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2015 (8) TMI 420 - HC - Income TaxUnaccounted gifts - Held that - After hearing the rival submissions and on perusal of material available on record, it appears that all the donors are in relation of the assessee and the gifts were made out of love and affection. The details of each donor s return was produced before the Assessing Officer, as all the donors were the Income-tax assessees. When it is so then the creditworthiness is proved. The amount was reflected in the books of account. Thus, in the instant case, the identity of the donors has been proved. The transfer of the amount was voluntarily and the amount was transferred by way of entries, so the genuineness of the transaction has been proved. Hence, in the peculiar facts and circumstances of the case, the gifts appears genuine. Also by looking to the amount involved, we accept the gift as genuine. All the ingredients of valid gifts have been proved in the instant case. - Decided in favour of assessee.
Issues:
Assessment of gifts made to minor children for the assessment year 2002-03. Analysis: The appellant filed an appeal against the order of the Income-tax Appellate Tribunal regarding gifts received by his minor children during the assessment year. The Assessing Officer initially rejected the gifts, but the Commissioner of Income-tax (Appeals) accepted them, leading to a second appeal by the Department, resulting in the restoration of the Assessing Officer's order. The appellant challenged this decision in the present appeal. Upon reviewing the case and considering the relationship between the donors and the assessee, it was found that the gifts were given out of love and affection. The donors' income tax returns were provided to the Assessing Officer, establishing their creditworthiness. The amount of the gifts was also reflected in the books of account, proving the identity of the donors and the genuineness of the transactions. Given these circumstances and the amount involved, the court concluded that the gifts were genuine and met all the requirements of valid gifts. Therefore, the court upheld the decision of the first appellate authority to accept the gifts and dismissed the Tribunal's order. The appellant's appeal was allowed at the admission stage, ruling in favor of the assessee and setting aside the impugned order passed by the Tribunal.
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