9911796707
TMI Blog2007 (7) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... MAR MITTAL JJ. Ms. Radhika Suri for the appellant. JUDGMENT The judgment of the court was delivered by M. M. Kumar J.- This is the assessee' s appeal filed under section 260A of the Income-tax Act, 1961 (for brevity, "the Act"), challenging the order dated July 25, 2006 (Annexure A5), passed by the Income-tax Appellate Tribunal, Chandigarh, Bench "A", Chandigarh (for brevity, "the Tribunal"), in ITA No. 884/Chd/2001 in respect of the assessment year 1997-98 upholding the addition of Rs. 4 lakhs on account of non-resident Indian gift given to the assessee. 2. At the hearing, it is claimed that the following two substantial questions of law would arise for determination of this court : "(i) Whether, on the facts and circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e RBI for making this gift. (e) Person from whom the assessee has received the gift of Rs. 4,00,000 does not fall within the definition of relative as defined in section 5(1)(iie) of the Gift-tax Act." 4. On appeal to the Commissioner of Income-tax (Appeals) (for brevity, "the CIT(A)"), the additions so made by the Assessing Officer were deleted by holding that the assessee was aware of the names of the wife and children of the donor, his relatives and friends in Chandigarh. It was further held that the Assessing Officer did not bring on record any material to prove that the gift was not genuine and that the assessee had received the gift from a close friend on account of the assessee's ill health. The Commissioner of Income-tax (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been received from the donor. The statement of the assessee has also been recorded. The Assessing Officer has not doubted the identity of the donor. So, however, the financial capacity of the donor to make the gift and genuineness of the gift has been doubted by the Assessing Officer. Though it appears from the statement of the assessee that donor may not be a stranger yet the occasion for making the gift has not been established. The assessee claims that the amount of Rs. 4 lakhs was donated by Shri Arun Wangoo for the treatment of the assessee due to his ill health. So, however, even before us, in response to a query from the Bench, learned counsel for the assessee fairly conceded that there is no evidence to establish that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se into consideration, we are of the considered view that the decision of the Commissioner of Income-tax (Appeals) in deleting the addition of Rs. 4 lakhs is not in accordance with law. The order of the Commissioner of Income-tax (Appeals) is accordingly set aside and the addition restored." 6. Ms. Radhika Suri, learned counsel for the assessee has tried to persuade us to accept the submission that once the identity of the donor is established then a gift cannot be rejected merely on the ground that there was no occasion to make the gift. She has further submitted that there is evidence on record to prove beyond doubt the financial capacity of the donor. In that regard she has drawn our attention to the affidavit filed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
