9911796707
TMI Blog2010 (10) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in the name of donors and had been gifted to him as per his suggestion, the amount could not be taxed as the source is explained - income of the assessee if at all diverted to the donors, related to the years prior to 1992 and could be taxed only in these years - Decided in favor of the assessee - ITA No. 5786/M/2009 - - - Dated:- 22-10-2010 - Shri D. K.Agarwal (JM) and Shri Rajendra Singh(AM) JJ. Assessee by : Uma Mahadevkar Revenue by : Shri R.M. Tiwari ORDER PER RAJENDRA SINGH (AM) This appeal by the assessee is directed against the order dated 24.08.2009 of CIT(A) for the assessment year 2004-05. The only dispute raised in this appeal is regarding addition of Rs. 3,90,000/- on account of gifts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osited in short term bank deposits/ RBI tax free bonds and the gifts had been given out of maturity value. The AO however noted from their bank accounts that there were very little deposits in these accounts other than the maturity proceeds of RBI Bonds. It was also noted by him that as per statement of Shri Nilesh K. Chalke, his mother was receiving family pension of Rs. 800/- per month and he was earning salary of Rs. 2,600/- per month as marketing executive and the sister had no independent income. The AO therefore concluded that the donors had no means to give gifts. It was observed by him that it was quite unusual for an uncle to receive gift from nephew/ niece particularly when he had capital balance of Rs.5.5 crores at the time of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garb of gifts and that in case the money belonged to the assessee then the amount could have been taxed only in the relevant year when the profit had been accumulated in their names but the genuineness of firm was never doubted and the partnership had been accepted by the department. Therefore the identity of donors being established along with the source of funds no addition could be made on account of gifts. The Learned DR on the other hand supported the orders of authorities below and argued that gifts were in fact the assessee s own money which had been taken back in the form of gifts which was not genuine. He referred to the statement of Nilesh K. Chalke reproduced at para 4 of the assessment order in which he had stated that the gift ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncerns without any capital contribution and after they retired in March 1992 their capital balances were deposited in fixed deposits/ RBI Bonds and the gifts had been given out of maturity value of the bonds. 4.1 The case of the assessee is that donors had made the gifts after their financial position improved. This is corroborated from answer to Question No.2 of Shri Nilesh K. Chalke which shows that after retiring from partnership firms he worked for some time as marketing executive and thereafter he was doing free lancing at a monthly income of Rs. 6,000/- to Rs. 7,000/- per month till the year 2000. Thereafter he had joined M/s.Set India Pvt. Ltd. as Web Designer at annual package of Rs.2.25 lacs which was raised to Rs. 4 lacs in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
