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TMI Blog2015 (9) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... ubject assessment year is in the present facts uncalled for. This is so as his present capacity will not determine his capacity at the time of purchase of the RIB Bonds. Two authorities have come to a concurrent finding of fact that the capacity of the donor to make the gift stands established on the basis of the documents which were placed before the Assessing Officer. This finding of fact with regard to capacity of the donor has not been shown to be perverse. Revenue could not dispute the concurrent finding of the two authorities that the gift was received from an NRI who had originally subscribed to the RIB Bonds. These bonds were transferable and in fact transferred to the respondent assessee by making a necessary declaration in that re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e addition made by invoking Section 68 of the Income Tax Act,1961 (Act) with regard to maturity proceeds of Resurgent India Bonds (RIB) received as gift. 2) The common question which has been pressed by the revenue before us in all the appeals is as under:- Whether on the facts and circumstances of the case the Tribunal has erred in holding that the amount of ₹ 2,00,88,783/- credited in the account of the respondent assessee has been received as maturity proceeds of RIB shown as gifts from unrelated Non Resident India was satisfactorily explained with regard to its nature and source? 3) Briefly, the facts leading to the present dispute is that the respondentsassessee in this case had in the subject assessment year credited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalysis of the facts and inter alia rendered a finding that the financial capacity of the donor was established on having produced bank statement and fixed deposit receipt in the name of the donor. It also found that during the assessment proceedings, the respondents assessee had explained the gift by relying on the affidavit of the donor that he had gifted the RIB Bonds to the respondents-assessee and also a letter from State Bank of India, confirming the transfer of RIB Bonds to the name of respondent assessee-donee. Besides, the notarized letter written by the donor to the respondents assessee and the declaration of the gifts by donor along with the sworn affidavit of the donor before the Consulate General of Dubai confirming the gift to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer will not be sufficient to doubt its genuineness. Besides, after the amendment to the Gift Act the requirement of the donor and the donee being related by blood is not required. Besides reliance was placed upon the decision in Kanchan Singh (supra) to state that one has to examine the source and the capacity of the donor keeping in view the year of subscription to the RIB Bonds. The Tribunal also records the fact that it is settled position of law in the context of Section 68 of the Act, that the assessee is not required to prove the source of its source of income. Moreover, the impugned order records that the Assessing Officer sought information about the donor's capacity not with regard to the time when RIB Bonds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the capacity of the donor. This was evident from the fixed deposit certificates as well as bank statements pertaining to the period when subscription was made to RIB Bonds by the donor. Insistence on the part of the revenue seeking to examine the financial capacity of the donor in the previous year relevant to the subject assessment year is in the present facts uncalled for, This is so as his present capacity will not determine his capacity at the time of purchase of the RIB Bonds. Two authorities have come to a concurrent finding of fact that the capacity of the donor to make the gift stands established on the basis of the documents which were placed before the Assessing Officer. This finding of fact with regard to capacity of the donor h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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