Petition dismissed; s. 263 order set aside as lower forum found gifts genuine and foreign receipts not assessee income

The HC dismissed the petition, upholding the ITAT's factual finding that the alleged gifts were genuine and that the CIT's order under s. 263 could be set aside. The court held this was a pure question of fact based on the record; absent tangible evidence beyond suspicion, receipts from abroad could not be treated as the assessee's income. No question of law arose, so the Tribunal's cancellation of the s. 263 order was sustained.

---

---

Issues involved: Interpretation of u/s 263 of the Income-tax Act, 1961 regarding genuineness of gifts not taxed by the Income-tax Officer.

Summary:
The High Court of Delhi dismissed a petition seeking reference of a question of law regarding the cancellation of an order u/s 263 of the Income-tax Act, 1961. The Commissioner of Income-tax had set aside the Income-tax Officer's order due to lack of inquiry into the genuineness of gifts from abroad not taxed. The Tribunal, after reviewing the donors' balance-sheets, upheld the Income-tax Officer's decision on the genuineness of the gifts and found no error in his approach. The Court held that the Tribunal's factual determination on the genuineness of the gifts was conclusive, emphasizing the need for tangible evidence to treat foreign gifts as income in India. The petition was dismissed as no question of law was found to arise from the facts on record.

---