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TMI Blog2022 (3) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... ney holder for his daughter for entering into land/building transactions on behalf of his daughter. Since the funds were used by the Assessee for his own investment it strongly indicated that the source of investment i.e. the cash deposit of 41 lakhs also belongs to him. Learned Senior Counsel was unable to overcome the above categorical finding of the CIT(A) on how the cash deposit or 41 lacs was actually used. The explanation offered by the Assessee raised more questions than it answered. For instance, it was not explained why marriage gifts in a substantial sum of 25 lacs was kept as cash with the Assessee s daughter. If indeed the daughter maintained a bank account it was but natural that such cash amount would be deposited in such acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk Account. The Assessee explained that the sum had been received from his married daughter residing in the USA for the purchase by him of a house in Bhubaneswar. In support of such contention, the Assessee produced copy of the declaration dated 28th January, 2014 of his daughter which inter alia stated that she had paid the said sum to her father i.e. the Assessee in cash for constructing/purchasing of land and building through a builder. She claimed to have entered into an agreement with the builder on 1st September, 2009 and that she had appointed her father as a power of attorney holder. She claimed to have made cash withdrawals in the sum of ₹ 10.75 lakh on various dates; having given cash gift of ₹ 6.25 lakh to her father ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat evidence would be sufficient to establish the said conditions or what material would be relevant in a particular case, would depend on the facts of each case." 6. Since the Assessee had failed to establish the capacity of the creditor and the genuineness of the transactions and why cash withdrawals were made over a period of two years if the deposit was made on a single day i.e. 12th June, 2010, serious doubts were raised about the claim. Importantly, it was concluded that the Assessee's daughter lacked the capacity to mobilize ₹ 41,00,000/- to give to her father. 7. The Assessee then filed an appeal before the ITAT which, by the impugned order, was dismissed. Concurring with the conclusion reached by the AO and the CIT(A), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... F Liquid Fund" which meant that it had been invested in the above liquid fund and not used for any investment in land or building on behalf of the Assessee's daughter. 10. The fact is that the CIT (A) disbelieved that the Assessee was appointed as the general power of attorney holder for his daughter for entering into land/building transactions on behalf of his daughter. Since the funds were used by the Assessee for his own investment it strongly indicated that the source of investment i.e. the cash deposit of ₹ 41 lakhs also belongs to him. 11. Mr. Panda, learned Senior Counsel was unable to overcome the above categorical finding of the CIT(A) on how the cash deposit or ₹ 41 lacs was actually used. The explanation offered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he donor and movement of the gift amount through banking channels is not sufficient to prove the genuineness of the gift and since the claim of the amount having been received as a gift is made by the assessed, onus lies on him not only to establish the identity of the donor but his capacity to make such a gift." 13. The Court is, therefore, not persuaded that any factual or legal error has been committed by the AO, or the CIT (A) or the ITAT in sustaining the above additions under Section 68 of the IT Act. The question framed is therefore, answered in the affirmative i.e. in favour of the Department and against the Assessee. 14. The appeal is dismissed, but in the circumstances, with no order as to costs. The interim order passed on 23rd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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