Smt. Sheetal, Hyderabad v. ACIT, Central Circle-4, Hyderabad

ITA 1596/HYD/2012 | 2008-2009
Pronouncement Date: 31-07-2014 | Result: Allowed

Appeal Details

RSA Number 159622514 RSA 2012
Bench Hyderabad
Appeal Number ITA 1596/HYD/2012
Duration Of Justice 1 year(s) 9 month(s) 14 day(s)
Appellant Smt. Sheetal, Hyderabad
Respondent ACIT, Central Circle-4, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 31-07-2014
Assessment Year 2008-2009
Appeal Filed On 17-10-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN JUDICIAL MEMBER ITA.NO.1596/HYD/2012 ASSESSMENT YEAR 2008-2009 SMT. SHEETAL HYDERABAD PAN AFFPM-4426-E VS. ACIT CENTRAL CIRCLE-4 HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE MR. B. SAI PRASAD FOR REVENUE MR. SOLGY JOSE T. KOTTARAM DATE OF HEARING 24.07.2014 DATE OF PRONOUNCEMENT 31.07.2014 ORDER PER SMT. ASHA VIJAYARAGHAVAN J.M. THIS APPEAL IS BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)-VII HYDERABAD DATED 30.08.2012 FOR THE ASSESSMENT YEAR 2008-2009. ONLY ISSUE IN THIS APPEA L IS WITH REFERENCE TO CONFIRMATION OF GIFT RECEIVED WHICH WA S ALREADY OFFERED BY ASSESSEE. 2. ASSESSEE FILED RETURN OF INCOME ON 14 TH AUGUST 2008 DECLARING INCOME AS UNDER : OTHER SOURCES INTEREST RECEIPTS 2 644 VALUE OF DIAMOND JEWELLERY RECEIVED AS GIFT FROM A DISTANT RELATIVE OFFERED AS INCOME IN THE ABSENCE O F EVIDENCE OF GIFT. 2 25 000 2 27 644 LESS: DEDUCTION UNDER CHAPTER VI-A PPF 70 000 2 ITA.NO.1596/HYD/2012 SMT. SHEETAL HYDERABAD. TOTAL 1 57 644 OR TOTAL INCOME 1 57 640 2.1. THERE WAS SEARCH AND SEIZURE OPERATION ON 29 TH JANUARY 2009. THE A.O. COMPLETED THE ASSESSMENT UN DER SECTION 143(3) READ WITH SECTION 153C ON 31 ST DECEMBER 2010 DETERMINING TOTAL INCOME AT RS.9 31 269/-. WHILE DO ING SO HE ADDED FOLLOWING : GIFT OF JEWELLERY RECEIVED 2 25 000 DIFFERENCE IN REVALUATION OF GOLD 5 48 629 ----------- 7 73 629 ----------- 2.2. ASSESSING OFFICER ADDED A SUM OF RS.2 25 000/ - AS GIFT RECEIVED WHEN THE ASSESSEE HAD ALREADY DECLARE D THE SUM IN THE ORIGINAL RETURN OF INCOME. AGGRIEVED ASSESS EE PREFERRED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) AT PAR A 6 HELD AS FOLLOWS : 6.0. THE NEXT GROUND OF APPEAL RELATES TO ADDITION OF RS.2 25 000/- ON ACCOUNT OF UNEXPLAINED CREDIT IN T HE FORM OF GIFTS RECEIVED AND RELATED TO THE AY 2008-09. WHILE COMPUTING THE TAXABLE INCOME FOR THE AY 08-09 THE A.O. HAS TREATED THE AMOUNT OF RS.7 73 629/- CREDITED INTO THE CAPITAL ACCOUNT OF THE APPELLANT AS UNEXPLAINED CREDITS AN D ASSESSED TO TAX. WHILE MAKING THE ADDITION THE A.O . HAD TAKEN THE VIEW THAT THE AMOUNT REPRESENTED THE INCR EASE IN VALUATION OF THE JEWELLERY THAT HAS BEEN CREDITED T O THE CAPITAL ACCOUNT WHICH IS NOT ALLOWABLE. HOWEVER ON EXAMINATION OF THE INFORMATION IT HAS BEEN REVEALE D THAT ONLY A PORTION OF THE AMOUNT REPRESENT THE INCREASE IN VALUE IN JEWELLERY TO THE EXTENT OF RS.5 48 629/- AND THE BALANCE OF RS.2 25 000/- REPRESENT THE VALUE OF JEWELLERY RECE IVED AS GIFT BY THE APPELLANT DURING THE YEAR UNDER CONSIDE RATION. THE APPELLANT HAS SUBMITTED THAT THE AMOUNT OF GIFT RECEIVED WAS REFLECTED IN THE L.T. RETURNS FILED AND AS SUCH THERE IS NO BASIS AND REQUIREMENT FOR TREATING IT AS THE UNEXPL AINED CREDIT. ACCORDINGLY THE APPELLANT HAS RAISED SEPAR ATE GROUND RELATED TO THE ADDITION. HOWEVER THE APPELLA NT NEITHER EXPLAINED NOR SUBSTANTIATED SUCH GIFT EITH ER AT THE 3 ITA.NO.1596/HYD/2012 SMT. SHEETAL HYDERABAD. STAGE OF ASSESSMENT PROCEEDINGS OR AT THE STAGE OF APPEALS WITH THE HELP OF CONFIRMATION OR NECESSARY PROOF ON RECEIPT OF GIFT. THUS THE GIFT REPRESENTS THE CREDIT TO THE A CCOUNTS OF THE APPELLANT UNLIKE THE CREDITS MADE IN THE CAPITAL A CCOUNT IN THE FORM OF ENHANCED VALUE OF JEWELLERY AND FOR THE SAID REASONS THE RESPONSIBILITY HAS BEEN CAST ON THE AP PELLANT TO SUBSTANTIATE SUCH CREDIT ALONG WITH THE PROOF. HOWE VER IN THIS REGARD IT IS HELD THAT THE APPELLANT FAILED T O EXPLAIN THE SAME WITH THE HELP OF PRECISE INFORMATION/EVIDENCE AND THEREBY ATTRACTED THE PROVISIONS OF SECTION 68. SIN CE THE CREDITS IN THE FORM OF GIFT OF JEWELLERY VALUATED AT RS.2 25 000/- CAN BE HELD AS UNEXPLAINED CREDIT AS IT STOOD UNEXPLAINED AND THE PROVISIONS OF SECTION 68 ARE HELD TO BE CLEARLY ATTRACTED. ACCORDINGLY THE UNEXPLAIN ED CREDIT TO THE EXTENT OF RS.2 25 000/-IN THE FORM OF JEWELL ERY RECEIVED AS GIFT IS TREATED AS UNACCOUNTED INCOME O F THE APPELLANT IN ABSENCE OF ANY EVIDENCE AND THE ADDITI ON MADE TO THE EXTENT OF RS.2 25 000/- REPRESENTING TH E GIFTS GET CONFIRMED OUT OF THE TOTAL ADDITION OF RS.7 73 629/- MADE BY THE A.O. FOR AY 2008-09 ACCORDINGLY THIS GROUND OF APPEAL IS DISMISSED. 3. AGGRIEVED ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES. WE FIND THAT TH E LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.2 25 000/- AS REPRESENTING UNEXPLAINED CREDIT. T HE LD. CIT(A) HAS MISSED THE FACT THAT THE SAID AMOUNT OF RS.2 25 000/- WAS ALSO OFFERED BY THE ASSESSEE AS I NCOME FOR THE PRESENT A.Y. 2008-2009 AND IT PAID TAXES THEREO N AND HENCE WE ALLOW ASSESSEES APPEAL AS THE AMOUNT HAS ALREADY BEEN OFFERED BY THE ASSESSEE AND INADVERTENTLY THE LD. CIT(A) HAS MISSED TO TAKE NOTE OF THIS FACT. 5. IN THE RESULT ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31.07.2014. SD/- SD/- (B.RAMAKOTAIAH) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD DATED 31 ST JULY 2014 VBP/- 4 ITA.NO.1596/HYD/2012 SMT. SHEETAL HYDERABAD. COPY TO 1. SMT. SHEETAL 13-6-433/157 NATAJI NAGAR COLONY MEHDIPATNAM HYDERABAD. 2. ACIT CENTRAL CIRCLE-4 HYDERABAD. 3. CIT(A)-VII HYDERABAD 4. CIT (CENTRAL) HYDERABAD 7. D.R. B BENCH ITAT HYDERABAD.