TMI Blog2013 (9) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... tice if the gift amount is determined at Rs. 3,50,000 - The Assessing Officer is directed to restrict the addition on this issue to Rs. 1,27,500 - Decided in favour of Revenue. There cannot be any dispute that the income already disclosed to the Department shall not form part of undisclosed income. Technically, the action of the learned Commissioner of Income-tax (Appeals) may be wrong, however, it is noticed that the Assessing Officer has also made the impugned addition without making proper verification, simply because certain details are missing in the narration recorded in the books of account. Under these circumstances, the claim of the assessee could be allowed, provided somebody had examined the said claim - Matter remitted back - Decided in favour of Revenue. LIC survival benefits - Held that:- assessee has filed copies of letter received from LIC and also a copy of relevant cheque leaf. According to the learned authorised representative, the assessee has filed the said documents before the Assessing Officer. Since the Assessing Officer has taken a stand that the assessee has failed to substantiate the claim of receipt of LIC amount of Rs. 20,000, therefore the claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the learned Commissioner of Income-tax (Appeals) on the following additions are being disputed. (Rs.) (a) Cash from boarding hostel 5,31,755 (b) Chitty receipts 89,192 (c) Marriage gifts 1,00,000 (d) Interest accrued on bank deposits 1,97,713 (e) Peak investment in savings bank 14,82,089 (f) Investment in Gokulam Chit Funds. (g) Applicability of surcharge to be levied under section 113 of the Act. The first issue in the appeal of the Revenue relates to the deletion of Rs.5,31,755 relating to the cash received from boarding hostel. In the cash flow statement, the assessee had shown withdrawals of cash from the book of boarding hostel. The Assessing Officer held that the following with drawals could not be explained with reference to the books of account and treated the same as the undisclosed income of the assessee. (Rs.) 1997-98 1,00,743 1998-99 2,27,500 1999-00 2,03,512 Total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had shown gift receipts to the tune of Rs.4,77,500 on the occasion of marriage of her daughter named Smt. Divya. The Assessing Officer considered the gift amount as excessive and accordingly accepted a sum of Rs. 1 lakh only as receipt of marriage gifts. Accordingly the difference of Rs. 3,77,500 was treated as the undisclosed income of the assessee. The learned Commissioner of Income-tax (Appeals) enhanced the acceptable amount of gift to Rs. 2 lakhs and accordingly sustained the addition to the extent of Rs. 2,77,500. Before us as well as before the learned Commissioner of Income-tax (Appeals), the assessee submitted that the Assessing Officer wanted con firmation for bigger amounts of gifts only and accordingly, a detailed list showing the name, address and amount was duly furnished before the Assessing Officer. However, the Assessing Officer has made a disallowance of Rs. 3,77,500 and the learned Commissioner of Income-tax (Appeals) has restricted the said disallowance to Rs. 2,77,500. It is to be noted here that the assessee is seeking deletion of this addition also in the cross-objection filed by her. The receipt of donations on the occasion of marriage is not denied. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the learned Com missioner of Income-tax (Appeals) on this issue. The next issue relates to the addition of Rs. 14,82,089 pertaining to peak deposits found in the savings bank accounts. The assessee reflected the savings bank accounts maintained by her in the cash flow statements. The Assessing Officer noticed that some of the bank accounts are not reflected by the assessee in her cash flow statements. Accordingly he treated the peak credits found in the following bank accounts as the undisclosed income of the assessee. (a) Federal Bank Account No. 2223 (b) IOB Account No. 2610 (c) Kollam Dist. Co-op. Bank Account No. 9044 (d) SBT, Anchal Account No. 10438 (e) Anchal Service Co-op. Bank Account No. 7126 Before the learned Commissioner of Income-tax (Appeals), it was pointed out that the bank accounts maintained with Kollam Dist. Co-op. Bank and Anchal Service Co-op. Bank actually belong to Sabarigiri Trust and they have been reflected in its books of account. It was further stated that the other three bank accounts have been reflecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... band or the trust. Before us, the Department is contending that the learned Commissioner of Income-tax (Appeals) has set aside the matter to the file of the Assessing Officer, which he is not entitled to do. There cannot be any dispute that the income already disclosed to the Department shall not form part of undisclosed income. Technically, the action of the learned Commissioner of Income-tax (Appeals) may be wrong, however, we notice that the Assessing Officer has also made the impugned addition without making proper verification, simply because certain details are missing in the narration recorded in the books of account. Under these circumstances, the claim of the assessee could be allowed, provided somebody had examined the said claim. Accordingly, we direct the Assessing Officer to examine the claims made by the assessee on this issue and take appropriate decision in accordance with law. The last issue in the appeal of the Revenue relates to the levying of sur charge under section 113 of the Act. The learned Commissioner of Income tax (Appeals) has deleted the surcharge by holding that the provisions of section 113 shall have prospective operation. However, this issue has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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