TaxTMI 
TaxTMI 
2009 (10) TMI 576
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.... both the issues are that during assessment proceedings the assessee has stated to have received gift amounts of Rs. 40,000 and Rs. 2 lacs given by Shri Hira Lal and Shri Om Parkash Singhal respectively. The assessee is not able to produce the donors before the AO though the declaration of gifts and affidavits of the donors were filed before the AO. The AO has not held the gifts as genuine and added them as income of the assessee and consequently interest under ss. 234A and 234B of the Act was also added. Aggrieved with this order of the AO, the assessee went in appeal before the learned CIT(A) and is unsuccessful. Hence the present appeal before the Tribunal. 5. On perusal of orders passed by the Departmental authorities it is found that ....
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....rs. 1994-95 and 1995-96) as well as the decision rendered by Hon'ble jurisdictional High Court of Rajasthan in CIT vs. Padam Singh Chouhan (2008) 215 CTR (Raj) 303 : (2008) 3 DTR (Raj) 190 wherein it was held that when the assessee produced the declarations as well as the affidavits of the donors to establish their identity before the Departmental authorities, it is sufficient to prove the transaction of gifts in the absence of any positive material made out by the Department that the assessee has flow its amounts through donors under the guise of gifts to avoid tax payment. Hon'ble jurisdictional High Court has observed that the assessee having produced the gift deeds and affidavits of NRIs in the absence of anything to show that the trans....
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....ble with the Tribunal in the light of decisions of this Bench of the Tribunal as well as by Hon'ble jurisdictional High Court, it is found that the Departmental authorities have not made out any positive material to establish the non-genuineness of the gifts except using the word "in genuine". The Hon'ble jurisdictional High Court has categorically observed in the case of Padam Singh Chouhan that there is no legal basis to assume that the gifts are in genuine, there should be any blood relationship between the donor and the donee. Instances are not rare when the stranger gave gift out of consideration including arising out of love, affection and sentiments. When the assessee has produced the gift declaration and affidavits of the donors in ....