2009 (9) TMI 694 - AT - Income Tax

Summary

The Appellate Tribunal ITAT MUMBAI, consisting of P.M. JAGTAP AND SMT. P. MADHAVI DEVI, JJ., heard an appeal against a CIT(A) order confirming the addition of an unexplained cash credit under section 68. The assessee received a gift of Rs. 2,00,000 from a relative, which was disputed by the Assessing Officer. The donor's statement raised doubts about the authenticity of the gift, leading to the addition under section quest 68. The CIT(A) upheld this decision, prompting the appeal to the tribunal.

During the proceedings, the assessee claimed the gift was genuine, supported by the donor's statement. However, the tribunal ruled that the gift was not made out of love and affection, as the donor's brother-in-law, a chartered accountant, influenced the decision. The tribunal cited a Supreme Court case, emphasizing the burden on the assessee to prove the nature and source of the credited sums. The tribunal found the explanation unsatisfactory, as the gift lacked the necessary elements of a voluntary, affectionate gesture.

Ultimately, the tribunal dismissed the assessee's appeal, upholding the decisions of the lower authorities. The assessee failed to establish the gift's authenticity, leading to the addition under section 68. The tribunal's decision was based on the lack of evidence supporting the gift as a genuine, voluntary transaction.