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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 ..... r even before us. Hence, we sustain the orders of the lowers authorities - Decided against assessee Addition of gift received by assessee from his father - genuity of gift - Held that:- It is not denied by the revenue that the parents of the assessee are owning agricultural land to the extent of 10 acre (39 hectors without water facilities 12 hectors with water facility). Therefore, it cannot be completely brushed aside that there is no creditworthiness to the donor to give the gift. We agree with the assessee that the gift deed declaration of gift made by his mother cannot be treated as non genuine since the contention of the assessee that this gift was given by his father as his last wish and the cash was not proved to be false. Coming to the creditworthiness of the creditor /donor since donor is having sufficient wet land and dry land it cannot be doubted earning of agricultural income. The creditworthiness cannot be doubted. Both the parents of the assessee are passed away and therefore the assessee may not be in a position to establish the fact of the parents cultivating the land when they were alive. Therefore, taking the totality of facts and circumstances into considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estment in recurring deposits belongs to the assessee only. This was treated as unexplained investment in the hands of the assessee. 4. On appeal, the ld. CIT(A) sustained the addition by observing that except filing a copy of acknowledgement of return in respect of his wife s return of income for the assessment year 2009-10 showing the taxable income of ₹ 73,930/- there is nothing on record to link this income to the amount that had deposited in the recurring deposits account in the joint account of the assessee and his wife. He also observed that neither any source of income of assessee s wife has been mentioned nor copy of bank account of the appellant s wife has been filed to show the availability of cash savings with her for depositing in recurring deposits. Coming to the withdrawal made by the assessee, the ld.CIT(A) held that the assessee has withdrawn an amount of ₹ 1,08,835/- during the year under consideration and this amount is hardly sufficient for meeting the assessee s house hold expenses and therefore the investment of ₹ 67,500/- in recurring deposit account is not explained from the drawings of the assessee thus he sustained the addition made on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 ₹ 2,63,930/- and taxable income of ₹ 73,930/- during the current year which is more than the investment of ₹ 67,500/- made in recurring deposits. Hence, we hold that the assessee has sufficient source of income for the deposits of ₹ 67,500/- made in the recurring deposits account jointly held with his wife. Hence, we delete the addition of ₹ 67,500/- and the interest thereon of ₹ 15,349/- from the taxable income of the assessee. This ground of appeal is allowed. 9. The next issue in appeal is that the ld.CIT(A) erred in sustaining the addition of ₹ 26,931/- towards unexplained cash credit. The AO while completing the assessment made an addition of ₹ 12,000/- and ₹ 14,931/- being credits made by the assessee towards loans received. When the AO asked the assessee to submit the details, the assessee submitted that ₹ 12,000/- is out of excess cash deposited in petty cash and ₹ 14,931/- is the difference in new car loan and old car loan amount from HDFC loan. It was the submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en 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 assessee nor it is mentioned in the gift deed submitted before him. Therefore, the AO concluded that in view of these discrepancies it cannot be said the transaction of gift is genuine. Coming to the creditworthiness of the donor, the assessee filed 7/12 extract of agricultural land and submitted that his mother is agriculturist and she is not assessed to tax and the money was given out of accumulated savings from agricultural produce. It was also submitted that it was the last wish of his father that the legal heirs be given some amount from his wealth and therefore an amount of ₹ 4 lakhs was given as gift to the assessee. The AO observed that except filing a copy of 7/12 extract, no other details showing agricultural income or agricultural activities like copy of sale bills of agricultural produce, details of crop, cultivation details and expenses hereof, bank account of assessee s mother etc have been submitted by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of gift deed was prepared by his mother in November, 2011. It is also submitted that the assessee s parent are having 39 hectors of land without water facilities and 12 hectors of land with water facilities and also another land of 1.96 aces. It was submitted that in the said agricultural land assessee s father cultivated coconut, groundnut and sugar cane. 18. The ld. Counsel for the assessee further submitted that initial burden of proving geniuses of transaction, creditworthiness of the creditors and identity of the donor has been discharged by the assessee by providing gift deed and the 7/12 extract of agricultural land which shows that the donor s possession /owns agricultural land and the source for the gift. It was also contended that the gift is only from father and not from 3rd party and there is no formal gift deed written when the gift was given but confirmation was made late ..... X X X X Extracts X X X X X X X X Extracts X X X X
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