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Tribunal overturns addition under Income Tax Act, deeming cash deposit a genuine gift The Tribunal allowed the appeal, deleting the addition of Rs. 3,61,000 made under section 69 of the Income Tax Act. The Tribunal found the cash deposit to ...
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Tribunal overturns addition under Income Tax Act, deeming cash deposit a genuine gift
The Tribunal allowed the appeal, deleting the addition of Rs. 3,61,000 made under section 69 of the Income Tax Act. The Tribunal found the cash deposit to be a genuine gift from relatives, including the assessee's father, a retired High Court Judge, and brother, a Non-Resident Indian with sufficient income sources. Despite the lack of a gift deed, the Tribunal accepted the genuineness of the gift, overturning the CIT(A)'s decision. The assessee's grounds were upheld, resulting in a successful appeal.
Issues: The sole issue in this case is whether the ld. CIT(A) erred in confirming the addition of Rs. 3,61,000/- on account of deposit of cash u/s 69A of the Income Tax Act.
Issue Details: The assessee, an individual, declared income of Rs. 2,47,640/- for the Assessment Year 2016-17. During assessment proceedings, it was found that the assessee had made a cash deposit of Rs. 3,61,000/- in a bank account. The assessee claimed that the sum was received as a gift from relatives, which is not taxable under section 56 of the Act. However, the assessing officer was not satisfied and made an addition under section 69 of the Act. The ld. CIT(A) confirmed this addition as the assessee failed to produce supporting materials. The Tribunal considered the genuineness of the gift and the sources of the donors, concluding that the addition should be deleted as the gift was proved to be genuine.
Judgment Summary: The Tribunal noted that the assessee is regularly assessed to tax and has been offering taxable income. The assessee claimed to have received a gift in cash of Rs. 3,61,000/- from relatives as defined under the Act. The father of the assessee, a retired High Court Judge, and the brother, a Non-Resident Indian settled in the U.S.A., were identified as the donors. The Tribunal observed that the donors had sufficient sources of income, and the gifts were received from relatives as defined under the Act. While the assessee did not provide a gift deed, details of the relatives were presented to the assessing officer. The Tribunal found that the genuineness of the gift was proved, setting aside the CIT(A)'s decision and deleting the addition made under section 69 of the Act. Consequently, all grounds raised by the assessee were allowed, and the appeal was deemed successful.
Separate Judgment (if applicable): No separate judgment was delivered in this case.
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