Sh Harcharan SIngh, New Delhi v. ITO, New Delhi

ITA 1452/DEL/2010 | 2002-2003
Pronouncement Date: 30-07-2010 | Result: Allowed

Appeal Details

RSA Number 145220114 RSA 2010
Assessee PAN ARRPS5413M
Bench Delhi
Appeal Number ITA 1452/DEL/2010
Duration Of Justice 3 month(s) 25 day(s)
Appellant Sh Harcharan SIngh, New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 30-07-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 30-07-2010
Date Of Final Hearing 28-07-2010
Next Hearing Date 28-07-2010
Assessment Year 2002-2003
Appeal Filed On 05-04-2010
Judgment Text
ITA NO. 1452/DEL/2010 A.Y. 2002-03 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI I.P. BANSAL JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER I.T.A. NO. 1452/DEL/2010 A.Y. : 2002-03 SH. HARCHARAN SINGH 7 KAPIL VIHAR PITAMPURA NEW DELHI (PAN: ARRPS5413M) VS. ITO WARD 25(1) VIKAS BHAVAN NEW DELHI (APPELLANT ) (RESPONDENT ) ASSEESSEE BY : SH. DV TANEJA FCA DEPARTMENT BY : SMT. MONA MOHANTY SR. D.R. PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 19.1.201 0 PERTAINING TO ASSESSMENT YEAR 2002-03. 2. THE ISSUE RAISED IS THAT THE LD. COMMISSIONER O F INCOME TAX (APPEALS) ERRED IN SUSTAINING THE ADDITION OF RS. 56 052/-. 3. IN THIS CASE ASSESSING OFFICER FOUND THAT ASSE SSEE HAS RECEIVED GIFTS WORTH OF RS. 4 55 000/- FROM HIS FRIENDS IN USA. ON EN QUIRY ASSESSING OFFICER FOUND THAT THESE GIFTS WERE RECEIVED FROM SHRI RAM NARAIN AND SHRI LOKESH BAJAJ WHO WERE OLD AND GOOD FRIENDS OF THE ASSESSEE AND WERE SETTLED IN FLORIDA USA. EVIDENCE IN THE FORM OF CONFIRMATION IDENTITY PROO FS BANK CERTIFICATE FOR ITA NO. 1452/DEL/2010 A.Y. 2002-03 2 TRANSFERRING OF FUNDS WERE PLACED ON RECORD. HOWEV ER WHILE EXAMINING THE SAME ASSESSING OFFICER FOUND THAT NO CONFIRMATION WAS F ILED FROM SHRI LOKESH BAJAJ FROM WHOM THE GIFT OF RS. 56 052/- WAS SHOWN TO HAV E BEEN RECEIVED. ACCORDINGLY HE ADDED THE AMOUNT IN THE INCOME OF TH E ASSESSEE. 4. BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEA LS) ASSESSEE SUBMITTED (A) A COPY OF DECLARATION OF GIFT FROM THE DONOR SH RI LOKESH BAJAJ; (B) COPY OF CERTIFICATE OF FOREIGN INWARD REMITTANCE OF US$1200 ; AND (C) COPY OF ID CARD OF SHRI LOKESH BAJAJ ISSUED BY STATE OF FLORIDA (USA). LD. COMMISSIONER OF INCOME TAX (APPEALS) NOTED THAT ASSESSEE WAS ASKED TO SUBM IT THE CREDITWORTHINESS OF THE DONOR. LD. COMMISSIONER OF INCOME TAX (APPEAL S) FOUND THAT NO BANK STATEMENT OF THE DONOR OR ANYTHING ELSE EXPLAINING THE SOURCE OF INCOME TO SUPPORT THE CREDITWORTHINESS HAVE BEEN PRODUCED. H E ALSO OBSERVED THAT THERE WAS NO IOTA OF NATURAL LOVE AND AFFECTION BETWEEN T HE TRANSFERRING PARTIES. ACCORDINGLY HE CONFIRMED THE ADDITION. 5. AGAINST THIS ORDER THE ASSESSEE IS IN APPEAL BEF ORE US. 6. LD. COUNSEL OF THE ASSESSEE REFERRED TO THE RECE NT DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF C.I.T. VS . KUSUM GUPTA IN ITA NO. 831/2010 WHEREIN VIDE ORDER DATED JULY 16 2010 FOLLOWING WA S HELD :- IN OUR OPINION AS GIFTS WERE MADE BY WAY OF REGIS TE5RED GIFT DEEDS AS WELL AS PAYMENTS WERE MADE BY WAY OF ACCOUNT PAYEE CHEQU ES AND BOTH THE DONORS ARE INCOME TAX ASSESSES IT CANNOT BE SAID THAT THE GIFTS ARE NOT GENUINE. RESULTANTLY THE APPEAL STANDS DISMISS ED IN LIMINE BUT WITH NO ORDER AS TO COSTS. ITA NO. 1452/DEL/2010 A.Y. 2002-03 3 6.1 HE FURTHER PRODUCED A COPY OF THE DECISION OF THE HONBLE DELHI HIGH COURT IN ITA NO. 621/2009 IN THE CASE OF UJJAGAR SINGH O BEROI VIDE ORDER DATED 4.9.2009. THE HONBLE HIGH COURT HAS HELD AS UNDE R:- CERTAIN GIFTS AND DONATIONS WERE GIVEN TO THE ASSE SSEE BY THE PERSONS CLOSELY KNOWN TO HIM. HE HAD PROVIDED THE PARTICULARS OF THO SE PERSONS WHO ARE RESIDENT OF EITHER USA OR UK. TOTAL GIFTS/DONATIONS SEVEN IN NUMBER AMOUNTED TO RS. 16 38 539/- ONLY WHICH WOULD BE MUCH NEGLIGIBLE IN T ERMS OF US DOLLOARS OR STERLING. THOSE DONOS NOT ONLY CONFIRM HAVING GIVEN THE GIFTS BY FILING THE AFFIDAVITS IN ORDER TO PROVE THEIR CREDITWORTHINESS . THEY HAD EVEN SUBMITTED THEIR INCOME TAX RETURN AS WELL. THE FINDING OF FAC T IS ARRIVED AT BY C.I.T.(A) WHICH IS CONFIRMED BY ITAT AS WELL THAT THE IDENTITY AND CREDITWORTHINESS OF THESE PERSONS HAS BEEN ESTABLISHED AND IT IS ALSO ESTABLI SHED THAT THERE ARE CLOSE FRIENDS/ RELATIONS OF THE ASSESSEE. THESE ARE PURE FINDINGS OF FACT. 6.2 LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HA ND PLACED RELIANCE UPON SEVERAL CASE LAWS INCLUDING THAT OF HONBLE APEX C OURT DECISION IN THE CASE OF C.I.T. VS. P. MOHANKALA 291 ITR 288(SC) AND HONB LE DELHI HIGH COURT DECISION IN THE CASE OF RAJIV TONDON VS. C.I.T. 294 ITR 488. 7. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. WE FIND THAT THE AMOUNT INVOLVED IS VERY MEAGER. IN THIS CASE THE ASSESSEE HAS RECEIVED GIFT OF RS. 4.55 LAKHS FROM HIS FRIENDS SHRI RAM NARAIN AND SHRI LOKESH BAJAJ. ASSESSING OFFICER HAS ACCEPTED ALL THE AMOUNTS EXCEPT A SUM OF RS. 56 052/- FROM SHRI LOKESH BAJAJ FOR THE REASON THAT NO CONFIRMATION WAS FILED BY HIM. THE NECESSARY CONFIRMATION AND RELEVANT PAPERS WERE F ILED BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS). HOWEVER LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS CONTENDED THAT CREDITWORTHINESS OF THE DONOR IS NOT PROVED AND THERE CANNOT BE ANY NATURAL LOVE AND AFFECTION BETWEEN THE DONOR AND THE DONE. THE CASE LAWS FROM HONBLE JURISDICTIONAL HI GH COURT DO NOT FULLY HELP THE ASSESSEE AS IN THOSE CASES INCOME TAX RETURN OF DON OR WAS ALSO FILED. ITA NO. 1452/DEL/2010 A.Y. 2002-03 4 7.1 UPON CAREFUL CONSIDERATION WE FIND THAT REVENU E HAS ACCEPTED THE MAJOR CHUNK OF THE AMOUNT FROM OTHER FRIENDS OF THE ASS ESSEE WHILE THE PRESENT GIFT IS NOT BEING ACCEPTED BY THE ASSESSING OFFICER AS THE NECESSARY CONFIRMATIONS WERE NOT PRODUCED BEFORE HIM. THOUGH CERTAIN DOCUMEN TS WERE FILED BEFORE THE LD. C.I.T.(A) HE OBSERVED THAT CREDITWORTHINESS IS NOT PROVED. IN OUR CONSIDERED OPINION INTEREST OF JUSTICE WILL BE SERVED IF THE MATTER IS REMITTED TO THE FILES OF THE ASSESSING OFFICER TO CONSIDER THE ISSUE AFRESH . THE ASSESSING OFFICER SHALL ALSO CONSIDER DOCUMENTS AND SUBMISSIONS MADE BY THE ASS ESSEE SUBSEQUENT TO THE PASSING OF ASSESSMENT ORDER AND OTHER DOCUMENTS AS REQUIRED. 8. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30/07/2010. SD/- SD/- [I.P. BANSAL] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE 30/07/2010 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES