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TMI Blog2024 (5) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... also not disputed the creditworthiness of Mr. Sunil B. Dalal. Further, in view of the fact that the donor/gift giver is the younger brother of the assessee, the genuineness of the transaction cannot also be doubted. Gift received from assessee's mother - Nothing has been brought on record to doubt the genuineness of the transaction of grant of gift by a mother to her son. The fact that the assessee s mother had a total income of Rs. 1,21,100, as per her return of income for the assessment year 2020-21, also supports the claim of the assessee that the gift of Rs. 1,50,000 was out of her past savings along with the current year income. Therefore, we find no basis for doubting either the genuineness of the transaction or the creditworthiness of the donor. Gift received from assessee's real sister - From the perusal of the copy of the ITR acknowledgement and statement of income for the assessment year 2020-21, assessee sister had an interest income of Rs. 8,45,318, which resulted in a total income of Rs. 7,74,920 as per her return of income. Thus, creditworthiness of sister cannot be doubted to give a gift of Rs. 1,50,000 to the assessee. Further, in the absence of any contrar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. 4. The brief facts of the case, as emanating from the record, are: The assessee is an individual and is deriving income from the business in derivatives (F O) trading transactions in shares and income from consultancy fees, income from capital gains, and other sources. For the year under consideration, the assessee filed its return of income on 24/12/2020 declaring a total income of Rs. 2,74,02,080. The return filed by the assessee was selected for scrutiny and statutory notices under section 143(2) as well as section 142(1) were issued and served on the assessee. During the assessment proceedings, it was noticed that the assessee has received the gift of Rs. 1,01,85,001. Accordingly, the assessee was asked to furnish the details of such gift along with registered gift deed. In response thereto, the assessee submitted that the gifts totalling Rs. 1,01,85,001 has been received from his brother, mother, sister, and father s HUF. The assessee was asked to establish the relationship with the gift giver, the creditworthiness of the gift giver such as a copy of ITR, relevant bank account statement justifying receipt of the gift, relevant ledger accounts of the gift giver, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated as unaccounted has credit u/s 68 of the IT Act, 1961 and added back to the total income of the assessee as the sources of gifts rendered by the gift donors to the gift receiver couldn't be proved as the onus lies on the assessee to prove genuineness of its claim of gits received from the blood related Gift renders. Penalty proceeding 271AAC is also initiated separately for this act. 6. The learned CIT(A), vide impugned order, allowed the appeal filed by the assessee and deleted the addition made by the AO on the basis that the AO has made huge additions but has not made any reference with regard to identity, creditworthiness, and genuineness of the gift givers. The learned CIT(A) further held that the AO has not made any effort to rebut the submissions made by the assessee. The learned CIT(A) also held that the AO has made additions without giving any reasons for the same. The relevant findings of the learned CIT(A), vide impugned order, are reproduced as under:- 6. All the grounds of appeal are interlinked sand are mainly against addition of Rs. 1,01,85,000/- on account of unexplained gifts received from blood relatives. The main operative Para 2.5 of the orders silent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the copy of gift deeds, the copy of ITR filed, bank statements, and the PAN card of the gift-givers. It is evident from the record that in respect of none of the parties, identity is in dispute. Therefore, only the creditworthiness of the gift givers and the genuineness of the transaction need to be examined in the present case. 9. In respect of the first party, i.e. Mr. Sunil B. Dalal, the assessee submitted that he is his real brother. From the perusal of the gift deed dated 15/07/2019 entered into between the assessee and Mr. Sunil B. Dalal, forming part of the paper book from pages 29-30, we find that the donor is the younger brother of the assessee and out of natural love and affection gave Rs. 97,35,000 as a gift to the assessee. From the perusal of the ITR acknowledgement of Mr. Sunil B. Dalal, for the assessment year 2020-21, forming part of the paper book on page 31, we find that Mr. Sunil B. Dalal earned a total income of Rs. 37,48,84,100 during the year under consideration. Therefore, we are of the considered view that Mr. Sunil B. Dalal had sufficient creditworthiness to gift Rs. 97,35,000 to the assessee. From the perusal of the assessment order, it is evident that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gift of Rs. 1,50,000 to the assessee by his sister cannot also be doubted. 12. As regards the gift of Rs. 1,50,000 received from B.M. Dalal HUF, it is the claim of the assessee that the karta of the HUF is his father, and the said HUF by way of cheque gave Rs. 1,50,000 to the assessee as a gift out of love and affection vide gift deed dated 09/09/2019, forming part of the paper book from pages 43-45. From the perusal of the copy of the ITR acknowledgement and statement of income for the assessment year 2020-21, forming part of the paper book from pages 46-48, we find that B.M. Dalal HUF had a total income of Rs. 2,47,930 during the year under consideration. Further from the balance sheet of B.M. Dalal HUF, forming part of the paper book on page 48A, we find that B.M. Dalal HUF had cash in hand of Rs. 10,28,953. From the capital account of B.M. Dalal HUF, we find that the HUF earned commission and brokerage of Rs. 1,26,830 and long-term capital gains of Rs. 1,40,000 during the year under consideration. Therefore, in view of the aforesaid, we are of the considered opinion that the creditworthiness of B.M. Dalal HUF has been sufficiently proved. Further, in the absence of any contrary ..... X X X X Extracts X X X X X X X X Extracts X X X X
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