TaxTMI 
TaxTMI 
2015 (5) TMI 386
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....enditure not supported by any evidence but on presumption amounting to Rs. 34,13,000/-. 4. The appellant seeks leave to add or to amend the foregoing grounds of appeal if it becomes necessary to do so in the interest of justice. 2. The facts in brief are that the assessment in this case was reopened u/s. 147 and notice u/s. 148 was issued on 31.3.2009 after obtaining necessary sanction of the Addl. Commissioner of Income Tax, Range-37, New Delhi, and duly served upon the assessee. The counsel of the assessee vide letter dated 20.4.2009 submitted a photocopy of acknowledgement of having filed the Income Tax Return by the assessee for the AY 2002-03 declaring income of Rs. 1,63,480/- vide acknowledgement no. 2318 on 30.7.2002 be treated to be filed in compliance to notice issued u/s. 148. The assessment in this case was reopened on receipt of TEP from Investigation Wing, New Delhi, and after recording reasons to believe that the assessee has made an expenditure amounting to Rs. 34,13,300/- which is chargeable to tax has escaped assessment for the year under consideration. Notices u/s. 143(2) & 142(1) were issued on 24.9.2009 fixing the case for hearing on 30.9.2009. None attend....
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....cts of the case and not furnished the satisfactory explanation regarding ceremonial functions and marriage ceremony performed in the five Star 'Qutab Hotel'and Farm Houses on one pretext or the other. The AO by relying upon the case law of Madan Lal vs. CIT [1984] 149 ITR 533(Delhi) and in the absence of satisfactory explanation, the expenditure amounting to Rs. 34,13,000/- was treated as unexplained expenditure u/s. 69C of the I.T. Act, 1961 and added back to the total income of the assessee from undisclosed source for the asstt. year 2002-03 vide his order dated 29.12.2009 passed u/s. 143(3)/147 of the I.T. Act, 1961. 3. Being aggrieved with the assessment order dated 29.12.2009, assessee appealed before the Ld. CIT(A), who vide impugned order dated 28.9.2011 has affirmed the addition and dismissed the appeal of the Assessee. 4. Now the Assessee is aggrieved against the impugned order and filed the present appeal before the Tribunal. 5. At the time of hearing Ld. Counsel of the assessee reiterated the contentions raised in the grounds of appeal and he stated that the Assessing Officer has wrongly assumed the jurisdiction u/s. 147 of the I.T. Act, without recording the re....
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.... a letter dated 21.12.2009 asking to adjudicate the legal issue to initiate proceedings under section 147 of the Act. Notice u/s. 148 was communicated to the assessee vide letter dated 24.12.2009 which the AO has reproduced at pages 2 to 4 of the assessment order. In spite of the same assessee has not furnished the documentary evidence with regard to expenditure of marriage ceremony of his daughter and he only submitted in his letter that the expenditure of marriage of his daughter was incurred by his Mother in Law Late Smt. Janak Dulari Puri, the pension holder from the Army and also having agricultural land. The AO has also provided a copy of FIR and copies of letter issued under section 133(6) of the I.T. Act, to Hotel Qutab; M/s Tamana Farms and M/s Sapna Gardens wherein the marriage ceremony were allegedly performed in the above said hotel and farm houses. In the FIR his daughter Jyoti Kapoor has stated that her marriage ceremonial evidence of her marriage were performed at the above places and huge expenditure was made by her father. After giving opportunity to the assessee, the Assessing Officer in the absence of any evidence made addition in dispute and completed the assess....
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.... given by him on the issue of assumption of jurisidciton u/s. 147 of the I.T. Act and notice u/s. 148 of the Act which is valid and as per law. Therefore, the issue involved in Ground No. 1 and 2 is dismissed. 8. With regard to issue involved in ground no. 3 regarding addition of Rs. 34,13,000/- made by the AO on account of unexplained expenditure made on the marriage ceremony of the assessee's daughter under section 69 of the I.T. Act is concerned, we find that the AO in his remand report has stated that the main addition was made on account of unexplained expenditure of Rs. 34,13,000/- on the marriage ceremonies of the assessee's daughter u/s. 69c of the I.T. Act, 1961. The AO has observed that the assessee has suppressed the material relevant to the facts of the case and not furnished the satisfactory explanation regarding ceremonial functions and marriage ceremony performed in Five Star Qutab Hotel and Farm Houses on one pretext or the other. Relying in the case of Madan Lal vs. CIT [1984] 149 ITR 533 (Delhi). He added amount of Rs. 34,13,000/- as unexplained expenditure u/s. 69C of the I.T. Act, 1961. Ld. CIT(A) observed that assessee sought sympathy as his daughter was vic....
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.... in the absence of these details being received he had held that the expenditure incurred is not verifiable and is of the view that as the assessee fails to file the original receipts for verification, so genuineness of expenditure of Roca ceremony could not be verified He had not brought on record any evidence to prove that assessee had spent Rs. 1,89,000/- as alleged by him in the Assessment order. 8.2 We find considerable cogency in the contention of the assessee's counsel that assessee has only spent Rs. 36,087/- on Roca ceremony against Rs. 1,89,000/- alleged to have been spent by the assessee. The A.O. has not brought on record any evidence to prove that the assessee had incurred expenditure of Rs. 1,89,000/- So, no addition u/s 69C can be made until and unless there is any material with the Department to prove that the assessee has incurred that amount, on the contrary the appellant has submitted hotel Qutab's Bill no. 0001444 dated 23.11.2001 and receipt issued by Hotal Qutab bearing no. 7167 dated 6.11.2001 and 1055 dated 24.11.2001 for Rs. 31,087/- & Rs. 5000/- these receipts are by the Government's hotel and the assessee has also given the source of expenditur....
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....assessee. (c) As regard to Marriage expenses- Tamanna Farms (Satkar Caterers) Rs. 25,48,000/- - Ld. Counsel of the assessee has submitted that the A.O. has made addition of Rs. 25,48,000/- as marriage expense in the income of the assessee as per the information received by him from the investigation wing. The assessee has further submitted that he has incurred Rs. 1,61,000/- on marriage ceremony, which was held in Tamanna Farm. In support of that the quotation of Satkar Tent House was also furnished, Satkar tent house has admitted that function was held on 15.02.2002 and sum of Rs. 47,280/- was spent by the appellant on feeding alone and they have admitted that this is a packaged deal for food and tent arrangement, and they are not in a possession of the records at the moment except that of Rs. 47,280/-. However, when the assessee has stated that he has spent Rs. 1,61,000/- and in support copies of the receipts and bills etc. were furnished and source of expenditure has been explained. So, the AO has also not found that these receipts are false or not verifiable. There is no justification whatsoever of upholding this addition by A.O. 8.3 Ld. Counsel of the assessee further point....
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....8.6 Keeping in view of the facts and circumstances of the present case as discussed in the forgoing paragraphs, it is pertinent to mention here that the daughter of the assesse namely Jyoti Kapoor was a victim of dowry harassment by her In-laws including her husband. She has also lodged FIR which the assessee has attached in his Paper Book Pages 15 to 20. The FIR has been registered by Smt. Jyoti Kapoor, D/o of the assessee under section 498A, 406, 506, 323/34 IPC on 7.5.2002 against her husband and other family members. No doubt that the daughter of the assessee has written that her father has incurred a huge expenditure on her marriage, but she has not produced any documentary evidence that huge expenditure has been incurred by her Father, before the police authorities. Assessee being the father, accordingly, remained under mental tension during the dispute between his family and the family of her daughter in law. When the dispute arise between both the parties, it is very much possible to file a complaint by the in-laws cited by the assessee's daughter against the assessee for her harassment and they filed the complaint against the assessee for unexplained, unaccounted expenditu....