Receipt of Loan and Cash Gift as Tradition in Marriage of a Female: ITAT directs Dept to Re-Verify Claim [Read Order]

The Delhi bench of the Income tax Appellate Tribunal (ITAT), while allowing the appeal of the assesse, has directed the income tax department to re-verify the claim in connection with the receipt of loan and cash gift as the same is a tradition in the marriage of a female.

The department initiated re-assessment proceedings under section 148 of the Act on ground ofexpenses of Rs. 40,00,000/- for purchasing jewellery worth Rs. 25,00,000/- and Rs. 15,00,000/- for other articles incurred by the assessee during the period relevant to assessment year 2011-12.

The assesse took a plea that the same was during her marriage.It was stated that loan was received from 14 people amounting to Rs. 2,15,000/-; gift received from 101 persons of Rs. 1,71,050/-; and family relatives of Rs. 3,99,500/-. It was also stated that the assessee had incurred expenses out of savings from her parents, money left by hergrand-father late Sh. S. Jiwan Singh; loan taken by her brother for her marriage to the tune of Rs. 2,60,000/- and her personal savings to the tune of R. 96,196/-. The Assessing Officer gave benefit of loan taken by her brother and expenses incurred out of her past savings.

Thee assesse contended that both the authorities failed to appreciate the fact that there is tradition in marriage of a female. She gets gift etc. and the assessee also had taken loan from various persons who have also confirmed the same, but the authorities below for the reasons best known to them have not considered the evidences. ShriKul Bharat (Judicial Member) observed that “the assessee had filed various evidences in the form of affidavit etc. The learned CIT(A) has brushed aside those evidences without even verifying the veracity of such affidavit. Merely stating that the affidavit was procured subsequent to marriage, in my considered view is not justified. The learned CIT(Appeals) ought to have verified the correctness of the claim of the assessee. I, therefore, set aside the impugned order and restore the assessment to the file of the Assessing officer to decide it afresh after considering the evidences placed by theassessee in the form of affidavit and frame the assessment afresh.”

To Read the full text of the Order CLICK HERE

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