Smt. Rekha Garg, Yamunanagar v. ITO, Yamunanagar

IN THE INCOME TAX APPELLATE TRIBUNAL: B BENCH: CH ANDIGARH BEFORE HONBLE SHRI D K SRIVASTAVA AM AND HONBLE MS. SUSHMA CHOWLA JM ITA NO. 22/CHANDI/2011 ASSESSMENT YEAR: 2006-07 SMT. REKHA GARG V I.T.O. W-4 YAMUNANAGAR MODEL TOWN YAMUNANAGAR PAN: AAZPG 2167 R APPELLANT BY: SHRI TEJ MOHAN SINGH ADVOCATE RESPONDENT BY: SMT. SARITA KUMARI DR ORDER D K SRIVASTAVA: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A) ON 28.10.10 ON THE FOLLOW ING GROUNDS: 1 THAT THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS IN UPHOLDING AN ADDITION OF RS. 2 99 145/- MADE BY AO ON ACCOUNT OF INCOME EARNED FROM UNDISCLOSED SOURCES WHICH IS ARBITRARY AND UNJUSTIF IED. 2 THAT THE SON OF THE APPELLANT HAVING DEPOSED BY WAY OF AN AFFIDAVIT THAT HE HAD GIVEN A GIFT TO HIS MOTHER HAS NOT BEEN APPR ECIATED IN THE CORRECT PERSPECTIVE AND AS SUCH THE ADDITION UPHELD IS BASE D ONLY ON SUSPICION AND SURMISES WITHOUT APPRECIATION OF THE DOCUMENTARY EV IDENCE WHICH OUGHT TO BE DELETED. 3 THAT THE ORDER OF THE LD. CIT(A) IS ERRONEOUS A RBITRARY OPPOSED TO LAW AND FACTS OF THE CASE AND IS THUS UNTENABLE. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE FILED HER RETURN OF INCOME FOR THE YEAR UNDER APPEAL ON 30.10.2006 RETU RNING TOTAL INCOME AT RS.3 25 471. THE RETURN WAS TAKEN UP FOR SCRUTINY. IN THE COURSE OF SCRUTINY THE AO NOTICED THAT THE ASSESSEE HAS RECEIVED GIFT AMOUNTING TO RS. 39 35 4 21/- FROM HER SON SHRI VISHWAS GARG. THE AO CALLED UPON THE ASSESSEE TO ESTABLISH THE GE NUINENESS OF GIFT. AFTER HEARING THE ASSESSEE THE AO ACCEPTED THE GENUINENESS OF GIFT E XCEPT TO THE EXTENT OF RS. 2 99 145/-. THE GIFT TO THE EXTENT OF RS. 2 99 145/- WAS NOT AC CEPTED BY THE AO ON THE GROUND THAT THE ASSESSEE HAS NOT BEEN ABLE TO SATISFACTORILY EX PLAIN THE SOURCE OF A SUM OF RS. 2 99 145/- DEPOSITED IN HER BANK ACCOUNT. 3. ON APPEAL BEFORE THE CIT(A) THE ASSESSEE FILED COPY OF ACCOUNT STATEMENT JOINTLY HELD BY HER SON WITH HIS WIFE MRS. MANISHA GARG IN HSBC BANK FROM WHERE A SUM OF RS. 2 99 145/- (RS. 3.00 LAKHS - RS. 855/- BEING BANK C HARGES) WAS TRANSFERRED TO THE BANK ACCOUNT HELD BY HER SON SHRI VISHWAS GARG IN UCO BA NK YAMUNANAGAR AND FROM WHERE SMT. REKHA GARG I.T.A NO. 22/CHANDI/2011 2 THE IMPUGNED GIFT WAS GIVEN. THE LD. CIT(A) HOWEVER HELD THAT THE MERE STATEMENT OF BANK ACCOUNT DOES NOT ESTABLISH THE GENUINENESS OF THE GIFT. 4. AGGRIEVED BY THE ORDER PASSED BY THE LD. CIT(A) THE ASSESSEE IS NOW IN APPEAL BEFORE THIS TRIBUNAL. IN SUPPORT OF THE APPEAL THE LD. COUNSEL FOR THE ASSESSEE HAS FILED A PAPER-BOOK CONTAINING INTER-ALIA THE SUBMISSIONS MA DE BY THE ASSESSEE BEFORE THE AO AND THE LD. CIT(A) INCLUDING A COPY OF THE AFFIDAVI T OF HER SON CONFIRMING THE GIFT AND A COPY OF BANK ACCOUNT OF MRS. MANISHA GARG FROM WHER E THE IMPUGNED SUM WAS TRANSFERRED TO THE BANK ACCOUNT OF HER SON AND FROM WHERE THE GIFT WAS EVENTUALLY GIVEN TO HER BY HER SON. 4. IN REPLY THE LD. DR SUPPORTED THE ORDER PASSED BY THE LD. CIT(A). SHE SUPPORTED THE ORDER PASSED BY THE CIT(A). IN SUPPORT OF THE O RDER OF CIT(A) SHE RELIED ON SEVERAL JUDGMENTS E.G. (1) LALCHAND KALRA V CIT 22 CTR 13 5 (1981); (2) SUBHASH CHANDRA SEKHRI V DCIT 290 ITR 300 (P & H); (3) TIRATH RAM GUPTA V CIT 304 ITR 145 (P&H). 5. WE HAVE HEARD BOTH THE PARTIES. IT IS A CASE WHE RE SON HAS GIVEN GIFT TO HIS MOTHER. THE SON HAS FILED NOT ONLY HIS AFFIDAVIT CO NFIRMING THE GIFT BUT ALSO A COPY OF HIS BANK ACCOUNT SUPPORTING THE GIFT. A SUM OF RS. 3.00 LAKHS WAS TRANSFERRED FROM THE BANK ACCOUNT OF MRS. MANISHA GARG JOINTLY HELD WITH HER HUSBAND SHRI VISHWAS GARG TO THE BANK ACCOUNT IN UCO BANK OF HER HUSBAND I.E. SON OF THE ASSESSEE FROM WHERE THE IMPUGNED GIFT WAS MADE BY CHEQUE. ALL THE RELEVANT LINKS ESTABLISHING THAT THE IMPUGNED SUM WAS GIVEN TO THE ASSESSEE BY HER SON HAVE BEEN SATISFACTORILY EXPLAINED. THERE IS NO MATERIAL ON RECORD TO HOLD THAT THE IMPUGNED GIFT I S NOT GENUINENESS. IN THIS VIEW OF THE MATTER THE APPEAL FILED BY THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED ON 28 FEBRUARY 2011 SD/- SD/- (SUSHMA CHOWLA) (D K SRIVASTAVA) JUDICIAL MEMBER ACCOUNTANT MEMBER CHANDIGARH: THE 28 FEBRUARY 2011 SURESH COPY TO: 1. THE APPELLANT SMT. REKHA GARG YAMUNANAGAR 2. THE RESPONDENT I.T.O. W-4 YAMUNANAGAR 3. THE LD CIT(A) KARNAL 4. THE LD. CIT KARNAL 4. THE D.R INCOME-TAX DEPARTMENT CHANDIGARH TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT CHANDIGARH SMT. REKHA GARG I.T.A NO. 22/CHANDI/2011 3