TaxTMI 
TaxTMI 
2014 (12) TMI 641
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....t it is a 'gift' received by the assessee from non-resident Indians. 2. The only question of law proposed in this appeal is as to whether the order of the Tribunal upholding the aforesaid addition made by the Assessing Officer (hereinafter referred to as 'AO') under section 68 of the Income Tax Act, is a perverse and arbitrary finding. 3. Facts which are necessary for deciding the issue in question goes to show that for the financial year 2001-2002, the assessee filed a return of income showing the income received from M/s Narmada Enterprises - a proprietary concern, owned by the assessee. The assessee showed deriving income from salary, house, business and shares. It was stated that the assessee's proprietary concern ....
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....k us through the orders passed by the AO, the Commissioner (Appeals) and the Appellate Tribunal and tried to emphasize that once the genuineness of the donors and the credit-worthiness of the donor is established by the assessee, then the requirement of section 68 of the Income Tax Act is fulfilled and the AO and the Appellate Tribunal committed error in interfering with the matter. 5. Per contra Shri Sanjay Lal, learned counsel for the respondent/department, took us through the findings recorded by the Appellate Tribunal, from paragraph 8 onwards, wherein the Appellate Tribunal has doubted the genuineness of the 'gift' made and tried to argue that as the 'gift' is not found to be made genuinely by the donors and as the ....
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....remains to be done and the 'gift' should have been accepted. 10. We have considered the rival contentions and we find on going through various judgments with regard to the ingredients necessary for making out the requirement of Section 68, that three things are necessary. One - the identity of the creditor; secondly - the genuineness of the transaction; and, thirdly - credit worthiness of the creditor. If all these three are present together then the provision of Section 68 may become applicable and the assessee may get benefit of the said provision. In the said case, the AO and the Income Tax Appellate Tribunal have found that even though identity of the creditors and his credit-worthiness are established, but the genuineness of t....
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....word 'gift' has been added by way of interpolation. From paragraph 8, the learned Tribunal has given various reasons for doubting the very nature of the transaction to be a 'gift' and consequently holding that the transaction to be a 'gift' is doubtful, and for so holding reliance is placed on the judgment of the Supreme Court in the case of Mohanakala (supra). 11. We have meticulously gone through the findings recorded in paragraph 8, which runs to more than three pages, and we find that the Tribunal has subjectively analysed the nature of the transaction and has recorded a positive finding to the effect that the transaction being a 'gift' is doubtful. This finding recorded by the Tribunal is based on due a....
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....upra), we have no doubt that it is a reasonable finding based on the totality of the facts and circumstances and the material available, and on the same we find no substantial question of law arising for consideration. 14. That apart, the Delhi High Court in the case of Rajeev Tandon (supra), considered a transaction identical in nature and relied upon the judgment of the Supreme Court in the case of Mohanakala (supra), to hold that if the two donors, who are involved in the said case, had absolutely no connection with the assessee and if they had made the 'gift' which is found to be doubtful in nature, then the only assumption that can be drawn is that money has been transferred to help the assessee and not as a 'gift'. It....