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Income Tax Appellate Tribunal, DELHI BENCH “SMC” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD
आदेश /O R D E R This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), Faridabad dated 27.05.2019 for the AY 2013-14 in sustaining the addition of Rs. 4 lakhs made by the ITO, Ward 1(2), Faridabad while completing the assessment u/s 143(3) read with Section 147 of the Act.
Brief facts are that the assessee filed return of income declaring income of Rs. 2,27,703/-. Based on some information that the assessee 1
I.T.A.No.8903/Del/2019 had spent 25-26 lakhs on the marriage of his daughter held on 24.04.2012 the assessment was reopened by issue of notice u/s 148 of the Act to verify the source of income for the expenses incurred for the marriage.
In the course of assessment proceedings the assessee explained that he was a Government Servant in Haryana State Government and retired from the service in the month of June, 2012 and the marriage expenses of his daughter were met from GPF Advance, GIS Payments from the Government, leave encashment & LTC, loans from family members and withdrawal from his bank account. However, the Assessing Officer not convinced with the submissions of the assessee that the withdrawal of Rs. 4,00,000/- made by the assessee (in the month of November) were utilized for the payments to various persons i.e. after seven months of the marriage he treated the amount of Rs. 4 lakhs as unexplained expenditure.
3. On appeal the Ld. CIT(Appeals) sustained the addition disbelieving the submission of the assessee that the withdrawal of Rs. 4 lakhs were utilized for meeting the marriage expenses.
Before me the Ld. Counsel for the assessee submits that for the AY 2013-14 assessee filed his return of income on 21.08.2013 declaring income of Rs. 2,27,703/-. The Assessing Officer issued notice u/s 148 of the Act dated 31.03.2018 after four years stating that income has escaped assessment and till date the AO has not furnished reasons for I.T.A.No.8903/Del/2019 reopening the assessment in spite of several oral requests made by the assessee.
Ld. Counsel submits that assessee came to know during the court proceedings that the notice u/s 148 was issued based on some information provided by Shri Manish Kumar, the son-in-law of the assessee who was in matrimonial dispute with his wife Mrs. Atithi, the daughter of the assessee in the year 2018. Ld. Counsel submits that in various court proceedings the assessee gave a statement that he has spent approximately 25-26 lakhs on the marriage of his daughter. The Ld. Counsel for the assessee submits that based only on the written complaint from Shri Manish Kumar the assessment of the assessee was reopened and the reasons for reopening the assessment recorded by the Assessing Officer were never provided by the AO to the assessee till date.
The Ld. Counsel, therefore, submitted that assessment was reopened based only on suspicion without there being any information and based only on a third party complaint which is bad in law. The Ld. Counsel submits that there was no material before AO except the complaint to believe that the income escaped assessment and further in the absence of supply of reasons recorded for reopening of assessment the assessment made u/s 143(3) read with section 147 is bad in law.
The Counsel for the assessee further submits that the assessee in the course of assessment proceedings has provided all the details
I.T.A.No.8903/Del/2019 regarding the marriage expenses and explained the sources for meeting such expenses. Ld. Counsel submits that the Assessing Officer disbelieved that the withdrawal of Rs. 4 lakhs made by the assessee from his account was utilized for meeting the marriage expenses only for the reason that the marriage took place in the month of April 2012 and the payments were made during the months of June to November 2012. The Ld. Counsel submits that it is only an assumption of the Assessing Officer that the assessee could not have met the marriage expenses after six months of the marriage when in fact the assessee paid the amounts to various persons gradually even after the marriage. It is submitted that in the villages it is normal practice that the payments will be made to meet the expenses even after the marriage is performed. Therefore, Ld. Counsel submits that the amount withdrawn by the assessee from his bank account cannot be treated as unexplained source in meeting the marriage expenses. Therefore, he submits that the Assessing Officer is not justified in treating the withdrawals by the assessee as unexplained source of income.
The Ld. DR supported the orders of the authorities below.
8. Heard rival submissions and perused the orders of the authorities below. On perusal of the assessment order, we find that the Assessing Officer reopened the assessment on the basis of information that the assessee had spent 25-26 lakhs on marriage of his daughter held on I.T.A.No.8903/Del/2019 24.04.2012. In order to ascertain the source of income for meeting the expenditure incurred on marriage it seems that the AO issued note u/s 133(6) of the Act to the assessee and assessee filed various details with regard to source of expenditure on marriage of his daughter. Statement of the assessee was also recorded by the AO. On examining the details and evidences furnished by the assessee, the Assessing Officer stated that “the assessee claimed to have made payments for which case was reopened u/s 148 out of total marriage expenditure from the following funds” :
i) Leave encashment & LTC, Rs. 5,22,907/- ii) GIS Payments Rs. 1,05,605/- iii) Withdrawal from Account Rs. 4,00,000/- Total Rs. 10,28,512/-
On perusal of the assessment order, I find that the Assessing Officer treated Rs. 4 lakhs withdrawn by the assessee from his bank account as remained unexplained as he was of the view that assessee performed his daughter’s marriage in the month of April, 2012 and whereas the withdrawals from his bank account were made thereafter and payments made to meet the expenditure in the month of November, 2012 i.e. after seven months. This is the only reason given by the AO for disbelieving the explanation of the assessee that the withdrawals from his bank account were the source for meeting the marriage expenses.
I find that the explanation given by the assessee cannot be disbelieved when the Assessing Officer never made any inquiries with the I.T.A.No.8903/Del/2019 persons to whom the payments were made by the assessee. It is the finding of the AO that he has obtained permission to conduct open enquiries and a statement was also recorded from the assessee u/s 133(6) of the Act. But no such findings were recorded by the Assessing Officer in the assessment order as to what was the statement recorded from assessee and whether the assessee has made payments to various persons to meet the marriage expenses as contented by the assessee. It is observed that the Assessing Officer also did not record the reasons for reopening of the assessment in the assessment order. He has simply recorded a finding that “based on information with the department that the assessee spent Rs. 25-26 lakhs on the marriage of his daughter on 24.04.2012 namely Ms. Athiti”, assessment was reopened. He has not specified what information the department is in possession to believe income of the assessee had escaped assessment for AY 2013-14. What is the tangible material came to the possession of Assessing Officer suggesting that the income had escaped assessment in the case of the assessee is not known? It is also the contention of the assessee that copy of reasons recorded for reopening were never provided to the assessee till now and in which case reopening of assessment itself is bad in law.
I further noticed that Assessee in the course of assessment proceedings explained the sources of income for meeting the marriage expenses incurred for his daughter’s marriage as under:
I.T.A.No.8903/Del/2019
“From: Daya Shankar Yadav S/o Sh. Raghuver Dayal Yadav R/o Gali No. 6, New Colony Extn., Palwal (HARYANA) To: Income Tax Officer Ward-1(2), New CGO Complex, NH-IV, Faridabad
Subject: Information u/s 133(6) of the Income Tax Act –
Reference: Your email rajinder.tikoo@incometax.gov.in/2107 Dated : 30.05.2017 R/Sir, With above cited subject and reference, I have already sent the information point wise 1-4 vide my letter on dated 13.06.2017. The detailed information regarding point no. 04 about source of expenditure made by me on the marriage ceremony of my daughter Atithi are as given below: Sl.No. Particulars Cost (in Rs.) Remarks 1. Jwellery 8,77,000.00 My old parental 2. GPF Adv. 4,39,000.00 gold for Marriage Adv.
GIS Payment 1,05,605.00 4. Salary 50,794.00 5. Salary 39,464.00 6. Leave encashment & LTC 5,22,907.00 7. Daughter given help 2,00,000.00 She was software Engr.
My brother given help 2,50,000.00 They are farmers & doing Agriculture 9. Suresh Singh Yadav help 3,50,000.00 My wife’s brother 10. Withdrawal my account 4,00,000.00 11. Kanyadaan received 2,26,364.00 Atithi’s marriage 12. Shagun received 53,289.00 My son Aditya marriage Total Rs.35,14,423.00 Now, information regarding my bank account and information related to my son and daughter are as given below: 1. My Bank Account No. 156706 Saving Account details given 2. My Account No. 28620099….471 OD Bank loan sanctioned on dated 28.10.2016 3. My Account No. 111 House Loan Balance Rs. 6000.00 4. My Account No. 661 House Loan Closed 5. Account No. 157901511285 My daughter Atithi’s A/c 6. My son Ankit is not running any 7
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