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TMI Blog2024 (12) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income-tax-31(2), Mumbai (in short, 'the A.O.') passed under section 143(3)read with section 147 of the Act, date of order22/12/2018. 2. The revenue has taken the following grounds of appeal:- 1. "Whether on the facts and circumstances of the case the Ld. CIT(A) has erred in allowing appeal of the assessee wherein assessee has claimed the entire amount of Rs. 3crore as Gift received from her son," 2 "Whether on facts and circumstances of this case, the Ld, CTT(A) has erred in deleting the addition of Rs. 3 crore made u/s. 68, without appreciating the fact that the AO has made due diligence by issuing summons u/s. 133(1A) to M/s. Mangalam Vanijya Pvt Ltd., however the same was returned back 'UNCLAIMED'." 3. "Whether on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s shares. The assessee received some principal amount with interest from this company during A.Y. 2011-12. A summon u/s 133(1A) of the Act was issued to M/s. Mangalam Vanijya Ltd. calling for certain details/documents, which was returned back by the postal authority with a remark unclaimed. Further, after examination of the evidence forwarded by Dy. Director (Inv)-ll, Ranchi, it was found that not only the assessee but her husband, Sh. Bishwanath Agarwal, also have received sum of Rs. 3 Crores from her son, Shri Barun Agarwal. From these gifts, husband and wife both invested amount to Rs. 2.7 crores to M/s. Mangalam Vanijya Pvt. Ltd as unsecured loan and also purchased some shares. Further M/s. Mangalam Vanijya Pvt. Ltd. repaid some princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k entries are reflected on 14/03/2011 and 17/03/2011 amount to Rs. 1.5 crore each. The Ld.AO asked for the return for 3 years of the donor, but it is evident that the donor was an NRI, and no return was filed in India. He finally stated that the assessee adduced the evidence by submitting the bank account and the identity of donor. It is pertinent to mention that gift was executed in relation mother and son. The allegation made by the Ld.AO is totally baseless which is on the basis of the report from the daily local newspaper. The Ld.AR fully relied on the impugned appeal order, paragraphs 7.3 to 7.5 which are reproduced as below: - "7.3 The Burden of proof is on the assessee who is required to offer an explanation to the satisfaction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aying that the son Shri Barun Agarwal had also given a similar gift to the father. This fact has no bearing on the case at hand. If the son had sufficient means, he is well within his right to give gifts to his parents independently. It is the genuineness of the gifts which is the issue in point and whether Shri Agarwal also gave a gift to his father or not is immaterial. Looking at the creditworthiness of the son to provide these gifts, from the bank statement it is seen that there was an opening balance of Rs 2.54 crores before any of the gifts were given and subsequently even after giving the gift to the appellant and her husband there was a positive balance. The amount of Rs 3.5 crores were transferred into the CITI bank account which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Grounds of Appeal are Allowed." 6. It is further stated by the ld. AR that the ld. AO alleged about the donation of hedge fund in India by the foreign national. But the ban was duly withdrawn by the SEBI. This restriction is not vitiated the gift. There was sufficient balance in donor's bank account before and after transferring the gifted amount to mother. The onus was shifted to the ld. AO by submitting the evidence and the ld. AO had never rejected the evidence submitted by the assessee during the assessment proceeding. 7. We have heard the rival submissions and carefully considered the documents available on record. The assessee received the impugned gift from her son, who is a NRI. The details of the bank transfer were submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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