Shri Zubin Nariman Bhatporia, Surat v. The ACIT.,Circle-8,, Surat

ITA 23/AHD/2013 | 2009-2010
Pronouncement Date: 04-10-2013 | Result: Partly Allowed

Appeal Details

RSA Number 2320514 RSA 2013
Assessee PAN ACFPB0087P
Bench Ahmedabad
Appeal Number ITA 23/AHD/2013
Duration Of Justice 9 month(s)
Appellant Shri Zubin Nariman Bhatporia, Surat
Respondent The ACIT.,Circle-8,, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 04-10-2013
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 04-10-2013
Date Of Final Hearing 17-09-2013
Next Hearing Date 17-09-2013
Assessment Year 2009-2010
Appeal Filed On 04-01-2013
Judgment Text
B IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD B BENCH . .. . . .. . !' !' !' !' #$ #$ #$ #$ %& %& %& %& &' &' &' &' ( & ' ( & ' ( & ' ( & ' BEFORE S/SHRI G.C. GUPTA VICE-PRESIDENT AND TEJ RAM MEENA ACCOUNTANT MEMBER) ITA NO.23/AHD/2013 [ASSTT.YEAR : 2009-2010] SHRI ZUBIN NARIMAN BHATPORIA 43-44 KAWASJI NAGAR NR.PRAMUKH SWAMI HOSPITAL OLD ADAJAN SURAT 395 009. PAN : ACFPB 0087 P /VS. ACIT CIR.8 SURAT. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( ( -*+ -*+ -*+ -*+ / RESPONDENT) .% / 0 &/ ASSESSEE BY : SHRI SAPNESH SHETH ( / 0 &/ REVENUE BY : SHRI P.L. KUREEL SR-DR 2 / %3'/ DATE OF HEARING : 17 TH SEPTEMBER 2013. 456 / %3'/ DATE OF PRONOUNCEMENT : 04/10/2013 &7 / O R D E R PER G.C. GUPTA VICE-PRESIDENT: THIS APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2009-2010 IS DIREC TED AGAINST THE ORDER OF THE CIT(A)-V SURAT DATED 9.10.2012. 2. THE ONLY GROUND OF THE APPEAL OF THE ASSESSEE IS AS UNDER: ITA NO.23/AHD/2013 -2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD.CIT(A) HAS ERRED IN ONLY PARTIALLY ALLOW ING THE APPEAL FOR CASH DEPOSITS IN THE BANK ACCOUNT AND CO NFIRMING THE ADDITION MADE BY AO OF RS.7 33 630/- OUT OF TOT AL ADDITION OF RS.15 83 630/- AS MY UNEXPLAINED INCOME U/S.68 OF T HE IT ACT 1961. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE CIT(A) HAS ERRED IN CONFIRMING THE ADDITION MADE UNDER SEC TION 68 OF THE ACT OF RS.7 33 630/- OUT OF TOTAL ADDITION OF RS.15 83 630/- MADE BY THE AO. HE SUBMITTED THAT THE CIT(A) HAS CONFIRMED T HE ADDITION OF RS.1 00 000/- OUT OF GIFT AMOUNT OF RS.5 00 000/- F ROM MOTHER OF THE ASSESSEE NARGIS BHATPORIA AND LIKEWISE THE GIFT A MOUNT OF RS.1 00 000/- FROM THE BROTHER OF THE ASSESSEE SHR I VISPI BHATPORIA AND GIFT AMOUNT OF RS.50 000/- FROM SISTER-IN-LAW O F THE ASSESSEE DIANA BHATPORIA. HE SUBMITTED IN ALL THREE CASES IDENTITY OF THE DONORS ARE PROVED BEYOND DOUBT AND THE ASSESSEE HAS VERY NEAR RELATION AND THE GIFTS WERE MADE OUT OF NATURAL LO VE AND AFFECTION AND THERE IS NO MATERIAL TO ADD THE SAME AS INCOME IN T HE HANDS OF THE ASSESSEE. REGARDING THE BALANCE ADDITION OF RS.4 8 3 630/- THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE SAME WA S OUT OF PERSONAL CASH BALANCE ACCUMULATED WITH THE ASSESSEE FROM THE WITHDRAWALS MADE FROM TIME TO TIME FOR WHICH NECESSARY EVIDENC ES WAS FILED BEFORE THE REVENUE AUTHORITIES. 4. THE LEARNED DR HAS OPPOSED THE SUBMISSIONS OF TH E LEARNED COUNSEL OF THE ASSESSEE. HE SUBMITTED THAT MERELY BECAUSE THE DONORS ARE NEAR RELATIVES OF THE ASSESSEE DOES NOT MEAN T HAT GIFTS BECOME GENUINE. HE SUBMITTED THAT THE CIT(A) HAS PASSED A WELL REASONED ORDER AND HAS ALLOWED RELIEF WHEREVER CALLED AND W AS JUSTIFIED IN ITA NO.23/AHD/2013 -3 MAKING THE ADDITION. HE VEHEMENTLY ARGUED THAT THE RE IS NO EVIDENCE OF WITHDRAWALS FROM THE BANK ACCOUNT OF THE ASSESSE E FOR THE AMOUNT OF RS.4 83 630/- OUT OF PERSONAL CASH BALANCE OF TH E ASSESSEE. HE RELIED ON THE ORDERS OF THE AO AND THE CIT(A). 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS CAREFULLY A ND PERUSED THE ORDERS OF THE AO AND THE CIT(A) AND VARIOUS DOCUMEN TS IN THE COMPILATION FILED BY THE ASSESSEE. WE FIND THAT TH E CIT(A) HAS ALREADY ACCEPTED THE IDENTITY OF THE DONOR IN THE C ASE OF GIFT OF RS.5 00 000/- BY THE MOTHER OF ASSESSEE SMT.NARGIS BHATPORIA AND HAS DELETED THE ADDITION OF RS.4 00 000/- AND HAS C ONFIRMED THE BALANCE ADDITION OF RS.1 00 000/-. WE FIND THAT TH E LD.DR HAS STATED THAT THE DEPARTMENT HAS NOT PREFERRED ANY APPEAL TO THE TRIBUNAL AGAINST THE ORDER OF THE CIT(A) DELETING THE ADDITI ON OF RS.4 00 000/-. IN THESE FACTS OF THE CASE SINCE IDENTITY OF THE D ONOR IS PROVED BEYOND DOUBT AND CREDIT WORTHINESS OF THE DONOR IS ALSO P ROVED WE FIND NO VALID REASON TO SUSTAIN THE PART OF THE GIFT AMOUNT AS ADDITION IN THE HANDS OF THE ASSESSEE AND ACCORDINGLY THE ADDITIO N OF RS.1 00 000/- OUT OF GIFT FROM MOTHER OF THE ASSESSEE SMT. NARGI S BHATPORIA IS DELETED. LIKEWISE THE ADDITION MADE OF RS.1 00 000/- AND RS .50 000/- FROM VISPI BHATPORA AND DIANA BHATPORIA BROTHER AN D SISTER-IN-LAW RESPECTIVELY OF THE ASSESSEE WE FIND THAT IDENTITY OF THE DONORS HAS BEEN PROVED BY THE ASSESSEE BEYOND DOUBT. THE ASSE SSEE HAS VERY CLOSE RELATION WITH THE DONORS AND THE DONORS HAVE CONFIRMED THE FACTUM OF THE GIFT MADE TO THE ASSESSEE. THE AMOUNT GIFT ED BY THE DONORS OF RS.1 00 000/- AND RS.50 000/- RESPECTIVEL Y IS NOT VERY HIGH. THERE IS NO MATERIAL BROUGHT ON RECORD TO DOUBT THE GENUINENESS OF THE ITA NO.23/AHD/2013 -4 GIFT TRANSACTION ON BEHALF OF THE REVENUE. IN THES E FACTS OF THE CASE WE DELETE THE ADDITION OF RS.1 00 000/- REPRESENTIN G THE GIFT BY BROTHER SHRI VISPI BHATPORIA AND RS.50 000/- OF GI FT FROM SISTER-IN- LAW SMT.DIANA BHATPORIA. REGARDING THE BALANCE ADDITION OF RS.4 83 630/- OUT OF PERSONAL CASH BALANCE THE ASSESSEE HAS CLAIMED THAT IT REPR ESENTED ACCUMULATION OF THE CASH OUT OF WITHDRAWALS MADE FR OM TIME TO TIME. WE FIND THAT ENTIRE PERSONAL CASH BALANCE COULD NOT BE RECONCILED BY THE ASSESSEE AS OUT OF THE WITHDRAWALS MADE BY IT. CONSIDERING THE ENTIRE FACTUAL MATRIX OF THE ISSUE AND ALSO ALLOWIN G SOME CREDIT FOR WITHDRAWALS OF THE ASSESSEE WE HOLD THAT IT SHALL BE REASONABLE TO RESTRICT THE ADDITION ON THIS ISSUE TO RS.3 00 000/ - AS AGAINST THE ADDITION OF RS.4 83 630/- CONFIRMED BY THE CIT(A) OUT OF PERSONAL CASH BALANCE OF THE ASSESSEE. WE DIRECT ACCORDINGL Y. THUS THE GROUND OF THE APPEAL OF THE ASSESSEE IS PARTLY ALLO WED. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %& %& %& %& / TEJ RAM MEENA) &' ( &' ( &' ( &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT. BY ORDER DR/AR ITAT AHMEDABAD