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TMI Blog2025 (4) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... d to as "the Act" for short], for Assessment Year (AY) 2018-19. 2. The assessee has raised following grounds of appeal:- "1... 2 ... 3. The Ld. Authorities / CIT (Appeals) are not justified in making addition of investment in the shares of Sanghavi Infotech Private Limited amounting to Rs. 2,80,00,000/- treated as unexplained investments U/s. 69 of the Income Tax Act. 4. The Ld. Authorities / CIT (Appeals) are not justified in making addition of shares received as Gift from real brother amounting to Rs. 39,76,000/- as an unexplained investment U/s. 69 of the Income Tax Act. 5. The Ld. Authorities / CIT (Appeals) are not justified in withdrawing interest and adding back interest expenses of Rs. 56,28,281/- U/s. 57 of the Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was allotted 28,00,000 shares through Right issues of Rs. 10 each totaling consideration of Rs. 2,80,00,000/- as on 13.02.2018. Since the assessee has neither explained the sources of fund of investment in the shares of the Rs. 2,80,00,000/- nor produced the documentary evidences to substantiate its claim regarding the investments, the Assessing Officer treated the same as unexplained investments u/s 69 of the Act and added the same to the income of the assessee. The ld. CIT(A) confirmed the aforesaid addition on appeal filed by the assessee before him. 7.1 The paper-book submitted before us has been perused, the copy of which was made available to Ld. DR. It could be found that the assessee was allotted 2,80,000 Right Shares of Rs. 10 eac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her. Assessing Officer held that on careful examination of the submissions made by the assessee on 04.03.2021, it is noticed that the donor is not his brother as the names of the assessee and his brother with their father's name mentioned in the PAN cards are as Mr. Jigar Bhikhalal Sanghvi son of Mr. Bhikalal Nalchandrabhai Sanghvi and his brother Mr. Manish Kumar Bhikhalal Sanghvi son of Mr. Bhikhalal Haichandbhai Sanghvi. For the sake of ready reference, the order of the Assessing Officer on this issue is reproduced as under:- 5.3 From the above facts it is clear that the Mr. Manishkumar Bhikhalal Sanghvi is not brother of the assessee. As per the provisions of the Income Tax Act, 1961, any person can receive Gift from his/her relatives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted any reply regarding the above facts discussed in Para No.5.2 and 5.3 as the Draft Assessment order is sent to the assessee with the show cause notice. Thus the assessee is unable to prove that he has received Gift from relatives as defined in the Income Tax Act 1961. 5.7 In view of the above, it is clear that the reply of the assessee on the above point is not in order and acceptable. Therefore, the total value of the Shares as Gift received by the assessee during the year has remained Unexplained Investment under section 69 of the Income Tax Act, 1961 during the year and the same has added back to the total income of the assessee for A.Y.2018-19. The tax calculation shall be done as per the provisions under section 115BBE of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d ...." 8.4 Having seen the facts before us, we are still searching for appropriate words in the English dictionary to appreciate the dedication, neutrality, objectivity and judicious nature of the Assessing Officer and the CIT(A) while dealing with this issue. Having unable to find appropriate words, we at least found the reasons why the taxpayer detests the tax authorities. 8.5 Nevertheless, on the merits of this issue, we hold that the Revenue Authorities have failed to appreciate the issue in the right perspective and hence we hold that no addition on account of gift of shares received by the assessee from his brother can be treated as unexplained investment u/s 69 of the Act. Appeal of the assessee on this ground is allowed. i) Dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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