9911796707
TMI Blog2023 (6) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... enue took action u/s 147 for assessment of cash deposits having been made by assessee in bank a/c during the previous year 2008-09 relevant to AY 2009-10. The notice u/s 148 followed by notices u/s 143(2) and 142(1) were issued, in response to which the assessee made submissions from time to time. During assessment proceeding, Ld. AO found that the assessee has made cash deposits of Rs. 14,76,000/- in SB A/c with Bank of Baroda, AB Road, Indore. When the AO asked the assessee to explain the source of deposits, the assessee submitted following sources vide written-reply dated 05.12.2016 (copy filed at Page No. 24 to 27 of the Paper-Book), namely (i) cash-gift of Rs. 7,65,000/- received from Shri Mithilesh Kumar Pandya (father); (ii) cash-gift of Rs. 1,50,000/- received from Smt. Rajni Pandya (mother); (iii) cash-gift of Rs. 1,00,000/- received from Late Smt. Indu Pandya (grandmother); and (iv) cashwithdrawal of Rs. 2,48,000/- from assessee's own bank account which remained unutilized and therefore re-deposited. However, the AO was not satisfied with submissions of assessee who noted that (i) the affidavits appeared to be afterthought; (ii) all gifts have been received in cash; and ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed to be received from his father right from the year 2006. 5. Further, his mother, who was having no independent source of income. managed to accumulate an amount of Rs.1,50,000/- in cash. 6. The appellant has not specified the occasion i.e. Birthday. Wedding Anniversary etc. on which these gifts were donated. Normally, in Indian Society people give complimentary gift to their relatives on these occasions, However, in impugned case, the actual background of these cash gifts are missing." 5. Still aggrieved, the assessee has come in next appeal before us assailing the orders of lower-authorities. 6. Ld. AR representing the assessee drew our attention to the orders of lower-authorities as also the documents filed in the Paper-Book and made following submissions with respect to various sources of deposits claimed by assessee: (i) Regarding cash gift of Rs. 7,65,000/- received from father Shri Mithilesh Kumar Pandya, Ld. AR submitted that the assessee's father has confirmed the same in a duly sworn affidavit on stamp paper submitted to AO (copy filed in Paper-Book). In the said affidavit, his father has made averments that he worked with Central Bank of India; he was a pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndependent source of income so as to accumulate a sum of Rs. 1,50,000/-. Ld. AR submitted that assessee's mother was aged about 57 years at the relevant time and accumulation of Rs. 1,50,000/- was duly explained from gifts received by her/household savings made by her. Further, the sum of Rs. 1,50,000/- was not a hefty sum considering the age of assessee's mother. (iii) Regarding cash gift of Rs. 1,00,000/- received from his late grandmother Smt. Indu Pandya, Ld. AR submitted that assessee has himself averred/confirmed the same in a duly sworn affidavit filed to AO (copy filed in Paper-Book). Ld. AR pointed out that the said affidavit had to be sworn/given by assessee himself owing to the compelling circumstance that the grandmother had already expired on 13.02.2015. In the said affidavit, it has been averred that the grandmother regularly received family pension from State Govt. of Madhya Pradesh (because her husband was a government employee who expired much earlier) and out of that she gifted a sum of Rs. 1,00,000/- to assessee. (iv) Regarding cash withdrawal of Rs. 2,48,000/- from his own Bank A/c, Ld. AR submitted that the assessee withdrew the same on 28.11.2017 in antici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lower authorities and the documents filed in the paper-book. At first, we would like to extract the order of Hon'ble ITAT, Delhi Bench in Dheeraj Thakran Vs. ITO (supra) which is heavily relied upon by Ld. AR. The relevant paragraphs are as under: "19. We have considered the rival arguments made by both the sides, perused the orders of the AO and the CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. The first issued to be decided of the grounds of appeal is regarding the order of the CIT(A) in confirming the addition of Rs.50,40,000/- made by the AO on account of cash deposit in bank account. A perusal of the assessment order shows that the AO made addition of the above amount due to non-submission of details during the course of assessment proceedings. Before the CIT(A), it was submitted that the above amount of Rs.50,40,000/- was deposited out of cash withdrawal from the same bank amounting to Rs. 41,15,000/-, Rs.9,25,000/- received as gifts from father, mother, brother and wife and an amount of Rs.5,55,000/- was the opening cash balance. We find, the ld.CIT(A), after obtaining two remand reports from the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le with him. It has been held in various decisions that when the assessee has made deposits out of the earlier withdrawal of cash from the bank account and no material has been brought by the Revenue that such money is not available with the assessee, then, the AO is not justified in making the addition. We find, the Hon'ble Karnataka High Court in the case of S.R. Venkata Ratnam vs. CIT, 127 ITR 807, has held as under: "There is some force in the argument of the learned counsel for the petitioner and the argument advanced by the revenue is, therefore, without any force. Once the petitioner-assessee disclosed the source as having come from the withdrawal made on a given date from a given bank, it was not for respondents Nos. 1 and 2 to concern themselves with what the assessee did with that money, i.e., whether he had kept the same in his house or utilised the services of a bank by depositing the same." 22. Similarly, the Hon'ble Delhi High Court in the case of CIT vs Kulwant Rai 291 ITR 36 (Del), has observed as under:- "The orders of Assessing Officer as well as Commissioner of Income Tax are completely silent as to for what purpose the earlier withdrawals would hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax payees and the mother has given out of her past savings. We find some force in the above arguments of the ld. counsel. During the course of assessment proceedings, the assessee has filed the affidavits of the donors who are parents, brother and spouse, respectively. They are not outsiders or unknown persons. No independent inquiry whatsoever was conducted by the AO either u/s 133(6) or 131(1) of the Act. Since the gifts in the instant case are received from parents, brother and spouse, respectively and the father has withdrawn substantial cash amount from the bank before giving the gift of Rs.5,75,000/- on various dates to his son and the gifts of Rs.1,50,000/- from brother, Rs.1 lakh from mother and Rs.1 lakh from spouse are not huge amounts, therefore, doubting the genuineness of such gifts received from blood relations is not justified. We accordingly accept the source of Rs.9,25,000/- deposited in the bank to be out of gifts. Thus, in nutshell, as against the addition of Rs.50,40,000/- made by the AO and sustained by the CIT(A), an amount of Rs.49,85,000/- is accepted as explained. The order of the CIT(A) is modified to this extent and the ground raised by the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mother has given a duly sworn affidavit. Here also we find that said affidavit, given by mother, is not controverted by revenue authorities; they have only raised certain suspicion or presumption. In the said affidavit, his mother has made averments that she was a housewife but she received cash gifts from her mother, brothers and sisters and she made a cash gift of Rs. 1,50,000/- to assessee out of personal household savings. We find that the assessee's mother was aged about 57 years at the relevant time and accumulation of Rs. 1,50,000/- was duly explained from gifts received/household savings made by her. Considering the age of mother, the sum of Rs. 1,50,000/- is certainly not a hefty sum. Therefore, in such circumstances, we accept this source as well. (iii) Regarding cash gift of Rs. 1,00,000/- claimed to have been received from late grandmother, we find that the affidavit supporting gift is given by assessee himself. Although the reason given by assessee is that grandmother had already expired in the year 2015, but we do not find any strong, cogent or independent evidence by which it can be conclusively proved that the assessee had actually received a gift of Rs. 1,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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