SONA CHAND BOYED,HOOGHLY vs. ACIT CIRCLE 46, KOLKATA, KOLKATA

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ITA 543/KOL/2017Status: DisposedITAT Kolkata16 November 2018AY 2007-083 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, following its earlier decision, found that the assessee had explained the source of funds for the renovation expenditure. Therefore, the addition was deleted.

What were the facts?

The assessee appealed against the CIT(A)'s order confirming an addition made by the AO for expenditure incurred on residential renovation. The Tribunal had previously decided a similar issue on identical facts for different assessment years.

What were the issues?

Whether the expenditure incurred for renovation of residential premises was correctly added to the assessee's income due to unexplained sources.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “A”, KOLKATA

Hearing: 25.10.2018Pronounced: 16.11.2018

ORDER

PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER This appeal by the assessee against the order dated 28.10.2016 passed by CIT(A)-14, Kolkata for AY 2007-08.

2.

The only issue is to be decided as to whether Ld.CIT(A) is justified in confirming the addition made by the AO on account of expenditure incurred towards renovation of residential premises.

1.

3. Heard both parties and perused the material available on record. It is noted that Tribunal decided a similar issue on same identical facts, vide its order dated 30.08.2018 in assessee’s own case in IT(SS) No.155 & 156/Kol/2016 for AY 2009-10 and 2010-11. On perusal of the impugned order, it is found that Ld.CIT(A)

(ASSESSMENT YEAR-2007-08) confirmed the addition made on account of expenditure incurred for renovation of residential premises taking into consideration the assessment order in AY 2010-11 vide its para 5 of its order. Ld.AR placed on record the order dated 30.08.2018 for AY 2009-10 & 2010-11 as discussed above, this Tribunal basing on detailed chart of drawings of each and every family members, held the source funds have explained and deleted the addition, confirmed by Ld.CIT(A). The relevant portion which is produced herein below:-

3.

We have heard rival contention. The entire search on the premises of the assessee has led to small addition of Rs.1,65,000/- for AY.2009-10 and Rs.1,70,000/- for A.Y.2010-11. The addition is made on the ground that certain petty expenditure has been incurred for the renovation of the residential premises of the assessee and the source of such expenditure is not good. The assessee submitted that detail chart of the drawings of each and every family member which comes to Rs.14,63,360/- from A.Y. 2004-05 to 2009-10. In my view the assessee has explained the source of funds, for incurring of the said expenditure on the renovation of the residential premises. This cannot constitute black money or undisclosed income held by the assessee. Thus, I delete both the additions for both the assessment years 2009-10 and 2010-11 and allow both the appeals of the assessee.”

4.

In view of the above, we set aside the impugned order dated 28.102.016. Therefore, Ground Nos. 1 to 3 raised by the assessee are allowed.

5.

In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 16.11.2018.

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