2013 (12) TMI 1062

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....ent P. Ltd. The case of the assessee was selected for scrutiny and notice under section 143(2) was issued to the assessee on 11.9.2008. During the course of assessment, the Assessing Officer made additions in the income returned by the assessee on account of gifts amounting to Rs. 4,80,920/- received from mother's sister's son, loan from Mr. Iliaz amounting to Rs. 8,80,072/- and from Mr. Sakthvel to the tune of Rs. 5,04,000/- and cash deposits amounting to Rs. 13,00,000/-. 3. The Assessing Officer held that mother's sister's son does not fall within the definition of 'relative' as provided under Explanation to section 56(2)(v), therefore, the gift received from him is disallowed. As regards loans, identity of the persons who have given loa....

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....00/-, the DR contended that the assessee has failed to produce any documentary evidence to substantiate his claim that the amount has been received as a loan. The identity of the lenders was neither established before the Assessing Officer or before the CIT(A). The DR submitted that except for the bald statement of the assessee, the assessee could not substantiate his claim with regard to cash deposits. The CIT(A) has drawn adverse inference from the order of the Assessing Officer wherein the Assessing Officer has made reference to what the assessee has stated before him. 5. On the other hand, the counsel for the assessee submitted that the order of the CIT(A) is a well-reasoned and detailed order. The amount of Rs. 4,80,920/- has been rec....

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....means-      (i) spouse of the individual;      (ii) brother or sister of the individual;      (iii) brother or sister of the spouse of the individual;      (iv) brother or sister of either of the parents of the individual;      (v) any lineal ascendant or descendant of the individual;      (vi) any lineal ascendant or descendant of the spouse of the individual;      (vii) spouse of the person referred to in clauses (ii) to (vi);"      The term used in proviso to section 56(2)(v) is "relative" which has been further elaborated in the Explanation to clause (v) of Section 56(2).....