Tribunal deletes undisclosed income addition, citing genuine gift evidence.

The tribunal ruled in favor of the assessee, deleting the addition of Rs. 3.90 lacs as undisclosed income. Despite doubts raised by the Assessing Officer and ld CIT(A) regarding the genuineness of the gift transaction, the tribunal found sufficient documentary evidence and explanations provided by the assessee to support the authenticity of the gift, leading to the deletion of the addition under Section 68 of the Income Tax Act.

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Issues:
1. Addition of undisclosed income of Rs. 3,90,000.
2. Genuineness of the gift transaction from father to daughter.
3. Non-appearance of donor before the Assessing Officer.
4. Confirmation of the addition of Rs. 3,90,000 by the authorities.

Issue 1: Addition of Undisclosed Income
The Assessing Officer found cash deposits in the bank accounts of the assessee and her son and questioned the source of these deposits. The assessee claimed to have received a gift of Rs. 3.90 lacs from her father, supported by a confirmation and bank account details. However, the Assessing Officer doubted the genuineness of the gift due to circumstantial evidence, like the manner of cash withdrawal by the father and lack of a gift deed. The Assessing Officer added the amount to the assessee's income under Section 68 of the Income Tax Act.

Issue 2: Genuineness of the Gift Transaction
The assessee contended that the gift was genuine, supported by a gift deed and the donor's bank account details. The ld CIT(A) raised doubts about the gift's genuineness, citing the delay between cash withdrawal by the father and deposit by the daughter, as well as the discrepancy in the father's personal expenses. The ld CIT(A) concluded that the surrounding circumstances did not support the genuineness of the gift.

Issue 3: Non-Appearance of Donor
The donor, an elderly individual, did not appear before the Assessing Officer due to age-related reasons. However, he submitted a statement and bank statement confirming the gift. The tribunal noted that the donor's absence did not negate the genuineness of the gift, as substantiated by appropriate documents and explanations provided by the assessee.

Issue 4: Confirmation of Addition by Authorities
Both the Assessing Officer and ld CIT(A) confirmed the addition of Rs. 3.90 lacs as undisclosed income, questioning the genuineness of the gift transaction. However, the tribunal found that the gift's genuineness was established through documentary evidence and explanations provided by the assessee, leading to the deletion of the addition under Section 68 of the Act.

In conclusion, the tribunal allowed the appeal of the assessee, ruling in favor of the genuineness of the gift transaction and deleting the addition of Rs. 3.90 lacs as undisclosed income.

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