Gift not unexplained merely because donor holds Low Economic class Ration Card

Lokadri Naidu Vs ITO (ITAT Hyderabad) The issue under consideration is whether the Ration Card can be considered as a source of determining financial status of assessee and whether gift from person holding Ration Card of Low Economic class can betreated as unexplained Credit under section 68 of Income Tax Act, 1961 ? In the present case, AO observed that the assessee has disclosed gift received from his father and brother respectively. On query, the Ld. AR furnished confirmation letters from the father and brother of the assessee. However, the Ld. AO opined that since the assessee could not fu...