A gift is to be treated as genuine when assessee discharges onus cast on it for proving identity, creditworthiness and relationship

CIT Vs Ms Mayawati (Delhi High Court)- All the donors appeared before the Department, submitted material including affidavits on oath, confirms the gifts made, established their old relations with the assessee and proved their capacity to make the gifts. We have noted that in earlier years also they had made gifts to the assessee and her family members, which were accepted by the Revenue.

We have also noted that two gifts made by Sh. Ajay Aggarwal and Sh. O.P. Khadaria, Advocate were of Rs. 10 lacs and Rs. 1 lac respectively have been accepted by the Department. The donors are persons of sufficient means. The assessee has fully discharged her legal obligations by disclosing the identity of all the donors. Further, donors have proved their genuineness and capacity to make a gift. All assessee as well as the donors had appeared before the Registrar and the gifts are duly registered. All gifts are absolute and without any lien of anyone. There is no evidence on record to prove that the assessee has favoured the donor in any manner whatsoever by acquiring the gifts in question. The capacity of any person does not mean how much they earn monthly or annually, but the term capacity has vided term and that can be perceived by how wealthy he is. All the formalities, as per law are met by the assessee and donors as well. All the donors have admitted that they are great admirer of the assessee as she is working for the up lift ment of poor people.

IN THE HIGH COURT OF DELHI AT NEW DELHI

Judgement Reserved on: 29^th October, 2010

Judgement Pronounced on: 03^rd August, 2011

ITA No. 438/2008

COMMISSIONER OF INCOME TAX, DELHI                    

Vs

Ms. MAYAWATI              

SURESH KAIT, J.

The present appeal is preferred by the Revenue/Department against the order of Income Tax Appellate Tribunal (Delhi Bench) dated 30.11.2007. The facts of the instant appeal are as under:-