9911796707
TMI Blog1979 (4) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the assessee had constructed a house and while examining the investment therein found that the assessee had received a gift of Rs. 20,000 from his wife which was utilised towards the construction of the house. Before the ITO, the assessee stated that his wife was doing tailoring work since 1959 and the gifted amount came out of her past savings. The ITO, through his Inspector, recorded the statement of Smt. Achhro Devi, wife of the assessee on 14th Oct., 1975. In this statement, she affirmed that she was doing tailoring work since 1959 and she had earned income of about Rs. 6,500 for the asst. yr. 1975-76 for which the assessment of the assessee was in progress. She had also filed Income-tax return with the ITO, Special Survey Circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, treated the sum of 20,000 spent by the assessee on construction of house after receipt as a gift from his wife as the assessee's income under the provisions of s. 69 of the IT Act, 1961. The total income of the assessee was thus determined as under:— (i) Income from coaching Rs. 2,000 (ii) Share from M/s. Mahabir Stores 5,420 (iii) Addition under s. 69. 20,000 . 27,420 Less LIP paid. 1,146 Balance 26,274 This assessment was challenged in appeal before the AAC. 4. Before the AAC it was contended on behalf of the assessee that Smt. Achhro Devi had now here stated in her statement dt. 14th Oct., 1975 that she did not spend any money after 31st March, 1975, that the Inspector's report regarding local enquiries was nev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and return for the asst. yr. 1975-76 had been filed on 30th July, 1975. The assessments in her case for the years 1973-74 to 1975-76 were completed on 6th Feb., 1976 and the assessments for the years 1971-72 and 1972-73 were finalised on 28th Feb., 1977. All the assessments are on protective basis. While thus proceeding with the arguments the Revenue pointed out that in the assessee's paper-book, an affidavit has been filed which was not filed before the authorities below. After hearing the parties on the objection, the objection was upheld and the affidavit filed by the assessee being the affidavit dt. 19th Jan., 1979 shall not form part of the record of the Tribunal. 8. Continuing with the arguments the Revenue stated that the statemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2), it was submitted that the assessments raised upon the assessee's wife did not operate as an estoppel in finding out veracity of the assessee's explanation about the gift of Rs. 20,000 explanation for which was based upon the earlier assessments of his wife because the doctrine of the res judicata was not applicable to income-tax proceedings. 11. The learned counsel for the assessee opposed these submissions and reiterated the contention that the Inspector's report which formed the basis of local enquiries, adverted to the ITO, had not been shown to the assessee till the date of hearing. He submitted that the assessments framed on Smt. Achhro Devi are clear proof and admission of the fact by the Revenue that she was doing tailoring w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mers. On the basis of this certificate, it was argued that the factum of her profession stands established. The income accruing and arising to her therefrom is accepted by the Revenue in view of her assessments. The question, therefore, it was submitted, is whether she could save Rs. 20,000 to be gifted to her husband for being utilised in the construction of the house. 13. It was submitted that she has been working for the last sixteen years and odd even on the most conservative basis adopted by the ITO, she could earn an income of Rs. 24,000. The claim of the assessee's wife is that she had saving of Rs. 31,000 as on 31st March, 1975. Therefore, it was clear that she was in a position to gift Rs. 20,000 to her husband. He, therefore, co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income claimed by the assessee's wife from this source is reasonable or not and whether she could save therefrom so as to enable her to gift the amount of Rs. 20,000 to her husband. 15. In this regard, it would be unreasonable to assume that she was earning the same income of Rs. 1500 per annum for all the 16 years it would be quite clear that with the experience she gained from year to year, she could have earned better income. In this context, it is to be seen that when her assessment on the basis of the returns filed by her was taken up, the ITO for the asst. yr. 1974-75 himself records that after discussion, the income returned at Rs. 5,500 is accepted and before he makes this observation, he has recorded that his income is derived ..... X X X X Extracts X X X X X X X X Extracts X X X X
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