Priyanka Vs ITO (ITAT Delhi)
Cash Gift from Deceased Grandmother Held Genuine – Tribunal Quashes Addition u/s 69A- Double Taxation Avoided: Rental Income Already Offered in Grandmother’s Hands
Assessee had filed return of income of ₹3,23,910/-. During scrutiny, AO noticed abnormal cash deposits of ₹30,65,000/- during demonetization period in Punjab National Bank account. Assessee explained that the source was a gift received from her deceased grandmother, Smt. Bhagwanti Hemrajani, out of rental income saved over several years. AO, not satisfied with the explanation, treated the deposits as unexplained money u/s 69A & taxed it u/s 115BBE @ 60%. NFAC upheld the addition.
Before Tribunal, Assessee demonstrated that her grandmother had been receiving rental income from property, who regularly withdrew amounts from his Standard Chartered Bank account & paid rent in cash at her insistence due to old age & health issues. Shri Anil Paul, in response to summons by the Investigation Directorate, confirmed cash rent payments for AYs 2012-13 to 2016-17 aggregating to over ₹39 lakhs. The rent income was also duly disclosed in the ITRs of Late Smt. Bhagwanti Hemrajani.
Tribunal observed that since the rental receipts were already taxed in the grandmother’s hands, treating the same funds again as unexplained in the hands of Assessee would result in double taxation. The gift from grandmother, being a close relative, was supported by confirmation of tenant & bank records of withdrawals. Accordingly, the genuineness, identity & creditworthiness stood established.
