2013 (7) TMI 1124 - AT - Income Tax

Summary

Issues involved: Determination of the genuineness of gifts claimed by husband and wife assessees, appeal dismissal due to non-appearance, recall of order, assessment of impugned cash credits, examination of nature and source of credits, reliance on judicial authorities, confirmation of addition by CIT(A), restoration of appeals for fresh hearing.

M.A. No. 22/Rjt/2013 (Arising out of order in ITA No.46/Rjt/2012): AY 2005-06
The appeal was initially disposed of ex-parte due to non-appearance, but upon filing a Miscellaneous Application (MA) citing a mistake in noting the hearing date, the order was recalled. The assessee claimed a gift received from a donor, supported by documents, but failed to satisfactorily explain the nature and source of the cash credit. Both the Assessing Officer and CIT(A) found the gift to be not genuine based on various factors, leading to the dismissal of the appeal.

ITA No. 46/Rjt/2012: AY 2005-06: Appeal by Smt. Alkaben M Rachchh
The assessee, a trader, claimed a gift in her books of account, but failed to provide sufficient evidence to establish the genuineness of the gift. Despite submitting documents like a gift deed and bank certificate, the lack of personal relationship between the donor and donee, absence of occasions for the gift, and failure to produce the donor for examination led to the rejection of the claim. Both the Assessing Officer and CIT(A) upheld the decision, considering the surrounding circumstances and past history of similar claims. The Tribunal concurred with the lower authorities' findings and dismissed the appeal.

M.A. No. 23/Rjt/2013 (Arising out of order in ITA Nos.44 & 45/Rjt/2012)
Similar to the previous case, the order in this matter was also recalled following the filing of a MA. The appeals were restored for fresh hearing and disposal, mirroring the decision in the related case of Smt Alkaben Mukeshbhai Rachchh.

ITA Nos.44 & 45/Rjt/2012: AY 2004-05/2005-06: Appeal by Mukeshbhai G Rachchh
The factual circumstances in the appeals filed by the husband were found to be identical to those of the wife's appeals. The Tribunal, after confirming the decision in the wife's case regarding the non-genuineness of the gift claim, dismissed the appeals filed by the husband as well. The order passed by the CIT(A) was upheld based on the consistent findings across both cases.

In conclusion, the Tribunal upheld the decisions of the lower authorities in dismissing the appeals due to the lack of substantiated evidence supporting the claimed gifts, emphasizing the importance of establishing the genuineness of transactions in tax assessments.