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TMI Blog2013 (12) TMI 371X X X X Extracts X X X X X X X X Extracts X X X X ..... genuine unless the assessee was able to prove natural love and affection and financial capacity of the donor - The assessee was also required to substantiate that the donor had the means and the gift was genuine which he had failed to establish - Even when the donor had the means to make the gifts, there being neither any relationship nor there being any circumstance to show natural love and affection of the donor for the donee nor there being any occasion to make such gifts to the assessee and the authority of jurisdictional High Court being against the assessee - Decided against assessee. - ITA No. 72 of 1999 - - - Dated:- 22-11-2013 - Rajive Bhalla And Dr. Bharat Bhushan Parsoon,JJ. For the Appellant : Shri Aalok Mittal, Advoca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceiving such gifts Relation with the assessee Amount received (Rs.) Donor's name Shri Raj Kumar brother 50,000/- Shri Viujay Kumar Shri Raj Kumar brother 50,000/- Shri Vijay Kumar Smt. Tara Devi (wife of assessee's brother) sister-in-law 50,000/- Shri Kiran Kumar s/oShri Vijay Kumar Smt. Shanti Devi mother 50,000/- Shri Vijay Kumar It may also be noteworthy that even father of the assessee had received similar gifts. Finding the claim of the assessee to be not genuine by the Assessing Officer, an addition of Rs.1,50,000/- which represented amount of gifts, was made to his total income, taking it to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestioned foreign gifts had been made by the donors who were neither related to the assessee nor there was any specific occasion qua the donees on which occasion the alleged gifts could have been given and were to be received by them. These are not small gifts, particularly keeping in view the contemporaneous times when these were given in the year 1989. No one would part with such big amounts as gifts even if donors are having capacity to pay. Neither donors nor donees have shown that such gifts of huge amounts had ever been given by the donors to any of their relatives or had been received by the donees from their relatives or from such donors. Relevant extract from the order of Assessing Officer, Annexure A-1, is reproduced as below:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the above extent. Under these circumstances, an addition of Rs.1,50,000/- is hereby made to his total income for which he is also treated to have concealed as also furnished inaccurate particulars. Vide order dated 17.2.1992 (Annexure A-2), Commissioner of Income Tax (Appeals) had considered only identity and capacity of the donors as also the effect of acceptance of such gifts while coming to the following conclusion:- 4. ... In the circumstances I hold that the A.O.'s conclusions are contradictory and addition made treating it as a case of compensatory payments without bringing any material on record and also on the basis of not proving the genuineness of the credit was not warranted. The addition of Rs.1,50,000/-, thus made is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt as an income of the assessee earned from his undisclosed sources and consequently the order of the CIT(A) deleting the addition of Rs.1,50,000/- made on account of foreign gifts of Rs.50,000/-, each by S/Shri Puran Chand Sharma, Vijay Kumar and Kiran Kumar in the income of the assessee as his income earned from undisclosed sources is set aside and the order of the A.O. making the addition of the same is hereby sustained. This aspect has been considered at length by a Bench of coordinate jurisdiction of this Court in ITA No.498 of 2005, decided on 7.2.2011 (Commissioner of Income Tax, Karnal vs. Puneet Singh). In the interface of facts of the said case, relevant observations and findings thereof in the said authority, are as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e accepted as genuine unless the assessee was able to prove natural love and affection and financial capacity of the donor. Observations of this Court in Jaspal Singh are:- It is well settled that mere identification of donor and showing the movement of gift amount through banking channel is not enough to prove genuineness of the gift. The assessee was required to establish that the donor had the means and the gift was genuine, for natural love and affection. Reference in this regard may be made to the judgment of this Court in Lal Chand Kalra v. CIT, 22 CTR 135, judgment of Delhi High Court in Sajan Dass and Sons v. CIT, (2003) 264 ITR 435, CIT, West Bengal II v. Durga Prasad More, (1971) 82 ITR 540 and Sumanti Dayal v. CIT, (1995) 214 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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