Cash deposit additions treated as gifts where undisputed gift deed proves acceptance, resulting in deletion of addition.

Addition of unexplained cash deposits over a short period was contested as taxable income; the assessee produced a gift deed evidencing receipt from an elderly relative and acceptance of the gift was not controverted. The revenue failed to produce contrary material or dispute the deed, and the appellate authority relied on the undisputed documentary proof to negate the presumption of income, resulting in deletion of the assessment addition.

---

---

Issues: Whether the addition of Rs.12,78,000 made by the Assessing Officer on account of cash deposits can be sustained where the assessee produced a gift deed and the revenue did not controvert acceptance of the gift.

Analysis: The Assessing Officer treated multiple cash deposits as unexplained and made an addition of Rs.12,78,000. A gift deed dated 14.01.2014 was placed on record showing that the amounts were gifted. The gift deed was not disputed by the revenue and acceptance of the gift was not controverted before the appellate authority. No contrary material was produced by the revenue to rebut the evidentiary effect of the gift deed or to establish that the deposits were not genuine gifts.

Conclusion: The addition of Rs.12,78,000 is deleted and the appeal is allowed in favour of the assessee.

---