Case Law Details
CIT v. Sunita Vachani (1990) 184 ITR 121 (Del)- In our opinion, the Tribunal had, on merits, come to the conclusion that the gifts were genuine. This is a pure question of fact. The Tribunal has examined the evidence which was available on the record and has arrived at the aforesaid finding. Even though it may be surprising as to how large sums of money are received by a family in India by way of gifts from strangers from abroad, unless there is something more tangible than suspicion, it will be difficult to regard the moneys received in India from abroad as representing the income of the assessee in India.
DELHI HIGH COURT
CIT , DELHI (CENTRAL-2)
Vs
MRS SUNITA VACHANI
Income-tax Case No 101 of 1989,
(1990) 184 ITR 121 (Del)
Decided on February 5, 1990
JUDGMENT
The judgment of the court was delivered by KIRPAL J – The petitioner seeks reference of the following question of law to this court :
Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in canceling the order under section 263 of the Income-tax Act, 1961, passed by the commissioner of Income-tax as a result of failure on the part of the ITO to make any inquiries regarding genuineness of the alleged gifts ?
There were some gifts from abroad which not taxed by the ITO The Commissioner of Income-tax issued notice under section 263 of the Income-tax Act, 1961, and passed an order setting aside the order or ITO and directing the ITO pass a fresh assessment The view of the commissioner of ITO to that the order of the ITO was prejudicial to the interests of the Revenue as the ITO had gone into the sources of the gifts and had not satisfied himself about the genuineness thereof
The assessee filed an appeal to the Tribunal went into the facts, saw the balance-sheet of the donors which had been placed on the record and then came to the conclusion that, on merits the decision of the ITO to treat the moneys received as gifts was correct and, secondly there was no error committed by the ITO and that there was nothing more which he would investigate into than what he had already done The order of the Commissioner of Income-tax was accordingly, quashed
In our opinion, the Tribunal had, on merits, come to the conclusion that gifts were genuine This is a pure question of fact The Tribunal has examined the evidence which was available on the record and has arrived at the money are received by a family in India by way of gifts from strangers from abroad, unless there is something more tangible than suspicion, it will be difficult to regard the money received in India from abroad as representing the income of assessee in India On the facts as existing on the record, we are unable to come to the conclusion that any question of law arises The petition is dismissed No order as to costs.
Petition dismissed
