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2024 (8) TMI 929 - AT - Income TaxAddition of gift received - gift from a brother of the assessee who is a non-resident Indian carrying on the business of laundry services in Dubai for last more than 25 years - submitted that the gift is received by 3 cheques - HELD THAT - The name of the father of the assessee and the name of the donor is the same. Therefore, it cannot be denied that assessee and the donor are the real brothers. The bank account of the donor from Bank of Baroda and from ICICI Bank are also submitted. The Bank of Baroda account is NRE Savings Bank Account of the donor from which the available fund shows that cheques have been issued out of the funds available with the donor. Similarly, the ICICI Bank Account also shows that assessee has continuous balance available for last several months. As such the gift from a brother is not chargeable to tax in the hands of the assessee being relative. Assessee has proved identity, creditworthiness and genuineness of the gift received as well as relationship with Donor. Therefore, the amount received by the assessee clearly shows that above amount is not the income of the assessee. Despite above information being available with the lower authorities, an addition is made to the total income of the assessee. We direct the AO to delete the addition in the hands of the assessee being gift received from his non-resident brothers whose identity, creditworthiness and genuineness is proved. Accordingly, ground no. 1 of the appeal is allowed. Double taxation of income from other sources - Addition of income from other sources being interest income - We find that assessee individual filed his return of income on 01.01.2022 declaring total income - In the computation of income, assessee has already disclosed income from other sources being interest income of Rs. 40,500/- which has been once again added by the AO while processing the return. Therefore, same is double addition. CIT(A) directed the AO to verify and allow the claim of the assessee. We find that there is no need of verification when the relevant document submitted by the assessee clearly shows that there is a double addition of the income. Accordingly, we direct the ld. assessing officer to delete the addition to the total income of the assessee. Accordingly, ground no. 2 of the appeal is allowed.
Issues:
1. Addition of gift amount to total income. 2. Double taxation of income from other sources. 3. Confirmation of interest under sections 234B and 234C. Analysis: Issue 1: Addition of gift amount to total income The appellant challenged the addition of Rs. 20,00,000/- to the total income, contending it was a gift from his non-resident brother and should be exempt. The appellant provided evidence including cheques, passport, and gift deed to establish the genuineness of the gift. The tribunal noted that the appellant had proved the identity, creditworthiness, and genuineness of the gift. The tribunal directed the Assessing Officer to delete the addition of Rs. 20,00,000/- as it was proven to be a gift from a relative and not taxable income. Issue 2: Double taxation of income from other sources The appellant also contested the double taxation of Rs. 40,500/- as income from other sources. The tribunal observed that the appellant had already disclosed this income in the computation, and it was erroneously added again by the Assessing Officer. The tribunal directed the Assessing Officer to delete this double addition from the total income, as it was a clear case of duplication. Issue 3: Confirmation of interest under sections 234B and 234C The tribunal dismissed the appeal on the confirmation of interest under sections 234B and 234C, stating it was consequential in nature. The tribunal found no infirmity in the lower authorities' orders regarding this issue. In conclusion, the tribunal partly allowed the appeal, directing the deletion of the additions to the total income related to the gift amount and the double taxation issue. The confirmation of interest under sections 234B and 234C was upheld. The tribunal's decision was pronounced on 16.08.2024.
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