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2016 (3) TMI 79
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....ntribution of jewellery by mother in law of assessee Rs. 3,78,000/- and amount available with assessee daughter at Rs. 1,00,000/-. 2. The ld CIT(A) has erred in facts and in law in confirming the disallowance of Rs. 3,633/- out of car insurance, conveyance and telephone expenses." 2. First ground of assessee's appeal is against confirming the addition of Rs. 15,28,384/- out of addition of Rs. 19,41,200/- U/s 69C of the Income Tax Act, 1961 (in short the Act) on account of daughter's marriage. The assessee has income from other sources. He filed return on 18/12/2008 declaring total income of Rs. 1,43,780/-. The case was scrutinized U/s 143(3) of the. The ld Assessing Officer observed that a search and seizure operation U/s 132 of the Act was carried out by the department at the instance of the assessee on 14/3/2008. During the course of search proceedings, books of account and loose documents were seized as per Annexure-A. Panchnama was prepared on the date of search as per Exhibit-A/1, loose papers 1 to 71 were seized. Seized papers No. 8 to 13, 16 to 27 and 51 were containing various details of marriage expenses of the Rubi, daughter of the assessee, which was solemniz....
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.... daughter Ruby. (d) The assessee has produced personal cash account and also prop, concern M/s. International Emerald Perusal produced are not supported by vouchers. Scrutiny of cash account revealed that assessee has made drawings only Rs. 15,000/- on marriage expenses and the rest expenses for marriage has been done through borrowed funds. The assessee has given evidence of only Rs. 1,90,800/- regarding expenses incurred by assessee's brother for 'Engagement Function'. The balance amount of Rs. 21,47,000-(1,90,800+15,000) = Rs. 19,41,200/- is unexplained. As per seized page-13 of Annexure-A assessee has received amount of Rs. 12,85,000/- from Sh. Sunil Gattani. The assessee has filed letter and affidavit stating that Sh. Sunil Gattani was given closed envelope containing cash Rs. 7,85,000/- without knowing what was inside the envelope. As and when the assessee was requiring cash the assessee requested Sh. Sunil Gattani to given the envelope back which he gave back. Taking into fact and circumstances it is unbelievable that such huge amount has been taken without the other party knowledge. The contention and submission has been carefully considered which is an....
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.... expenses, the appellant claimed that on the marriage of his daughter expenditure of Rs. 882097/- was incurred which is recorded in cash book seized at the time of search. It was further contended that Rs. 10 lacs was received from Sh. Anpnd Prakash Agarwal whose confirmation was also filed during the assessment proceedings and that the daughter of the assessee herself being famous artist, painter and advertisement designer also incurred certain expenses. It was also stated that father-in-law of the assessee Sh. Manik Chand Gattani also incurred Rs. 163500/- which was drawn from bank account. However the AO was not convinced with the explanation of the appellant. The AO's case is that during the course of search the assessee has not pointed out that Rs. 10 lac was given by Sh. Anand Prakash Agarwal for marriage expenses and that such explanation was simply an afterthought. It is also stated that, receipt of Rs. 10 lacs from Sh. Anand Prakash Agarwal is also not evidenced in page no. 13 of the seized documents in which the source of expenditure of Rs. 21.47 lacs is shown. As regards the contention of the assessee that on 6.7 2007 there were two marriages, one of assessee's daughter ....
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....on 6.7.2007 and subsequent to such function action u/s 132 of IT Act was carried out on 14.3.2008. There is no dispute on the fact that during the course of search proceedings incriminating documents were found and seized containing very systematic details of expenditure incurred by the appellant on the marriage of his daughter. It is undisputed fact that during the course of search statement of the appellant was recorded u/s 132(4) of IT Act and in answer to question no. 23 the appellant has very specifically admitted that on the basis of page no. 8 & 9 an expenditure of Rs. 1716400/- was incurred on the marriage of his daughter. It was also stated that such documents were maintained/ written by wife of the appellant. It is a settled law that the statement recorded u/s 132(4) is having valid evidentiary value. Moreover the appellant has never retracted to his statement in respect of incurring of expenditure. There is nothing on record which may indicate that such statement was recorded under duress. First of all it may be stated that the appellant has given almost contradictory statement in respect of expenditure incurred on the marriage of his daughter at the time of search, at t....
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....f Rs. 1614398/- the appellant was having total availability of funds amounting to Rs. 2260216/-. As regards the claim of the appellant at total expenditure incurred was Rs. 1614398/- such claim has already been rejected and therefore the total expenditure incurred by appellant remains at Rs. 21.47 lacs. The genuineness of such available fund as claimed by the appellant in the written submission is being examined and discussed as under. The availability of fund amounting to Rs. 190800/- from Sh. Jugal Kishore Naval and Rs. 15000/- from the assessee himself has already been accepted by the AO. As regards the availability of Rs. 163600/- from Sh. Manak Chand Gattani it is claimed that Sh. Manak Chand Gattani is the father-in-law of the assessee (maternal uncle of daughter of the appellant) and that he contributed such amount on the marriage. For such submission confirmation of Sh. Manak Chand Gattani and bank account of Sh. Manak Chand Gattani was filed. On careful consideration of such explanation and perusal of confirmation as also the bank statements filed by Sh. Manak Chand Gattani it is noted that Sh. Manak Chand Gattani is pensioner getting pension of Rs. 6500-7000 appr....
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....see. It is contended for incurring the common expenditure Sh. Anand Prakash Agarwal sent Rs. 10 lacs to the assessee and the assessee also filed affidavit and copy of bank account from where Sh. Anand Prakash Agarwal withdrawn the amount. As regards such contention it may be stated that there is no dispute on the fact that both the marriages were solemnized on the same place i.e. Issarda Palace, Jaipur. But the important pointed to be noted is that the expenditure of Rs. 21.47 lacs was only in respect of marriage expenses of the daughter of appellant. In fact nature of expenses recorded on page 8, 9, 10 and 13 very clearly indicate that such expenses were not of common nature and these expenses were of very specific nature pertaining to the appellant only. In this background even if Rs. 10 lac has been withdrawn by Sh. Anand Prakash Agarwal, it cannot be said and believed that such amount of Rs. 10 lacs was incurred against such expenditure of Rs. 21.47 lacs. Therefore such availability of fund amounting to Rs. 10 lacs cannot be accepted. As regards another availability of Rs. 1 lac by way of gifts it is stated that as a social custom all persons attending a marriage gives....
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....radictory evidence which may indicate that appellant's wife has incurred such available funds in any other manner. Therefore availability of funds to such extent is to be accepted and expenditure to such extent is to be treated as explained. As regards availability of Rs. 1 lac which is stated to be contributed by the daughter of the assessee who is artist, painter and advertisement designer and was stated to be having income of Rs. one lac approximately each year, it may stated that such submission and explanation is also without any documentary evidence in as much as if the daughter of appellant was having income of Rs. 1 lac every year, the accumulation of funds by way of savings should have been reflected by way of bank balance etc. The appellant also did not submit any such explanation for availability of Rs. 1 lac when statement was recorded u/s 132(4). Therefore such submission is also prima facie an afterthought. Keeping in view facts and circumstances discussed above, the source of funds amounting to Rs. 618616(190800+15000+100000+312816) can only be considered to be of explained nature. Accordingly out of total addition of Rs. 1941200/- addition of Rs. 4....
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.... expenditure as per this paper is only Rs. 16.47 lacs and not Rs. 21.47 lacs as held by the lower authorities. 2. The assessee vide letter dt. 28.04.2009 has explained that the expenditure incurred on marriage is Rs. 16,14,398/- for which source was explained. As against this, on Pg 7-8 of Annexure A-1, estimated amount of marriage expenditure is noted at Rs. 17,16,400/- and as per Pg 13 of Annexure A-1 , it is noted at Rs. 16,47,000/-. The AO/CIT(A) have accepted the source to the extent of Rs. 6,18,616/-. (1,90,800+15,000+1,00,000+3,12,816). The explanation of the assessee in respect of the remaining expenditure of Rs. 10,28,384/- (1647000-618616), the observation of the CIT(A) and the further explanation of the assessee is tabulated as under:- S. No Contribution made by and amount Explanation of the assessee Observation of CIT(A) Contention of the assessee 1. Manak Chand Gattani Rs. 1,63,600/- He is father in law of the assessee. As per the custom he contributed this amount for the marriage. In support of this, his confirmation and the bank account was filed. This confirmation and affidavit was not controverted by the AO. Sh. Manak Chand Gatta....
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....ven when it is the fact on record that the marriage function was common and Sh. Anand Prakash Agarwal has filed the affidavit confirming this fact. Therefore, reasonable credit out of the amount received from Anand Prakash Agarwal should be allowed against the marriage expenditure incurred by the assessee. 3. Rukmani Gattani Rs. 3,78,000/ Smt. Rukma Gattani, grand mother-in-law of assessee, has set apart certain jewellery as per her will dt.5-4- 2000 to be utilized on occasion of marriage of Ruby. Smt. Rukma Gattani expired in June 2005 & accordingly as per her will Sh. Manak Chand Gattani handed over the jewellery to assessee on the occasion of marriage having present value of Rs. 378000/-. Copy of will, letter and affidavit by Sh. Manak Chand Gattani confirming handing over the jewellery was filed to the AO. No such facts were stated during the course of search in the statement by the appellant. The submission appears to be an afterthought. Even if such jewellery was there the evidence of selling the same and getting Rs. 3,78,000/- should be available. However, no such documents have been filed. Further Smt. Rukmani Gattani is stated to have expired in June, 2005 and ....
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....ssee's submissions, it was Rs. 16.47 lacs. The assessee's claimed that Rs. 5 lacs received by the assessee from Byaiji (father in law of the daughter of the assessee) but the assessee has not submitted any confirmation from the father in law of the daughter of the assessee before the lower authorities as well as before us. When father in law has withdrawn these sums from his regular books of account. The credit of Rs. 1 lac, which was met out of the gift received has been given by the ld CIT(A). As per assessee, finally expenditure remains to be explained at Rs. 15.47 lacs. The assessee further explained that he has received Rs. 1,63,600/- from Sh. Manak Chand Gattani, father in law of the assessee, but there is no evidence furnished by the assessee that Shri Gattani has capacity to contribute such amount as he is pensioner and getting pension of Rs. 6500-7000 approximately per month. Further the assessee claimed that there was a common marriage ceremony on that date i.e. marriage of both sons of Sh. L.N. Mundra was also solemnized on 06/7/2007 and common expenses were shared equally by the assessee and Shri Anand Prakash Agarwal and he sent Rs. 10 lacs for his share. But whatever ....
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....d in the open court on 22/01/2016. ============= Document 1 पà¥à¤°à¤¶à¥à¤¨ 1. कृपया बतायें कि आपने पà¥à¤¤à¥à¤°à¥€ रूबी की शादी ( 6 / 7 /2007) में कितना रूपया खरà¥à¤š किया और उसका source कà¥à¤¯à¤¾ हैं? उतà¥à¤¤à¤° मैंने अपनी पà¥à¤¤à¥à¤°à¥€ रूबी की शादी में लगà¤à¤— 3-3 1/2 लाख रूपये खरà¥à¤šà¤¾ किया है। कà¥à¤› पैसा परिवार के अनà¥à¤¯ सदसà¥à¤¯ जैसे पिताजी, ससà¥....