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.

AI Summary

Tax Officer Demands Proof of Sender's Funds for Gift; Individual Questions Legality, Seeks Supporting Case Laws An individual received a sum of money from their father-in-law in Canada. During tax assessment, the assessing officer (A.O.) requested the individual to explain the source of the credited amount. The individual provided an affidavit from the sender confirming the transaction. However, the A.O. further demanded proof that the father-in-law had sufficient funds to send the amount. The individual questioned whether the A.O. could require them to prove the source of the sender's funds, especially since this information is beyond their control. They also sought case laws supporting their position. The forum reply was empty.