1971 (7) TMI 13 - SC - Income Tax

Supreme Court confirms genuineness of gifts in tax case; new evidence crucial

The Supreme Court affirmed the Tribunal's decision that the gifts made by the assessee to his brother and nephew were genuine. The Court found the ... Gifts - genuine - fact that earlier proceedings in the Tribunal took a different view of the gifts was not a conclusive circumstance - There were evidences before the Tribunal in the present proceedings to arrive at a finding that the gifts were genuine - finding of the Tribunal cannot be said to be a perverse finding. That finding being finding of facts, it was not open to the High Court nor is it open to this court to interfere with that finding Issues:Validity of gifts made by the assessee to his brother and nephew.Analysis:The Supreme Court addressed the issue of whether the gifts made by the assessee to his brother and nephew were genuine. The appeals concerned the assessments of the assessee for multiple years. The Tribunal initially found the gifts to be not genuine, a decision upheld by the High Court and the Supreme Court in a previous case. However, in the current assessments, the Tribunal, considering additional evidence, concluded that the gifts were indeed genuine.The Tribunal based its decision on various circumstances, including the assessee's financial position, the deposit of gifted amounts by the donees in a bank, an affidavit by the assessee confirming the gifts, and testimony from individuals aware of the gifts. Additionally, the Tribunal noted the assessee's charitable donations and lack of control over the gifted money or partnership business. These circumstances were deemed relevant and material to the issue at hand.The Court found that the Tribunal's decision was not perverse and, being a finding of fact, could not be interfered with. The Court emphasized that the Tribunal's prior decision did not operate as res judicata, as more evidence was presented in the current proceedings. Ultimately, the appeals were dismissed, affirming the Tribunal's finding that the gifts were genuine.In conclusion, the Supreme Court upheld the Tribunal's decision, emphasizing the importance of the additional evidence presented and the relevance of the circumstances considered in determining the genuineness of the gifts.