N. Asha Rani, Koraput V. ACIT, Central Circle-1, Bhubaneswar

ITSSA 63/CTK/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6693 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 21-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 09-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HER
• Keywords: Gift; Assessment record
• Section: 201; 20

Judgement Text

P A G E 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI CHANDRA MOHAN GARG , JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT (SS) A NO . 63 /CTK/201 8 ASSESSMENT YEAR : 201 5 - 16 N.ASHA RANI, NEHERU NAGAR, JEYPORE. VS. ACIT, CENTRAL CIRCLE - 1, BHUBANESWAR. PAN/GIR NO. ABRPA 7133 L (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.K.MISHRA , AR REVENUE BY : SHRI SUBHENDU DUTTA, DR DATE OF HEARING : 16 / 10 / 201 9 DATE OF PRONOUNCEMENT : 21 / 10 / 201 9 O R D E R PER C.M.GARG,JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 2 , BHUBANESWAR DATED 10.5.2018 FOR THE ASSESSMENT YEAR 2015 - 16 . 2. THE SOLE ISSUED INVOLVED IN THIS APPEAL IS THAT THE CIT(A) WAS JUSTIFIED IN CONFIRMING THE ADDITION OF RS.4,00,000/ - ON ACCOUNT OF UNEXPLAINED GIFT. 3. THE FACTS OF THE CASE ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS CLAIMED RS.4,00,0 00/ - AS GIFT FROM HIS SON. TO VERIFY THE SAME, THE ASSESSING OFFICER EXAMINED THE ASSESSMENT RECORD OF THE SON OF THE ASSESSEE AND IT(SS)A NO. 63/CTK/2018 ASSESSMENT YEAR : 2015 - 16 P A G E 2 | 4 FOUND THAT THE ASSESSEE DID NOT HAVE SUFFICIENT FUNDS TO MAKE SUCH GIFT. THEREFORE, THE ASSESSING OFFICER DISALLOWED THE SA ME. 4. BEFORE THE CIT(A), THE ASSESSEE FILED A GIFT DEED FROM N.SANDEEP KUMAR(SON) OF THE ASSESSEE AND SUBMITTED THAT HIS SON IS A CHARTERED ACCOUNTANT AT CHENNAI AND HE HAS GIFTED RS.4,00,000/ - TO THE ASSESSEE. HOWEVER, THE CIT(A) OBSERVED THAT OUT OF R S.4,12,225/ - AS DRAWINGS DURING THE YEAR BY THE SON OF THE ASSESSEE, IT IS IMPOSSIBLE TO GIFT RS.4,00,000/ - . HENCE, HE CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. HENCE, THE APPEAL IS IN APPEAL BEFORE THE TRIBUNAL. 6. WE HAVE HEARD THE RIVAL SUBMISS IONS AND PERUSED THE RECORD OF THE CASE. LD A.R. OF THE ASSESSEE FURNISHED A PAPER BOOK SPREAD OVER 66 PAGES, INTER ALIA, COPY OF BANK STATEMENT OF ICICI BANK IN THE NAME OF PAVANI PATNALA AND NARAYANACHETTY SANDEEP KUMAR (SON) OF THE ASSESSEE, COPY OF CA PITAL ACCOUNT STATEMEN TOF N.SANDEEP KUMAR AS ON 31.3.2015 AND I.T.RETURN AND STATEMENT OF INCOME OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2015 - 16. HE REFERRED TO PAGE 20 OF PAPER BOOK AND SUBMITTED THAT ON 5.2.2015 AND 6.2.2015,THE SON HAS WITHDRAWN RS. 2 LAKHS EACH TO GIFT THE AMOUNT TO HIS MOTHER. HE SUBMITTED THAT THE ASSESSING OFFICER HAS DOUBTED THE CREDITWORTHINESS OF THE DONOR WITHOUT ANY BASIS. 7. FROM THE ABOVE, WE FIND THAT THE SON OF THE ASSESSEE WHO IS A CHARTERED ACCOUNTANT HAS GIFTED RS.4 ,00,000/ - AFTER WITHDRAWING THE IT(SS)A NO. 63/CTK/2018 ASSESSMENT YEAR : 2015 - 16 P A G E 3 | 4 AMOUNT FROM JOINT ACCOUNT WITH PAVANI PATNALA AND NARAYANACHETTY SANDEEP KUMAR MAINTAINED WITH ICICI BANK NO.064101504405 (COPY OF CERTIFICATE AND STATEMENT OF ICICI BANK PLACED AT ASSESSEES PAPER BOOK ON RECORD) . 8 . IN THE MATTER OF GIFT, THE ASSESSEE IS REQUIRED TO DISCHARGE THE ONUS OF SUBMITTING COMPLETE DETAIL OF GIFTS BEFORE THE AO. HE SHOULD HAVE ESTABLISHED (I) THE IDENTITY OF THE DONOR; (II) CREDITWORTHINESS OF THE DONOR; (III) GENUINENESS OF THE TRANSACTION; ( I V) RELATIONSHIP OF THE DONOR AND DONEE; (V) EVIDENCE OF NATURAL LOVE AND AFFECTION . FROM THE DETAILS FILED BY THE ASSESSEE BEFORE US, W E ARE SATISFIED ABOUT THE DOCUMENTS FILED BEFORE THE AO/ CIT(A) ESTABLISHING THE TRANSACTIONS OF GIFT TO THE ASSESSEE BY HER SON TO BE GENUINE , HENCE, (I) THE IDENTITY IS PROVED, (II)& (III) BANK STATEMENT (THE TRANSACTION OF GIFT IS SHOWN IN THE RETURN OF INCOME OF THE DONOR) OF THE ASSESSEE PROVES THE CREDITWORTHINESS OF THE DONOR AND GENUINENESS OF TRANSACTION AND (IV) THE RELATION BETWEEN DONOR AND DONE IS MOTHER AND SON, LASTLY, SINCE THE SON HAS GIFTED THE AMOUNT TO HIS MOTHER, IT PROVES THE LOVES AND AFFECTION. WE FIND THAT ONLY GIFT DEED WAS NOT FILED BEFORE THE AUTHORITIES BELOW. HOWEVER, THE GIFT DEED FILED BEFORE US SEEMS TO A LETTER OF CONFIRMATION BY THE SON. IN VIEW OF ABOVE, WE RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE GIFT DEED/CONFIRMATION LETTER OF THE DONOR NOW FILED BEFORE US AND DECIDE THE IT(SS)A NO. 63/CTK/2018 ASSESSMENT YEAR : 2015 - 16 P A G E 4 | 4 ISSUE AFRESH IN ACCORDANCE WITH LAW. NEEDLESS TO SAY, THAT THE ASSESSEE SHOULD BE PROVIDED REASONABLE OPPORTUNITY OF HEARING. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 21 / 10 /201 9 . S D/ - SD/ - (LAXMI PRASAD SAHU) ( CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER CUTTACK; DATED 21 / 10 /20 9 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER SR . PVT. S ECRETARY ITAT, CUTTACK 1. THE APPELLANT : N.ASHA RANI, NEHERU NAGAR, JEYPORE 2. THE RESPONDENT. ACIT, CENTRAL CIRCLE - 1, BHUBANESWAR. 3. THE CIT(A) - 2 , BHUBANESWAR 4. PR.CIT - 2 , BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//