Case Law Details
Ritu Jain Vs ITO (ITAT Delhi)
In the instant case the A.O. made an addition of Rs.3,55,000/-by treating gifted amount of Rs.1,80,000/- and Rs.1,75,000/- from Mrs. Kamlesh Devi and Sh. Rakesh Jain respectively as unexplained money under section 69A of the I.T. Act, 1961 without taking into consideration of the Government Instruction No.3/2017 dated 21.02.2017 and press release dated 18.11.2016 (supra) wherein the present exempt limit for income tax is Rs.2.5 lakhs. In my view, the assessee has discharged her initial onus by proving the identity, creditworthiness and genuineness of the transactions. Therefore, the A.O. cannot insist the assessee to prove the source of source. Further, the A.O. has not pointed out any defect in the Affidavits filed by both the donors viz., Mrs. Kamlesh Devi and Sh. Rakesh Jain and, therefore, the decision of the Hon’ble Supreme Court in the case of M/s. Mehta Parikh & Co. vs., CIT (supra), relied upon by the assessee is squarely applicable to the facts and circumstances of the case. Further the submission of assessee that her husband was suffering from cancer and for the treatment, a lot of medical expenses was required to be incurred. The aforesaid contention of assessee has not been found to be false. It is a general practice followed that in time of medical emergencies, the near and dear ones of the family, close friends and relatives generally pool their resources to help the family in need.
Considering the totality of the facts and circumstances of the case and following the decision of Hon’ble Supreme Court in the case of M/s. Mehta Parikh & Co. vs., CIT (supra), I am of the view that the gifts received by the assessee from her brother and sister cannot be added as unexplained income.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by assessee has been directed against the order of the Ld. CIT(A), National Faceless Appeal Centre, dated 01.11.2021 relating to the A.Y. 2017-18.
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