Decided on November 09,1994



G.D. Agrawal, Accountant Member - (1.) THIS appeal by the assessee is directed against the order of the CIT(A)-VIII, New Delhi dated 7-11-1988.
(2.) First four grounds of appeal are relating to the addition of Rs. 1,50,000 made by the Assessing Officer and confirmed by the CIT(A) towards unexplained expenses on marriage of assessee's daughter. The facts of the case in brief are that the appellant is an individual. He is Managing Director of D.S. Construction Pvt. Ltd. His daughter Miss Ritu Narula was married on 16-4-1984. No expenses on marriage were accounted for by the appellant. The only amount shown to have been debited in books is Rs, 83,304.60 being payment made to Hotel Taj, debited to account of Shri D.S. Narula (father of the assessee) in the books of M/s. D.S. Construction Ltd. During the course of assessment proceedings the Assessing Officer raised the query with regard to marriage expenses. The Assessing Officer not being satisfied with the explanation of the assessee made addition of Rs. 1,50,000, observing as under : It is neither believable nor conceivable that in the marriage of the daughter of the Managing Director of a company executing civil projects over Rs. 100 crores in Libya the only expenses was of a reception at Hotel Taj Palace. No other expenses on clothes, jewellery, presents to in-laws, reception at home and lighting at house were incurred and can any girl belonging to the status and standing of the assessee be married without customary presents from parents. The assessee is not forthright. The assessee wants us to believe that apart from his father no one else, himself, his wife, brother, etc. have spent any amounts on the marriage. It is not believable. The assessee did not furnish the address of her daughter-in-laws to shut out any enquiries from them. The assessee is a man of means is stating the obvious. On 31-12-1983 the company has debited to his account Rs. 50,000 as amount for daughter's capitalisation fees for engineering College. The question, therefore, arises if affectionating doing father can spend Rs. 50,000 for admission to a college, how much amount would be spent on the marriage of his daughter. This marriage was the first marriage in the family of the generation to which his daughter belongs. Obviously, it has been solemnised with great pomp and show as the payment to Taj Palace indicates. In the facts and circumstances of the case, I estimate the expenses incurred by the assessee on the marriage of his daughter at Rs. 1,50,000 which has come out from undisclosed sources.
(3.) ON appeal before the CIT(A), learned counsel for the assessee argued that the addition of Rs. 1,50,000 made by the ITO was excessive. However, the CIT(A) upheld the addition of Rs. 1,50,000 observing as under : Looking to the fact that the reception of the Barat has been held in Five Star Hotel, it is manifestly clear that the marriage has been performed with great pomp and show befitting the financial position and social status of the appellant. The estimate of marriage expenses at Rs. 1,50,000 incurred by the appellant, over and above the expenses of Rs. 83,304 appears to be fair and reasonable estimate. I am, therefore, inclined to uphold the addition of Rs. 1,50,000 as made by the ITO.;

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