9911796707
TMI Blog1997 (5) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... for the same. The assessee claimed that the gifts were received from (i) cash gift of Rs. 1,25,00,000 from Haji Abdul Rahim Leh, Ladakh and (ii) 3225 shares of M/s. Shaw Wallace Co. valued at Rs. 2,48,325 from V.K. Chandrakumar as gift. The Assessing Officer made enquiries in the matter and found that the gifts were not genuine and the assessee, on seeing that the claim has been disproved, filed a revised return on 6-3-1987 including Rs. 2,78,081 as income in respect of value of 3225 shares of Shaw Wallace Co., earlier claimed as gift. 3. Since the above grounds of appeal are connected with the amount of Rs. 1.25 crores claimed the assessee as gift received from Sri Haji Abdul Rahim, it would be necessary to narrate the facts in brief. When the Assessing Officer asked the assessee to produce evidence for the cash gift of Rs. 1.25 crores received by him, an affidavit dated 11-1-1985 signed by the donor Sri Haji Abdul Rahim, duly certified by the Judicial Magistrate, Srinagar was filed. The Assessing Officer recorded the statements of the assessee on 16-6-1986 and 30-6-1986. In his sworn statement the assessee stated that he knew the donor Shri Haji Abdul Rahim from 1960 and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer also made enquiries with Reserve Bank of India, Madras regarding the weight of currency for a value of Rs. 1.25 crores and the volume required for packing the same. A reply received from the bank on 12-9-1986 shows that currencies of Rs. 1.25 crores in fresh notes of' Rs. 100 denomination would weight 125 Kg. (approx.)and would require three brief cases of the size of 24" x 10" x 12". Enquiries were also made with the Indian Airlines, at Delhi, which revealed that Sri. Venkteswaran travelled to Madras from Delhi on 14-1-1985 by IC 540 with a checked baggage weighing 10 kg. only, within the free allowance of 20 kg. On enquiry, the Superintendent of Police, Road Traffic, Udampur, informed the Assessing Officer at Udampur on 25-9-1987 that the road from Jammu to Srinagar was thorough for up-convey only on 10-1-1985 and down-convey only on 11-1-1985. The Assessing Officer considered that the distance between Delhi and Jammu is 585 kg. and the assessee could not have been in time at Jammu to join the up-convey on 10-1-1985 and obviously, he could not have reached Srinagar on 11-1-1985 to receive the alleged gift. The assessee was also afforded an opportunity to cross-examine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l expenses. The CIT (Appeals) held that only because the assessee had staved in hotel, it cannot be taken as a conclusive evidence of having incurred the expenditure. 7. The learned Departmental Representative argued that there is strong circumstantial evidence to show that the assessee must have paid some amount to Haji Abdul Rahim for the purpose of executing a false affidavit. On the other hand, the ld. counsel for the assessee has emphasised that file assessee has offered voluntarily the income of Rs. 1.25 crores and had he paid the sum of Rs. 50,000 to the donor the assessee would have declared the said amount also. According to the ld. counsel for the assessee, when the assessee is prepared to pay tax on Rs. 1.25 crores, he would not have hesitated to pay tax on the said sum of Rs. 50,000 also, if in fact such a sum would have been paid to Haji Abdul Rahim. 8. We have considered the rival submissions and material on record. The Assessing Officer found that the assessee has shown in his capital account credit entry of Rs. 1,27,48,325 described as gift. It was explained by the assessee that a sum of Rs. 1.25 crores was received by him from Haji Abdul Rahim as a gift. Simila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out any reason. But the assessee was under the impression that he would succeed in evading tax of Rs. 78,25,748 by producing a false affidavit of Haji Abdul Rahim before the Assessing Officer regarding the alleged gift. If the Assessing Officer has not conducted enquiries, the assessee would have succeeded in his designs and in order to succeed in his designs to defraud the Revenue by huge sum as taxes legitimately due to the State, the assessee must have paid some amount to Haji Abdul Rahim as otherwise there is no reason why the said person should sign a false affidavit stating that the alleged gift of Rs. 1.25 crores was made by him, which he himself knew to be false. Therefore, under the circumstances, which are created by the assessee himself, there are no reason to disbelieve the statement of Haji Abdul Rahim that he was made to execute the affidavit on a payment of Rs. 50,000 by the assessee. The assessee might not have direction paid the said payment, because as stated, the alleged donor was not even an acquaintance to the assessee on the date of gift, i.e., 11-1-1985. But the circumstances show that whatever means the assessee might have employed to get the affidavit of Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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