RAMUBEN L SHAH,MUMBAI vs. ITO 14(2)(3), MUMBAI

The first issue in this appeal of assessee is against the order of CIT (A) confirming the addition made by AO of gift received from husband of the assessee as unexplained cash credit u/s 68 of the Act.

We have heard rival contentions and gone through the facts and circumstances of the case. Brief facts of the case are that the AO noticed from the assessee’s bank A/c maintained with Cosmos Co-operative Bank Ltd., Pune branch that she has deposited a sum of Rs.10,13,500/- in cash. The assessee explained the cash deposits except a sum of Rs.9,51,000/- and AO added the same as undisclosed income u/s 68 of the Act. The CIT (A) also confirmed the action of the AO. Aggrieved, now the assessee is in second appeal before Tribunal.

Before us, as well as lower authorities it was explained that the assessee was received a gift from his husband Shri Lakhamshi M. Shah as gift amounting to Rs. 9.51 lakhs out of cash withdrawals made by him from his bank A/c 03620420121008 maintained with Cosmos Co-operative Bank Ltd., Pune branch. The assessee produced his statement of bank A/c wherein the amounts were withdrawn and also submitted cash book alongwith the bank statement of husband to show that the husband has withdrawn a total sum of Rs. 30,00,000/- from bank on 12-04-2006 and out of which this gift of Rs.9,51,000/- was received by assessee in cash and the same was deposited in the bank A/c on 13-04-2006. The husband of assessee is assessed to tax under Pan No. APOPS6880B and scrutiny assessment was carried out by the Department for the year under consideration in the case of the husband u/s 143(3) of the Act. During scrutiny assessment of husband, it was also explained that this amount of Rs. 9.51 lakh was gifted to the wife Smt. Rumuben L. Shah. We find from the orders of the lower authorities that none of authorities below have established that cash withdrawal by husband was utilized somewhere else or invested. Accordingly, we are of the view that the assessee is able to prove that the amount withdrawn by the husband in cash on 12- 04-2006 amounting to Rs. 30,00,000/- and out of the same a gift was given to her amounting to Rs. 9.51 lakhs. Accordingly, this gift is explained. We delete the addition and allow this appeal of the assessee.

The next issue in this appeal of assessee is as regards to the addition confirmed by the CIT (A) amounting to Rs.62,500/- u/s 68 of the Act.

At the time of hearing the learned Counsel for the assessee has not pressed this issue under the instructions of the assessee. Accordingly, the same is dismissed as not pressed.

In the result, the appeal of the assessee is partly allowed.