Deposits were made from Past Savings and Earnings of entire family for Study Visa requirement of son: ITAT deletes Income Tax Addition [Read Order]

In an assessee friendly ruling, the Income Tax Appellate Tribunal (ITAT), Chandigarh deleted addition of Rupees Three Lakhs as Deposits were made from past savings and earnings of entire family for study visa requirement of son.

The proceedings under Section 147 of the Income Tax Act were initiated in the case of the assessee, Shiv Nath in view of the fact that certain deposits were found to have been made in the assessee’s bank account. In response to the notice issued, the assessee filed a return declaring total income of Rs.76,600/-. The AO considering the reply as unsatisfactory made the addition of Rs.3,31,000/-. The assessee carried the issue in appeal before the First Appellate Authority. The appeal filed was dismissed in limine. Aggrieved the assessee is in appeal before the Tribunal.

The assessee, as noticed is a daily wage worker and cumulatively and individually the income of the family has never been anywhere close to the taxable limits. The fact remains on record that the resources/savings from all sources were pooled in by the assessee to ensure financial viability foravailing a Student Visa for a daughter which ultimately also stood rejected. These facts remain unrebutted on record. Accordingly, the Revenue was put to notice to defend the order.

The Bench consisting of observed that “Keeping in view the realities and aspirations of the rising India and the efforts of the toiling masses where certain families instead of sitting in apathy for the State Administration to dole out State largesse the enterprising self respecting population also consists of such citizens who instead choose to make their own efforts to avail of the opportunities and advantages provided by educating their children.”

“There are sections of Society who choose to involve every family member in industriously working and tosimultaneously studying to ensure a proper and a de cent livelihood for the next generation. To my mind, this spirit of the rising India should not be crushed by a mechanical effort of looking for evidences in 2022 for an activity which culminated in rejection of visa application of assessee’s daughter on 15th July, 2010.”

“Keeping in view the purpose for which the assessee was working hard, the claim was justified on facts” the Tribunal added.

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