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Income Tax Appellate Tribunal, “SMC” BENCH: KOLKATA
Before: Shri Mahavir Singh, JM]
For the Appellant: Shri M. S. Murthy, FCA For the Respondent: Md. Ghayas Uddin Ansari, JCIT, Sr. DR ORDER This appeal by assessee is arising out of order of CIT(A)-XXXII, Kolkata in Appeal No.234/XXXII/13-14/56(4)/MSD/R&T/Kol dated 15.09.2014. Assessment was framed by ITO, Ward-56(4), Kolkata, u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) for AY 2007-08 vide its order dated 18.12.2009.
The only issue in this appeal of assessee is against the order of CIT(A) confirming the action of AO in making addition of gift received of Rs.50,000/- in each in assessee’s own case and in minor daughters Preeti Rastogi and Kriti Rastogi. Thereby adding a sum of Rs.1.50 lacs.
At the outset, ld. Counsel for the assessee drew our attention to the amounts of gift received by Smt. Pooja Rastogi, Preeti Rastogi (Minor) and Kirti Rastogi (Minor) from unrelated persons which are as under: Smt. Pooja Rastogi Sl. No. Name of donor Amount of gift (Rs.) 1. Suman Kalyan Das 10,000/- 2. Suman Kalyan Das 15,000/- 3. Biswajit Pradhan 15,000/- 4. Shyamal Kr. Tripathi 10,000/- Preeti Rastogi (Minor)
Sl. No. Name of donor Amount of gift (Rs.) 1. Suman Kalyan Das 10,000/- 2. Supravat Maity 15,000/- 3. Sanjay Kr. Shaw 15,000/- 4. Uday Narayan Samanta 15,000/- Kriti Rastogi (Minor)
Sl. No. Name of donor Amount of gift (Rs.) 1. Dipak Kr. Modal 15,000/- 2. Uday Narayan Samanta 10,000/- 3. Sanjay Kr. Shaw 15,000/- 4. Sarmistha Singh 10,000/- Ld. Counsel for the assessee stated that in all the above cases the assessee has filed complete details of these donors i.e. their income tax particulars and every donor is earning above Rs.1,00,000/- i.e. taxable income for the relevant assessment year 2007-08. In all the eight donors CIT(A) has given complete details about these donors as under:
1) Suman Kalyan Das : As per a copy of the Income Tax Return filed, this donor had a taxable income of only Rs.l,04,310/- during the A.Y. 2007-08 and in the Balance Sheet and the Income & Expenditure Account filed, there is no drawings and no mention of any gift to Preeti Rastogi or to Pooja Rastogi totalling Rs.35,000/-. The barely legible and part bank statement of the alleged donor do not show any regular transactions suggestive of a regular business activity or even of any regular receipts. 2) Biswajit Pradhan: As per a copy of the Income Tax Return filed, this donor had a taxable income of only Rs.118694/- during the AY 2007-08 and in the Balance Sheet filed there is no drawings and no mention of any gift issued to Pooja Rastogi totaling Rs.15,000/-. The bank statement of the alleged donor does not show any regular transaction suggestive of a regular business actively or regular receipts and the immediate source of the gift are cash deposits which are unexplained. 3) Shyamal Kumar Tripathi : As per a copy of the Income Tax Return filed, this donor has a taxable income of only Rs.98,780/- for AY. 2007-08 and no drawings or gift are declared to have been made as per the Balance Sheet's capital account. The limited bank statement of the donor does not show any regular transaction suggestive of a regular business activity or regular receipts but there are number of payment made to Supravat Maiti, who is another donor for the assessee. 4) Dipak Kumar Modak : Similarly this donor had a taxable income of only Rs.l,10,680/- during the AY. 2007-08 and no drawings or outgoing of any gift is mentioned in the Balance Sheet filed. Further the bank statement of the donor show very few transaction and before the issue of gift to the daughter of the assessee there is a cash deposit, which is not explained. 5) Uday aravan Samanta : This donor had a taxable Income of only Rs.1,09,820/- during the A.Yr. 2007-08 and no outgoing of any type or of gift is mentioned in the Balance Sheet filed. The bank account of the donor also reveals that there are cash deposits before issue of the so called gift cheques to the daughter of the assessee. 6) Sanjay Kumar Shaw : This donor is alleged to have gifted a sum of Rs.10,000/- & Rs.15,000/- to the two daughter of the assessee but his own taxable income for A.Yr. 2007-08 is only Rs.l,10,813/- and the Balance Sheet of the person filed declare no drawings or gift made. There are very few bank transaction and this donor" has deposited cash before issuing most of his cheques including the time before the issue of cheque in favour of the daughter of the assessee. The source of the cash deposits is unexplained. 7) Sharmishta Singh : This donor is alleged to have gifted Rs.10,000/- to Kirti Rastogi but her total income for the year is declared to be only Rs.l,36,062/- and her Balance Sheet does not mention any drawings or gift made. There are very few bank transaction of the donor 3 Pooja Rastogi, AY 2007-08 and before issue of the gift to the assessee’s daughter the donor has deposited cash in her bank account which is inexplicable. In fact most of the deposit in her Bank are in cash. 8) Supravat Maiti : This donor is alleged to have gifted Rs.15,000/- to Preeti Rastogi but in his case also the income declared is only Rs.1,05,350/- and no drawings/gifts are declared in his Balance Sheet. In the copy of the Bank account of this person, cash is deposited before issue of the so called gift cheque. There are very few bank transactions in his bank account.”
In view of the above, Ld. Counsel for the assessee stated that these small gifts ranging between Rs.10,000/- to Rs.15,000/- is out of the current year’s income of Rs.1 lac in each case and this is very small amount of petty gifts given by assessee’s family friends to minor daughters or to herself on various occasions. I find that due to smallness of these amounts and the fact that these donors have capacity to donate this much amount, which is proved from assessee’s income tax returns and source of income. Accordingly, I delete the addition and allow the appeal of assessee.
In the result, the appeal of assessee is allowed.
Order is pronounced in the open court on 18.12.2015
Sd/- (Mahavir Singh) Judicial Member
Dated : 18th December, 2015 Jd. Sr. P.S Copy of the order forwarded to: