TaxTMI 
TaxTMI 
2012 (8) TMI 300
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....000/- received from NRI. 2. While confirming the addition of Rs. 1,45,000/- u/s 68 the learned CIT (A)has taken irrelevant material into consideration and thereby arrived at an erroneous conclusion." 3. Ground No.1: Brief history of the ground is that in his return, the assessee had shown an NRI gift of Rs. 1,92,000/- alleged received from the donor namely Sharif Ahmed. In explanation, the assessee produced before AO the donor himself, his passport copy, income proof etc, as well as got recorded his statement who deposed that in Saudi Arabia, he was getting salary of 2,000 Saudi Rials per month. 4. The AO passed assessment order on 21.12.2006 rejecting assessee's pleas of gift and held that there was no proof of donor's income by w....
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....lary certificate from the employer of the donor during the appellate proceedings which was not produced at the time of assessment proceedings which was not produced at the time of assessment proceedings, which was not produced at the time of assessment proceedings, therefore, this being a fresh evidence, a remand report was called for the Assessing Officer. The AO in his reply dated 2.11.2007 have stated that the assessee was required to file following documents on 22/10/2007. 1. Original salary certificate. 2. Copy of NRE Account of the donor 3. Copy of passport of the donor 4. Explanation for non filing of salary certificate during the course of assessment proceedings. 5. Explanation for not giving the gift through NRE a....
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....ineness of the salary certificate furnished. Therefore, the salary certificate furnished by the appellant cannot be admitted as evidence as the appellant has not appeared in remand proceedings. As far as identity of the creditor Shri Sharif Ahmed Shaikh, the same is proved as the AO himself recorded his statement and appellant has also filed his copy of passport and NRE bank account. The second aspect is the creditworthiness of the creditor to be proved. The appellant has stated that the donor is receiving salary of 2000 Saudi Riyal per month. But no evidence in this regard has been produced before the AO. Therefore, the AO has rightly came to the conclusion that creditworthiness of the donor is not proved. Perusal of the NRE account of ....
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.... made by the AO of Rs. 1,75,000/- u/s 68 of the IT Act is justified and confirmed. 6. On behalf of the assessee, AR has argued that 'donor' in question is close relative of assessee and made reference to page no.8 of the paper book wherein it has been mentioned that he is son in law of assessee's sister. He has also submitted that onus of proving 'gift' had been duly discharged regarding creditworthiness, relationship as well as capacity of gift. Per ld AR, assessee had also produced the donor himself before AO, his source of income is there on the record. Therefore, all necessary ingredients of a valid gift stand established. It has also been contended that in remand report, assessee's accountant could not appear before AO due to preocc....
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.... The paper book before us is duly certified that it was available before AO. Accordingly, we hold that the assessee's plea of having received gift deserves acceptance. 9. Ground No.2: The background of this issue is that in details of unsecured loans filed along with return, assessee claimed to have received Rs. 1,45,000/- from three parties. He explained that the said three parties were residents of UP who were farmers having agricultural income. 10. The AO rejected assessee's contention by holding that the claim lacked credibility as the 'parties' were not taxpayers, without any bank account as well and hence, AO made addition of the above said amount in assessee's income. 11. Ld. CIT (A) has also rejected assessee's plea ....