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TMI Blog2013 (12) TMI 1310X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing authority was not seized with the case of donor to assess his income under the Income Tax Act - He was only to verify the genuineness of transaction and creditworthiness - Decided against Revenue. - Income Tax Appeal No. - 99 of 2005 - - - Dated:- 16-7-2012 - Hon'ble Devi Prasad Singh And Hon'ble Vishnu Chandra Gupta,JJ. For the Petitioner : P. Agrawal ORDER 1. The instant appeal filed under Section 260-A of the Income Tax Act, 1961 was admitted by this Court on the following substantial question of law:- "(1) Whether the Hon'ble ITAT has erred in law in holding that the assessee had discharged the onus of establishing that the gift of Rs. 10,00,000/- made in his favour by his brother Dr. Chittranjan Jain was genu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the City Bank Delhi. As a proof with regard to creditworthiness of Dr. Chitranjan Jain, a copy of income tax return filed in USA was also enclosed. The Assessing Authority had disbelieved the evidence on the ground that response submitted by assessee was only part of transcript of N.R.E. account of the alleged donor. Accordingly, finding has been recorded by the Assessing Authority that it was not sufficient enough to prove the creditworthiness of donor as well as genuineness of alleged gift. Assessing Authority had added the amount of Rs. 10,00000/- as income from other source. 3. The finding recorded by the Assessing Authority was reversed by the CIT (Appeal) with the finding that the income tax return filed by the assessee was su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. On the other hand, learned counsel for the respondents reasserted the finding recorded by CIT Appeal and Tribunal and submits that it does not suffer from any perversity or illegality. 6. Shri D.D. Chopra has relied upon a Division Bench judgement of this Court reported in [2006] 280 ITR 547 (ALL), Ram Lal Agrawal Vs. Commissioner of Income Tax. While deciding the case of Ram Lal Agrawal (supra), it was held by the Division Bench of this Court that under Section 68 of the Income Tax Act if any amount is found credited in the books of account of the assessee the burden lies upon the assessee to prove its nature and source. While proving the same the assessee has to prove the identity of the person, genuineness of the transactions and cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned as under:- "creditworthy, adj. (1924) (Of a borrower) financially sound enough that a lender will extend credit in the belief default is unlikely; fiscally healthy-creditworthiness. In The New Lexicon Webster's Dictionary, the word "creditworthy" has been defined as under:- "creditworthy, adj. of one who is a good risk as a borrower." 10. In view of above, what was required for the Assessing Authority is to find out the creditworthiness of the assessee with a judicious approach from the material on record. Assessing authority cannot discharge his obligation arbitrarily or mechanically. The return filed by Dr. Chitranjan Jain and wife Nisha Jain at the face of record reveals the creditworthiness of the donor which according to ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... njan Jain should not be doubted. Merely because the entire transcript of NRE account was not furnished shall not make out a case to disbelieve the amount paid by Dr. Chitranjan Jain to the assessee. It may be noted that Assessing Authority was concerned only to verify the genuineness of amount paid by Dr. Chitranjan Jain and once the income tax return filed by Dr. Chitrajan Jain was found to be genuine then there was no occasion for the assessing authority to proceed further asking to supply the entire transcript of the account of Dr. Chitrajan Jain who is not residing in India but in the United States of America. Assessing authority was not seized with the case of Dr. Chitranjan Jain to assess his income under the Income Tax Act. He was on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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