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2015 (5) TMI 386 - ITAT DELHI

2015 (5) TMI 386 - ITAT DELHI - TMI - Reopening of the assessment - unexplained expenditure not supported by any evidence on the marriage ceremony and other ceremonial function of the daughter - Held that:- AO had initiated the proceedings u/s. 147 on the basis of the documentary evidence i.e. FIR filed by his daughter and TEP received from the Investigation Wing, which was confronted to the assessee and assessee himself admitted and not pressed on the issue of initiation of proceedings under se .....

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as given his clear cut finding and satisfied himself before issuing of notice u/s. 148. The reasons were also provided to the assessee which are not based on mere suspicion and is on the basis of various documentary evidence. Therefore, in our considered opinion, the Ld. First Appellate Authority has also appreciated the relevant provisions as well as the facts of the case and rightly upheld the issuance of notice u/s. 148 of the I.T. Act in the case of the assesse. We are of the considered view .....

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o lodged FIR. The FIR has been registered by Smt. Jyoti Kapoor, D/o of the assessee under section 498A, 406, 506, 323/34 IPC on 7.5.2002 against her husband and other family members. No doubt that the daughter of the assessee has written that her father has incurred a huge expenditure on her marriage, but she has not produced any documentary evidence that huge expenditure has been incurred by her Father, before the police authorities. Assessee being the father, accordingly, remained under mental .....

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against the assessee. This generally happen in the quarrel in the matrimonial dispute. Lastly, both the parties mutually seek divorce and the Hon’ble High Court of Delhi has awarded ₹ 7 lacs to the assessee’s daughter on account of expenditure incurred by the assessee on the marriage of his daughter. Keeping in view of the above, mutual divorce granted by the Hon’ble Delhi High Court by awarding ₹ 7 lacs on account of marriage expenditure incurred by the assessee on her daughter’s ma .....

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, we delete the addition of ₹ 34,13,000/-, which was wrongly made by the AO and confirmed by the Ld. CIT(A). - Decided in favour of assessee. - I.T.A.No.4955/Del/2011 - Dated:- 24-4-2015 - Shri S.V. Mehrotra And Shri H.S. Sidhu JJ For the Appellant : Sh. Ashok Malik, FCA For the Respondent : S h. BRR Kumar, Sr. DR ORDER Per H.S. Sidhu : JM The Assessee has filed the present appeal against the impugned Order dated 05/9/2011 passed by the Ld. Commissioner of Income Tax (Appeals)-XXVIII, New .....

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et is valid. 3. The Ld. CIT(A) has grossly erred on the facts of the case and in law in upholding the addition made by the AO on account of unexplained expenditure not supported by any evidence but on presumption amounting to ₹ 34,13,000/-. 4. The appellant seeks leave to add or to amend the foregoing grounds of appeal if it becomes necessary to do so in the interest of justice. 2. The facts in brief are that the assessment in this case was reopened u/s. 147 and notice u/s. 148 was issued .....

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d on receipt of TEP from Investigation Wing, New Delhi, and after recording reasons to believe that the assessee has made an expenditure amounting to ₹ 34,13,300/- which is chargeable to tax has escaped assessment for the year under consideration. Notices u/s. 143(2) & 142(1) were issued on 24.9.2009 fixing the case for hearing on 30.9.2009. None attended on 30.9.2009. On 16.10.2009, assessee s counsel attended and filed a letter dated 1.10.2009 requesting for inspection of record. The .....

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to the assessee vide AO s letter dated 22.12.2009. The assessee s counsel attended the hearing on 24.12.2009 and furnished a letter dated 24.1.22009. The assessee has not furnished the documentary evidence with regard to the expenditure on marriage ceremony of his daughter. He only submitted that the expenditure of marriage of his daughter was incurred by his mother in law Late. Mrs. Janak Dulari Puri, the pension holder from the Army also having agricultural land. During the course of assessme .....

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the expenditure of ₹ 34,13,000/- is as under:- Ceremony name Date Venue Amount incurred Roka Ceremony 23.11.2011 Hotel Qutab ₹ 1,89,000/- Sagan Ceremony 13.2.2002 Sapna Garden ₹ 3,26,000/- Marriage ceremony 15.2.2002 Tammana Farms ₹ 25,48,000/- Cash for Visa ₹ 40,000/- Approximate expenses which have been met / incurred on their own dress /food / ceremonies taken @20% of total expenditure ₹ 3,10,000/- Total ₹ 34,13,000/- 2.1 The AO has observed that ass .....

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nting to ₹ 34,13,000/- was treated as unexplained expenditure u/s. 69C of the I.T. Act, 1961 and added back to the total income of the assessee from undisclosed source for the asstt. year 2002-03 vide his order dated 29.12.2009 passed u/s. 143(3)/147 of the I.T. Act, 1961. 3. Being aggrieved with the assessment order dated 29.12.2009, assessee appealed before the Ld. CIT(A), who vide impugned order dated 28.9.2011 has affirmed the addition and dismissed the appeal of the Assessee. 4. Now t .....

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deleted. To support his contention, he has also filed Paper Book containing pages 1 to 83 having the copy of summon issued u/s. 131 dt. 6.12.07; copy of letter written to ITO dt. 10.6.08; copy of notice u/s. 148 dt. 31.3.09; copy of letter written to ITO dt 20.4.09; copy of return furnished dt. 30.7.02 and copy of notice issued u/s. 143(2) & 142(1) dt. 24.9.09 and 24.11.09; copy of letter dated 16.1.2009 by ITO; copy of hand written order sheet and typed copy of the same; copy of FIR filed .....

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arly and for the assessment year in dispute, he has filed his return on 30.7.2002 with the Income Tax Officer, Ward-37(4). The assessment in the case of the assessee were reopened on the receipt of TEP information received from the Investigation Wing, New Delhi that the assessee had made the expenditure amounting to ₹ 34,13,000/- which is chargeable to tax as escaped assessment for the year under consideration. Notice u/s. 143(2) and 142(1) were issued to the assessee on 24.9.2009 fixing t .....

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dated 24.11.2009 for the details of the expenditure incurred on the marriage ceremony and the other ceremonial function of his daughter during the year under consideration with source and necessary evidence. On 22.12.2009 Counsel attended and filed a letter dated 21.12.2009 asking to adjudicate the legal issue to initiate proceedings under section 147 of the Act. Notice u/s. 148 was communicated to the assessee vide letter dated 24.12.2009 which the AO has reproduced at pages 2 to 4 of the asse .....

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arms and M/s Sapna Gardens wherein the marriage ceremony were allegedly performed in the above said hotel and farm houses. In the FIR his daughter Jyoti Kapoor has stated that her marriage ceremonial evidence of her marriage were performed at the above places and huge expenditure was made by her father. After giving opportunity to the assessee, the Assessing Officer in the absence of any evidence made addition in dispute and completed the assessment u/s. 143(3)/147 of the I.T. Act. 7.1 The quest .....

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the record the notice u/s. 148 was issued on 31.3.2009, after obtaining necessary approval of the Additional Commissioner of Income Tax, Range-37, New Delhi and it was duly served upon the assessee. Subsequently, as per letter dated 20.4.2009 the assessee submitted that his return of income has already been filed for the asstt. year 2003-04 on 30.7.2012 declaring income of ₹ 1,63,480/-. In our considered opinion, AO had initiated the proceedings u/s. 147 of the I.T. Act on the basis of the .....

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income has escaped assessment. He has also taken due approval from the competent authority, after applying their mind, the notice in dispute has been issued to the assessee. He has also recorded the reasons for such action. The AO has given his clear cut finding and satisfied himself before issuing of notice u/s. 148 of the I.T. Act. The reasons were also provided to the assessee which are not based on mere suspicion and is on the basis of various documentary evidence. Therefore, in our consider .....

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ore, the issue involved in Ground No. 1 and 2 is dismissed. 8. With regard to issue involved in ground no. 3 regarding addition of ₹ 34,13,000/- made by the AO on account of unexplained expenditure made on the marriage ceremony of the assessee s daughter under section 69 of the I.T. Act is concerned, we find that the AO in his remand report has stated that the main addition was made on account of unexplained expenditure of ₹ 34,13,000/- on the marriage ceremonies of the assessee s da .....

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erved that assessee sought sympathy as his daughter was victim of dowry harassment which resulted in divorce by mutual consent. Ld. CIT(A) further observed that Hon ble High Court of Delhi in their wisdom, as per mutual consent, had awarded ₹ 7,00,000/- to be paid to assessee daughter in consideration of the total expenditure incurred by the assessee, his family at the time of marriage. He observed that expenditure incurred on marriage ceremonies was much more than ₹ 7,00,000/- being .....

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f the case an FIR was filed by the daughter of the assessee, clearly clinches the issue of huge expenditure incurred by the assessee for the wedding of his daughter. Hence, Ld. CIT(A) was inclined to agree with the finding of the AO and sustained the addition of ₹ 34,13,000/- u/s. 69C of the I.T. Act. After going through the finding given by the Revenue authorities and the documentary evidence filed by the assessee before them, we are of the view that AO has not brought on record any evide .....

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e the lower authority. The A.O. in his Remand Report has stated that the Principal Officer of Hotel Qutab has stated that the hotel Qutab was acquired by Eden Park Hotels Pvt. Ltd., since the requisite bill books/ documents pertains to the period when Qutab Hotel was under administrative control of India Tourism Development Crop. Ltd. and there are very remote chances to lay hand on these, nine years old documents. So, they seek the reasonable time for locating documents and in the absence of th .....

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36,087/- on Roca ceremony against ₹ 1,89,000/- alleged to have been spent by the assessee. The A.O. has not brought on record any evidence to prove that the assessee had incurred expenditure of ₹ 1,89,000/- So, no addition u/s 69C can be made until and unless there is any material with the Department to prove that the assessee has incurred that amount, on the contrary the appellant has submitted hotel Qutab's Bill no. 0001444 dated 23.11.2001 and receipt issued by Hotal Qutab be .....

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on participated. A.O. has not stated anywhere in his order or in the Remand report that the receipts are fabricated or not true. So, there is no justification whatsoever in making addition of ₹ 1,89,000/- in the income of the assessee on this account. Therefore, we delete the addition made by the AO and confirmed by the CIT(A) and accept the contention of the assessee. (b) Secondly with regard to expenditure on Sagan ceremony, it is alleged that as per the TEP report that ₹ 3,26,000/ .....

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that function was held and payment of ₹ 94,800/- was made for that function only as stated by A.O. in his Remand Report. The A.O has stated that besides this no other evidences were furnished, we really fail to understand what other evidences is required to be furnished. A.O. had further stated that the receipt no. 643 date of booking has been shown as 13.02.2001, In this regard, we find that inadvertently year 2001 instead of 2002 were mentioned by Sapna Garden as nobody will issue the re .....

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ver in making these addition in the income of the assessee. Therefore, we delete the addition in dispute by accepting the explanation of the assessee. (c) As regard to Marriage expenses- Tamanna Farms (Satkar Caterers) ₹ 25,48,000/- Ld. Counsel of the assessee has submitted that the A.O. has made addition of ₹ 25,48,000/- as marriage expense in the income of the assessee as per the information received by him from the investigation wing. The assessee has further submitted that he has .....

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e has stated that he has spent ₹ 1,61,000/- and in support copies of the receipts and bills etc. were furnished and source of expenditure has been explained. So, the AO has also not found that these receipts are false or not verifiable. There is no justification whatsoever of upholding this addition by A.O. 8.3 Ld. Counsel of the assessee further pointed out that the CIT(A) has not even considered the recommendation made by the A.O. in his Remand Report where he has categorically stated th .....

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rder the assessee has filed additional evidences regarding the total expenditure incurred on electronics and other misc. items which the assessee has incurred only to the extent of ₹ 3,694/-. For that the assessee has filed the copy of bills and cash memos of most of the items which have been verified. The AO has not doubted the genuineness of these expenses. In our considered opinion, the AO has wrongly made the addition without any basis and the explanation of the assessee regarding the .....

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and from the joint account of assessee himself and his wife and amount contributed by Late Mrs. Janak Dulari and his family out of her agricultural income, pension and loans against the deposits. The assessee has filed the evidence supporting his claim i.e. the bank statement and other details regarding the withdrawal from the bank account during the period in dispute. The AO had made the addition on presumption and assumption and without any basis. Keeping in view of the facts and circumstance .....

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by her In-laws including her husband. She has also lodged FIR which the assessee has attached in his Paper Book Pages 15 to 20. The FIR has been registered by Smt. Jyoti Kapoor, D/o of the assessee under section 498A, 406, 506, 323/34 IPC on 7.5.2002 against her husband and other family members. No doubt that the daughter of the assessee has written that her father has incurred a huge expenditure on her marriage, but she has not produced any documentary evidence that huge expenditure has been i .....

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