TaxTMI 
TaxTMI 
2012 (11) TMI 99
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.... the case and without providing due opportunity. 2. The said amount of Rs.6,00,000/- was gifted by Smt. Usha Batra to the assessee and is supported by all the necessary papers required to justify the gift." 2. Briefly stated, the facts of the case are that the Assessing Officer passed the assessment order dated 29.12.2008 passed u/s 143(3)/147 of the Income Tax Act, 1961 (hereinafter referred as "the Act"). During the assessment proceedings, the representative of the assessee was asked to furnish bank account for the relevant period, income tax particulars and income tax return for the AY 2005-06 of Mrs. Usha Batra as an explanation about Rs. 6,00,000 received as gift by the assessee from her (Mrs. Usha Batra) but nobody attend....
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....he ld. CIT(A) relied on the judgement of Hon'ble Supreme Court in the case of CIT vs P. Mohanakala & Ors. Reported as (2007) 291 ITR 278(SC) wherein the Hon'ble Apex Court had reiterated the judicial proposition of Section 68 of the Act and held that:- "A bare reading of section 68 of the Income Tax Act, 1961 suggests that (i) there has to be credit of amounts in the books maintained by the assessee; (ii) such credit has to be a sum of money during the previous year; and (iii) either (a) the assessee offers no explanation about the nature and source of such credits found in the books of (b) the explanation offered by the assessee, in the opinion of the Assessing Officer, is not satisfactory. It is only then that the sum so credited may b....
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....ome of the assesses of the previous year if the explanation offered by the assesses about the nature and source of such sums found credited in the books of the assesses is in the opinion of the Assessing Officer not satisfactory. Such opinion formed itself constitutes a prima facie evidence against the assessees, viz. the receipt of money, and if the assesses fail to rebut the said evidence the same can be used against the assesses by holding that it was a receipt of an income nature. In the case in hand the authorities concurrently found the explanation offered by the assessees unacceptable. The authorities upheld the opinion formed by the Assessing Officer that the explanation offered was not satisfactory. The assessees did not take the p....
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....d evidence, it can be used against him by holding that it was a receipt of an income nature. While considering the explanation of the assessee, the Department cannot, however, act unreasonably." 7. The Hon'ble Apex Court in the case of P. Mohanakala (supra) also held that all the decisions cited and referred to hereinabove are required to be appreciated and understood in the light of the law declared by Hon'ble Apex Court in the case of Sumati Dayal, (supra). 8. In view of the facts mentioned in the impugned order, the cash credit in the form of gift has been received by the assessee from the person whose creditworthiness and genuineness of the transaction remain unsubstantiated before the authorities below i.e. the AO and the CIT(A).....
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....iew of above decisions of Hon'ble Apex Court and Hon'ble High Court of Delhi, in the facts and circumstances of the present case, especially when genuineness of the gift has not been established by the assessee nor the ld. AR placed any material before us, controverting the aforesaid findings of ld. CIT(A), we are constrained to hold that the appellant assessee did not discharge her onus u/s 68 of the Act to prove the genuineness of gift from M/s Usha Batra nor her creditworthiness. In the ordinary course, a relative or a friend residing away at a distant place usually communicates with regard to his intention or proposed action with regard to giving away a gift with the proposed donee but no such evidence has been filed regarding relation ....