YUVRAJ MEHROTRA,JAIPUR vs. ITO WARD 7(2), JAIPUR

The brief facts of the case are that the assessee is an individual and employed in Private Limited Company. The assessee filed his return of income declaring total income of Rs. 4,37,940/-. Information received by the department that the assessee had made payment of Rs 2,01,476/- through credit cards and also received TDS receipts of Rs. 22,07,286/- which are not disclosed by the assessee, therefore notice u/s. 148 of the Act was issued on 24.03.2017. In response, the assessee partially complied with certain details and the same was not satisfied with the AO thereby made addition of Rs. 22,07,286/- as TDS credit and also Rs. 1,20,000/- being a gift received from assessee’s father as unexplained income and demanded tax thereon.

Aggrieved against the reassessment order, assessee filed appeal before Ld. CIT(A) who has also confirmed the additions made by the AO and dismissed the appeal of the assessee.

Aggrieved against the same, the assessee filed the appeal before us and raising the following Grounds of Appeal:-

Ld. Counsel appearing for the assessee submitted that the employer of the assessee by mistakenly shown an amount of Rs. 22,07,286/- in Form 26AS and the same was now rectified and the revised TDS return filed which has been updated. Now the assessee’s salary income is shown at Rs. 5,26,640/- which was declared by the assessee in his original return of income. Revised Form 26AS is placed at page no. 5 to 7 of the paper book which clearly shows the salary of Rs. 5,26,640/- paid to the assessee. Similarly on the addition of Rs. 1,20,000/- being gift received by the assessee from his father, it is stated that the above gift was received on 22.02.2010 and his father passed away on 25.09.2017 and the final show cause notice issued on 10.11.2017. Due to his father death, proper explanation could not be given by the assessee before the Ld. AO. Whereas the assessee’s father

Per contra, Ld. DR appearing for the Revenue supported the orders passed by the lower authorities and requested to confirm the additions.

We have heard the rival submissions and perused the materials placed on record. The basis for reopening of assessment was TDS credit of Rs. 22,07,286/- is now revised by the employer and confining the salary amount to Rs. 5,26,640/- which is placed in the paper book at page no. 5 to 8 and corresponding Form 16 is also placed on record, which is not disputed by the Revenue. Therefore, the above addition is liable to be deleted. Similarly, the gift of Rs. 1,20,000/- received by the assessee from his father, the assessee produced before us the copy of the death certificate of his father which shows that his father expired on 25.09.2017 who was super senior citizen. A gift of Rs. 1,20,000/- to his son is a reasonable amount and the same cannot be added as income of the assessee. Therefore, the same is liable to be deleted.

In the result, the appeal filed by the assessee is hereby allowed.