Cash gift from uncle without gift deed and now uncle is dead at the time of scrutiny, Income Tax

[ASHOK SARANG]

Assessee receive a gift from his uncle in cash of Rs. 375000/- in cash , Uncle is agricultarist having sufficient agriculture land in his name , there is no gift deed , Uncle died befor Scrunity and uncle did not filled the return .AO

Disallowed the gift , assessee want to  appeal, wether affidavite from aunty and his children (major) is sufficient as a proof of gift or suggest me which document is sufficient? is there any case law?

Posts / Replies

[DEV KUMAR KOTHARI]

Full facts and  circumstances are to be seen. When gift was received?  when uncle died,?  Time gap ? what were reasons for not making declaration of gift earlier?  whether wife / children of deceased uncle are capable to confirm the fact of gift made? Other corobative evidences to justify gift and capacity of  making gift etc.

 

Book entries in books of account of  donnee and reliability of books is important.

A declaration from donee should also be made to declare that donor gifted on particulr day/ preferably some occassion and that donee accepted the gift.

Financial status of donor and donee past dealings, gifts made in past between donor and donee and their family members etc.  will also be relevant factors.

 

You need to justify the gifts received.

[Naveed S]

Though the amount is received in Cash; however a copy of the F.D., Bank Slips , Shares sale etc. or any other transaction from wherein the said amount has been generated can be surely put on record. If it is proved that the amount has been withdrawn from any such income generated or from already available cash on hand balance (If already reflected in earlier returns by your Uncle), then an appeal can be filed. 

Also, an affidavit from your Aunty that she is aware about such gift shall also help to make the case in your favour, especially if she is also a Joint Accouint Holder from where the said cash has been generated.