AVTAR MOHAN BAHAL,NEW DELHI vs. ITO, WARD 72(3), NEW DELHI

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ITA 6121/DEL/2017Status: DisposedITAT Delhi22 November 2017AY 2009-104 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the issue of deduction under Section 80C to the AO for verification of the provided documents. However, the disallowance under Section 80D was confirmed due to lack of evidence.

What were the facts?

The Assessing Officer disallowed deductions claimed under Section 80C and 80D for lack of details. The CIT(A) upheld this disallowance. The assessee appealed, providing a life insurance policy for his daughter and bank transfer details for the Section 80C claim.

What were the issues?

Whether the assessee is eligible for deduction under Section 80C for premium paid on a life insurance policy taken in the name of his daughter, and whether the deduction under Section 80D is allowable without sufficient justification.

Which sections of the Income-tax Act were involved?

Section 80C,Section 80D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC”: NEW DELHI

Before: SHRI BHAVNESH SAINI

Hearing: 12.02.2019Pronounced: 14.02.2019

ORDER This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-21, New Delhi, Dated 18.07.2017, for the A.Y. 2009-2010.

2.

The A.O. noted that as per ITR filed by assessee, it revealed that the assessee has claimed deduction under section 80C of Rs.1 lakhs and under section 80D of Rs.15,000/-. But, no details and justification of such claim have been submitted. The A.O. accordingly, disallowed Rs.1

1.

2 ITA.No.6121/Del./2017 Shri Avtar Mohan Bahal, New Delhi. lakh and Rs.15,000/-. The Ld. CIT(A) on the same reasoning dismissed the appeal of assessee on these grounds.

3.

The assessee in the present appeal has challenged the addition of Rs.1 lakh under section 80C of the I.T. Act and Rs.15,000/- under section 80D of the I.T. Act, 1961.

4.

I have heard the assessee in person and Ld. D.R. for the Department. The assessee has submitted Aviva Life Insurance Cover in the name of Ms. Gouri Bahal from Aviva Life Insurance in which the premium of Rs.1,02,000/- have been paid on 18.09.2008 and also filed copy of the Punjab National Bank through which the amount in question was transferred through banking channel on 16.09.2008. He has submitted that Ms. Gouri Bahal is daughter of the assessee, therefore, eligible for deduction under section 80C of the I.T. Act. He has submitted that the receipts were not available originally to the assessee.

5.

The Ld. D.R. suggested that the matter may be remanded to the A.O. for verification.

3 ITA.No.6121/Del./2017 Shri Avtar Mohan Bahal, New Delhi.

6.

In view of the above, I set aside the Orders of the authorities below and restore the issue of deduction under section 80C to the file of A.O. with a direction to verify the Life Insurance cover filed by assessee along with bank statement and in case claim of assessee is correct, then, resultant benefit may be granted to the assessee. The assessee is directed to file copies of the same Insurance cover and bank statement before A.O. for his perusal and verification. The A.O. shall give reasonable, sufficient opportunity of being heard to the assessee.

7.

However, as regards the deduction claimed under section 80D of the I.T. Act, the position is same. No evidence have been produced to justify the claim. Therefore, the addition of Rs.15,000/- is confirmed.

8.

In the result, appeal of Assessee is partly allowed.

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