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TMI Blog2012 (12) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... ts u/s.68 merely because the donors were not produced by the assessee. No enquiry whatsoever was made by the AO either with the concerned donors or even with their AO in order to ascertain the genuineness of gifts. Issue decides in favour of assessee Addition on account of low withdrawal of house-hold expense – Held that:- As the AO has estimated the household expenses of the assessee at Rs. 25,000/- per month after taking into consideration all the relevant facts and same has been accepted by the assessee also. Issue decides in favour of revenue - ITA No.17/Mum/2010 - - - Dated:- 25-7-2012 - SHRI P.M. JAGTAP AND SHRI VIVEK VERMA, JJ. Appellant by: Shri Rajiv Khandelwal Ms. Jinal Sarvaiya Respondent by: Shri A.C. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . I have considered the facts and submissions. It is seen that during the course of assessment proceedings, the appellant had furnished some evidences such as copies of gift declaration, copies of income tax returns along with computation of income in respect of donor for the earlier year ending on 31.03.2000. On perusal of the copies of return of income, it is apparent that majority of the donors belong to the low income category deserving income from activities such as tailoring, teaching, carpentory, etc and the income shown by them during the earlier year ie A Y 2000-01 was ranging slightly higher than Rs. 50,000/-. It is also seen that there was no element of love and affection between the donors and the recipient minor children of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the appellant had furnished evidence merely to prove the identity of the donors, but the onus of proving the creditworthiness of the donors and the genuineness of the transactions of gift had not been discharged. Further, there was no relationship between the donors and the appellant s children and the element of love affection was absent. Besides the donors belonged to low income categories as compared to the appellant who belonged to high income group. Therefore, the AO s action in treating the gifts as unexplained credits u/s. 68 by applying principle of human probabilities was fully justified and deserves to be upheld. This ground appeal is dismissed. 3. The Ld. CIT (A) confirmed the addition of Rs. 1,86,151/- made by the AO on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) rws 147 without furnishing the reasons recorded for reopening the assessment. 3. On the facts and circumstances of the Appellant s case and in law the ld. Commissioner of Income Tax (Appalls) erred in confirming the addition of Rs. 15,90,000/- made by the ld. AO by invoking the provisions of section 68 of the Income Tax Act, 1961 on account of alleged unexplained gifts received by the appellant s minor children. 4. On the facts and circumstances of the Appellant s case and in law the ld. Commissioner of Income Tax (Appalls) erred in confirming the addition of Rs. 1,86,151/- on account of alleged low household withdrawals. 5. We have heard the arguments of both the sides and also perused the relevant material on record. At the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, balance-sheets etc. as specifically mentioned in paragraph No.3.5 of his impugned order. In our opinion, the said documentary evidence filed by the assessee was sufficient to discharge the primary onus on the assessee to explain the gifts received by his minor children in terms of sec.68 which was shifted to the AO and in the absence of any adverse material brought on record by the AO to doubt or dispute the genuineness of the relevant gifts, we are of the view that the said gifts cannot be treated as unexplained cash credits u/s.68 merely because the donors were not produced by the assessee. It is observed that the details and documents furnished by the assessee contained not only the names and addresses of the donors but even their inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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