BHUPAL ANNA VIBHUTE,KOLHAPUR vs. INCOME-TAX OFFICER, WARD - 2, ICHALKARANJI

PDF · subscribers
ITA 465/PUN/2018Status: DisposedITAT Pune04 December 2018AY 2003-045 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had discharged the burden of proving the genuineness of the gifts, as most donors were produced and accepted the gifts. The Tribunal also found that the sale of the plot of land was reflected in the assessee's P&L account and the AO could not reject this explanation without valid reason.

What were the facts?

The assessee repaid a bank loan of Rs. 6,30,000. The AO questioned the source of funds, and the assessee claimed Rs. 5 lakhs were received as gifts from friends and relatives and Rs. 1,30,000 from the sale of a plot of land. The AO made additions for both amounts.

What were the issues?

Whether the assessee successfully proved the genuineness of gifts received and the source of funds from the sale of a plot of land for loan repayment.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI R.S. SYAL

For Appellant: Shri Sanjay M. Vhanbatte
For Respondent: Shri Rajesh Gawali

आदेश / ORDER

PER R.S.SYAL, VP :

This appeal by the assessee is directed against the order passed by the CIT(A)-2, Kolhapur on 05-02-2018 in relation to the assessment year 2003-04.

2.

The first ground is against confirmation of addition of Rs.5 lakhs.

3.

Briefly stated, the facts of the case are that the AO received certain information regarding repayment of bank loan of Rs.6,30,000/- by the assessee. On issuance of notice u/s.

2 ITA No.465/PUN/2018 Bhupal A. Vibhute

148 of the Income-tax Act, 1961 (hereinafter also called `the

Act’), the assessee furnished a return declaring total income of

Rs.1,17,807/-. During the course of assessment proceedings,

the AO required the assessee to furnish details of the source of

repayment of loan of Rs.6,30,000/-. The assessee submitted

that a sum of Rs.5 lakhs was received as small gifts from his

friends and relatives for enabling him to repay the loan.

Details of the persons who gave gifts to the assessee were

submitted, which have been captured in para no. 6.1 of the

assessment order. The AO required the assessee to produce

the persons. Most of the persons were produced, all of whom

accepted the fact of having given gifts to the assessee. Not

convinced, the AO made addition. The ld. CIT(A) upheld the

same.

4.

After considering the rival submissions and perusing the

relevant material on record, it is observed that the assessee

received a sum of Rs.5 lakhs by way of small gifts from his

friends and relatives. All of such persons, except, Shri

Prakash B. Patil, were produced before the AO. They

accepted the fact of having given gifts to the assessee. The

AO doubted their genuineness on certain frivolous issues.

3 ITA No.465/PUN/2018 Bhupal A. Vibhute

Shri Prakash B. Patil, could not appear in person before the

AO, but furnished a confirmation letter on 13-12-2010

accepting the making of gift and a copy of his bank account to

support the withdrawal of cash and giving of gift. In my

considered opinion, the assessee cannot be said to have not

successfully discharged the burden cast upon him to prove the

genuineness of the credits. I, therefore, order to delete the

addition of Rs.5 lakhs.

5.

The only other ground which survives in this appeal is

against confirmation of addition of Rs.1,30,000/- made by the

AO.

6.

Apart from the receipt of gifts of Rs.5 lakhs, the assessee

submitted that a sum of Rs.1,30,000/- was received by him

from sale of plot of land. The AO did not accept the

explanation and made the addition, which came to be upheld

in the first appeal.

7.

Having regard to the facts of the instant ground, it is seen

that the assessee categorically stated before the AO that he

sold a plot of land for Rs.1,30,000/-. A copy of Profit and loss

account of the assessee for the year under consideration also

4 ITA No.465/PUN/2018 Bhupal A. Vibhute

depicts the sale of plot amounting to Rs.1,30,000/-. Once the

income from sale of plot has been accepted by the AO, he

could not have rejected the explanation of the assessee towards

receipt of Rs.1,30,000/- for repayment of loan without any

valid reason. I, therefore, overturn the impugned order on this

score.

8.

In the result, the appeal is allowed. Order pronounced in the Open Court on 04th December, 2018.

Sd/- (R.S.SYAL) उपा�य�/ VICE PRESIDENT उपा�य� उपा�य� उपा�य�

पुणे Pune; �दनांक Dated : 04th December, 2018 सतीश

आदेश आदेश क� आदेश आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत / Copy of the Order is forwarded to : क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत

1.

अपीलाथ� / The Appellant; ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / 3. The CIT (Appeals)-2, Kolhapur आयकर आयु� / The Pr. CIT-2, Kolhapur 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे 5. “SMC” / DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6. // True copy // आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार

// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

ITA No.465/PUN/2018 Bhupal A. Vibhute

Date 1. Draft dictated on 03-12-18 Sr.PS 2. Draft placed before author 03-12-18 3. Draft proposed & placed before the second member 4. Draft discussed/approved by Second Member. 5. Approved Draft comes to the Sr.PS/PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. *

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →