2019 (6) TMI 1410 - AT - Income Tax

Rectification of mistake - ITAT has rejected the assessee s claim of gift from daughters who were themselves studying and son who has just taken up a job - ITAT also rejected explanation of gift coming from opening balance on the finding that no details were available - by way of this Miscellaneous Application it is submitted that various evidences of gifts were not properly appreciated by the ITAT - HELD THAT - Upon careful consideration and going through the order of the ITAT as mentioned above, and the mistake pointed out by the assessee hereinabove, it is clear that the assessee seeks review of the order, which is not permissible u/s. 254(2) of the I.T. Act. Hence, this Miscellaneous Application filed by the assessee is dismissed.

Summary

Issues:
Rectification of mistake apparent from record in the order of ITAT regarding the rejection of the assessee's claim of gift from family members for A.Y. 2007-08.

Analysis:
The ITAT rejected the assessee's claim of receiving a gift of ?11 lacs from the elder sister, who had shown a minimal income for the assessment year. The source of the gift was explained as coming from the sister's daughters and son, along with opening balances. However, no bank account statement or detailed working of the opening balance was provided. The ITAT found that the donor did not have the capacity to grant the gift, as the daughters were students and the son had just started a job without filing income tax returns. Consequently, the ITAT upheld the decision of the CIT-A, stating that the assessee failed to prove the donor's capacity convincingly.

The assessee filed a Miscellaneous Application seeking rectification, arguing that various evidences of gifts were not properly considered by the ITAT, including a gift deed and a declaration of gift. It was claimed that the gift was given to cover medical treatment expenses, and the order did not consider these vital documents. The assessee contended that explaining the sources of the source should not be required. However, the Departmental Representative opposed, stating that the assessee was essentially seeking a review under the guise of rectification, which was not permissible.

Upon review, the ITAT found that the assessee's application was indeed seeking a review of the order, which was not allowed under Section 254(2) of the Income Tax Act. Consequently, the Miscellaneous Application was dismissed, and the original order rejecting the claim of the gift remained upheld. The order was pronounced in court on 24.6.2019.