9911796707
TMI Blog2008 (5) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Tribunal, being appeal by the Revenue, relating to the assessment year 1995-96. This appeal was admitted, vide order dated May 23, 2006, by framing the following substantial questions of law: "1. Whether, on the facts and in the circumstances of the case and in law, the learned Tribunal was right in holding the NRI gifts as genuine ignoring the fact that the assessee failed to prove the capacity of the donor who is stranger as gift was not made on any social occasion ? II. Whether, on the facts and in the circumstances of the case and in law, the learned Tribunal was right in confirming the order passed by the learned Commissioner of income-tax (Appeals) deleting the addition of Rs. 1,20,000 made by the Assessing Officer treating the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attempt on the part of the Assessing Officer to bring such amount under the existing taxing provision without appropriate material or tangible evidence deserves to be discouraged. So far the four other gifts are concerned, in this regard, it was also found that the addition has been made without any justification, particularly when identity of the donors has not been doubted and the sources of gifts are very old credit, in the respective accounts of the donors, who are existing assessees of income-tax. It was also found that the genuineness of the transactions cannot be questioned particularly when the transactions are through bank and no evidence against such transactions has been collected in support of the adverse finding. Various other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f law was only to prove the identity and creditworthiness and genuineness of the transactions, which were found to be duly proved by the assessee. 5. Assailing the impugned judgment, learned counsel for the Revenue relied upon the judgment of this court, reported in Chain Sukh Rathi v. CIT [2004] 270 ITR 368, wherein the assessee had shown the gift from his father in the sum of Rs. 30,000 made by cheque but then this was not accepted on the ground that there was no occasion for the father to gift the amount to his son and as such the amount was found to be bogus and addition was confirmed. On this basis, it is contended that, in the present case the additions are required to be confirmed, by setting aside the order of the learned Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considerations, including love, affection and sentiments. Likewise, it was also held that when the assessee has produced the copies of the gift deeds and the affidavits of the donors in the absence of anything to show that the act of the assessee in claiming gift was an act of money laundering, simply because he happens to receive the gifts, it cannot be said that that is required to be added in his income. Likewise, in Nek Kumar's case [2005] 294 ITR 575, in spite of directions, the donor had not been examined through a commission but the donor had given an affidavit and also a declaration to the effect that she had given gift of Rs. 1 lakh to the assessee, the gift was found to be genuine and the order of the reamed Tribunal was set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any occasion, while in Nek Kumar's case [2005] 274 ITR 575 (Raj) a gift of comparatively larger amount of rupees one lakh has been held to be genuine by considering that despite the directions, the donor had not been examined through a Commissioner by the Assessing Officer, though the donor had given an affidavit to this effect and also declaration was given by her, that she had given gift of Rs. 1 lakh to the assessee. The assessee was also examined in second round by the Assessing Officer, wherein the assessee submitted that she knew the donor since long and that the donor was impressed by his grandmother, who was a "Sadhvi" in Jain religion. The donor had also visited Jaipur so many times, and stayed with the family of the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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