ITAT deletes Addition of Rs. 30 Lacs acquired as Present from his Father

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Actor Kushal Tandon - ITAT - Taxscan

The Mumbai bench of the Revenue Tax Appellate Tribunal (ITAT) final week deleted an addition of rupees 30 lacs in opposition to actor Kushal Tandon, for a ‘reward’ he allegedly acquired from his father.

The actor approached the Tribunal claiming that the Assessing Officer has wrongly held the reward of Rs. 30 lacs that was acquired by him from his father as an unexplained money credit score underneath part 68 of the Revenue Tax Act.

After contemplating the info of the case deeply, the bench comprising Accountant Member S. Rifaur Rahman and Judicial Member Ravish Sood has held that the A.O on the idea of half-baked info and untimely observations, and all of the extra with out contemplating the fabric that was filed by the assessee in the midst of the evaluation proceedings earlier than him, had rejected the assessee’s declare of getting acquired the reward from his father; and handled the identical as an unexplained money credit score throughout the that means of Sec. 68 of the Act.

“We can’t stay oblivious of the truth that Shri Virendra Tandon had duly disclosed the reward transaction in his monetary assertion for the 12 months into consideration i.e A.Y 2014-15, and in addition categorically admitted within the ‘reward deed’, dated 21.06.2013 of getting gifted the quantity in query to his son. Though, we concur with the view taken by the A.O that the returned earnings of Shri Virendra Tandon was not substantial, nevertheless, as noticed by us hereinabove, a fabric incontrovertible fact that had been overlooked by the decrease authorities is that Shri Virendra Tandon had by no means acknowledged that he had gifted the quantity in query out of his earnings for the 12 months into consideration, however had in unequivocal phrases acknowledged that the identical was given by him out of hispast accrued financial savings.

Counting on a catena of choices, the Tribunal held that “within the case earlier than us, the assessee‟s father i.e Shri Virendra Tandon had gifted the quantity in query to his son i.e the assessee by means of monetary help at a time when the assessee is acknowledged to be struggling for his survival within the trade. In our thought-about view, utilisation of accrued financial savings by a father for the aim of financially helping his son is just not one thing exceptional in our society. We could herein reiterate that Shri. Virendra Tandon (supra) had categorically admitted of getting gifted the quantity in query to his son i.e the assessee and the authenticity of the mentioned declare had not been disproved or dislodged by the division by putting on file any materials proving on the contrary.”

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