Stamp Duty paid in cash out of money saved by Home maker women: ITAT deletes penalty

Delhi bench of Income Tax Appellate Tribunal (ITAT) has deleted an addition with regard to the investment of Rs. 6 lakhs for the stamp duty payment made through cash deposited by Home Maker Women.

The Tribunal noted that the assessee has source of income such as tuition income, interest income and rental income which is converting to in cash since 20 to 25 years and she is continuously filing her return of income with the department. In this case the amount of Rs. 6 lakhs cannot be doubted or discarded only on the ground that the assessee has failed to furnish either documentary proof of satisfactory explanation regarding payment of Rs. 6 lakhs towards stamp duty.

ITAT further said that this is well known fact to understand the fabric of society and habits of Indian home maker women and issue has to be seen from the angle of normal women who has normal sources of income and has spent big part of her life’s earning to financially strengthen her family from doing tuition work and again utilizing the tuition income for giving loans to the relatives for earning interest income.

Relevant Text of ITAT Order:

It is not the case of the AO that the assessee has not paid any tax or has not filed return of income but the submission of the AO noted by the ld CIT(A) have not been controverted by the ld CIT(A) while restricting the addition to the tune of Rs. 6 lakhs. Therefore, I am inclined to hold the explanation submitted by the assessee is a plausible explanation. In totality of the facts and circumstances of the present case, the amount of Rs. 6 lakhs invested by the assessee towards payment of stamp duty in cash cannot be doubted in view of the conduct of assessee in the capacity of a consistent tax payer since 20 to 25 years and thus addition cannot be held as sustainable. Therefore, the AO is directed to delete the entire addition.

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