B K GOPIKA KRISHNA,TUMKUR vs. INCOME TAX OFFICER WARD-2, TUMKUR

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ITA 1551/BANG/2017Status: DisposedITAT Bangalore23 November 2017AY 2010-112 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 a gift from a father to his daughter, especially when made through an account payee cheque, cannot be doubted. Therefore, the addition made by the AO was not justified.

What were the facts?

The assessee received a gift of Rs. 3,04,750/- from her father through an account payee cheque. The Assessing Officer (AO) made an addition on the grounds that no gift deed was executed, which was upheld by the CIT(A).

What were the issues?

Whether a gift received from a father through an account payee cheque can be treated as unexplained income without a gift deed. Whether the addition made by the AO was justified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC-B” BENCH : BANGALORE

Before: SHRI SUNIL KUMAR YADAV

For Appellant: Shri. Kupendra Setty, CA
For Respondent: Shri. Vikas Suryawanshi
Hearing: 16.11.2017Pronounced: 23.11.2017

O R D E R Per Sunil Kumar Yadav, Judicial Member

This appeal is preferred by the assessee against the order of CIT(A), interalia, on the following grounds:

1. The order of the Commissioner of Income Tax (Appeals) is erroneous on the facts and in the law. On the facts and in the circumstances of the case he ought not to have dismissed the appeal.

2. Without prejudice to the above, the order of the assessment made u/s 143(3) r.w. section 147, is without jurisdiction and therefore, liable to be annulled.

3. Without prejudice to the above, the addition of Rs.3,04,750/- is genuine gift received from father and hence the addition is to be deleted.

4. The amount of addition of Rs.16,370/- is included in the income of the appellant and hence the same is to be deleted.

2.

During the course of hearing, the learned counsel for the assessee has invited our attention to the fact that the assessee has taken the gift of Rs.3,04,750/- from her father through cheque which was doubted by the AO on the ground that no gift deed was executed and accordingly made the addition of the same as unexplained income in the hands of the assessee.

3.

Assessee preferred an appeal before the CIT(A) but did not find favour with him. Now the assessee is before the Tribunal and during the course of hearing, the learned counsel for the assessee invited our attention to the fact that assessee has taken a gift from her father that too through account payee cheque, therefore the payment of gift cannot be doubted. In the light of these facts, the gift cannot be doubted.

The learned DR simply placed reliance upon the order of the CIT.

4.

Having carefully examined the orders of the authorities below, in the light of rival submissions, I find that the gift is given by the father to his daughter and there is no other relation which can be called closer to this relation. Moreover, gift is given through account payee cheque. Therefore, it cannot be doubted. In the light of these facts, I find no merit in the addition made by the AO. I set aside the order of the CIT(A) and delete the additions.

5.

In the result, appeal of the assessee is allowed.

Pronounced in the open court on 23rd November, 2017.

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