What did the Tribunal hold?

The Tribunal held that the addition was not warranted as the amount was meager and could be out of the assessee's past savings and self-earned income from tuitions. The assessee had also regularly filed income-tax returns.

The assessee advanced Rs. 76,000 to her husband. The Assessing Officer and CIT(A) made an addition to the assessee's income for failing to explain the source of this amount.

What were the issues?

Whether the addition of Rs. 76,000 to the assessee's income is justified when the assessee claims it is from past savings and self-earned income.

Smt. Rashmi Devi, Ludhiana vs ITO | ITAT Chandigarh 2019

आदेश/Order

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee against the order dated 25.03.2019 of the Commissioner of Income Tax (Appeals)-3, Ludhiana [hereinafter referred to as ‘CIT(A)’].

An adjournment application has been filed by the assessee in this case, however, considering the facts and circumstances of the case and the issue involved, we proceed to decide the appeal on merit after hearing the Ld. DR.

ITA No. 702/Chd/2019- Smt.Rashmi Devi Ludhiana 2 3. The sole issue involved in this appeal is regarding the addition of

Rs. 76,000/- made by the Assessing Officer and further confirmed by the

Ld. CIT(A) on the ground that the assessee had failed to explain the

source of the amount of Rs. 76,000/- advanced by the assessee to her

husband Shri Ashwani Kumar, Prop. M/s Emmson Traders.

A perusal of the impugned order of the Ld. CIT(A) reveals that

the assessee is an Income-tax payee. The assessee had furnished details

of the income declared / copies of the ITRs to show that the assessee has

been regularly filing her Income-tax returns and her declared income

ranges from Rs. 84,150/- in assessment year 2002-03 to Rs. 1,09,400/-

in assessment year 2006-07. Besides that, the claim of the assessee is

that she has also been saving money out of the household expenses

received from her husband. That a meager amount of Rs. 76,000/- was

advanced by her out of his past saving as well as out of self-earned

income.

On the other hand, the Ld. DR has contended that the lower

authorities have rightly rejected the claim of the assessee because the

assessee could not furnish the specific sources of the amount of Rs.

76,000/- advanced to Shri Ashwani Kumar.

Considering the submissions of the Ld. DR and after going

through the record, we are of the view, that the addition in this case is

ITA No. 702/Chd/2019- Smt.Rashmi Devi Ludhiana 3 not warranted. The assessee advanced a meager amount of Rs. 76,000/- to her husband. The assessee has claimed that she earned income from tuitions etc. and has been regularly filing Income-tax returns. Apart from that, she has been saving money out of household expenditure received from her husband. In our view, the assessee was not supposed to show any further specific source of investment for such a meager amount of Rs. 76,000/-, which seems to be out of the past savings of the assessee. The order of the CIT(A) is set aside and the appeal of the assessee stand allowed.

Order dictated and pronounced in the Open Court immediately on completion of hearing.

Sd/- Sd/- (अ�नपूणा� गु�ता / ANNAPURNA GUPTA) (संजय गग� / SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member

Dated : 30. 10.2019 “आर.के.” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar

ITA No. 702/Chd/2019- Smt.Rashmi Devi Ludhiana

SMT. RASHMI DEVI,LUDHIANA vs. ITO, W-6(2), LUDHIANA

What did the Tribunal hold?

What were the facts?

What were the issues?

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