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TMI Blog2017 (11) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of expenses incurred by the assessee on the marriage of his daughter. 2. On the facts and in the circumstances of the case, the ld. Commissioner of Income Tax (Appeals), Alwar erred in deleting the addition of Rs. 71,52,255/- made by the AO on account of advance against land and cash creditors." 2. Firstly, regarding ground No. 1 of the assessee and the revenue, the facts of the case are that the assessee filed his return of income declaring total income of Rs. 1,05,850/-. Subsequently, a notice u/s 148 of the I.T. Act, 1961 was issued on 30.03.2015. In the reasons recorded, the Assessing Officer stated that on the basis of information in its possession, it is revealed that the assessee has incurred expenditure amounting to Rs. 58,77,000/- on the marriage of his daughter Meena Agarwal which was solemnized on 19.01.2008 and reference was drawn to the FIR lodged by his daughter wherein she had stated that expenditure of Rs. 58,77,000/- was incurred by her father Shri Raghunandan Goyal on her marriage and other related functions. The AO was therefore had a reason to believe that income to the tune of Rs. 58,77,000 which has been expended by the assessee on marriage of his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G Rs. 6,00,000/- Vijay Goyal (Son) ABRPG 6751G Rs. 3,00,000/- Rs. 27,35,000/- Cash recd. as Kanyadan and other cash recd. From relatives during different marriage occasions Rs. 5,51,751/- Rs. 32,86,751/- 6. All the above family members had submitted their income tax returns and shown the marriage expenses in their capital accounts. Father of appellant Shri Musaddi Lal ji had seven sons including the appellant who is his fifth son and two daughters. As such the family is large and at the time of marriage, all family members as well as large friend circle and business connections of all brothers of the appellant had given items of gold/silver/household goods/cash/Kanyadan/other items as per the details enclosed herewith. 7. The income tax return ack., computation of total income, capital a/c and balance sheet of the family members are enclosed as Annexure-B. The AO made addition of Rs. 23,86,000/- on account of the contribution given by the family members for marriage as well as Kanyadan etc. simply on the basis that the appellant could not get it verified. The AO totally overlooked the capital account, balance sheet etc. of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onies were controlled and supervised by Shri Ravi Prakash Agarwal, father of the groom. The appellant had handed over money to him and he did the expenditure related to marriage. Kingly therefore, delete the addition of Rs. 8,25,000/-. 12. It is brought to your kind notice that after considering all facts and figures, the court settled full and final settlement of money of Rs. 11,51,000/- only. The copy of RAJINAMA (Compromise) is enclosed as Annexure-D. The court also took recognition of the fact that in these types of dowry cases exorbitant and excessive valuation of items of gold/silver/household goods/cash/other items etc. is done, that is why the settlement was done only at Rs. 11,51,000/- For example, in the FIR, the gold brick of 1 kg. is shown at Rs. 31,00,000/- while it costed not more than Rs. 3,00,000/- to Late Shri Musaddi Lal (Grandfather of Meena Agarwal) in the year prior to 1997. I therefore, humbly request you to kindly delete the addition of Rs. 58,02,000/-." 5. The ld CIT(A) considered the assessee's submission and gave him partial relief. Now, both the parties are in appeal before us. We now refer to the relevant findings of the ld CIT(A) which are under cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... either during assessment proceedings or during the appellate proceedings. Therefore, the value of the gold brick of one kilograms at the existing value in 2008 which was around Rs. 1110/gram is valued at Rs. 11,10,000/- remain unverified. Other items shown are silver utensils, 40 grams ginni and 24 grams chudi and items like washing machine steel utensils etc received from various relatives on the occasion of kanyadaan ceremony. Considering the social occasion and family status, it is customary on the part of relatives to give gifts on the occasion and the cash withdrawal made by the parent of the bride that includes the appellant who is the father and other close relatives like brother and sister of the bride, it is my considered view that sundry items like furniture, washing machine etc and ginni weighing 40 gms and chudi weighing 24 gms are within the reasonable limit of the sources declared by the appellant. However, it is my considered view that gold brick of one kg valued at the prevalent price at Rs. 11,10,000/- remain unexplained as no credible evidence has been given either during the assessment proceedings or during appellate proceeding. Hence, an amount of Rs. 11,1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he rival submissions and perused the material available on record. The issue relates to determination of the source of marriage expenditure incurred by the assessee on the marriage of her daughter which got solomised on 19.01.2008 amounting to Rs. 58.77 lacs and whether assessee has provide appropriate explanation in this regard. The assessee has explained the source of such expenditure in terms of Kanyadan received from close relatives amounting to Rs. 23.86 lacs, value of gifts received worth Rs. 25.91 lacs and bank withdrawals of Rs. 9 lacs from assessee's own bank account. The ld CIT(A) has examined the entries in the assessee's bank account and confirmation and other details received from close relatives and has given a finding that the assessee has discharged the primary onus of explaning the source of kanyadan receipts of Rs. 23.86 lacs from close relatives. The findings of the ld CIT(A) remain uncontroverted before us and the same are hereby confirmed. Similarly, the findings of the ld CIT(A) regarding various gifts (except gold brick) received on the occasion of marriage and gifted to her daughter, given the nature of the gifts, social and family status of the assessee inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal is dismissed. The revenue's ground no. 1 is also dismissed. 11. Regarding ground No. 2 of the revenue's appeal, brief facts of the case are that on review of assessee's statement of affairs as on 31.03.2008, the Assessing Officer observed that the assessee has shown Rs. 30 lacs as advance against land and Rs. 41,52,255/- as unsecured loan from 7 different persons(cash creditors). In this regard, the assessee was asked to submit a copy of the agreement to sale, sale deed etc in order to substantiate the receipt of advance of Rs. 30 lacs by the assessee. However, no such agreement to sale or sale deed was submitted before the Assessing Officer and in absence of the same, an addition of Rs. 30 lakh was made to the total income of the assessee. 12. Further regarding 7 cash creditors, the Assessing Officer observed that since primary evidences like confirmation has not been submitted by the assessee, despite specifically being asked for, the identity of the creditor and genuineness of the transaction could not be established. When identity is not established there remains no scope for examining creditworthiness of the creditor. Hence, these cash receipts remain unproved and acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Following facts have emerged: 1. That the AO had added an amount of Rs. 30 lakhs as unexplained income for the amount of advance received during the year under consideration. The appellant has claimed that the amount is received from M/s Arawali Wines through City Star Hospitality Pvt. Ltd. (PAN-AACCC 7409C) through banking channel. The relevant confirmation has been filed. 2. That the AO has further added an amount of Rs. 41,52,255/- as unexplained creditors. The appellant has claimed that out of Rs. 41,52,255/- an amount of Rs. 40,38,162/- is coming from the balance sheet of earlier year which is already in the possession of the AO and previous years cases were also decided in the scrutiny and the balances were accepted as genuine. That during the year under consideration only an amount of Rs. 3.5 lakh was received from Smt. Deepmalika, who is daughter of the assessee and an existing IT assessee and Rs. 1,64,093/- received from M/s Shankar & Co which is proprietary concern of the appellant himself. 6.3.2 I have considered the above mentioned facts and found that there is no justification of addition of Rs. 71,52,255/- as all necessary details along with the confirmations ..... X X X X Extracts X X X X X X X X Extracts X X X X
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