Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI BENCH : SMC : NEW DELHI
Before: SHRI R.S. SYAL
This appeal by the assessee is directed against the order passed by the CIT(A) on 07.10.2014 in relation to the Assessment Year 2008-09. 2. It is a recalled matter inasmuch as the earlier ex parte order passed by the Tribunal was subsequently recalled, vide its later order dated 21.04.2017.
The only issue raised in this appeal is against the confirmation of addition of Rs.10 lac, which has three components.
Briefly stated, the facts of the case are that the Assessing Officer received information about the assessee having given an advance of Rs.20 lac to Mrs. Urvashi Bansal for purchase of a flat. Out of this amount, a sum of Rs.19,50,000/- was paid during the year relevant to the assessment year under consideration. On being called upon to explain the source of such payment, the assessee submitted that he along with his brother inherited a sum of Rs.18,50,000/- in cash from his grandmother, being, the balance amount remaining with her from sales proceeds of agricultural land at village Kahtia, District Hosiarpur, Punjab. The assessee filed a copy of the will and evidence in support of sales proceeds of agricultural land. The Assessing Officer accepted the genuineness of the assessee’s half share in cash received from the will of his grandmother. The assessee contented that his brother gave him his separate share amounting to Rs.9,25,000/- for the purposes of giving advance for the purchase of flat. In support of this contention, the assessee furnished certain details which were not accepted by the Assessing Officer. The ld. CIT(A) also confirmed the addition of Rs.9,25,000/- claimed to have been received from Shri Anurag Sharma, brother of the assessee.
I have heard the rival submissions and perused the relevant material on record. Copy of the will of Smt. Karam Kaur is available at pages 3 onwards of the paper book in which there is a mention of cash available with her amounting to Rs.18,50,000/- as the balance amount available from sale proceeds of agricultural land at village Kahtia, Distt. Hoshiarpur, Punjab. As per the will, the assessee inherited half of such cash, with the remaining part going to his brother. The Assessing Officer accepted the genuineness of the receipt of Rs.9,25,000/- by the assessee, but, disputed the genuineness of the amount received by the assessee from his brother.
The assessee’s brother Shri Anurag Sharma filed an affidavit stating that he inherited Rs.9,25,000/- as cash from his grandmother and also stated that such cash was given by him to his brother, the assessee, for investment in purchase of flat. The Assessing Officer brushed aside the receipt by the assessee from the brother on hyper technical grounds. When the assessee’s share from the inherited cash amounting to Rs.9,25,000/-from the will of his grandmother was accepted, there could have not been any doubt for not accepting the availability of equal amount of cash in the hands of the assessee’s brother, who received the other half share as per the will and affirmed the same having been given it to the assessee. Once the genuineness of the will was accepted, the AO could not have taken a different view in not accepting the genuineness of the receipt of the second half share of the brother in cash. I, therefore, accept the same and order for the deletion of addition of Rs.9,25,000/-.
The other two components of the addition of Rs.10 lac are cash received by the assessee from his father amounting to Rs.50,000/- and mother amounting to Rs.25,000/-. The Assessing Officer did not accept the genuineness of these receipts and made addition which was confirmed in the first appeal.
Having heard both the sides and perused the relevant material on record, it is seen that both the parents of the assessee have contributed Rs.75,000/- in total enabling the assessee to make investment in purchase of flat. Both the parents are assessed to tax and they have given their respective Permanent Account Nos. also in their respective confirmations.
In the given circumstances, I am convinced that the assessee proved the genuineness of the receipt of Rs.75,000/- from his parents.
To sum up, the addition of Rs.10 lac is hereby deleted.
In the result, the appeal filed by the assessee is allowed. The decision was pronounced in the open court on 08th June, 2017.