9911796707
TMI Blog2015 (1) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... xtraordinary relationship. The donor himself has stated that he had been into export business up to 2003 which was closed due to losses. We are aware that a business is closed only after consistent losses in various years and therefore, a person who had incurred losses cannot be expected to give a gift to an unknown person and that too of a huge amount of ₹ 25 lacs. The donor had not given any gift to his close relatives including his brothers, sisters etc.. Cheques of gift were issued against cash deposited in the bank account and the cash was stated to be lying at home which is again against human probabilities. The donor had stated that cash was deposited out of cash lying at home and he had submitted that he does not remember the source of the said cash. - Decided against assessee. - I.T.A. No. 671 /Del/2009 - - - Dated:- 9-1-2015 - Shri George George K. And Shri T. S. Kapoor,JJ. For the Appellant : Shri Ashwani Tajena, CA For the Respondent : Shri Piyush Jain, CIT DR ORDER Per T. S. Kapoor, AM: This is an appeal filed by assessee against the order of Ld. CIT(A) dated 31.12.2008. The assessee has taken 8 grounds of appeal against an addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on confirmation dated 07.12.2007. 4. The donor was produced on 18.12.2007 and the A.O. recorded statement of the donor which is reproduced in the assessment order. From the recorded statement, the A.O. inferred as under: (i) That the donor did not know the name of the person to whom gifts were made. According to him the gifts were made to M/s Rama Krishna Jewellers and not to the assessee. (ii) That the donor even doesn't know the owners of M/s Rama Krishna Jewellers. In reply to Q. 12 he replied that perhaps Mr. Praveen Malhotra is the owner of M/s Rama Krishna Jewellers. (iii) That the donor or his family members are not related to the family of the assessee. (iv) That the donor had deposited equivalent amount of cash before issuing the corresponding cheques. A copy of the relevant bank account number 01050022536 with the bank of Bikaner Jaipur, Lawrence Road, Delhi the proprietary concern of the donor was also made part of this order as Annexure 'B'. (v) That the donor is not aware of the source of cash deposited in the bank before issuing cheques. (vi) That neither the donor nor the donee ever visited the residence of each other. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly shows that Sh. Anil Kumar Gupta was not even aware to whom the gift of ₹ 25 lacs was made. As per his statement he has made gift of ₹ 25 lacs to M/s Rama Krishna Jewellers whose owner is probably Praveen Malhotra. Thus, he has not categorically stated that the gift was given to the appellant Sh. Prem Prakash Choudhary. The gifts are normally given out of love and affection. In this case, the existence of love and affection between donor and donee can be seen from the fact that donor has stated that the gift was given to M/s Rama Krishna Jewellers whose owner perhaps is Mr. Praveen Malhotra. Thus the donor is not even aware about the exact name of the donee i.e. the appellant, Sh. Prem Prakash Choudhary. Thus, there is no indication of the presence of love and affection between the donor and the donee. As pointed out by the AO., the cheques were issued by the donor from the bank account in which amounts were deposited in cash. Though the appellant submitted that the cash was deposited out of withdrawals of cash made on earlier date from the same bank account but the appellant had not adduced any evidence regarding the purpose for which the earlier cash/amounts we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e made to sit outside when the statement of Shri Anil Kumar Gupta was being recorded. Ld. A.R. also took us to paper book page 70 where copy of statement of donor was placed and submitted that the donor himself had stated that A.O. had behaved in an arrogant manner and had insisted for recording statement without any legal or moral aid. Continuing his arguments Ld. A.R. submitted that all these facts were brought to the notice of Ld. CIT(A) and in this respect, invited our attention to written statements placed at paper book pages 44-57. Regarding merits, Ld. A.R. submitted that the cash was withdrawn from the bank account of the firm wherein the donor was proprietor and thereafter, the same was deposited in the bank account from where the gift cheques were issued and in this respect, he invited our attention to paper book pages 66 where a copy of cash flow statement was placed. Therefore, keeping in view all these facts and circumstances, it was submitted that the case of the assessee needs readjudication. 9. Ld. D.R. on the other hand strongly objected to the prayer of Ld. A.R. for readjudication. He submitted that initially the assessee had claimed that gift of ₹ 12.50 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be doubted. As regards relationship of donor and donee, Ld. A.R. submitted that donor happens to be in blood relation with brother s wife of assessee and in this respect, invited our attention to paper book page 58 where this fact was communicated to Ld. CIT(A) vide letter dated 23.12.2008 and therefore, it was submitted that gift was not to unknown person and before making gifts assessee had sufficient creditworthiness as the entries in bank account indicates. Without prejudice to the above arguments, Ld. A.R. submitted that there were other issues also in this case one of which relates to the fact that the assessment was completed u/s 153A and addition was not based on any incriminating material and therefore, assessment itself was not legal. However for the sake of fair justice, he was only asking for remanding back of his case. Ld. A.R. placed his reliance on a number of case laws which were relied upon before Ld. CIT(A) also as placed in paper book pages 44-57. 11. We have heard rival parties and have gone through the material placed on record. We find that initially, during assessment proceedings, the assessee had submitted that gift of ₹ 25 lacs were receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ablished and neither any proof was filed before the authorities below or before us to substantiate that parties had extraordinary relationship. ii) The donor himself has stated that he had been into export business up to 2003 which was closed due to losses. We are aware that a business is closed only after consistent losses in various years and therefore, a person who had incurred losses cannot be expected to give a gift to an unknown person and that too of a huge amount of ₹ 25 lacs. iii) The donor had not given any gift to his close relatives including his brothers, sisters etc. as is evident form answer to Question No.9 of the statement. iv) Cheques of gift were issued against cash deposited in the bank account and the cash was stated to be lying at home which is again against human probabilities. v) Against answer to question No.17, the donor had stated that cash was deposited out of cash lying at home and he had submitted that he does not remember the source of the said cash. 12. Ld. CIT(A) has passed a well reasoned and speaking order wherein we do not find any infirmity and therefore, we uphold the order of Ld. CIT(A). 13. In view of the above, appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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