MR.RAHUL BALKRISHNA JOSHI.,HARIYANA vs. THE ITO,NON CORP WARD 2(1)., KOCHI

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ITA 2/COCH/2024Status: DisposedITAT Cochin07 November 2024AY 2017-18Bench: Shri Satbeer Singh Godara (Judicial Member), Shri Amarjit Singh (Accountant Member)3 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restricted the addition on account of gifts to Rs. 6 lakh, providing relief to the assessee. The disallowance of Section 10 exemption was restored to the Assessing Officer for fresh verification.

What were the facts?

The assessee claimed gifts from his mother totaling Rs. 11,66,500. The lower authorities made an addition of this amount. The assessee also claimed Section 10 exemption for allowances from his employer, which was disallowed.

What were the issues?

Whether the gifts received from the mother were genuine and adequately explained, and whether the Section 10 exemption claim was validly disallowed.

Which sections of the Income-tax Act were involved?

Section 10,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Satbeer Singh Godara & Shri Amarjit Singh

Hearing: 23.08.2024Pronounced: 07.11.2024

Appellant by : Sri.Varghese Jose, CA Respondent by : Smt.V.Swarnalatha, Sr.DR Date of Pronouncement : 07.11.2024 Date of Hearing : 23.08.2024 O R D E R Per Bench : This assessee’s appeal for assessment year 2017-2018 arises out of the order of the Commissioner of Income-tax (Appeals) / NFAC vide DIN & Order No.ITBA/NFAC/S/250/2023- 24/1057733513(1) dated 06.11.2023, in proceedings u/s.143(3) of the Income-tax Act, 1961; in short “the Act” hereinafter.

Heard both the parties. Case file perused.

2.

It emerges at the outset that both the lower authorities have made addition of Rs.11,66,500 in assessment wherein the assessee had claimed that he has received gifts from his mother involving sums of Rs.4.9 lakh, Rs.4.6 lakh, Rs.1 lakh and Rs.1.11 lakh; on multiple occasions, in the relevant previous year. Learned Counsel submits that the assessee’s mother . Rahul Balkrishna Joshi is regularly assessed and she derived income from agricultural land. The facts however remains that neither the assessee has been able to explain all the relevant facts nor availability of some cash in hand in his mother’s hands could be altogether denied. Be that as it may, faced with the situation, we deem it appropriate to restrict the impugned addition of Rs.11,66,500 to a lump sum amount of Rs.6 lakh only subject to a rider that the same would not be taken as a precedent for the subsequent assessment years or in any other appeal. The assessee gets relief of Rs.5,66,500 in other words.

3.

The assessee’s latter substantive argument is that both the lower authorities have wrongly disallowed sec.10 exemption claim of Rs.7,88,363 involving various allowances coming from employer’s side which stand duly reflected in corresponding Form 16 as well, and therefore, we deem it appropriate to restore the same back to the Assessing Officer for his fresh factual verification, subject to a rider that the taxpayer himself shall plead and prove his case within three effective opportunities only; at its own risk and responsibility in consequential proceedings. Ordered accordingly.

4.

This assessee’s appeal ITA.No.02/Coch/2024 is partly allowed for statistical purposes.

Order pronounced in the open court on this 7th Day of November, 2024.

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