Case Law Details
The issue for consideration before is whether the gift received by the assessee is genuine or not? As per the AO, gift of such a substantial amount was not justified to a non relative/ no blood relation and the creditworthiness of the donor is not adequate. The CIT(A) held that, in fact, the Assessing Officer has in his remand report clearly stated that “The donor has confirmed in his statement the fact of giving gift to the appellant during the year under consideration.
The donor has also stated reasons for giving the gift in the statement. Further, the donor has also ascertained his credit worthiness by giving details of investments held by him.” In view of the above remarks of the Assessing Officer, the other objections raised by him are mere conjectures and are not based on any evidence or material. The documentary evidences as well as the statement of the Donor clearly evidence the fact that the Donor had given the gift to the appellant out of his love and affection on the occasion of his 60th birthday and more so he was also well placed for giving the gift. Thus, the identity, credit-worthiness and the genuineness of the gift has been established by the appellant. The same is evident from the submissions made, evidences furnished and the statements recorded by the Assessing Officer.” We find that the assessee in the appellate proceedings filed additional evidences before the CIT(A), which were go to the root of the matter as held by the CIT(A). Thereafter, the CIT(A) remanded the matter to the AO for verification of the additional evidences admitted by him. Therefore, we are of the view that the CIT(A) before deleting the addition made by the AO examined the issue and verified the additional evidences filed by the Assessee. Therefore, we do not find any infirmity in the order of the CIT(A) in deleting the addition of Rs. 55 lakhs made by the AO u/s 68 of the Act on account of gift received by the assessee from one Mr. N. Shah. Accordingly, the order of the CIT(A) is confirmed and the ground raised by the revenue is dismissed.
FULL TEXT OF THE ABOVE JUDGMENT IS AS FOLLOWS-
INCOME TAX APPELLATE TRIBUNAL, MUMBAI
ITA No. 5810/Mum/2009 – Assessment Year: 2004- 05
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