2021 (5) TMI 552 - HC - Income Tax

Gift received from relatives - unexplained cash credit u/s 69- admission of additional facts - HELD THAT - No substantial question of law arisen. The two revenue authorities and the Tribunal have concurrently come to the conclusion that the Assessee failed to substantiate the claim of having received by way of a gift from relatives. Neither before the Assessing Officer nor before the CIT(Appeals) the assessee produced any evidence whatsoever in support of his claim. Before the Tribunal an attempt was made to bring on record the so called gift deeds by way of an additional evidence. Tribunal found that the assessee had not made out grounds to permit to bring in such additional evidence on record. To bring additional evidence on record at the stage before the Tribunal, the concerned party would have to demonstrate the reasons why the same could not be done earlier. The Tribunal found no justification in this respect. Entire issue is thus based on facts. Decided against assessee.

Summary

Issues:
Challenge to judgment of the Income Tax Appellate Tribunal regarding addition of a sum received as a gift in the balance sheet for assessment year 2015-16.

Analysis:
The appeal was filed by the assessee against the judgment of the Income Tax Appellate Tribunal concerning the addition of a sum received as a gift in the balance sheet for the assessment year 2015-16. The Assessing Officer had added the sum of ?16,00,000 in the income of the assessee as unexplained cash credit under Section 69 of the Income Tax Act, 1961, as the assessee failed to substantiate the claim of receiving the gift despite being given sufficient opportunity. The Commissioner of Income Tax(Appeals) upheld this addition, stating that the assessee did not provide any concrete evidence regarding the claim of receiving the gifts. The appellate authority noted that the sum of ?16,00,000 was credited to the Closing Balance of the assessee's account without any explanation, leading to the sustained addition.

The assessee then appealed to the Income Tax Appellate Tribunal, which dismissed the appeal. The Tribunal observed that the lower authorities were correct in declining the assessee's gift claim as the assessee failed to provide any confirmation from the donors or file any gift deeds. The Tribunal refused to admit the gift deeds as additional evidence, as no valid reasons were presented as to why they were not submitted earlier. The Tribunal concurred with the findings of the revenue authorities that the assessee did not substantiate the claim of receiving the ?16,00,000 gift from relatives. The Tribunal emphasized that the entire issue was fact-based, with no substantial question of law arising.

Ultimately, the High Court upheld the decision of the Tribunal, stating that no substantial question of law had arisen. The Court noted that the assessee had not produced any evidence before the Assessing Officer, the CIT(Appeals), or even attempted to bring forth the gift deeds as additional evidence before the Tribunal with valid reasons. As the matter was purely factual and no legal question was involved, the income tax appeal was dismissed, and any pending applications were disposed of accordingly.