BINDIA CHHABRA,NEW DELHI vs. DCIT, NEW DELHI

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ITA 3171/DEL/2016Status: DisposedITAT Delhi24 March 2023AY 2009-103 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal allowed the appeals for statistical purposes. It accepted the assessee's request to file additional evidence and remitted the matter back to the Assessing Officer for a fresh decision.

What were the facts?

The assessee received gifts on the occasion of her daughter's marriage. The Assessing Officer added these gifts to the assessee's income under Section 56(2)(vi) of the Income Tax Act, 1961. The CIT(A) confirmed this addition.

What were the issues?

Whether gifts received by an individual on the occasion of their daughter's marriage, from business associates, are taxable under Section 56(2)(vi) and if additional evidence should be admitted for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 56(2)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’ : NEW DELHI

For Appellant: Shri Salil Kapoor, Advocate
For Respondent: Shri P. Praveen Sidharth, CIT DR
Hearing: 21.03.2023

PER SHAMIM YAHYA, ACCOUNTANT MEMBER : These appeals by two assessee are directed against the respective orders of ld. CIT (A) pertaining to AY 2009-10.

1.

common except the difference in amount. For the sake of brevity, we are “1. That the Commissioner of Income-tax (A) ['CIT(A)'] erred on facts and in law in confirming the addition of Rs.19,39,997/- made by the Assessing Officer under section 56(2)(vi) of the Income Tax Act, 1961 ('the Act') on the ground that gifts received by the appellant on behalf and on occasion of her daughter's marriage did not fell within the exclusion provided in that section.

1.1. That the CIT(A) erred on facts and in law in law in holding that gift must directly be received by the individual on the occasion of his/her marriage to fall in the exclusion contained in 56(2)(vi) of the Act.

1.2. That the CIT(A) erred on facts and in law in holding that gifts received by the appellant from business associates, albeit on the occasion of her daughter's marriage, had no connection with the daughter so as to fall within the exception contained under section 56(2)(vi) of the Act.”

3.

At the outset, in this case, ld. Counsel of the assessee prayed that assessee seeks permission to file application under Rule 29 of Income Tax (Appellate Tribunal) Rules, 1963 for admission of additional evidences. He submitted that these are crucial documents and necessary for proper adjudication. He prayed that the same may be admitted and the matter may be remitted to the AO.

4.

Although ld. DR for the Revenue objected to the same but we are of the opinion that interest of justice would be served if the additional evidences filed now are accepted and matter be remitted to the file of AO order accordingly. The additional evidences submitted in both the appeals are as under :- (i) Covering letters received from dealers/ suppliers in wedding along with shoguns; (ii) Copy of the relevant pages of balance sheet as on 31.03.2008; (iii) Summary of loans and advances;

(iv) Details of discount recoverable which was reversed in AY 2009-10; and (v) Details of sundry debtors which includes debtors of 36 lacs.

5.

In the result, both the appeals are allowed for statistical purposes. Order pronounced in the open court on this 24th day of March, 2023.

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