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2015 (6) TMI 495 - ITAT DELHI

2015 (6) TMI 495 - ITAT DELHI - TMI - Addition made by the AO on account of expenses relating to marriage of the daughter of the assessee - CIT(A)sustained addition of ₹ 1 lac on estimate basis - Held that:- In the present case, it is noticed that the assessee was having five daughters and had given good education to all of them. He claimed to have spent an amount of ₹ 50 to 75,000/- and jewellery between 8 to 10 tolas on the marriage of her eldest daughter in 1989 which is not doubt .....

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ws and the assessee filed a complaint to the Women Cell of Police, on the basis of the said complaint, the AO presumed that the assessee might have incurred an expenses of ₹ 50,62,370/-. However nothing was brought on record to substantiate that the said expenditure was in fact incurred by the assessee. The assessee later on clarified to the AO that actual expenses for cloth accessories and Barat Kharcha were at ₹ 50,000/- and ₹ 80,000/- respectively and jewellery worth ₹ .....

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ted that the assessee had some past saving and jewellery & utensils, personal effects etc., the addition of ₹ 1 lac on estimate basis was not justified.

Thus we deem it appropriate to delete the addition sustained by the Ld. CIT(A). - Decided in favour of assessee. - ITA No. 4518/Del/2013, C.O. No. 402Del/2013 - Dated:- 5-6-2015 - Shri N. K. Saini And Shri A. T. Varkey,JJ. For the Appellant : Shri B.R.R.Kumar, Sr. D.R. For the Respondent : Shri K. Sampath, Adv. ORDER Per N.K.Sai .....

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cell, police Authorities and statement of claims that he has spent ₹ 51 lakhs on account of marriage of his daughter. 3. In the cross objection no. 402/Del./2013 the assessee has raised the following ground:- On the facts and in the circumstances of the case the CIT(A) erred in sustaining an addition of ₹ 1 lakh in the assessed income which being arbitrary and superfluous must be deleted. 4. From the above grounds it would be clear that the only issue agitated by both the parties re .....

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casion of marriage was mentioned at ₹ 50, 62,370/-. Therefore the AO after recording the reasons reopened the assessment and issued notice u/s 148 of the Income Tax Act, 1961 (hereinafter referred as the Act). In response to the said notice, the assessee submitted that the return of income already filed on 2.9.2009 may be treated as filed in response to the notice u/s 148 of the Act. 6. The AO during the course of assessment proceedings asked the assessee to file various details including .....

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enditure incurred on marriage etc. This was stated by him of an amount of ₹ 51 lakhs. This was manipulated inflated one as guided by the lawyers. The assessee being govt. servant had no capacity to spend that much. The marriage was solemnized at Shehnai Banquet Hall, Asif Ali Road, N. Delhi. The marriage was attended by 200 persons and was a simple occasions. An amount of ₹ 60 to 70,000/- was spent on the function. The assessee gave gold jewellery weighing 20 to 22 tolas to her and i .....

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ing the said list was prepared as suggested by the counsel and submitted. 7. The AO again asked the assessee to show cause and explain the source of real expenditure incurred during the marriage of his daughter and to explain whether any revised estimate had been produced before the crime branch or any authority. The AO also asked the assessee to give a real estimate of expenditure head-wise in the following format :- ITEM Expenditure as stated earlier Real estimate Jewellery 20,37,500 Barat Kha .....

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guided by the lawyers attending the case. The only correction in the said letter is that he has mentioned that the said statement was given before Crime Branch. It was not crime branch but Women Cell, Delhi Police. 2. That you have required the real estimate of expenses incurred at the time of marriage. It is given as follows :- Item Expenditure as stated earlier Before Women Cell Real estimate Jewellery 2037500 1,40,000 Barat Kharcha 5,00,000 80,000 Cloths accessory & household & Silver .....

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nipulated one, given under anguish and under abnormal circumstances. Daughter has gone back to her respective home, is happily living with her husband. Now the relations between them and both the families are smooth and normal. No one has got any complaint against each other. 3. That this statement is duly signed by me and I confirm and say that averment made by my counsel in his letter dt. 31.10.2011 is correct and true except that the statement was given before the Women Cell and not Crime Bra .....

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nd that the gifts were received during the occasion of marriage considered ₹ 10,62,370/- from explained sources and remaining expenditure to the tune of ₹ 40,00,000/- (Rs.5062370-Rs. 1062370) from unexplained sources and made the addition of ₹ 40,00,000/- to the income of the assessee u/s 69 C of the Act. 10. Being aggrieved the assessee carried the matter to the Ld. CIT and furnished written submission dated 25.4.2013 stating herein as under :- In connection with the hearing o .....

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lawyers, gave a list of items given during the marriage and expenses incurred on marriage. The figures given were on very high side and exorbitant and inflated one. Lawyers suggested that if you give inflated figures, you will get much less of it as is the practice in dowry cell/crime branch. The appellant had no choice, being father of a girl who was harassed by her husband and in laws, had to join fight with his daughter and endorsed the list of dowry etc. given by her to the tune of ₹ 5 .....

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take a imaginary case so that we may come to conclusion whether the statement made before the Police cannot be accepted as an evidence. The example is as under :- i) Suppose a thief has entered into my house and has taken away a sum of ₹ 50,000/- in cash, jewellery worth ₹ 2 lakhs. While he was running away with the said cash and jewellery, I got up and I tried to take back my articles. He injured me badly and ran away. I recognized him and filed a complaint with the Police. Thief i .....

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wellery of ₹ 20 lakhs which was later on retractred and case compromised. The Income tax department came to know of my false original statement has made addition in my income only on the ground that I had once stated the same before the Police. Had I stated 2 crore, whether the Income tax department is empowered legally to add the said ₹ 2 crore straight away or the Income tax department is to prove the said income beyond reasonable doubt to take tax from a citizen. 3 That case of th .....

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d submitted. During the pendency of the said proceedings, due to mediation of relatives, the compromise reached, both the parties admitted their mistakes and decision to withdraw the allegations made against each other. The same was done and daughter was sent back to the husband's home. When the entire case is withdrawn, where is the necessity of file revised estimate before the Women Cell. The Id. Income tax Officer has based his addition that no such revised estimate was given before the W .....

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ne marriage of her another daughter Tabassum and a sum of ₹ 50,000/- was spent on the marriage. The said case has also been done u/s 143(3) in scrutiny and expenses of ₹ 50,000/- were accepted by the Id. Income Tax Officer. The appellant has four daughters. No father would like to discriminate on the expenses to be incurred on the marriages of his daughters to that extent. If one year back only ₹ 50,000/- were spent, in one year after a person who is a govt. employee, from wher .....

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ct from the ward file of the department also. 5. That copies of order dt. 16.9.11 of Pooja Talwar, MM/Mahila Court, statement of petitioner Mohsina Khan,daughter and an application dt. 7.9.11 for withdrawal of complaint are enclosed herewith. 6. That a letter in original from Shri Abid Ahmed, son in law of the appellant with whom the entire disputes arose is enclosed herewith. He has categorically stated that there were no truths in RTI application and it was just reaction to FIR filed by his wi .....

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d copises of judgements on which he relies in support of the submissions given herein. For the purpose, it is requested that the matter may kindly be adjourned for about 15 days and Oblige. 11. The assessee further submitted vide submissions dated 25.04.2013 as under :- 1.That the appellant joined M.C.D. as Section Officer in 1970. As a result of seniority, he was promoted as Asstt.Engineer, then to Executive Engg., then as Superintending Engineer and he retired as Director, Deptt. Delhi Jal Boa .....

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to one Nishad Faisal in the year 1989. An amount of ₹ 50 to 75,000/- was spent on her marriage and jewellery between 8 to 10 tolas was given to her. It was a simple occasion. Her husband is Lecturer in AMU University, Aligarh. ii) Second daughter namely Shabana Khan has done B.U.M.S. from Delhi. She was married in the year 2000 with one Musharaf Ali Khan in the year 2000. Her husband is working as Asstt. Engineer in N.H.P.C. Her marriage was only a simple occasion and an amount not exceedi .....

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period was also reopened u/s 148, the assessment completed u/s 143(3) at the returned income. Question with regard to expenditure incurred on marriage was specifically asked in the query, and details of expenses were given. Copy of reply and affidavit dt. 15.9.10 filed during the course of assessment for A.Yr.2005-06 is given alongwith copy of Asstt. Order for A.Yr.2005-06. iv) 4th daughter namely Mohsina Khan was married in Nov.2005, the relevant year under appeal before your honour. As has al .....

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a big show in marriages. The appellant concentrated on the education of their daughters and since his daughters are well educated, their marriage was never a problem for him. Marriages were done in a very low profile manner and amount spent on their education was considered as value and their marriages done in good families. 4. That whether it is possible that in the year 2004, the appellant is spending ₹ 75000/- in marriage of one daughter, may spend ₹ 50 lakhs in the year 2005 in .....

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rs along with computation of income are enclosed herewith. He has 2 bank accounts, one with P.N.B. Maharani Bagh, New Delhi where the pension amount is credited every month and other account is with Dena Bank, Connaught Circus, N. Delhi where a small pension of ₹ 1041/- is credited every month. Copies of the said pass books for the last 3 years are enclosed herewith. Perusal of the pass book would reveal that the appellant withdraws the amount of pension almost every month since that is so .....

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onstructed till 1998 in instalments. Details regarding the said property were also given in the assessment proceedings for A.Yr.2005-06 in the shape of affidavit dt.15.9.10, copy of which is enclosed herewith. The appellant has got N.S.Cs. worth ₹ 5 lakhs which he has been able to save since that is required to save income tax every year. The same have duly been shown every year and rebate u/s 80-C taken in the returns. All this can lead what worth the appellant has. He could not even drea .....

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t The Indian Evidence Act, 1872 defines what is proved and what is disproved in Section 2 which is as under:- PROVED:- A fact is said to be proved when, after considering the matters before it, the Court either believes it to exist, or considers its existence so probable that a prudent man ought, under the circumstances of the particular case, to act upon the supposition that it exists. DISPROVED:- A fact is said to be disproved when, after considering the matters before it, the Court either bel .....

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the stage of witnesses and conclusion. When, a matter remained undecided, the said list of dowry etc. cannot be taken as an admission or evidence under Income Tax assessment. 9. That an affidavit of the appellant that whatever factual position has been stated in written submissions dt. 25.4.2013 and 30.4.2013 are true and correct. It is hoped that the submissions given above will show your honour that what is done by the Id. Income Tax Officer is wrong, unjustified, illegal and addition of ͅ .....

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wards marriage of fourth daughter of the appellant in the F.Y. 2005-06. The case is heard and discussed with the appellant and his AR Sh. Suresh Batra, advocate, who also represented the case before the AO. The case was re-opened u/s 148 of the I. T. Act on a tax evasion petition received where due to dispute between the bride and bridegroom a complaint had been filed before the Women Cell, Delhi Police and on anger the son-in-law of the appellant filed the petition for a divorce and the appella .....

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hi Jal Board, MCD and retired in May, 2006. The F.Y. 2005-06 is about the retirement year in which the appellant gets marriage to his fourth daughter. The appellant narrates his background of financial and social status in his 30th April, 2013 letter very clearly. He has given marriage to his third daughter at a cost of ₹ 75,000/- in the year 2004. He had given good education to all five daughters and still one daughter is unmarried. In muslim community education is not that developed to g .....

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r will be ₹ 3, 15,010/- and the balance amount of ₹ 39,00,000/- will be deleted. 13. Now, the department is an appeal against the relief of ₹ 39,00,000/- and the assessee is in appeal against the sustenance of addition of ₹ 1,00,000/- . The Ld. DR strongly supported the order of the AO and reiterated the observations made in the assessment order dated 19.12.2011. In his rival submissions, the Ld. Counsel for the assessee reiterated the submissions made before the authorit .....

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n-law was false and exorbitant, list of items given on marriage as dowry was mentioned and in turn he also filed the complaint to the Income Tax Department which was false. The Ld Counsel for the assessee further submitted that in the earlier year income of the assessee was accepted u/s 143(3) of the Act at ₹ 2,60,504/-. It was stated that no expenses were incurred from the other sources on the marriage of the daughter. Therefore, the addition sustained by the Ld. CIT(A) was not justified .....

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