Case Law Details
Narender Kumar Vs ITO (ITAT Delhi)
Undisputedly, in course of assessment proceeding, the assessee had explained the source of cash deposits in the bank account by stating that it was out of gift received from his grand-father Shri Phool Singh. The Assessing Officer, however, has rejected assessee’s claim as the notice issued under Section 133(6) of the Act to Shri Phool Singh did not evoke any response. However, it is a fact on record, in support of his claim that the cash deposits were made out of gift received from the grandfather, the assessee had furnished corroborative evidences in form of copy of gift deed and bank statement of Shri Phool Singh. Further, to explain the reason for non-compliance with the notice issued under Section 133(6) of the Act, the assessee had explained before learned Commissioner (Appeals) that his grand-father Shri Phool Singh had died on 29.07.20 15. A copy of the death certificate of late Phool Singh was also furnished. This, in my view, perfectly explains the non-response to the notice issued under Section 133(6) of the Act. It is observed, learned Commissioner (Appeals) has sustained the addition by entertaining a doubt regarding availability of cash balance of Rs.30,00,000 with late Phool Singh prior to gifting of R.20,00,000 to the assessee. The primary reason for entertaining such doubt is lack of any substantial transaction in the bank account. However, considering the fact that assessee and his family members are agriculturists, holding of some amount of cash in hand is believable. When, the donor is no more available due to his death, the assessee could have proved the fact of gift through other corroborative evidences, which the assessee has tried to prove by furnishing gift deed and bank statement of the donor. It is observed, before rejecting the evidences furnished by the assessee, the Assessing Officer has not conducted any inquiry either with the legal heir of late Phool Sing or from any other source regarding the creditworthiness of late Phool Singh and availability of cash with him. The Assessing Officer has restricted his inquiry by issuing a single notice under Section 133(6) of the Act. Thus, facts on record, to a great extent suggest that the disputed addition has been made more on doubt and suspicion rather than based on evidence.
FULL TEXT OF THE ORDER OF ITAT DELHI
This is an appeal by the assessee against order dated 18.03,2019 of learned Commissioner of Income-Tax (Appeals)-13, New Delhi for the assessment year 2010-11.
2. Grounds raised by the assessee are in relation to validity of reopening of assessment under Section 147 of the Income-Tax Act, 1961 as well as on the merits of the addition made of Rs.20,00,000 under Section 69A read with section 115BBE of the Act.
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