SHILPI SINGH,FAIZABAD V. INCOME TAX OFFICER, FAIZABAD, FAIZABAD

ITA 653/LKW/2025

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The case involves Shilpi Singh, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) which had dismissed her earlier appeal. The primary contention was regarding the addition of Rs.6,00,000 to her income for the assessment year 2018-19, which was treated as unexplained cash credit under section 69A of the Income Tax Act. The Assessing Officer had initially added this amount to her income, considering it unexplained. However, during the Tribunal's proceedings, it was argued and accepted that the amount represented gifts from her in-laws, which were customary and reasonable under the circumstances. The Tribunal's decision was based on the understanding of social practices in Indian households where monetary gifts are common during significant occasions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 787713 (ITAT-LUCKNOW)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 18-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT KUMAR
• Keywords: Gift
• Section: 147; 148

Judgement Text

"I.T.A. No.653/Lkw/2025 Assessment Year:2018-19 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “SMC”, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.653/Lkw/2025 Assessment year:2018-19 Shilpi Singh Shiva Sadan Krishna Vihar Colony, USRU, Raibareilly Road, Faizabad-224 001 PAN:BHLPS7046F Vs. Income Tax Officer, Faizabad. (Appellant) (Respondent) O R D E R (A) This appeal vide I.T.A. No.653/Lkw/2025 has been filed by the assessee for assessment year 2018-19 against impugned appellate order dated 30/07/2025 (DIN & Order No.ITBA/NFAC/S/250/2025- 26/1079083881(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. (B) The facts of the case, in brief, are that the assessee is an individual and filed her return of income in response to notice under section 148 of the Act, declaring total income of Rs.3,70,220/-. The Assessing Officer completed the assessment and passed assessment order under section 147 read with section 144B of the Act and determined the total income of the Appellant by None Respondent by Shri Amit Kumar, D.R. Printed from counselvise.com I.T.A. No.653/Lkw/2025 Assessment Year:2018-19 2 assessee at Rs.9,70,220/- by making addition of Rs.6,00,000/- under section 69A of the Act. Being aggrieved, the assessee went in appeal before the learned CIT(A). Vide impugned appellate order dated 30/07/20225, the learned CIT(A) has dismissed the appeal of the assessee. Being further aggrieved, the assessee is in appeal before the Income Tax Appellate Tribunal. (C) During the course of hearing before the Income Tax Appellate Tribunal, none was present on behalf of the assessee. In absence of any representation from assessee’s side, learned Departmental Representative was heard and materials on record were perused. The return of income filed by the assessee at Rs.3,70,220/- included Rs.1,83,750/- from house property, Rs.4,099/- income from business and profession, Rs.61,271/- income from Short Term Capital Gain and Rs.2,80,200/- income from other sources. During the assessment proceedings before the Assessing Officer, the assessee vide its reply had submitted that cash deposit of Rs.4,00,000/- in ICICI Bnak account was gifted by her mother-in-law out of natural love and affection and Rs.2,00,000/- was gifted by her father-in-law. There is well known practice in the households of Indian society that the ladies make regular savings out of funds for house hold expenses. Further, ladies and their children are known to receive monetary gifts on important social and family occasions. The amount of Rs.4,00,000/- claimed by the assessee to have been received from her mother-in-law can be easily believed to have been out of accumulated savings of her mother-in-law, in the specific facts and circumstances of the present case, having regard to these traditions in Indian Society, social and financial status of the persons concerned; and in the opinion of Bench, this amount is not excessive or unreasonable in the facts and circumstances of the case. Further, the amount of Rs.2,00,000/- claimed by the assessee to have been received from her father-in-law is also Printed from counselvise.com I.T.A. No.653/Lkw/2025 Assessment Year:2018-19 3 quite acceptable; because in the facts and circumstances of this specific case; having regard to social and financial state of the persons concerned; possibility of medical emergency, etc. this amount is not excessive or unreasonable. It is quite understandable that some reasonable amount of cash is kept at home to meet emergency expenses if and when the occasion arises; as well as for expenses towards medical purposes, education of children, social occasions and other day to day household expenses. In Indian society at important social occasions, such as festivals, birthdays, anniversaries etc., the family members get cash gifts from relatives, friends and acquaintances. The aforesaid total amount of Rs.6,00,000/-; which is claimed by the assessee to have been received from her parents in law, is not an excessively or unreasonably high amount; and is acceptable in the specific facts and circumstances of the present case. Accordingly, the Assessing Officer is directed to delete the aforesaid addition of Rs.6,00,000/- (D) In the result, the appeal of the assessee stands allowed. (Order pronounced in the open court on 18/11/2025) Sd/. (ANADEE NATH MISSHRA) Accountant Member Dated:18/11/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T. Printed from counselvise.com "