The ITO, Indore v. Shri Sunder Singh Bhatia,, Indore

ITA 460/IND/2009 | 2006-2007
Pronouncement Date: 25-05-2010 | Result: Dismissed

Appeal Details

RSA Number 46022714 RSA 2009
Assessee PAN ABSPB5590M
Bench Indore
Appeal Number ITA 460/IND/2009
Duration Of Justice 8 month(s) 7 day(s)
Appellant The ITO, Indore
Respondent Shri Sunder Singh Bhatia,, Indore
Appeal Type Income Tax Appeal
Pronouncement Date 25-05-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 25-05-2010
Assessment Year 2006-2007
Appeal Filed On 18-09-2009
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE BEFORE SHRI JOGINDER SINGH JUDICIAL MEMBER AND SHRI V.K. GUPTA ACCOUNTANT MEMBER ITA NO.460/IND/09 A.YS. 2006-07 INCOME TAX OFFICER 4(1) INDORE APPELLANT VS SUNDER SINGH BHATIA INDORE PAN- ABSPB 5590M RESPONDENT APPELLANT BY : SMT. APARNA KARAN SR. DR RESPONDENT BY : SHRI S.S. DESHPANDE ALONG WIT H SHRI PIYUSH MANDOVRA O R D E R PER JOGINDER SINGH JM THIS APPEAL IS BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(A) DATED 25.6.2009 ON THE EFFECTIVE GROUND THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) WAS NOT JUSTIF IED IN DELETING THE ADDITION OF RS. 21 10 000/- MADE BY THE ASSESSING O FFICER ON ACCOUNT OF UN-EXPLAINED DEPOSITS IN THE FORM OF NON-GENUINE GI FTS. 2 2. DURING HEARING OF THIS APPEAL MRS. APARNA KARAN THE LEARNED SR. DR STRONGLY DEFENDED THE ASSESSMENT ORD ER BY CONTENDING THAT THE ALLEGED GIFT CLAIMED TO HAVE BEEN RECEIVED BY THE ASSESSEE FROM HER SISTER IS NOT SUBSTANTIATED WITH DOCUMENTARY EV IDENCE AND THE YOUNGER BROTHER OF THE ASSESSEE DID NOT RECEIVE ANY GIFT FROM HIS SISTERS ESPECIALLY WHEN FATHER OF THE ASSESSEE ACCUMULATED THE FUNDS FOR THE MARRIAGE AND OTHER EXPENSES TO BE GIVEN TO THE DAUG HTERS. IT WAS SUBMITTED THAT IT WAS THE OWN MONEY OF THE ASSESSEE WHICH WAS ROUTED THROUGH SISTERS SIMPLY TO DEFRAUD THE REVENUE. ON THE OTHER HAND SHRI S.S. DESHPANDE THE LD. COUNSEL FOR THE ASSESSEE S TRONGLY DEFENDED THE IMPUGNED ORDER BY CONTENDING THAT THE AMOUNT OF RS. 21 10 000/- WAS RECEIVED FROM FIVE SISTERS AND TWO SISTERS DULY APPEARED BEFORE THE ASSESSING OFFICER AND FILED THEIR COPIES OF BANK AC COUNTS AND ALSO THEIR STATEMENTS WERE RECORDED WHEREIN IT WAS SPECIFICALL Y ADMITTED BY THEM THAT THE GIFT WAS GIVEN TO THE ASSESSEE. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF LD. REPRESENTATIVES OF BOTH SIDES AND PERUSED THE MATER IAL AVAILABLE ON RECORD. THE ONLY ISSUE BEFORE US IS ABOUT GENUINEN ESS OF THE GIFTS RECEIVED BY THE ASSESSEE FROM HIS SISTERS. WE HAVE FOUND THAT THE ASSESSEE VIDE LETTER DATED 8.2.2008 FULLY EXPLAINED THE RECEIPT OF GIFT BY ESTABLISHING THE IDENTITY GENUINENESS AND CREDIT W ORTHINESS OF THE DONORS. THE STATEMENT OF SMT. VIDYA RANI BHATIA W AS RECORDED BY THE 3 ASSESSING OFFICER WHEREIN SHE HAS CATEGORICALLY TEN DERED THAT THE GIFT WAS GIVEN BY HER TO HIS BROTHER. IN THE STATEMENT SHE HAS ALSO EXPLAINED THE SOURCE OF THE AMOUNT. A GIFT DEED WAS ALSO EXE CUTED BETWEEN THE DONOR AND THE DONEE AND THE AMOUNT WAS ROUTED THROU GH BANKING CHANNEL. THE GIFT WAS ALSO WITHOUT CONSIDERATION TO THE DONEE. THE DONORS HAVE CONFIRMED THE GIVING OF GIFT THROUGH DE CLARATION OF GIFT IN WRITING. WE HAVE FOUND THAT THE NECESSARY CONDITIO NS FOR A VALID GIFT ARE FULFILLED. IN THE PRESENT APPEAL THE IDENTITY OF TH E DONOR/CREDITOR IS ESTABLISHED BEING THE SISTER OF THE ASSESSEE AND TH E AMOUNTS/GIFTS WERE GIVEN FROM THE BALANCE AMOUNT OUTSTANDING IN THE BO OKS OF THE FIRM M/S RAMSINGH & COMPANY AND THE ACCOUNTS OF ALL THE SIST ERS ARE APPEARING IN THE FIRM FOR THE LAST MORE THAN 20 YEARS. THE G IFTS WERE MADE THROUGH ACCOUNT PAYEE CHEQUES THEREFORE THE PAYMENT OF GI FT IS ALSO NOT IN DOUBT THEREFORE THERE IS NO REASON TO DOUBT THE G ENUINENESS OF SUCH GIFTS CONSEQUENTLY THESE CANNOT BE TREATED AS UNE XPLAINED THEREFORE WE HAVE FOUND NO INFIRMITY IN THE STAND OF THE LEAR NED COMMISSIONER OF INCOME TAX (APPEALS) ESPECIALLY WHEN NOTHING HAS B EEN BROUGHT ON RECORD BY THE REVENUE EITHER CONTRADICTING THE CLAI M OF THE ASSESSEE OR PROVING THAT OWN MONEY OF THE ASSESSEE WAS ROUTED T HROUGH THE ACCOUNTS OF THE SISTERS WHO MADE THE GIFTS. EVEN TH ERE IS NO FINDING IN THE ASSESSMENT ORDER THAT BEFORE MAKING THE GIFT A NY CASH WAS DEPOSITED IN THE ACCOUNTS OF THE SISTERS BY THE ASS ESSEE. IN VIEW OF 4 THESE FACTS THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS AFFIRMED. FINALLY THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN IN THE PRESENCE OF LEARNED REPRESENTATIVES OF BOTH THE SIDES AT THE CONCLUSION OF THE HEARING ON 25 TH MAY 2010. SD/- SD/- (V.K. GUPTA) (JOGINDER SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MAY 25 2010 COPY TO: APPELLANT RESPONDENT CIT CIT(A) DR G UARD FILE *DBN/