Gift Received by a Married Woman can’t be treated as ‘Unexplained’ merely on the basis of Entries in Pass Book: ITAT [Read Order]

Gift Tax

The Agra bench of Income Tax Appellate Tribunal ( ITAT ) in the case of Nanoomal Gupta versus ACIT wherein bench ordered that Gift received by a married woman can’t be treated as ‘unexplained’ merely on the basis of entries in pass Book.

In instant case Assessee is an individual filed his return of income, wherein AO made the addition of Rs.5 lacs, being the unexplained investment in Goad Bharai Ceremony also known as Indian Baby Shower. The AO also observed that there was no mentioning of expenses of the ceremony in the details of the surrendered amount of Rs.33 Lacs.

The CIT (A) found that an amount of Rs.2,88,181/- stood as expenditure on ‘Goad Bharai’, in the seized document, observing that the Addition made by AO was without any basis. He, therefore, restricted the amount of addition to this figure of Rs.2, 88,181/-.

Advocate Navin Gargh who appeared at the behest of Assessee contended that at APB 32 is a copy of the particulars of the assessee’s income, as per statement under section 132(4) of the IT Act.

Since there is no contradiction in the submissions on behalf of the assessee Moreover, no credit for the shagun received by the assessee in the ‘Goad Bharai Ceremony’ has been given.

The bench comprising of Judicial Member A. D. Jain and Accountant Member DR. Mitha Lal Meena held that gift received by married women cannot be held as unexplained by taking credit entries in the bank passbook.

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