Budh Singh Poswal vs Income Tax Officer, Ward 67(4)

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the order of Additional/Joint Commissioner of Income-tax (Appeals)-7, Kolkata (hereinafter referred to as ‘the CIT (A)’) dated 27.08.2025, for the Assessment Year 2012-13.

The appeal is time barred by 19 days. The assessee has filed an application citing reasons causing delay in filing of appeal. After perusal of the same, I am satisfied that delay in filing of appeal is not intentional, the delay has been caused for the reasons stated in petition which appears to be bonafide. Thus, delay of 19 days in filing of appeal is condoned and appeal is admitted for decision on merits.

The facts of the case in brief as emanating from records are: The assessee filed his return of income for AY 2012-13 u/s.139 of the Act, 1961(hereinafter referred to as ‘the Act’) declaring total income of Rs.3,08,380/-. Notice u/s.148 of the Act was issued to the assessee on 23.03.2019. In response to the said notice, the assessee filed return of income on 25.07.2019 declaring total income of Rs.5,43,890/-. In reassessment proceedings, the Assessing Officer (AO) asked the assessee to explain source of cash deposits on various dates during AY 2012-13 aggregating to Rs.12,53,500/- in his saving bank account with State Bank of India (SBI). The assessee explained that the cash deposits are from cash gift amounting to Rs.8,00,000/- received from his father Shri Ram Lal Poswal on 05.08.2011 and Rs.4,00,000/- from his wife Smt. Sushma Poswal on 01.09.2011, on the occasion of marriage of his daughter on 14.12.2011. In order to substantiate his contentions, the assessee furnished copy of gift deed from his father Shri Ram Lal Poswal and also gift deed from his wife Smt. Sushma Poswal. The AO asked the assessee to prove capacity of the giver as well as genuineness of the transaction. To prove financial capacity of his father to give gift, the assessee furnished copy of land revenue records to show that he owned agricultural land and also a income certificate from the Patwari. However, the assessee could not furnish any substantive evidence to show independent source of income of his wife Smt. Sushma Poswal. The AO rejected the evidences produced by the assessee to substantiate source of cash deposits in his bank account and made addition of Rs.12,00,000/- as unexplained money. Against the assessment order dated 28.12.2019 passed u/s.143(3) r.w.s. 147 of the Act, the assessee filed appeal before the CIT(A), but remained unsuccessful. Hence, the present appeal by the assessee.

Submissions made by ld. DR heard, orders of the authorities below examined. The short issue for consideration in present appeal is addition of Rs.12,00,000/- made by AO, on account of unexplained cash credits in the bank account of the assessee. The assessee has explained source of cash deposits as gifts received from his father Shri Ram Lal Poswal Rs.8,00,000/- and from his wife Smt. Sushma Poswal Rs.4,00,000/- on occasion of marriage of his daughter. The assessee in order to prove creditworthiness of donor Shri Ram Lal Poswal, placed on record copies of land revenue records to contend that his father had income from agricultural land and also income certificate of his father issued by Tehsildar. It is customary that on occasion of marriage of granddaughter, grandparents support the parents by way of gifts in cash or kind. The occasion of marriage of daughter of the assessee is not disputed by the AO or the CIT(A). The assessee has placed on record khasra girdawris of agricultural land owned by father of the assessee. The said revenue records are self-contained indicating the crop cultivated on the land during the relevant period. Further, the assessee has placed on record a certificate from Tehsildar wherein agricultural income of late Shri Ram Lal Poswal has been estimated as Rs.7 to 8 lakhs in the year 2011. The income certificate issued by the State Revenue Authorities cannot be ignored. Thus, taking into consideration the documents furnished by the assessee to substantiate source of income of Shri Ram Lal Poswal, father of the assessee, the source of gift of Rs.8,00,000/- from Shri Ram Lal Poswal is accepted.

In so far as, gift from Smt. Sushma Poswal wife of the assessee is concerned, no documentary evidences were placed on record by the assessee to substantiate her independent source of income. Further, the reason given by assessee for receiving cash from his wife i.e. gift on occasion of marriage of their daughter also seems to be an afterthought. Hence, addition made on account of cash deposits in the bank account Rs.4,00,000/- by the assessee is sustained as unexplained cash deposits.

In the result, appeal of the assessee is partly allowed.