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TMI Blog2013 (1) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... ns owning a software company of a net worth of US $ 25 million, that he had gifted during the year 2002-03 Rs. 2.00 crores to rebuild a government school, and got constructed a guest house for Sri Sitaramachandra Swami temple at Bhadrachalam. Copies of the income tax returns filed by the donor in USA were also filed by the assessee. Even though the assessee informed the department that the donor was available in India in December 2006 on account of the death of his mother-in-law and the contact details of the donor in India (address and mobile numbers), the department did not bother to contact him and verify the above facts. In this view of the matter, the assessee had discharged the burden cast on him to prove the identity of the creditor, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in response to notice under Section 148. Thereafter notice under Section 143 (2) was issued on 12-12-2005. Further notice under Section 142 (1) was issued on 28- 06-2006 calling for total salary particulars including all allowances received by him in the capacity of Minster during the assessment year 2003-04. 3. The assessing officer reopened the earlier assessments and brought to tax the allowances received by the assessee after holding that no exemption was available to the assessee on such allowances. 4. In this appeal, we are only concerned with the issue relating to an amount of Rs. 22,76,750/- in U.S. dollars received by the assessee from an NRI which was credited to his capital account in the assessment year 2003-04. 5. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils of the addresses and mobile numbers of the donor to the Revenue for verification. But the Revenue authorities did not contact the donor and verify the facts stated by him in the confirmation letter given by him. 6. The assessing officer was of the view that the NRI had not furnished any details as to the exact date when he paid Rs. 15.00 lakhs, the sources for the same and also the reasons for paying this amount to the assessee. He also noted that the bank account of the assessee for the financial year 2002-03 did not disclose from which account the sum of Rs. 7,76,750/- was received by the assessee and the assessee had not furnished any details regarding the bank account from where these amounts were transferred to the assessee's acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn of income filed in U.S. by him showing the status and financial position. The appellate authority, did not consider the same and held that the assessee had proved the identity of the donor, his creditworthiness but the assessee had not proved the genuineness of the transaction. He held that a bald confirmation letter from the donor in USA is not sufficient to prove the genuineness of the transaction of gift, that the NRI's bank account evidencing transfer of amounts to the tune of Rs. 7,76,750/- to the assessee's bank account have not been filed and there is no evidence to show that the amount of Rs. 15.00 lakhs was gifted to the assessee by him as there is no evidence of withdrawal of funds by him to make these gifts. He therefore conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not regular books of accounts cannot be included under Section 68 of the Act and therefore the provisions of Section 68 cannot be invoked. 9. Aggrieved thereby, the Revenue has filed the present appeal before this Court. 10. Heard Sri B.Narasimha Sarma, learned counsel for the Revenue at the stage of admission. 11. Sri Sarma contended that the Tribunal's findings are contrary to law, material on record and vitiated by irregularities in exercise of jurisdiction, that the assessing officer had rightly disbelieved the genuineness of the gift and findings of the Tribunal are perverse and unsustainable. 12. From the above facts it is clear that the assessee had received a gift of Rs. 22,76,750/-in U.S. dollars from an NRI, N.Mohan and the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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