TaxTMI 
TaxTMI 
2006 (11) TMI 247
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....nbsp; Amount 1 2 3 1. Smt. Sneh Lata 18-11-1998 1,00,000 2. Sri Keshav Kumar Sharma 4-12-1998 1,00,000 3. Smt. Savita 4-12-1998 1,00,000 4. Smt. Gunjan 1-12-1998 1,00,000 5. Smt. Rashmi Rani Mittal 19-1-1999 1,00,000 Smt. Rashmi Rani Mittal 27-2-1999 1,00,000 6. Smt. Sunita 19-1-1999 1,00,000 7. Smt. Poonam ....
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....lained by the assessee. The sources of credits are also identical in some cases." 3.1 The AO made a reference to several judicial pronouncements with regard to genuineness of credits and finally held that the assessee failed to prove the nature and source of the credits of Rs. 11,00,000 and added the same as income of the assessee under s. 68 of the Act. 4. On appeal by the assessee, the CIT(A) deleted the addition made by the AO for the reasons given in para 4.3 of his order. The CIT(A) noticed that the assessee was examined by the AO with reference to all the 10 gifts and in the statement so recorded the assessee had given the relationship of the donors with the assessee. The CIT(A) also found that the donors were assessed to tax and, therefore, no adverse inference can be drawn with regard to the creditworthiness of the donors. With regard to the genuineness of the gifts the CIT(A) held that the assessee had produced enough evidence to justify the gifts in question and that the AO had rejected the plea of the assessee without any material. The CIT(A), therefore, concluded that the gifts were explained by the assessee and there was no justification for making the addition b....
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....985) 151 ITR 150 (Pat) wherein it has been held that where the assessee furnishes the income-tax particulars of the creditors and the confirmation from the creditors, the burden of proof on the assessee stands discharged. With regard to the observations of the AO about the variation of signatures in the gift deeds of the donors and the return of income, the learned counsel submitted that the assessee was not firstly confronted with such variation nor the donors examined in this regard. The AO cannot give such a finding without the assistance of handwriting experts. In reply to the plea of the Departmental Representative that fresh opportunity to examine the donors should be given to the AO, the learned counsel submitted that the Revenue cannot seek another opportunity having failed to do so in the first instance. 6.1 The learned Departmental Representative, in reply, submitted that the CIT(A) ought to have made the investigation with regard to the credits and without giving a finding on the genuineness of the gifts was not entitled to delete the addition. He relied on the decision of the Delhi Bench of the Tribunal in the case of Jt. CIT vs. Swamp Vegetable Products Industries L....
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.... possible to come to a conclusion as to why the drafts were purchased on the same dates or as to why in the absence of any occasion or relationship with the donee, gifts were made by the donors. In other words, the conclusions drawn by the AO, in our view, are mere surmises and the same cannot be sustained in the absence of examination of the creditors in question. In the case of CIT vs. Orissa Corporation (P) Ltd., the Hon'ble Supreme Court had dealt with an identical situation and it was held by the Hon'ble Supreme Court that where the assessee files confirmation letters and income-tax particulars of the creditors and where the AO does not pursue the summons issued under s. 131 of the Act to examine the source of income of the creditors, the assessee could not be found fault with. 9. Strong reliance was placed by the learned Departmental Representative on the decision of the Hon'ble Supreme Court in the case of Sumati Dayal vs. CIT. It was argued by the learned Departmental Representative that in the case of Sumati Dayal all the documents necessary for establishing a credit under s. 68 of the Act have been placed by the assessee and the Hon'ble Supreme Court applying the test ....