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TMI Blog2025 (2) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... however where the mode of gift is clearly in cash, the bank statement even if produced would only corroborate the gift deed and cannot dislodge the gift deed and the contents and source of such gift which is otherwise clearly established.
Assessee has thus discharged the necessary onus in terms of explaining the nature and source of receipt in her bank account by way of gift of money from her late father and even the creditworthiness and source of funds in the hands of the her late father has been duly demonstrated, being the sale proceeds of agriculture land, a factum which has been separately verified and accepted in the assessment proceedings undertaken u/s 147 r/w 143(3) of the Act.
AO was not justified in treating the gift received by the assessee from her late father as her income from undisclosed sources. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 40.00 lacs must have been withdrawn in cash. However, during assessment proceedings, the assessee has failed to furnish the statement of such bank account of Shri Ajit Singh out of which the said amount of Rs. 40.00 lacs must have been withdrawn in cash so as to enable Shri Ajit Singh to make such a gift of Rs. 40.00 lacs in cash. Moreover, in the absence of documentary evidence coupled with the fact that since Sh. Ajit Singh has expired, therefore, in the absence of his cross examination, the veracity of such an unregistered 'Halfia Bian' is highly under doubt. 5. Therefore, in view of the above discussion, the reply of the assessee is not acceptable. Hence, the cash deposit of Rs. 40.00 lacs in her bank account is treated to be the income of the assessee as her income from undisclosed sources. Therefore, the amount of Rs. 40.00 lacs is treated to the income of the assessee from undisclosed sources." 3. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) who has since sustained the said addition. Against the said findings and the directions of the Ld. CIT(A), the assessee is in appeal before us. 4. During the course of hearing, the Ld. AR subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the assessment in case of the assessee's late father has since been completed by ITO Ward 3(5) vide his order passed under section 143(3) r.w.s 147 dt. 05/10/2018. It was submitted that the case of the assessee's father was reopened basis information that he had sold immovable property amounting to Rs. 64.20 lacs and thereafter after considering the submission of the assessee, the return of income has been accepted. It was accordingly submitted that the credit worthiness and the source of the gift so given by the father is therefore duly demonstrated by the sale deed as well as the fact that the transaction has been accepted in the assessment proceedings of her late father. It was accordingly submitted that the assessee has discharged necessary onus in terms of explaining the nature and the source of the cash deposited in her bank account and the addition so made be directed to be deleted. 9. Per contra, the Ld. DR has submitted that the assessee has failed to discharge the necessary onus cast on her in terms of explaining the nature and source of cash deposit. It was submitted that the assessee has merely submitted an unregistered gift deed and the same couldn't be verifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded in the books of account, if any, maintained by her for any source of income and the assessee offers no explanation about the nature and source of such money, in that case only, the money so found may be deemed to be income of the assessee for such financial year. Therefore, there has to be a finding by the AO that the assessee is the owner of cash so found deposited in her bank account and there has to be necessary examination/verification which is required to be carried out. No doubt, the money has been found deposited in her bank account and the initial onus is on the assessee to explain the nature and source of such deposit. But once she has explained that the amount has been received by her by way of gift from her husband from sale proceeds of agricultural land and the amount has been deposited by her husband on the same date when the sale deed was executed and the said explanation is corroborated by way of gift deed executed by her husband, the personal appearance of her husband before the AO, evidence in support of sale of agriculture land by her husband and source of such gifts by way of agreement to sell and registered sale deed, we find that the initial onus cast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bt have an edge over an unregistered gift deed, at the same time, mere nonregistration of the said gift deed is not sufficient to dislodge the existence and contents of such gift deed, more so where the original gift deed has been presented for verification before the AO and the AO has failed to carry out any further verification/examination and without bringing any adverse material on record. As far as non-production of the bank account statement of the assessee's late father is concerned, the assessee has tried to obtain the bank statement of her late father, but the same couldn't be obtained inspite of her best efforts, however, in my view, where the mode of gift is clearly in cash, the bank statement even if produced would only corroborate the gift deed and cannot dislodge the gift deed and the contents and source of such gift which is otherwise clearly established. The assessee has thus discharged the necessary onus in terms of explaining the nature and source of receipt in her bank account by way of gift of money from her late father and even the creditworthiness and source of funds in the hands of the her late father has been duly demonstrated, being the sale proceeds of agr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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