2012 (8) TMI 370

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....mstances of the case the Ld. Commissioner of Income Tax (A) was justified in rejecting the appeal of the assessee and confirming the order of the ITO, Ward 32(3) and confirming the addition of Rs. 3,00,000/- as gift from Sh. Sanjay Mohan Aggarwal?   iii) Whether on the facts and circumstances of the case the Ld. Commissioner of Income Tax (A) was justified in rejecting the plea of the assessee regarding genuineness of the person, creditworthiness of the person, affidavit, gift deed, bank statement of the donor in which he has himself admitted that the donor as a capital of Rs. 32,47,90,367/- and this case is covered by Hon'ble Supreme Court decision in the case of Lovely Exports Pvt. Ltd., iv) Whether on the facts and circumstanc....

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....essee may have paid. 4. Upon assessee's appeal, Ld. Commissioner of Income Tax (A) considered the submissions of the assessee and held as under:- "On the basis of the above, I hold that on the face of it even though relevant documents in support of gift such as gift deed were got signed, and the gift was made through banking channel, however, on lifting the veil, the genuineness of the gift does not stand proved. During the period relating to assessment year 2000-01, Shri Sanjay Mohan Agarwal had made gift to several persons running in a few crores. However, in his own balance sheet for 2000-01, no amount has been reduced out of his capital, which ought to have been done in case of genuine gift. The corresponding reduction of Rs. 3 la....

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.... @2%. Therefore, the addition on this ground is also sustained." 5. I have heard the rival contentions in light of the material produced and precedent relied upon. Assessee in this case has received a gift from a person with whom assessee has no relationship. The occasion for giving of gift is also not specified and also there is no reciprocity. 6. I find that Hon'ble Delhi High Court in the case of Rajiv Tondon vs. ACIT 294 ITR 488 has held that in a case where two donors had absolutely no connection with the assessee and they made gifts to the assessee only because he needed money to buy a house and they wanted to help him. It was held that this was not only quite unusual but also quite unnatural. It was incredible that a complete s....