2010 (10) TMI 322

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....s. 3,90,000/- as per details given below: Name of the donor Relation Amount Cheque No. Shalini K. Chalke Sister in law Rs.1,50,000/- 036038 Nilesh K. Chalke Nephew Rs.1,00,000/- 464652 Vaishali K. Chalke Niece   Rs.1,40,000/- 355456 2.1 The assessee explained that the gifts from the said relatives had been received out of maturity proceeds of 10% RBI Relief Bonds 1995. The assessee filed confirmation letters from the donors and photo copies of their bank passbook showing relevant entries to substantiate the claim. The assessee further explained that all the three donors were partners in his concerns i.e M/s.Pearling Synthetics Weaving Industry and M/s. Oriental Trading Company til....

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....nors earlier and took it back in the garb of gifts and the alleged gifts belonged to the assessee himself. These were not therefore genuine gifts and the AO therefore assessed the gifts as income of the assessee. In appeal CIT(A) confirmed the order of AO aggrieved by which the assessee is in appeal before the tribunal. 3. Before us the Learned AR for the assessee reiterated the submissions made before lower authorities. It was argued that donors were close relatives of the assessee who had been made the partners free of cost in his concerns after the death of their father/ husband. They retired from the partnership on 31.3.1992 and the accumulated balances in their capital accounts were invested in fixed deposits/ RBI Bonds on which the....

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....ssessee from the three donors who were close relatives i. e sister in law and nephew/ niece. The case of the assessee is that after the death of his brother the assessee had taken the sister in law and her son/ daughter as a partner in his family concerns without any capital contribution with a view to help them. They retired in March 1992 and the accumulated capital balance in their names were deposited in fixed deposits/ RBI Bonds. The gifts had been given out of maturity value of RBI bonds through cheques. The confirmation from donors have been filed along with copy of their bank accounts. There is no dispute about the identity of donors and the source of gifts is also explained. The authorities below have doubted the genuineness of gift....