TMI Blog2016 (12) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case. When Smt. Kavita D. Gupta had filed the details of her income-tax returns along with PAN and confirmation letter, the Assessing Officer should have summoned her. Since the assessee is a lady with a mentally challenged child and is doing seasonal business and has produced the purchase and sale bills etc. the Assessing Officer under the facts of the present case should not have doubted the business of the wife of the assessee merely on the ground that she has not produce the shop license. So far as the objection of the Assessing Officer that money has not routed through banking channel although the wife of the assessee is maintaining a bank account is concerned, this in my opinion should not be a ground unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ath Shivuogippa Hungund, resident at 19/1, Vidya Nagar, Shelgi, Solapur. 3. On being questioned by the Assessing Officer it was submitted that the above property has been purchased by the assessee along with his brother Shri Sitaram Murarilal Gupta . The assessee has contributed ₹ 3,14,220/- and his brother Shri Sitaram Murarilal Gupta has contributed ₹ 4,91,000/-. As regards the source of the assessee, it was submitted that the same was made out of cash gift of ₹ 3,00,000/- received from his wife Smt. Kavita D. Gupta and personal savings. It was submitted that Smt. Kavita D. Gupta is regularly assessed to tax vide PAN No. AFRPG9522R. Similarly, the contribution of ₹ 4,91,000/- made by Shri Sitaram Murarilal Gupta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e transaction through banking channel, i.e. bank. This according to the Assessing Officer means that the money kept by Smt. Kavita D. Gupta belongs to the assessee only and not of herself. Simply the funds have been diverted through Smt. Kavita D. Gupta and she has not proved the genuineness of running of business by producing the relevant details. He accordingly treated the above amount of ₹ 3,14,220/- as unexplained investment u/s.69 of the I.T. Act and added the same to the total income of the assessee. 5. In appeal the Ld.CIT(A) confirmed the action of the Assessing Officer. Aggrieved with such order of CIT(A) the assessee is in appeal before the Tribunal with the following grounds : On facts and in law : 1. The Ld.CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of the donor and the genuineness of the transaction. Referring to the decision of Hon ble Supreme Court in the case of Umacharan Shah Brothers Vs. CIT reported in 37 ITR 271 he submitted that a mere suspicion on the part of the Assessing Officer does not entitle him to make any addition. He submitted that although the wife of the assessee had written letter to the Assessing Officer, however, the Assessing Officer has not summoned her to record her statement. He accordingly submitted that the order of the CIT(A) be set aside and the grounds raised by the assessee should be allowed. 7. The Ld. Departmental Representative on the other hand heavily relied on the order of the CIT(A). He submitted that the assessee has not conclusively pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd an affidavit regarding such gift. However, the Assessing Officer disbelieved the credit worthiness of Smt. Kavita D. Gupta on the ground that she has not maintained any books of account, has not obtained a shop license, money was not routed through banking channel although she maintains a bank account with Solapur Janata Sahakari Bank Ltd. He therefore came to the conclusion that the money gifted by wife of the assessee infact belongs to the assessee. I find the CIT(A) confirmed the addition made by the Assessing Officer u/s.69 of the I.T. Act. 9. It is the submission of the Ld. Counsel for the assessee that his wife being engaged in seasonal business of Fire cracker and Rakhee does not maintain any books of account since her turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wife of the assessee is maintaining a bank account is concerned, this in my opinion should not be a ground under the facts and circumstances of the case to disbelieve the gift. Since the assessee in the instant case has substantiated the identity and credit worthiness of the donor and the genuineness of the transaction, therefore, the CIT(A) in my opinion should not have confirmed the addition made by the Assessing Officer u/s.69 of the I.T. Act to the extent of ₹ 3 lakhs. 12. So far as the decision of Hon ble Kolkata High Court in the case of Korlay Trading Company (Supra) relied on by the Ld. Departmental Representative is concerned the same in my opinion is not applicable to the facts of the present case. In that case the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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