JEWELLERY AND ORNAMENTS WORTH RS.7,03,291/- WAS DISCLOSED BY THE ASSESSEE. THE ASSESSING OFFICER REQUIRED THE AS SESSEE TO EXPLAIN THE JEWELLERY GIFTED TO MAHESH MEHRA, HUF WORTH RS.1,75 ,859/- AND THE ASSESSEE EXPLAINED THAT IT WAS OUT OF THE WEALTH-TA X RETURN AND THE JEWELLERY GIFTED TO THE ABOVE STATED PERSONS IS WIT HDRAWN FROM THE TOTAL VALUE AS DECLARED IN THE WEALTH-TAX RETURN. THE ASS ESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE AND THE AD DITION WAS MADE. LD. CIT(APPEALS) ALSO CONFIRMED THE ACTION OF THE ASSES SING OFFICER. 4. I FIND FROM THE RECORDS OF THE CASE THAT THE ASS ESSEE HAS DECLARED JEWELLERY IN THE WEALTH-TAX RETURN APART FROM THE J EWELLERY AND ORNAMENTS DECLARED IN THE BALANCE-SHEETS AS ON 31.0 3.2003, 31.03.2004 AND 31.03.2005 AT RS.7,03,291/-. THE ASSESSING OFFI CER HIMSELF HAS NOTED THAT THERE IS REDUCTION IN JEWELLERY TO THE EXTENT OF RS.67,252/- AND OF RS.90,607/-. THE ASSESSEE ALSO CLAIMED THAT THE TOT AL JEWELLERY GIFTED TO THE EXTENT OF RS.2,84,010/- WAS GIFTED OUT OF CAPIT AL ACCOUNT TO SHRI KARTIK MEHRA AND SHRI KARAN MEHRA BUT TO SHRI MANES H MEHRA HUF. IT WAS NOT OUT OF HER CAPITAL ACCOUNT, BUT IT WAS OUT OF W EALTH-TAX RETURNS. ONCE THE ASSESSEE HAS DECLARED THE JEWELLERY AND ORNAMEN TS IN THE WEALTH-TAX I.T.(SS)A. NO.: 50/ KOL. / 2013 ASSESSMENT YEAR : 2005-2006 PAGE 3 OF 3 RETURN SEPARATELY AND IN THE BALANCE-SHEET SEPARATE LY, THE ASSESSING OFFICER SHOULD HAVE TAKEN COGNIZANCE OF THE SAME. I N VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, I FIND THAT THE EXPLANATIO N OF THE ASSESSEE IS QUITE REASONABLE AND HENCE THE ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(APPEALS) IS DELETED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND DAY OF SEPTEMBER, 2014. SD/- MAHAVIR SINGH (JUDICIAL MEMBER) KOLKATA, THE 2 ND DAY OF SEPTEMBER, 2014 COPIES TO : (1) SMT. MOHINI MEHRA, 69, GIRISH PARK (NORTH), KOLKATA-700 006 (2) DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-XVIII, KOLKATA 110, SHANTI PALLI, KOLKATA-700 107 (3) CIT (4) CIT(A) (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.