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TMI Blog2016 (5) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... at his wife had received gift from her mother. It was also explained that her mother who was 82 years old and lying in death bed , sold her property and gave the share attributable to the assessee’s wife. Hence it was proved that out of income of mother in law of assessee, she has gifted the same to her daughter (assessee’s wife) . It is a common practice in any family to distribute the assets to the children which includes out of sale of property to avoid any legal disputes and to maintain the harmony of the family. In the instant case, we find that the assessee has proved source of source. Moreover, the wife of the assessee had even appeared before the Learned AO and confirmed the fact of advancing loan to the assessee. In these circumstances, we find that the Learned CITA had rightly deleted the said addition - Decided in favour of assessee Transfer from one bank to another bank account - addition as unexplained cash credit u/s 68 - Held that:- We find from the records that the assessee has merely transferred certain amounts from his Bombay Mercantile Cooperative Bank account to his HSBC account. We find that the Learned AO had almost added all the credits in the bank accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In these circumstances, there is no scope for treating the investment in mutual funds of ₹ 9,00,000/- as unexplained - Decided in favour of assessee Amount transferred from two minor daughters’ bank account to the bank account of the assessee - Held that:- It is not in dispute that the monies were transferred from two minor daughters bank account to the account of the assessee. It is not in dispute that the bank statements of two minor daughters were also produced before the Learned AO. It is not the case of the Learned AO that the assessee had chanellised his undisclosed income in the bank account of the two minor daughters and had received it back in cheques from them. Nothing prevented the Learned AO to enquire about the sources of credits in the bank account of the two minor daughters. In these circumstances, we find that the Learned CITA had rightly deleted the addition - Decided in favour of assessee - ITA No. 220/Kol/2013 - - - Dated:- 21-3-2016 - Shri N.V. Vasudevan, Judicial Member, and Shri M. Balaganesh, Accountant Member For the Appellant : Shri Rajat Kr. Kureel, JCIT, ld.Sr.DR For The Respondent : None appeared on behalf of the assessee OR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e donor is proved and the monies have been transferred through regular banking channels. Accordingly, he deleted the addition made by the Learned AO. Aggrieved, the revenue is in appeal before us on the following ground:- 1. Ld. CIT(A) has erred on facts as well as in law in deleting ₹ 3,69,000/- on the claim of the assessee that these were genuine gifts from daughter. 3.2. The Learned DR vehemently supported the order of the Learned AO. 3.3. We have heard the Learned DR. We find from the records that the monies have been transferred by daughter Mrs. Fariah Rahman, who is a resident of Manchester, United Kingdom, to her father (assessee herein) as gift which are duly supported by her bank statements and affidavit confirming the gift. The fact that she is a resident of Manchester and employed therein is not in dispute. The affidavit filed by the daughter is also not in dispute. The fact that the monies were transferred by Mrs. Fariah Rahaman from her UK bank account in pound sterlings to her Indian Bank account is not in dispute. It is not the case of the Learned AO that the assessee had channellised his undisclosed income through hawala channels to UK and got i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctice in any family to distribute the assets to the children which includes out of sale of property to avoid any legal disputes and to maintain the harmony of the family. In the instant case, we find that the assessee has proved source of source. Moreover, the wife of the assessee had even appeared before the Learned AO and confirmed the fact of advancing loan to the assessee. In these circumstances, we find that the Learned CITA had rightly deleted the said addition and we find no infirmity in his order in this regard. Accordingly, the ground no.2 raised by the revenue is dismissed. 5. The next issue to be decided in this appeal is as to whether a sum of ₹ 4,50,000/- claimed to be transfer from one bank to another bank account of the assessee could be added as unexplained cash credit u/s 68 of the Act in the facts and circumstances of the case . 5.1. The brief facts of this issue is that the Learned AO observed that a sum of ₹ 4,50,000/- was found credited in HSBC bank account of the assessee , the source for which was explained to be funds transferred from assessee s own bank account maintained with Bombay Mercantile Cooperative Bank . According to Learned AO, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sactions were made during the year under appeal and income from such business were offered u/s 44AF of the Act. The Learned AO however brought the said credit to tax as unexplained cash credit u/s 68 of the Act. On first appeal, it was pleaded that the Learned AO having already taxed the profit from business u/s 44AF of the Act, ought not to have again taxed the entire sale proceeds of ₹ 6,89,410.57. The Learned CIT(A) deleted the addition made in this regard. Aggrieved, the revenue is in appeal before us on the following ground:- 4. Ld. CIT(A) has erred on facts as well as in law in deleting ₹ 6,89,410/- merely reasoning that the money are trade receipts. 6.2. The Learned DR vehemently supported the order of the Learned AO. 6.3. We have heard the Learned DR. It is not in dispute that the credits in the subject mentioned bank account to the tune of ₹ 6,89,410/- represents sale proceeds of trading business for which income is already offered to tax u/s 44AF of the Act. Hence there is no question of treating the said sale proceeds as unexplained cash credit u/s 68 of the Act. Hence we find no infirmity in the order of the Learned CIT(A) in this regard. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited in HSBC bank account of the assessee. This issue was adjudicated in previous grounds hereinabove. We find that the assessee had duly explained the source for purchase of mutual funds and had also offered the short term capital gains on redemption of the same which has also been taxed by the Learned AO. In these circumstances, there is no scope for treating the investment in mutual funds of ₹ 9,00,000/- as unexplained . Hence we find no infirmity in the order of the Learned CITA in this regard. Accordingly, the ground no. 5 raised by the revenue is dismissed. 8. The last issue to be decided in this appeal is as to whether a sum of ₹ 3,00,000/-, being the amount transferred from two minor daughters bank account to the bank account of the assessee, could be added as unexplained cash credit u/s 68 of the Act in the facts and circumstances of the case. 8.1. The brief facts of this issue is that the two minor daughters of the assessee transferred ₹ 3,00,000/- (1,50,000 * 2) to the bank account of the assessee from their respective bank accounts. The assessee explained the same before the Learned AO on 23.12.2009. The assessee also produced the bank statement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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