2003 (11) TMI 279 - AT - Income Tax

Tribunal Upholds Deletion of Additions for 1994-95, Citing Lack of Evidence Rebuttal and Cheque Acceptance Date.

ASSISTANT COMMISSIONER OF INCOME TAX. Versus MANOJ KUMAR SEKHRI.

ASSISTANT COMMISSIONER OF INCOME TAX. Versus MANOJ KUMAR SEKHRI. - TTJ 086, 510, [2004] 3 SOT 166 (ASR.) Issues:The appeal involved the deletion of additions made by the Assessing Officer on account of foreign gifts totaling Rs. 1,85,000 and Rs. 61,788 for the assessment year 1994-95.Deletion of Rs. 1,85,000 Addition:The Assessing Officer (AO) made the addition due to lack of authentication regarding the source of the foreign gifts received by the assessee. The CIT(A) deleted the addition after the assessee provided evidence including a photocopy of a cashier's check and a letter from the gift donor. The Tribunal upheld the deletion, emphasizing that the AO failed to rebut the assessee's explanation and did not bring any material to negate the evidence presented. The Tribunal stressed the importance of the genuineness of the transaction and the identity of the donors, ultimately confirming the deletion of the addition based on precedent.Deletion of Rs. 61,788 Addition:The AO added this amount as income from a foreign gift, but the CIT(A) deleted the addition, stating that the credit related to the next assessment year. The Tribunal disagreed with the CIT(A)'s reasoning, citing that the cheque received by the assessee related back to the date of acceptance, not when it was deposited. As the cheque was received before the close of the financial year, the Tribunal held that the addition was not justified and rightly deleted. The Tribunal reversed the CIT(A)'s decision on the date of receipt issue and confirmed the deletion of this addition as well.In conclusion, the Tribunal dismissed the appeal, upholding the CIT(A)'s decision to delete both additions of Rs. 1,85,000 and Rs. 61,788 made by the AO on account of foreign gifts for the assessment year 1994-95.