The DCIT, Central Circle-1, Baroda V. Smt. Lalitaben Narhari Patel, Baroda

ITSSA 625/AHD/2011

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 1797 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 03-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 02-05-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 28-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R I PATEL
• Keywords: Capital asset; Gift; Income from undisclosed sources; Question of law
• Section: 143(3); 56(2); 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE SHRI RAJPAL YADAV, JM, & SHRI MANISH BORA D, AM. IT(SS)A NO.625/AHD/2011 WITH C.O. NO.19/AHD/2012 ASST. YEAR: 2008-09 DY. CIT, CC-1, BARODA. VS. SMT. LALITABEN NARHARI PATEL, 15, PARISHRAM SOCIETY, SUBHANPURA, BARODA, APPELLANT RESPONDENT PAN ACUPP 1751H APPELLANT BY SHRI R. I. PATEL, CIT,DR RESPONDENT BY SHRI BHAVIN MARFATIA, AR DATE OF HEARING: 2/5/2016 DATE OF PRONOUNCEMENT: 03/05/2016 O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER . THIS APPEAL OF REVENUE IS DIRECTED AGAINST THE ORD ER OF CIT(A)- IV, AHMEDABAD DATED 2.9.2011 VIDE APPEAL NO.CIT(A)- IV/157/B/CC- 1/10-11 FOR ASST. YEAR 2008-09. ASSESSMENT WAS FRAM ED ON 23.12.2010 U/S153A R.W.S. 143(3) OF THE IT ACT, 196 1 (IN SHORT THE ACT) BY DCIT, CC-1, BARODA. REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- ITA NO. 625/AHD/2011 & CO NO. 19/AHD/2012 ASST. YEAR 2008-09 2 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS AND CIRCUMSTANCES OF THE CASE BY DELETING THE ADDITION OF RS.46,80,54 0/- ON ACCOUNT OF GIFT RECEIVED IN KIND BY THE ASSESSEE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESS ING OFFICER ON THE ABOVE POINT. 2. BRIEFLY STATED FACTS AS CULLED OUT FROM THE RECO RDS ARE THAT ASSESSEE IS AN INDIVIDUAL WHO FILED HER RETURN OF I NCOME FOR ASST. YEAR 2008-09 ON 13/07/2009 SHOWING TOTAL INCOME AT RS.13 ,95,310/- IN PURSUANCE TO NOTICE U/S 153A DATED 3.6.2009. DURING THE COURSE OF ASSESSMENT PROCEEDINGS LD. ASSESSING OFFICER OBSERV ED THAT ASSESSEE HAS SHOWN TO HAVE ACCEPTED GIFT IN KIND IN THE FORM OF EQUITY SHARES OF SUN PHARMACEUTICALS INDUSTRIES LTD . OF 2400 SHARES AND 1650 SHARES VIDE DECLARATIONS OF GIFT DEED DATE D 7.2.2008 AND 17.3.2008. ON EXAMINING THE DETAILS OF GIFT WITH TH E SEIZED PAPER MATERIAL (COLLECTED IN THE COURSE OF SEARCH PROCEED INGS U/S 132 OF THE ACT IN THE CASE OF AMOD GROUP AS WELL AS THE ASSESS EE ON 11.2..2009) LD. ASSESSING OFFICER OBSERVED THAT GIF T WAS RECEIVED FROM SHRI JAYANT SANGHAVI AND THE MARKET VALUE OF THESE SHARES WORKED OUT AT RS.46,80,540/-. LD. ASSESSING OFFICER ALSO O BSERVED THAT THE DONOR SHRI JAYANT SANGHAVI GAVE GIFT TO ASSESSEE AS WELL AS OTHER FAMILY MEMBERS IN THE MONTH OF FEBRUARY AND MARCH, 2008 OF EQUITY SHARES OF SUN PHARMACEUTICALS INDUSTRIES LTD. FOR A TOTAL VALUE OF RS.4,70,58,686/-. LD. ASSESSING OFFICER FURTHER OBS ERVED THAT WIFE OF THE DONOR SMT. VISHAKHA J. SANGHAVI ENTERED INTO PU RCHASE TRANSACTIONS VIDE DIFFERENT DEEDS DATED 23.04.2008 AND 29.07.2008 WITH SHRI KRUPESH PATEL AND SHRI NAVIN PATEL FOR AC QUIRING FROM THEM ITA NO. 625/AHD/2011 & CO NO. 19/AHD/2012 ASST. YEAR 2008-09 3 LARGE PLOT OF LAND AT GOTRI FOR A CONSIDERATION OF RS.10.63 CRORES. THEREAFTER ON THE BASIS OF DETAILED SCRUTINY OF SEI ZED PAPERS RELATING TO GOTRI LAND IN ASST. YEAR 2009-10 IT WAS HELD BY LD. ASSESSING OFFICER THAT THE TOTAL CONSIDERATION OF RS.22.61 CR ORES (AT THE PLACE OF RS.10.63 CRORES) INCLUDED THE AMOUNT OF GIFT OF RS. 4.70 CRORES RECEIVED IN THE FORM OF SHARES BY THE ASSESSEE AND THE FAMILY MEMBERS. FURTHER WHILE FINALIZING THE ASSESSMENT OR DER LD. ASSESSING OFFICER OBSERVED THAT AS THE MARKET VALUE OF THE LA ND SOLD TO SMT. VISHAKHA J. SANGHAVI (WIFE OF DONOR SHRI JAYANT SAN GHAVI) WAS RS.22 CRORES AND NOT RS.10.63 CRORES AS PER VALUE S HOWN ON THE SEIZED EVIDENCES. FURTHER OUT OF RS.22 CRORES LD. A SSESSING OFFICER BROUGHT ON RECORD THE DETAIL OF RS.19.81 CRORES AS THE TOTAL CONSIDERATION WHICH COMPRISED OF CHEQUE OF RS.10.62 CRORES ISSUED BY VISHAKHA J. SANGHAVI. GIFTED SHARES AT RS.4.70 C RORES, CASH OF RS.3 CRORES RECEIVED AS ON MONEY ADMITTED BY KRUP ESH PATEN IN HIS STATEMENT RECORDED U/S 132(4) OF THE ACT AND RS.1.4 1 CRORES AS TAX COMPONENT ON THE VALUE OF SHARES ACCEPTED BY THE DO NEE FROM THE HUSBAND OF DONOR AS THE PURCHASER OF THE LAND. ACCO RDINGLY VALUE OF SHARES GIFTS TO THE ASSESSEE AT RS.46,80,540/- WAS ADDED TO THE INCOME OF ASSESSEE AND INCOME WAS ASSESSED AT RS.60 ,75,850/-. 3. AGGRIEVED, ASSESSEE WENT IN APPEAL BEFORE LD. CIT(A ) WHO DELETED THE ADDITION BY EXAMINING IN DETAIL THE TRA NSACTIONS OF GIFT OF SHARES AND TRANSACTIONS RELATING TO SALE OF LAND AT GOTRI AND WAS OF THE VIEW THAT TRANSACTION OF TRANSFER OF LAND AROSE DURING ASST. YEAR 2009-10 AND THE IMPUGNED GIFT RELATING TO ASST. YEA R 2008-09 AND ITA NO. 625/AHD/2011 & CO NO. 19/AHD/2012 ASST. YEAR 2008-09 4 ADDITION, IF ANY, RELATING TO UNDER VALUING OF THE TRANSACTIONS OF SALE OF LAND WILL FALL IN ASST. YEAR 2009-10. 4. AGGRIEVED, REVENUE IS NOW IN APPEAL BEFORE THE T RIBUNAL. LD. DR SUPPORTED THE ORDER OF ASSESSING OFFICER. 5. ON THE OTHER HAND, LD. AR SUBMITTED THAT THE ISS UE IS SQUARELY COVERED BY THE DECISION OF CO-ORDINATE BENCH IN THE CASE OF SHRI KRUPESHBHAI N. PATEL VS. DCIT, CC-1, BARODA IN ITA NO.590/AHD/2011 FOR ASST. YEAR 2006-07 AND OTHERS A ND FURTHER SUBMITTED THAT APPEAL OF THE REVENUE CHALLENGING TH E ORDER OF THE TRIBUNAL WAS DISMISSED BY HON. JURISDICTIONAL HIGH COURT IN TAX APPEAL NO.938 OF 2012 IN THE CASE OF CIT VS. KRUPES HBHAI N. PATEL VIDE ORDER DATED 29 TH APRIL, 2013, (COPY OF JUDGMENT PLACED ON RECORD) ON THE GROUND THAT NO QUESTION OF LAW ARISES IN THE PRESENT TAX APPEAL BY THE REVENUE. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD AND GONE THROUGH THE JUDGMENT OF HON. JUR ISDICTIONAL HIGH COURT. SOLITARY GRIEVANCE OF THE REVENUE IS AGAINST THE ORDER OF LD. CIT(A) IN DELETING THE ADDITION OF RS.46,80,540/- H ELD TO BE GIFT OF SHARES. WE OBSERVE THAT LD. CIT(A) WHILE DELETING T HE ADDITION HAS OBSERVED AS UNDER :- 6. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE HAS, IN AY 2008-09 SHOWN TO HAVE ACCEPTED GIFT IN KIND BEING EQUITY SHARES OF S UN PARMACEUTICALS INDUSTRIES LTD. RESPECTIVELY 2400 SHARES AND 1650 SHARES VIDE DECLA RATION OF GIFT DEED DATED 7.2.2008 AND 17.3.2008. THE DONOR IS SHRI JAYANT SANGHAVI NO T RELATED TO THE ASSESSEE EVEN DISTANTLY. THE MARKET VALUE OF THESE SHARES WORKS O UT TO RS. 46,80,540/- ON THE DAY OF DECLARATION OF GIFT. ITA NO. 625/AHD/2011 & CO NO. 19/AHD/2012 ASST. YEAR 2008-09 5 6.1 IN FACT, THE TOTAL AMOUNT OF GIFTS RECEIVED FRO M SHRI JAYANT SANGHAVI BY THE APPELLANT AND THE FAMILY MEMBERS IN FEB./MARCH, 2008 IS RS. 4 ,70,58,686/-. THE AO HAS HELD THAT THE GIFTS RECEIVED IN KIND I.E. SHARES OF SUN PHARM ACEUTICAL INDUSTRIES LTD. BY THE APPELLANT AND THE FAMILY MEMBERS AS INCOME FROM UND ISCLOSED SOURCES AND, THEREFORE, ADDED IT TO THE TOTAL INCOME OF APPELLANT AND THE F AMILY MEMBERS AS PER DETAILED DISCUSSION IN PARA 4 OF ASSESSMENT ORDER 6.2 IT HAS BEEN HELD BY THE AO THAT GIFTS RECE IVED IN KIND BY THE APPELLANT AND THE FAMILY MEMBERS FROM SHRI JAYANT SANGHVI WHO IS THE HUSBAND OF SMT. VISHAKHA SANGHVI TO WHOM GOTRI LAND HAS BEEN SOLD BY THE FAMILY MEMB ERS OF THE APPELIANT ; SHRI KRUPESHBHAI N. PATEL AND SHRI NAVINBHAI N. PATEL AR E NOTHING BUT PART OF UNDISCLOSED SALE CONSIDERATION IN RESPECT OF GOTRI LAND. 6.3 THEREAFTER, ON THE BASIS OF DETAILED SCRUTINY O F THE SEIZED PAPERS RELATING TO SALE OF GOTRII LAND IN AY 2009-10 IT WAS HELD BY THE AO THA T THE TOTAL CONSIDERATION OF RS.22.61 CRORES INCLUDED THE AMOUNT OF GIFTS OF RS, 4.70 CRO RES RECEIVED IN THE FORM OF SHARES BY THE APPELLANT AND THE FAMILY MEMBERS AND FURTHER AD DED THE MARKET VALUE OF SHARES AS ON DATE OF DECLARATION 'OF GIFT AMOUNTING TO RS.46, 80,540/- AS INCOME FROM UNDISCLOSED SOURCES IN AY 2008-09. 7. THE APPELLANT HAS RELIED ON THE SUBMISSIONS IN T HE CASE OF SHRI KRUPESHBHAI NARHARIBHAI PATEL FOR A.Y. 2008-09 IN RESPECT OF GI FTS RECEIVED IN THE FORM OF SHARES. THE FINDINGS OF THE UNDERSIGNED IN RESPECT OF THESE GRO URIDS OF APPEAL AS DECIDED IN THE CASE OF SHRI KRUPESHBHAI NARHARIBHAI PATEL FOR AY 2008-0 9 AS CONTAINED IN PARA 9.8 TO 9.12 OF THE ORDER DATED 30-08-2011 ARE REPRODUCED AS UNDER : '9.8 NOW LET US EXAMINE THE ISSUE OF GIFTS RECE IVED IN THE FORM OF SHARES FROM THE DONOR SHRI JAYANT SANGHVI, WHO IS THE HUSBAND OF SM T. VISHAKHA SANGHVI TO WHOM GOTRI (AND HAS SOLD FOR DOCUMENTED CONSIDERATION OF RS. 10.62 CRORES. THE GIFTS IN FORM OF SHARES OF VALUE OF RS. 4.70 CRORES ARE RECEIVED IN FEB/MARCH, 2008 BY THE APPELLANT AND THE FAMILY MEMBERS WHEREAS GOTRI LAND HAS BEEN SOLD BY APPELLANT AND CO-OWNERS IN APRIL, 2008. THE WORD 'GIFT 1 IS NOT DEFINED IN INCOME TAX ACT. THE SAME HAS BEEN DEFINED AS PER SECTION 122 OF THE TRANSFER OF PROPE RTY ACT, 1882 WHICH IS QUOTED AS UNDER: 'A GIFT IS THE TRANSFER OF CERTAIN EXISTING MOVABLE OR IMMOVABLE PROPERTY, MADE (I) VOLUNTARILY, AND . (II) WITHOUT CONSIDERATION -BY ONE PERSON (CALLED THE DONOR) TO ANOTHER (CALLE D THE DONE), AND -ACCEPTED BY (OR ON BEHALF OF) THE DONE SUCH ACCEPTANCE MAY BE MADE DURING THE LIFE TIME OF THE DONOR, AND WHILE HE IS STILL CAPABLE OF GIVING. IF THE DONE DIES BEFORE ACCEPTAN CE, THE GIFT IS VOID OF IN VIEW OF THE ABOVE THE REQUISITES OF A VALID GIFT ARE : '(1) THERE SHOULD BE A DONOR AND A DONEE. (2) THE S UBJECT OF THE GIFT MUST BE CERTAIN AND EXISTING AND CAPABLE OF TRANSFER. (3) THE GIFT SHOULD BE MADE VOLUNTARILY AND WITHOUT CONSIDERATION. (4) THERE SHOULD BE A TRANSF ER ON THE PART OF THE DONOR. (5) ITA NO. 625/AHD/2011 & CO NO. 19/AHD/2012 ASST. YEAR 2008-09 6 THERE SHOULD BE AN ACCEPTANCE BY OR ON BEHALF OF TH E DONEE DURING HIS LIFE-TIME. (6) THE ACCEPTANCE MUST BE AT A TIME WHEN THE DONOR IS ALIVE AND CAPABLE OF GIVING. (7) THEREFORE, IT NECESSARILY FOLLOWS THAT THE DONOR AN D THE DONEE MUST BOTH BE LIVING. (8) IN CASE OF MOVABLE PROPERTY, THERE MUST BE EITHER A REGISTERED INSTRUMENT PROPERLY ATTESTED OR DELIVERY OF POSSESSION.' 9.9 THE GIFT OF SHARES IN THE CASE OF APPELLANT NEE DS TO BE EXAMINED WITH REFERENCE TO THE MOST VITAL REQUISITE OF A VALID GIFT I.E. IT MUST BE VOLUNTARY AND WITHOUT CONSIDERATION. FOR THIS PURPOSE IT IS IMPORTANT TO NOTE THAT: - . (I) SHRI JAYANT SANGHVI IS NOT RELATED TO THE A PPELLANT AND ITS FAMILY EVEN THOUGH THEY MAY BELONG TO THE SAME COMMUNITY. (II) THERE IS NO OTHER OCCASION WHEN THE GIFT HA S BEEN MADE BY SHRI JAYANT SANGHVI OR HIS FAMILY TO THE APPELLANT AND ITS FAMI LY MEMBERS. ' . . (III) THERE IS NO RELIGIOUS OR ANY OTHER SOCIA L OCCASION ON WHICH SUCH HUGE GIFTS HAVE BEEN GIVEN. (IV) THERE IS NOTHING ON RECORD TO SHOW THAT THE APPELLANT AND ITS FAMILY, AT ANY OCCASION IN THE PAST, HAS GIVEN ANY GIFT TO SHRI JA YANT SANGHVI AND HIS FAMILY. (V) THE GIFT IN QUESTION IS NOT A MEAGER AMOUN T BUT IN TOTAL RS.4.70 CRORES GIVEN TO THE APPELLANT AND ITS FAMILY MEMBERS. IN VIEW OF THE ABOVE, APPELLANT HAS FAILED TO FURNI SH THE PROOF RELATING TO RELATIONSHIP WITH : DONOR, OCCASION OF GIFT, RECIPROCATION OF GIFT ETC. IT IS NOT ONLY IMPROBABLE RATHER IMPOSSIBLE TO ACCEPT THE ASSERTION OF THE APPELLANT THAT THE ACT OF RECEIVING SUCH HUGE GIFTS IN FEB/MARCH 2008 FROM SHRI JAYANT SANGH VI AND SALE OF GOTRI (AND AFFECTED AFTER 1 OR TWO MONTHS I.E. APRIL, 2008 TO SMT. VISHAKHA SANGHVI, WIFE OF THE DONOR OF SUCH HUGE GIFT, ARE TOTALLY INDEPENDENT TR ANSACTIONS. TTIIS IS A SITUATION WHERE THE APPARENT DOES NOT REFLECT THE REALITY. TH EREFORE, I AM IN TOTAL AGREEMENT WITH THE AO THAT TAKING INTO ACCOUNT THE SURROUNDIN G CIRCUMSTANCES AND TEST OF HUMAN PROBABILITIES, SUCH HUGE GIFTS RECEIVED IN TH E FORM OF SHARES ARE NOT GENUINE MAINLY ON ACCOUNT OF THE FACT THAT SAID GIFTS CANNO T BE SAID TO BE VOLUNTARY AND WITHOUT CONSIDERATION. THE RELEVANT CONSIDERATION I S, IN FACT, THE UNDISCLOSED SALE CONSIDERATION OF GOTRI LAND. IN VIEW OF THIS, THE A O HAS RIGHTLY CONCLUDED THAT THE PURPORTED GIFT IS IN FACT, UNDISCLOSED SALE CONSIDE RATION IN RESPECT OF SALE OF GOTRI LAND AND NOTHING ELSE. THE APPELLANT HAS RECEIVED T HE UNDISCLOSED SALE CONSIDERATION IN THE FORM OF GIFTS IN KIND. 9.10 THE FACT THAT THE GIFT IN KIND IS NOT TAXABLE DURING THE RELEVANT PERIOD AS PER SECTION 56(2) OF THE ACT IS OF NO RELEVANCE ONCE IT IS HELD THAT THE SAID GIFT IS PART OF UNDISCLOSED SALE CONSIDERATION IN RESPECT OF TRANSF ER OF GOTRI LAND AS THE SALE CONSIDERATION CAN ALWAYS BE IN TERMS OF MONEY AS WE LL AS KINDS. 9.11 I AGREE WITH THE ADDITIONAL SUBMISSION MADE BY THE APPELLANT THAT THE UNDISCLOSED SALE CONSIDERATION IN RESPECT OF TRANSF ER OF GOTRI LAND SHOULD BE TAXED IN ITA NO. 625/AHD/2011 & CO NO. 19/AHD/2012 ASST. YEAR 2008-09 7 THE YEAR OF TRANSFER I.E. AY 2009-10 AS PER SECTION 45(1) OF THE ACT. ONCE IT IS HELD THAT TOTAL SALE CONSIDERATION IN RESPECT OF GOTRI L AND INCLUDES THE AMOUNT OF GIFT RECEIVED IN AY 2008-09 AS PART OF THE TOTAL SALE CO NSIDERATION RECEIVED FROM SHRI JAYANT SANGHVI ON BEHALF OF SMT. VISHAKHA SANGHVI T O WHOM GOTRI LAND HAS BEEN SOLD, THE AMOUNT OF SUCH UNDISCLOSED SALE CONSIDERA TION ARISING FROM SALE OF GOTRI LAND HAS TO BE TAXED IN THE YEAR IN WHICH THE SALE TOOK PLACE I.E. AY 2009-10. 9..12 IN VIEW OF THE ABOVE, THE TOTAL GIFTS AMOU NTING TO RS.4.70 CRORES. RECEIVED BY THE APPELLANT AND HIS FAMILY MEMBERS ARE IN FACT TO WARDS UNDISCLOSED SALE CONSIDERATION OF GOTRI LAND. THE ADDITION OF RS.4.7 0 CRORES MADE IN AY 2009-10 IN THE HANDS OF THE APPELLANT AND SHRI NAVIN N. PATEL (JOINT OWNERS) OF RS. 2,35,00,0007- EACH ON PROTECTIVE BASIS IS CONFIRMED ON SUBSTANTIVE BASIS. THEREFORE, THE ADDITION OF RS.65,83,830/- IN AY 2008-09 MADE O N ACCOUNT OF NON-GENUINENESS OF GIFTS BY TREATING IT AS PART OF TOTAL SALE CONSI DERATION IS, HEREBY, DELETED.' 8. IN VIEW OF THE ABOVE FINDINGS, THE ADDITION OF R S.46,80,5407- ON ACCOUNT OF GIFTS IS DELETED. THEREFORE, THE SECOND AND THIRD GROUNDS OF APPEAL ARE ACCORDINGLY ALLOWED, SUBJECT TO ABOVE FINDINGS. 7. WE ALSO OBSERVE THAT SIMILAR ISSUE CAME UP BEFOR E THE TRIBUNAL IN THE CASE OF SHRI KRUPESHBHAI N. PATEL VS. DCIT, CC-1, BARODA IN ITA NO.590/AHD/2011 FOR ASST. YEAR 2006-07 AND OTHE RS AND THE REVENUES APPEAL WAS DISMISSED BY THE TRIBUNAL BY O BSERVING AS UNDER :- (F) A.Y.2008-09 IT(SS)A NO. 595/AHD/2011 (REVENU ES APPEAL) 20. GROUNDS ARE REPRODUCED BELOW:- 1. THE LD.CIT(A) HAS ERRED IN LA W AND ON FACTS AND CIRCUMSTANCES OF THE CASE BY DELETING THE ADDITION OF RS.28,05,666/- (RS.28,05,666 IN THE CASE OF SHRI NAVINBHAI N.PATEL) ON ACCOUNT OF SALE OF AMPAD LAND ON THE BASIS OF SEIZED PAPERS. 2. THE LD. CIT(A) HAS FURTHER ERRED IN LAW AND ON FACT S AND CIRCUMSTANCES OF THE CASE BY DELETING THE ADDITION OF RS.65,83,830/- (RS.1,69,27 ,845 IN THE CASE OF SHRI NAVINBHAI N.PATEL) ON ACCOUNT OF GIFT RECEIVED IN KIND. 20.1. AS FAR AS GROUND NO.1 IS CONCERNED, A VIEW HAS ALREADY BEEN TAKEN HEREINABOVE, THEREFORE, FOLLOWING THE SAME THIS GROUND OF THE REVENUE IS HEREBY DISMISSED. 21. APROPOS TO GRO UND NO2, IT WAS NOTED BY THE AO VIDE ORDER U/S.153A R.W.S.143(3) DATED 23/12/2010 T HAT THE ASSESSEE HAD SHOWN A GIFT IN KIND OF EQUITY SHARES OF SUN PHARMACEUTICAL INDUSTR IES. IT WAS NOTED THAT THROUGH A DECLARATION OF GIFT-DEED DATED 07/02/2008 AND IT(SS )A NOS.590 TO 595/A/2011 & 651,616, 626,627,637, 638/AHD/11 CO NOS.12 & 13/AHD /12 & CO NOS 20&21/AHD/12 SHRI KRUPESHBHAI N.PATEL/SH.NAVINBHAI N.PATEL VS. D CIT ASST.YEARS 2006-07 TO 2009- 10 - 27 - 17/03/2008 RESPECTIVELY 3400 SHARES AND 2 300 SHARES WERE GIFTED. ACCORDING TO AO, THE DONOR NAMELY, SHRI JAYANT SANGHAVI IS NOT R ELATED TO THE ASSESSEE. THE AO HAS NOTED THE MARKET VALUE OF THE SHARES WAS AT RS.65,8 3,830/-. THE ASSESSEE HAS PRODUCED THE GIFT-DEEDS AND OTHER EVIDENCES BUT ACCORDING TO AO THOSE WERE NOT THE CONCLUSIVE EVIDENCES. FINALLY, THE VALUE OF THE GIFTED SHARES OF RS.65,83,830/- WAS TAXED. 22. THE ITA NO. 625/AHD/2011 & CO NO. 19/AHD/2012 ASST. YEAR 2008-09 8 MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHO RITY, WHO HAS HELD THAT THE SAID ADDITION BEING MADE ON ACCOUNT OF NON-GENUINENESS OF THE GIF TS WAS NOTHING BUT PART OF THE TOTAL CONSIDERATION IN RESPECT OF THE GOTRI LAND, HENCE T O BE TAXED IN THE YEAR OF TRANSACTION AND THE IMPUGNED AMOUNT WAS DELETED. 23. HAVING HEARD T HE SUBMISSIONS OF BOTH THE SIDES, WE ARE OF THE CONSIDERED VIEW THAT THE AO HAS CONNE CTED THE IMPUGNED GIFT WITH THE SALE OF GOTRI LAND AND THAT ISSUE IS YET TO BE DECIDED I N AY 2009-10, THEREFORE THE LD.CIT(A) HAS RIGHTLY HELD THAT THE GIFT BEING TRANSFERRED I N KIND HENCE NOT TO BE TAXED FOR THE YEAR UNDER CONSIDERATION. WE HEREBY AFFIRM THE FACTUAL A S WELL AS THE LEGAL FINDING OF THE CIT(A), HENCE THIS GROUND OF THE REVENUE IS HEREBY DISMISSED AND APPEAL IS DISMISSED. 8. WE FURTHER OBSERVE THAT TAX APPEAL NO.938 OF 201 2 IN THE CASE OF CIT VS. KRUPESHBHAI N. PATEL WAS DISMISSED BY H ON. JURISDICTIONAL HIGH COURT VIDE ITS ORDER DATED 29 TH APRIL, 2013. THEREFORE, RESPECTFULLY FOLLOWING THE JUDGMENT OF HON. GUJARAT HIGH COURT AND THE DECISION OF THE CO-ORDINATE BENCH, WE ARE OF TH E VIEW THAT LD. CIT(A) HAS RIGHTLY DELETED THE ADDITION OF RS.46,80 ,540/- AS THE GIFT WHICH WAS PART OF THE TOTAL GIFT RECEIVED BY FAMILY MEMBERS AT 4.70 CRORES FORMED PART OF THE UNDISCLOSED SALE CONSIDER ATION OF GOTRI LAND WHICH TOOK PLACE DURING ASST. YEAR 2009-10 AND, THE REFORE, NO ADDITION WAS CALLED FOR DURING ASST. YEAR 2008-09. ACCORDINGLY NO INTERFERENCE IS CALLED FOR WITH THE ORDER OF LD. CI T(A). WE UPHOLD THE SAME. THE GROUND RAISED BY THE REVENUE IS DISMISSED . 9. OTHER GROUND IS GENERAL, HENCE NO ADJUDICATION I S NEEDED. 10. AS THE APPEAL OF RREVENUE IS DISMISSED, THE CRO SS OBJECTION HAS BECOME INFRUCTUOUS. THE CROSS OBJECTION, THEREF ORE, IS ALSO DISMISSED. ITA NO. 625/AHD/2011 & CO NO. 19/AHD/2012 ASST. YEAR 2008-09 9 11. IN THE RESULT, THE APPEAL AND THE CROSS OBJECTI ON BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD MAY, 2016 SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER DATED 3/5/2016 MAHATA/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, AHMEDABAD 1. DATE OF DICTATION: 02/05/2016 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 03/05/2016 OTHER MEMBER: 3. DATE ON WHICH APPROVED DRAFT COMES TO THE SR. P. S./P.S.: 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: __________ 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S./P.S.: 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK:3 /5/2016 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK: 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 9. DATE OF DESPATCH OF THE ORDER: