9911796707
TMI Blog2012 (7) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Officer. The learned Assessing Officer has erred in making an addition of Rs. 50,00,000/- as unaccount income which is actually in the nature of gift. The appellant has received the said gift from Mr. Sandeep Shisodia (NRI) residing at Sharjah UA E for past 13 years. The said donor is the close friend of the appellant's father. The said gift is given out of natural love and affection. The fact that the appellant has declared the same in her return of Income shows that there was no concealment of any income. Hence the penalty u/s 271 (1)(c) is not at all justified and the same be deleted. 3 During the course of assessment, the Assessing Officer noticed that the assessee has shown gift of Rs. 50 lacs from one NRI Mr. Sandeep Shisodi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation 1 to sec 271(1) ( c) in respect of any amount of addition or disallowance, if the explanation is offered by the assessee which is not accepted because the assessee failed to substantiate the same; but such explanation is bonafide and all relevant facts and material have been disclosed by the assessee, then penalty is not levyable. The ld AR has submitted that the amount of gift received by the assessee was through banking channel. The assessee has produced all relevant details including identity of the donor and source of the gift as through banking channel; therefore, the disallowance of the claim of the assessee does not automatically attract the provisions of section 271(1)( c). He has relied upon the decision of the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther hand, the ld DR has submitted that the claim of the assessee was found as false and not genuine. When the assessee has failed to prove the existence of any kind of love and affection between her and the donor and even the assessee had no personal meeting or conversation with the donor, then the amount received from a stranger, claimed as gift, is not a bonafide claim. The ld DR has referred the findings of the CIT(A) as well as the Tribunal in the quantum appeal and submitted that when the issue has been decided against the assessee by holding that the gifts are not genuine transaction, then the assessee has furnished inaccurate particulars of income by claiming the amount of Rs. . 50 lacs as gift. He has relied upon the decision of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enuineness of the gift has been decided by the Tribunal vide order dated 28.10.2011 in para 7 & 8 as under: "7. We find that the money received from Shri Sandip M. Sisodia was used for purchase of the flat in 'Sripati Arcade', Nana Chowk, Mumbai. Even if there is no blood relationship but so far as concept of the 'gift' is concerned, more particularly, the personal gifts, there should be personal attachment between the donor and the donee when huge amount of Rs. 50 lakhs is given. The expression 'love and affection' contemplates person attachment between the donor and the donee. One simple copy of declaration is filed dated 5.11.2003 which is even not attested or even there is no witness to them. The assessee has also filed the copies of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the claim was found as incorrect and not genuine and it is established in the quantum proceedings that the assessee has claimed a non-genuine gift as a genuine gift. The claim is found to be incorrect even to the knowledge of the assessee. When a claim, which was incorrect to the knowledge of the assessee, was made to take an advantage of tax, then it does not fall under the category of claim, which is not allowable under the provisions of law; but was bonafide claim. 5.2 It is clear from the findings of the Tribunal in quantum appeal that the assessee has presented a wrong, incorrect and non-genuine claim of gift. From the facts, it is born out that the assessee has made the said claim knowingly that it is a wrong and incorrect claim. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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