Smt. Pooja Sood, New Delhi v. ACIT, New Delhi

ITA 1592/DEL/2012 | 2005-2006
Pronouncement Date: 31-10-2013 | Result: Partly Allowed

Appeal Details

RSA Number 159220114 RSA 2012
Assessee PAN ADXPS7199C
Bench Delhi
Appeal Number ITA 1592/DEL/2012
Duration Of Justice 1 year(s) 6 month(s) 26 day(s)
Appellant Smt. Pooja Sood, New Delhi
Respondent ACIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 31-10-2013
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted F
Tribunal Order Date 31-10-2013
Date Of Final Hearing 22-10-2013
Next Hearing Date 22-10-2013
Assessment Year 2005-2006
Appeal Filed On 04-04-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI U.B.S. BEDI U.B.S. BEDI U.B.S. BEDI U.B.S. BEDI JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NOS SS S. .. .1589/DEL/2012 TO 1595/DEL/2012 1589/DEL/2012 TO 1595/DEL/2012 1589/DEL/2012 TO 1595/DEL/2012 1589/DEL/2012 TO 1595/DEL/2012 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEARS SS S : : : : 2002 2002 2002 2002- -- -03 TO 2008 03 TO 2008 03 TO 2008 03 TO 2008- -- -09 0909 09 SMT. POOJA SOOD SMT. POOJA SOOD SMT. POOJA SOOD SMT. POOJA SOOD S SS S- -- -155 2 155 2 155 2 155 2 ND NDND ND F F F FLOOR LOOR LOOR LOOR PANCHSHEEL PARK PANCHSHEEL PARK PANCHSHEEL PARK PANCHSHEEL PARK NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : PAN : PAN : PAN : ADXPS7199C. ADXPS7199C. ADXPS7199C. ADXPS7199C. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -7 7 7 7 NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEEPAK SINGH ADVOCATE. RESPONDENT BY : SMT. VEENA JOSHI CIT-DR. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VP VPVP VP : : : : THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE O RDER OF LEARNED CIT(A)-I NEW DELHI DATED 30 TH JANUARY 2012 FOR THE AY 2002-03 TO 2008-09. 2. GROUND NO.1 OF THE ASSESSEES APPEALS IN ALL THE YEARS UNDER CONSIDERATION IS AGAINST 20% DISALLOWANCE OUT OF PROFE SSIONAL EXPENSES. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE DERIVES IN COME FROM PROFESSION AS ART CURATOR AND CONSULTANT. THE ASSESSING O FFICER FOUND THAT THE EXPENSES CLAIMED BY THE ASSESSEE ARE NOT FULLY AND PROPERLY VOUCHED AND VERIFIABLE AND THEY MAY ALSO INCLUDE SOME EXPENSES IN THE NATURE OF PERSONAL EXPENSES. HE THEREFORE DISALL OWED 20% OUT OF SUCH EXPENSES. ITA NOS.1589 TO 1595/DEL/2012 2 4. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDES AN D THE FACTS OF THE CASE IN OUR OPINION IT WOULD MEET THE ENDS O F JUSTICE IF DISALLOWANCE IS RESTRICTED TO 10% OF THE EXPENSES CLAIME D. WE ORDER ACCORDINGLY AND DIRECT THE ASSESSING OFFICER TO RE-WORK OUT THE DISALLOWANCE. 5. GROUND NO.2 IS AGAINST THE ADDITION FOR UNEXPLAINE D GIFTS. THE AMOUNT OF ADDITION IN RESPECTIVE YEARS IS AS UNDER:- ASSESSMENT YEAR AMOUNT 2002-03 ` 32 000/- 2003-04 ` 33 000/- 2004-05 ` 33 000/- 2005-06 ` 42 000/- 2006-07 ` 52 000/- 2007-08 ` 2 19 211/- 2008-09 ` 42 000/- + ` 2 50 125/- REGARDING AY 20 REGARDING AY 20 REGARDING AY 20 REGARDING AY 2002 0202 02- -- -03 0303 03 :- 6. IN THIS YEAR THE ASSESSEE HAD RECEIVED THE GIFT OF ` 32 000/- FROM PARENTS - ` 21 000/- ON BIRTHDAY AND ` 11 000/- ON MARRIAGE ANNIVERSARY. 7. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERI AL PLACED BEFORE US. WE FIND THAT AT PAGE 71 OF THE ASSESSEES PAP ER BOOK THERE IS CONFIRMATION FROM SHRI BALDEV RAJ MALHOTRA FATHE R OF THE ASSESSEE WITH REGARD TO GIFT OF ` 21 000/- ON HER BIRTHDAY AND ` 11 000/- ON HER MARRIAGE ANNIVERSARY. IN THE CONFIRMATION IT IS MEN TIONED THAT SHRI BALDEV RAJ MALHOTRA AS WELL AS HIS WIFE BOTH ARE ASSESSED TO INCOME TAX AS WELL AS WEALTH TAX FOR THE LAST 45 YEARS. IT WA S STATED BY THE ITA NOS.1589 TO 1595/DEL/2012 3 ASSESSEES COUNSEL THAT THE PARENTS OF THE ASSESSEE ARE OWNER OF A BIG INDUSTRIAL HOUSE VIZ. WEIKFIELD GROUP OF COMPANIES WH O ARE MANUFACTURER OF FOOD PRODUCTS IN PUNE. THAT THE RET URNED INCOME OF SHRI BALDEV RAJ MALHOTRA FATHER OF THE ASSESSEE FOR TH E AY 2008-09 WAS ` 57 41 316/-. CONSIDERING THE ABOVE WE ARE SATISFIED THAT THE ASSESSEE IS ABLE TO PROVE THE IDENTITY OF THE DONOR CRE DITWORTHINESS OF THE DONOR AS WELL AS GENUINENESS OF THE GIFT. IN VIEW OF THE ABOVE WE FIND NO JUSTIFICATION FOR SUSTAINING THE ADDITION OF ` 32 000/-. THE SAME IS DELETED. AY 2003 AY 2003 AY 2003 AY 2003- -- -04 TO 2006 04 TO 2006 04 TO 2006 04 TO 2006- -- -07 0707 07 :- 8. THE FACTS IN ALL THESE YEARS ARE IDENTICAL TO AY 2 002-03. THE GIFTS OF SMALL AMOUNTS ARE RECEIVED BY THE ASSESSEE FROM HER P ARENTS ON THE OCCASION OF HER BIRTHDAY AS WELL AS MARRIAGE ANNIVERSA RY. FOR THE DETAILED DISCUSSION IN AY 2002-03 WE DO NOT FIND ANY JUSTIFICATION FOR SUSTAINING THE ADDITION ON ACCOUNT OF ALLEGED UNEXPLA INED GIFT FOR AY 2003-04 TO 2006-07. THE SAME ARE DELETED. AY 2007 AY 2007 AY 2007 AY 2007- -- -08 08 08 08 :- 9. THE DETAILS OF GIFT RECEIVED BY THE ASSESSEE AMOUNTIN G TO ` 2 19 211/- ARE GIVEN AT PAGE 3 OF THE ASSESSMENT ORDER. THE SAME IS REPRODUCED BELOW:- DATED PARTICULARS AMOUNT 30.08.2006 GIFT RECEIVED FROM PARENTS ON BIRTHDAY 31 000 07.12.2006 GIFT RECEIVED FROM PARENTS ON MARRIAGE ANNIVERSARY 30 000 14.06.2006 PAYMENT BY SON FOR JEWELLERY SET 51 00 0 07.03.2007 GIFT FROM BROTHER 30 000 31.12.2006 FOREIGN CURRENCY GIFT 77 211 TOTAL 2 19 211 ITA NOS.1589 TO 1595/DEL/2012 4 10. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATER IAL PLACED BEFORE US. FOR THE DETAILED DISCUSSION IN AY 2002-03 WE DIRECT THE ASSESSING OFFICER TO ACCEPT THE GIFT RECEIVED BY THE ASSE SSEE FROM HER PARENTS ON BIRTHDAY AND MARRIAGE ANNIVERSARY. 11. WITH REGARD TO PAYMENT BY THE SON OF THE JEWELLE RY SET WE FIND THAT AT PAGE 83 OF THE PAPER BOOK THERE IS A CONFIR MATION FROM HER SON SIDDHARTHA SOOD READING AS UNDER:- I SIDDHARTHA SOOD AGED 24 YEARS HAVING PAN NO. BHQPS7000G HAS PAID RS.51 000 (RUPEES FIFTY ONE THOUSAND ONLY) TO SHREYA GEMS AND JEWELS ON 14-06-200 6 TOWARDS THE PART COST OF JEWELLERY SET. THE SAID JEWE LLERY WAS PURCHASED AS GIFT ON THE OCCASION OF MY MOTHERS BIRTHDAY CUM 25 TH MARRIAGE ANNIVERSARY. 12. FROM THE ABOVE IT IS EVIDENT THAT SHRI SIDDHART HA SOOD MADE THE PAYMENT OF ` 51 000/- DIRECTLY TO SHREYA GEMS AND JEWELS TOWARDS TH E COST OF JEWELLERY SET WHICH HE PURCHASED AS A GIFT FOR HER MOTHERS 25 TH MARRIAGE ANNIVERSARY. SHRI SIDDHARTHA SOOD IS ASSESSED T O INCOME TAX. CONSIDERING THE OCCASION AND THE FACT THAT SHRI SIDDH ARTHA SOOD IS ASSESSED TO INCOME TAX IN OUR OPINION THERE WAS NO JUST IFICATION FOR TREATING THE GIFT OF JEWELLERY SET WORTH ` 51 000/- TO BE UNEXPLAINED INVESTMENT BY THE ASSESSEE. THE SAME IS DELETED. 13. THAT ANOTHER GIFT OF ` 30 000/- IS BY SHRI MUKESH SATPAL MALHOTRA ANOTHER BROTHER OF THE ASSESSEE. HE HAS ALSO GIVEN THE C ONFIRMATION WHICH IS PLACED AT PAGE 82 OF THE ASSESSEES PAPER BOOK. IN THE CONFIRMATION HE HAS MENTIONED HIS PERMANENT ACCOUNT NUMBER AND HAS ALSO MENTIONED THAT HE IS REGULARLY ASSESSED TO INCOME TAX AS WELL AS WEALTH TAX FOR THE LAST 35 YEARS. IN VIEW OF THE A BOVE WE DO NOT FIND ANY JUSTIFICATION FOR NOT ACCEPTING THE GENUINE NESS OF THE GIFT FROM ITA NOS.1589 TO 1595/DEL/2012 5 ASSESSEES BROTHER OF THE SMALL SUM OF ` 30 000/-. THE ADDITION FOR THE SAME IS DIRECTED TO BE DELETED. 14. WITH REGARD TO FOREIGN CURRENCY GIFT OF ` 77 211/- THE ASSESSEE HAS ENCLOSED THE CONFIRMATION FROM PAGE 84 ONWARDS. H OWEVER THE LEARNED DR HAS RIGHTLY POINTED OUT THAT THE SO-CALLED CONFIRMATION FILED BY THE ASSESSEE FROM ASSESSEES PAPER BOOK PAGE NOS.84 TO 88 ARE NOTHING BUT SOME UNSIGNED DOCUMENT. SHE HAS ALSO POINT ED OUT THAT THE ALLEGED DONORS ARE NEITHER ASSESSED TO INCOME TAX I N INDIA NOR ANY EVIDENCE WITH REGARD TO THEIR CREDITWORTHINESS IS GIVE N. EVEN THE SO- CALLED CONFIRMATIONS ARE NOT SIGNED BY THE DONOR. TH EREFORE NO EVIDENTIARY VALUE CAN BE PLACED ON THE SAME. 15. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDES A ND PERUSING THE MATERIAL PLACED BEFORE US WE ENTIRELY AGREE WIT H THE CONTENTION OF THE LEARNED DR AND HOLD THAT THE ASSESSEE IS NOT ABLE T O DISCHARGE THE ONUS OF PROVING THE FOREIGN CURRENCY GIFT. ACCORDIN GLY OUT OF THE TOTAL ADDITION OF ` 2 19 211/- ON ACCOUNT OF GIFT THE ADDITION IS SUSTA INED AT ` 77 211/-. AY 2008 AY 2008 AY 2008 AY 2008- -- -09 0909 09 :- 16. THAT THE TOTAL ADDITION FOR UNEXPLAINED GIFT IS ` 42 000/- + ` 2 50 125/-. THE GIFT OF ` 42 000/- IS FROM THE PARENTS - ` 21 000/- ON HER BIRTHDAY AND ` 21 000/- ON HER MARRIAGE ANNIVERSARY. FOR THE DETAI LED DISCUSSION IN AY 2002-03 THE GIFT OF ` 42 000/- FROM THE PARENTS IS DIRECTED TO BE ACCEPTED. 17. WITH REGARD TO FOREIGN CURRENCY GIFT OF ` 2 50 125/- THE FACTS ARE SIMILAR TO AY 2007-08. THE SO-CALLED CONFIRMATIONS AR E NEITHER SIGNED BY THE DONOR NOR THERE IS ANY EVIDENCE OF THE SOURCE OF INCOME OR THE ITA NOS.1589 TO 1595/DEL/2012 6 CREDITWORTHINESS OF THE DONOR. WE THEREFORE SUSTAIN THE ADDITION FOR FOREIGN CURRENCY GIFT OF ` 2 50 125/-. 18. IN THE RESULT THE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 31 ST OCTOBER 2013. SD/- SD/- ( (( (U.B.S. BEDI U.B.S. BEDI U.B.S. BEDI U.B.S. BEDI) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 31.10.2013 VK. COPY FORWARDED TO: - 1. APPELLANT : SMT. POOJA SOOD SMT. POOJA SOOD SMT. POOJA SOOD SMT. POOJA SOOD S SS S- -- -155 2 155 2 155 2 155 2 ND NDND ND FLOOR FLOOR FLOOR FLOOR PANCHSHEEL PARK NEW DELHI. PANCHSHEEL PARK NEW DELHI. PANCHSHEEL PARK NEW DELHI. PANCHSHEEL PARK NEW DELHI. 2. RESPONDENT : ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -7 NEW DELHI. 7 NEW DELHI. 7 NEW DELHI. 7 NEW DELHI. 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR