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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
आदेश / ORDER आदेश आदेश आदेश
PER SUSHMA CHOWLA, JM
The appeal filed by the assessee is against the order of CIT(A)-1 Gurgaon, dated 22.02.2018 relating to Assessment Year 2009-10 order passed under section 143(3)/254 of the Income Tax Act, 1961 (in short ‘the Act’).
The assessee has raised the following grounds of appeal which read as under:-
“1. That the order passed by the Learned Commissioner of Income-tax (Appeals)-1, Gurgaon is erroneous on facts and in the eyes of law and the same has been passed without properly appreciating the facts of the appellant.
2. That the order passed by the Learned Commissioner of -tax (Appeals)-1, Gurgaon has erred both in law and facts in confirming the addition to the extent Rs. 29,38,500/- on account of cash deposits in the bank account of the appellant.
3. That the order passed by the Learned Commissioner of Income-tax (Appeals)-1, Gurgaon has erred both in law and facts in not accepting the genuine gift of Rs. 30 lakhs received from appellant’s father in law named Sh. Jailal.
That the order passed by the Learned Commissioner of Income-tax (Appeals)-1, Gurgaon has erred both in law and facts in not accepting the genuine gift of Rs. 32 lakhs received from her husband, named Sh. Mukesh Kumar.”
The issue raised in the present appeal is against the addition made of Rs. 29,38,500/- on account of cash deposits in the bank account and further in not accepting the gift of Rs. 30 Lacs received from the assessee from her father-in-law and Rs. 32 Lacs from her husband.
4. Briefly in the facts of the case, the AO in the first round had made an addition of Rs. 43,77,000/- on account of unexplained source of cash deposits in assessee’s saving bank account. The CIT(A) in the first round had upheld the additions. The Tribunal vide order dated 16.12.2015 had set aside the issue back to the file of AO for de novo adjudication in accordance with law. In the second round of proceedings, the assessee was asked to explain the source of cash deposit totaling Rs. 43,77,000/- in her bank account. The details of the cash deposits are mentioned under para 3 of the assessment order. The assessee pointed out that it had received Rs. 30 Lacs as gift from her father-in-law on 4.2.2008 and the amounts were deposited during the financial year 2008-09. The AO noted that from bank account of her father-in-law that there was no entry of cash withdrawal of Rs. 30 Lacs. Further the cash deposits were scattered over a period of eight months. Therefore, the plea of the assessee was not accepted. Further the assessee claimed that she had received gift of Rs. 32 Lacs from her husband Shri. Mukesh Kumar in cash, who had withdrawn Rs. 37 Lacs on 9.1.2008 and Rs. 15 Lacs on 3.6.2008 from his bank account. The AO notes that Shri. Mukesh Sharma, husband of the assessee had attended the assessment proceedings of the assessee and he had not mentioned anything about gift given to his wife. Further the cash withdrawals were scattered over a period of six months and hence he did not accept the explanation of gift of Rs. 32 Lacs. The next plea of the assessee of having withdrawn cash from her bank account on prior dates and re-depositing the same was also not accepted. The AO thus made the addition of Rs. 43,77,000/- which was restricted to Rs. 29,38,500/- by the CIT(A), against which the assessee is in appeal.
The learned AR for the assessee pointed out that both the husband and father-in-law had sold their agricultural land and had withdrawn cash from the respective accounts which in turn were advanced to the assessee. It was also pointed out that the amounts were received in cash and the same were deposited in cash, in the bank account of the assessee, though after a gap.
The learned DR for the Revenue placing strong reliance upon the order of the AO, pointed out that there was no reason for making the said gifts to the assessee and further the husband of the assessee never admitted to having given the said gift during the assessment proceedings.
On the perusal of the record and after hearing both the authorized representatives, the issue which arises in the present appeal is against addition of Rs. 43,77,000/-. The case of the assessee is that she had received gift of Rs. 30 Lacs from her father-in-law and Rs. 32 Lacs from her husband and balance amount was out of her savings. As far as the gifts are concerned, the learned AR for the assessee pointed out that both father-in-law and the husband of the assessee had sold certain agricultural lands and the sale proceeds were deposited in their respective bank account. Out of the same, the amounts were withdrawn by both the persons and gifts were given to the assessee. The source of cash deposited in the bank account of the assessee is out of such cash gifts received from her father-in-law and her husband. The gift was between family members and there is no necessity of any occasion for the same. The cash was deposited in piecemeal on later dates, out of the gifts received, but that in itself would not justify in not accepting the plea of the assessee. Consequently, there is no merit in the aforesaid addition made in the hands of the assessee. The AO is thus directed to delete the addition of Rs. 29,38,500/-. The ground raised by the assessee is thus allowed.