TaxTMI 
TaxTMI 
TaxTMI 
2014 (12) TMI 306
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.... under Section 260A of the Income Tax Act, 1961 (Act, for short) by the appellant-assessee Pawan Kumar Aggarwal impugns the findings recorded by the Income Tax Appellate Tribunal (Tribunal, for short) in their order dated 17th September, 2002, relating to the genuineness of the gift of Rs. 1 lac received by the assessee's minor daughter Aushi Aggarwal. The appeal pertains to assessment year 1993-94 and was admitted for hearing vide order dated 13th April, 2004, on the following substantial question of law:- "Whether the order of the I.T.A.T. in reversing the order of C.IT. [sic, C.I.T. (Appeals)] is not perverse?" 2. As is apparent from the question itself, the finding of the Tribunal is factual and the issue is whether the aforesaid find....
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....made by Bhupinder Kumar and it was not necessary that the donor or the donee should have blood relationship. He referred to Section 5(1)(ii)(b) of the Gift Tax Act, 1958 to the effect that relationship was not a condition for making a gift by an non-resident Indian. Accordingly, the addition made by the Assessing Officer was deleted. 5. Revenue preferred an appeal before the Tribunal and has succeeded by the impugned order dated 17th September, 2002. The said order records that during the course of arguments, the authorized representative of the assessee had admitted categorically that there was no relationship between the assessee/Aushi Aggarwal and Bhupinder Kumar. Therefore, the Tribunal felt that the assessee in this case had created e....
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....said territories, during the previous year in which the gift is made;" Our attention is also drawn to clause (iic), Explanation thereto and clause (iid) to Section 5(1) of the Gift Tax Act, 1958, which for the sake of convenience, are being reproduced below:- "(iic) being a citizen of India, or a person of Indian origin, who is not resident in India, to any relative of such person in India, of convertible foreign exchange remitted from a country outside India in accordance with the provisisons of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder. Explanation.- For the purposes of this clause and clause (iid),- (a) a person shall be deemed to be of Indian origin if he or either of his parents or any of....
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....n the assessee was called upon to explain the source of the deposit/income of her daughter, the assessee had submitted that Aushi Aggarwal had received a gift from a non-resident by the name of Bhupinder Kumar. 7. The Tribunal in the impugned order has not specifically referred to Section 68 of the Act, but when we notice and read the order of the Assessing Officer, he has specifically recorded that the addition of Rs. 1 lac was being made as the assessee had not been able to prove and establish the source of the income/deposit of the minor Aushi Aggarwal and accordingly the said amount should be treated as income from undisclosed source. On the said aspect, the Assessing Officer has referred to the scrutiny of the bank account in the name....
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....t liable to be taxed in India and, therefore, production of assessment order was not relevant. He also observed that onus of proof was discharged by the assessee by disclosing identity, capacity, source and confirmation from the donor. 8. Possibly, some of the information/confirmation may not have been possible for the appellant assessee to procure, but the close relationship, not necessarily blood relationship, between the parties could have been asserted and fortified. Genuineness of the transaction has to be examined by not only taking into consideration the paper/documents, which were executed, but surrounding circumstances are also relevant. These aspects are of significance and importance, when genuineness of a transaction is in issu....
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....ve how the assessee in this case through a conduit had transferred and brought into books of account, undisclosed income under Section 68 of the Act. In fact, this section casts a burden on the assessee to show genuineness of the transaction by establishing identity of the person from whom the payment was received, the source of payment, which necessarily need not be confined only to the details of the bank account from which payment was made but also corroborating and surrounding circumstances. This has always been the legal position, even prior to insertion of Section 68 of the Act. It was a well-accepted principle that income/cash credits which are not satisfactorily explained might be assessed as income. Even long prior to the introduct....