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Issues involved: Appeal against order of CIT(A) u/s 143(3)/147/251 of IT Act, 1961 for asst. yr. 1995-96 regarding NRI gift received by assessee.
Details of the judgment: 1. The AO made an addition on account of NRI gift received by the assessee. The matter was sent back to verify the deposit in the NR(E) account. However, the AO did not strictly follow the directions and based his order mainly on the donor's statement. 2. The CIT(A) confirmed the addition of the bogus gift. The assessee appealed, arguing that the AO did not verify the deposit in the account or provide cross-examination of the donor. The gift was claimed to be from foreign remittances. The AO's jurisdiction and coercion in recording the donor's statement were also questioned. 3. The Departmental Representative argued for the addition based on the donor's statement and lack of proof of genuineness. Citing case laws, it was contended that gifts without occasion are cash credits. The Department emphasized the need to prove the donor's identity, transaction genuineness, and capacity to give the gift. 4. The Tribunal reviewed all contentions, including statements of the assessee and donor. The AO reopened the assessment based on the donor's statement. The assessee requested cross-examination, which was denied. The Tribunal found discrepancies in the AO's compliance with directions and confirmed the addition. 5. The Tribunal noted the donor's remittances and the lack of cross-examination opportunity. It highlighted the need for witness cross-examination before relying on statements. The Tribunal set aside lower authorities' orders, directing a fresh assessment with proper opportunity for the assessee and addressing jurisdictional irregularities. 6. The appeal of the assessee was allowed for statistical purposes, and the matter was restored to the AO for a fresh decision with necessary opportunities provided to the assessee.
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