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TMI Blog2016 (12) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... dded an amount of Rs. 82,849/- representing the investment of Rs. 67,500/- in recurring deposits and interest thereon of Rs. 15,349/- as unexplained investment. In the assessment proceedings, the assessee submitted that the investment in recurring deposits was made during the assessment year 2007-08 to 2009-10 from his past savings and withdrawals. The contentions of the assessee were rejected by the AO observing that the cash flow statement filed by the assessee did not reflect the opening cash balance, therefore, there were no past savings. He also observed that the investment of Rs. 67,500/- in assessment year 2009-10 out of withdrawals Rs. 1,08,835/- is also not acceptable, in view of the remaining insufficient balance for household expenses keeping in view the standard of living of the assessee. He also observed that there is no supporting evidence for the claim of the assessee that the assessee's wife also invested in recurring deposits from her past savings and further the maturity amount has been credited to assessee's capital account only and thus he concluded that the investment in recurring deposits belongs to the assessee only. This was treated as unexplained investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the interest of Rs. 15,349/- as unexplained investment for the reason that the assessee has not shown past savings in cash flow statement. He also observed that out of total withdrawals of Rs. 1,08,835/- made by the assessee, it cannot be accepted that Rs. 67,500/- could be made in to deposits. Keeping in view of the fact that the remaining amount is insufficient to meet household expenses looking at the standard of living of the assessee. The ld. CIT(A) observed that the assessee not provided details of sources of assessee's wife and no link to the investment in recurring deposits account from such sources of income and sustained the addition. 8. Taking note of the facts and circumstances of the case, we are of the view that the assessee should succeed on this issue. Revenue is not denying the fact that the recurring deposit account is in the name of both the assessee and his wife and the deposit is only of Rs. 67,500/-. The assessee has shown withdrawals of Rs. 1,08,835/-. Even if we consider that this amount is entirely used for the house hold expenses still deposit could have been presumed to be made out of the income of the assessee's wife who earned income of Rs. 2,63,930/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings, the AO noticed that the assessee has credited Rs. 4 lakhs in his capital account and had claimed that he received gift from his father. The assessee was asked to prove the genuineness of the transaction and creditworthiness of the donor in respect of the gift claimed to be received from his father. The assessee filed a copy of DECLARATION FOR GIFT OF MONEY made by Mrs. Ramatilgam Padmanaban Pillai Myladumpari the mother of the assessee. Declaration for gift of money given by his mother was filed in support of his contention that he has received gift. The AO observed that the gift deed is dated 20.10.2011 and the gift was given by his mother and not by his father. He observed that this is a confirmation of gift dated 20.10.2011 and gift of Rs. 4 lakhs was stated be received by the assessee in the financial year 2008-09 relevant to the current assessment year . He also observed that the capital account in which it has been mentioned that the gift was received by the assessee from his father and not mother as claimed by the assessee in the assessment proceedings. The AO also observed that the details of payment received by way of gift are not furnished either by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poration Pvt Ltd AIR 1986 O 1849; c) CIT V/s Arun Kumar Kothari in ITA No.80/2010 dated 7.9.2012 Raj HC" 17. We have heard the rival contentions and perused the orders of authorities below. In the course of assessment proceedings the assessee produced the gift deed declaration for gift of money given by the assessee's mother confirming the gift of Rs. 4 lakhs given to his son. It is the contention of the assessee that his father's last wish that some amount was to be given to his heirs out of his accumulated wealth and accordingly, his mother handed over Rs. 4 lakhs to the assessee towards gift after expiry of his father on 17.3.2008. The assessee's contention is that confirming such gift a declaration was given by his mother having handed over the gift of Rs. 4 lakhs to him. It is therefore, submitted that the gift is genuine gift. The assessee further contended that his parents are staying in a small village where banking facilities are not available and the main source of their income was from agricultural income, which was received in cash. The assessee contended that as the money was given to the assessee by his mother in cash no formal gift was prepared but confirmation o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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