TaxTMI 
TaxTMI 
TaxTMI 
SOURCE OF SOURCE
manoj gupta
AN ASSESSEE RECEIVED US $ FROM HIS FATHER IN LAW IN CANADA. IN ASSESSMENT PROCEEDINGS, THE A.O. ASKED HIM TO EXPLAIN THE SOUCRCE OF AMOUNT CREDITED IN HIS BANK. HE FILED AN AFFIDAVIT FROM THE SENDER FOR HAVING SENT THE AMOUNT. NOW THE A.O. HAS ASKED THE ASSESSEE TO PROVE THAT HIS FATHER IN LAW HAD ADEQUATE SOURCES TO SEND THE AMOUNT. PLS. TELL CAN A.O. CAN FORCE THE ASSESSEE TO PROVE SOUCRCE OF SOURCE. WHILE THIS INFORMATION IS NOT IN CONTROL OF ASSESSEE NOR IN THE POSSESSION OF ASSESSEE.PLS. TELL ANY CASE LAWS IN FAVOUR OF ASSESSEE.
Burden of proof: Whether taxpayer must establish a foreign donor's source of funds when that information is not under taxpayer's control. Question whether an assessee who received funds from a foreign relative must prove the donor's financial sources where those documents are not in the assessee's possession or control; assessee supplied an affidavit from the sender but the assessing officer demands evidence of the donor's ability to remit. (AI Summary)