TaxTMI 
TaxTMI 
2008 (9) TMI 409
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....e learned CIT(A) in deleting the addition made on account of gifts taxed under s. 68 of the Act as the genuineness of the transaction and the creditworthiness of the donors were not proved. 4. The facts that led to this appeal are that the assessee derives salary income from Apollo Tyres Ltd. and had offered the same to tax. He had also declared loss from M/s U.S. Oberoi & Co. which was doing the business of sale and purchase of shares and securities. In the course of assessment proceedings it was noticed that the assessee had shown gifts having been received to an extent of Rs. 16,41,080. The same has been shown in the capital account of the assessee. It was noticed that the assessee has received the gifts as follows: ---------------....
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....bsp; 1,77,316 ------------------------------------------------------------ 6. Shri O.P. Gupta, 8, Lee Avenue, Chandwell Health, Romford, Essex RM6 6UA, United Kingdom 35,213 ------------------------------------------------------------ 7. Dr. I.A. Duadi, 181, Academy Street, Presque Isle, Maine 04769, USA 22,710 ------------------------------------....
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.... or have been received from persons whose identity or creditworthiness could not be established. The learned CIT(A) further held that the assessee had produced sufficient evidences in the form of copy of the passport. copy of the IT returns, copy of the confirmations, copy of the advice of the money transfer agent, photograph with the donor and had held that all the gifts received by the assessee were genuine. Aggrieved with the order of learned CIT(A), the Revenue has filed this appeal. 5. At the time of hearing, the learned senior Departmental Representative vehemently supported the order of the assessing authority. It was a submission that even though the assessee had received the gifts, the assessee had never given any gifts to the p....
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....ns of the assessee other than mentioning that the assessee had not furnished the desired documentary evidence in support of its claim. In the remand report he has further submitted that the reason and occasion for which such large number of gifts were received, creditworthiness and relationship between the donor and donee had not been established. It was a submission by the learned Authorised Representative that the assessee had produced all evidences to support its claim. It was a further submission that the order for the learned CIT(A) was liable to be upheld. 7. At the time of hearing, on being questioned by the Bench, the learned Departmental Representative confirmed that other than looking into the evidences produced by the assessee....
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....ly as in January, 2004 and the assessment has been completed in March, 2004. It is further noticed that even though the assessing authority had vast powers available under ss. 131 and 133(6) of the Act, the assessing authority has not used any of his powers to verify the genuineness of the claim of the assessee by verifying correspondence with the donor. If the assessing authority had doubted the transaction of the gifts, after receiving the evidences which have been produced by the assessee in support of its claim, it was very much open to the AO to do his independent verification. This has not been done by the AO. Further, the AO states that assessee has not furnished desired documentary evidence, what is the desired documentary evidence ....