This article delves into ITA No. 1896/DEL/2020, involving Manish from Hisar and the Income Tax Officer (ITO), Ward-2, Hisar. The case pertains to the Assessment Year (AY) 2009-10 and was filed on November 24, 2020, with the final order pronounced on March 10, 2023. The crux of the matter revolves around the disallowance of a cash gift received by Manish from his father.
Manish, the appellant, contested the addition of Rs. 2,00,000 made by the ITO, Ward-2, Hisar, on the grounds that the amount was a gift from his father. The appeal was delayed by 780 days due to unavoidable circumstances, including family disputes and litigation, which the appellant cited as reasons for the delay in filing the appeal.
The appellant’s representative, Shri Sunil Mathur, AR, argued that the amount in question was a legitimate gift from Manish’s father, Shri Krishna Dutta, who is a priest, astrologer, and property dealer. The representative presented evidence, including a copy of the revenue record showing ownership of 6.5 acres of ancestral agricultural land, to substantiate the claim.
The Senior Departmental Representative (DR), Shri Om Prakash, contended that the assessee failed to provide a plausible or sufficient cause for the delay in filing the appeal. The DR also argued that the assessee did not convincingly demonstrate the source of the cash gift during the assessment proceedings.
The ITAT, led by Shri Chandra Mohan Garg, Judicial Member, reviewed the case. The tribunal noted that the assessee had provided sufficient documentary evidence to support the claim that the cash gift was from his father, who owned 6.5 acres of agricultural land. The tribunal also considered the challenging family circumstances and legal disputes that contributed to the delay in filing the appeal.
The ITAT concluded that the delay of 780 days in filing the appeal was justified due to the family disputes and legal issues faced by the appellant. The tribunal accepted the assessee’s explanation and admitted the appeal. On the merits of the case, the ITAT held that the cash gift from the father was adequately substantiated with evidence, including the revenue records and the nature of his income sources.
The ITAT’s decision underscores the importance of considering the context and supporting evidence provided by the assessee. It also highlights the need for tax authorities to take into account genuine explanations and challenging personal circumstances that may affect compliance timelines.
The final order, pronounced on March 10, 2023, reads:
In the result, appeal of the assessee is partly allowed.
Signed by:
(C.M. GARG) Judicial Member
Dated: 10.03.2023
This judgment reinforces the principle that genuine explanations supported by documentary evidence should be duly considered by the tax authorities, ensuring fair and just tax administration.
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