TaxTMI 
TaxTMI 
2003 (8) TMI 463
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....e as genuine gift contrary to the fact that it is a device to introduce assessee's unaccounted income in the form of gift". During the assessment proceedings the Assessing Officer found that the assessee has received gifts of Rs. 2,35,000 from the following parties : Rs. 20,000 7-2-1997 From Shri Champak S. Shah of USA from his NRE SB A/c No. 2288 with Bank of Baroda, Dudhia Talao, Navsari vide Cheque No. 858658 Rs. 50,000 22-3-1997 From Shri Vasant D. Shah, by cheque No. 646511 from his NRE SB A/c. No. 27242 with Bank of India, Khar Branch, Mumbai Rs. 50,000 22-3-1997 From Shri Vasant D. Shah, from the NRE Account No. 150 with State Bank of Hyderabad, Andheri Branch, Mumbai vide Cheque No. 616104 Rs. 25,000....
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....he declaration need not be made on that date. There might be some mistake in the dates mentioned. What is material, however, is that the donor has parted with money and the donee has accepted. There is no need to make such writing on stamp paper as according to the provisions of transfer of property act, for transfer of movable property, no document is required. However, that by itself would not mean that the gifts become non-genuine. However, I would deal with the queries raised by you : (i)Family history of two donors, their occupation, etc. is enclosed. (ii)Shri Champak C. Shah has been staying USA since more than 25 years and I understand that he is having investment of about $ 1 lac on which he receives interest which is brought ....
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.... 5. I trust this meets with your requirements and it is not necessary for you to pursue the line on which you are thinking and considering as a device". The Assessing Officer did not satisfy with the explanation of the assessee and added Rs. 2,35,000 as unaccounted and unexplained money introduced in the form of gift with the following observations : "I have gone through the assessees arguments, however, I am unable to accept his contentions. The assessee does not consider the so called gift deeds as an important irregularly liable to be rejected as an after thought idea and action. It is true that the gift declarations are not to be made on the date of gift, but when the same were prepared subsequently, it's date of execution or pre....
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....the NRIs. Have been utilized by the assessee for converting his No. 2 money earned during the year under consideration. This is quite possible, because as stated and vehemently argued by the assessee, the non-residents are knowing to him since long, came together and accommodate him in this matter. Thus, giving of gift to the assessee by NRIs is not all accepted but the factum of accommodating the assessee in the adjustment of unaccounted income by way passing amount by cheques from the account of the NRIs to the account of the assessee in the guise of gifts is accepted in the facts and circumstances of the case. The preparing of gift documents subsequently in the old dates also indicate the transactions so called gift as a device of conver....
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....rcumstances, the genuineness of the gifts from two persons of Rs. 1,70,000 and Rs. 60,000 respectively cannot be doubted. Considering the overwhelming evidences produced by the appellant and after discussing the case with the Assessing Officer, I hold that the appellant had established that the gifts are genuine and the donors had the capacity to give the gifts. The Assessing Officer is not justified in adding the amounts of gifts as unexplained 'income of the appellant, without bringing any material on record to support such conclusion. The addition made by the Assessing Officer is hereby deleted". The ld. AR submitted that the assessee has submitted all the relevant documents, material and evidence in support of the gifts received from....