Tribunal upholds CIT(A)'s decisions on income additions, citing genuineness and customs

INCOME TAX OFFICER. Versus DR. NK. DUBEY.

INCOME TAX OFFICER. Versus DR. NK. DUBEY. - TTJ 091, 576, Issues:
1. Addition of Rs. 2,15,000 under s. 69B of the IT Act, 1961
2. Deletion of the addition of Rs. 45,000 being the investment in acquisition of gold ornaments

Analysis:

Issue 1: Addition of Rs. 2,15,000 under s. 69B of the IT Act, 1961
The AO added Rs. 2,15,000 to the income of the assessee under s. 69B of the IT Act, as three vehicles were found at the residence of the assessee during a raid, registered in the names of his sons. The assessee failed to prove the source of investment for these vehicles. The CIT(A) held that the vehicles were registered in the names of the sons, who were separately assessed to tax, shifting the investment consideration to them. The CIT(A) directed the ITO to delete the addition in the hands of the assessee, stating that the amount cannot be added under s. 69B. The Tribunal upheld the CIT(A)'s decision, emphasizing that the burden was discharged by the sons filing cash flow statements, proving their income's genuineness.

Issue 2: Deletion of the addition of Rs. 45,000 for gold ornaments
The AO added Rs. 45,000 under s. 69B for gold and silver ornaments found during the raid, considering 50% of their cost as purchased by the assessee. The CIT(A) deleted this addition, accepting the explanation that the ornaments were received at the time of marriage, a customary practice. The Tribunal agreed with the CIT(A), noting that the explanation was plausible, and the amount was not excessive given the customs of gifting ornaments during marriages. The Tribunal found no justification to reverse the CIT(A)'s decision, considering the background and circumstances of the case.

In conclusion, the Tribunal dismissed the appeal, upholding the CIT(A)'s decisions to delete both additions. The judgments were based on the proper discharge of burden by the assessee and the plausibility of explanations provided, considering the legal provisions and customs involved.