TaxTMI 
TaxTMI 
2015 (11) TMI 734
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.... these two appeals. We accordingly take up ITA 577/Ahd/2010 in case of assessee, Shri Bhanuprasad O. Trivedi as the lead case. 3. This assessee-individual derives income from house property, capital gains and other sources. The department conducted a search in his case on 22-02-2006 seizing alleged incriminating material. The assessee also got recorded his statement in course thereof. All these culminated issuance of a section 153A notice dated 29-06-2007. The assessee filed his return on 23-07-2007 admitting income of Rs. 6,67,670/-. The Assessing Officer in course of scrutiny noticed the assessee to have received a gift of Rs. 15 lacs from one Shri Sunil Gandhi based at Dubai (UAE). The assessee filed photo copy of his donor's pass port, gift declaration dated 07-10-2003, affidavit dated 25-11-2006 solemnly averring in favour of the aforesaid gift by way of demand draft dated 06-10-2003 issued by AI Razouki International Exchange Co. Ltd LLC. The Assessing Officer sought for donor's source and issued a show cause notice dated 12-12-2007 inter alia observing that there was no relation between the donor-donee, no reciprocity and also that the sum in question of Rs. 15 lacs was ass....
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....he assessee preferred appeal inter alia challenging legality of section 153A proceedings and also assailed correctness of the impugned addition on merits. The CIT(A) has rejected this legal plea and accepts the latter one on merits as follows:- "9.1 The issue of gifts has been discussed in detail by the Hon'ble Delhi ITAT in the case of Ms. Mayawati Vs. DCIT (113 TTJ) (Delhi) 178. In the aforementioned Judgement, the Hon'ble ITAT has held as under:- (Quote) ' "For all intents and purposes the validity of the gift, whether of movable or immovable property, it to be examined by satisfying the conditions laid down in ss.122 and 123 of the Transfer of Property Act. From the same it follows logically that for income-tax purpose also the validity of gifts is to be examined in the light of the above referred provisions. In view of the above one has to examine as to whether these legal requirements, as laid down in ss. 122 and 123 of Transfer of Property Act are satisfied in the case of gifts made to the present assessee or not. So far as the gift from 'P' is concerned, the transaction was carried out through accounts payee cheque and reflected in the bank accoun....
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....ability to the facts of present case as the assessee is not maintaining any books of accounts. If that be so Section 68 does not apply in her case for the simple reason that the cheque received from P has been deposited in her bank account. Balance sheets /statements of affairs cannot be equated to books of accounts because "in traditional terms books means a collection of sheets of paper bound together -with the intention that such binding shall be permanent and papers used are kept collectively in one volume. It can also be assumed that it can notes the contentions that it should serve as a permanent record." Bank pass book is not a book maintained 'by the assessee or under, his instructions by the bank. Whether cash credits for previous years are shown in assessee's bank pass book then they cannot be treated as income of the assessee within the meaning of Section 68. Therefore, a pass book of the bank cannot be treated as a book of account of the assessee because this is provided by the banker, which is given to its customer and is only act as an agent of the customer (the assessee). The relationship between the banker and customer is one' of debtor and creditor only....
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....bogus. Case law of Sumati Dayal vs. CIT (1995) 214 ITR 801 (SC), (2014) 265 ITR 383 (Guj) Kaushal N. Patel vs. ITO, (2013) 217 Taxman 16 (Gujarat) Satish Kumar Kantilal Shah (HUF) vs. ITO, (2012) 341 ITR 632 (Guj) Dinesh Basulal Thakkar vs. ACIT, (2014) 365 ITR 131 (Pen) Hanuman Dass vs. CIT, (2007) 291 ITR 278 (SC) CIT vs. P. Mohankala, (1969) 72 ITR 194 (SC) CIT vs. Devi Prasad Vishwanath, (1958) 34 ITR 807 (SC) A. Govindaraju Mudaliar vs. CIT. He accordingly argues that the CIT(A) ought to have upheld the Assessing Officer's action in making the impugned addition. 7. The assessee strongly supports the lower appellate order accepting his gift plea as extracted hereinabove. He files a paper book and takes us to content thereof for submitting that the gift in question satisfies all essential conditions. Case law of ITAT Ahmedabad bench in IT(SS)A 197/Ahd/2009 decided on 20-04-2012 Smt. Heena Sharma Vs. ACIT is quoted in support which has been subsequent affirmed by the hon'ble jurisdictional high court in Tax Appeal No. 712 of 2012 decided on 21-12-2013. Ld authorized representative strongly argues that facts of the instant case are much better placed than those involved therein a....
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....om self styled deposition throwing some light upon his love and affection with the donor and vice verse. His case is that this relationship is due to the donor's friendship with his son, Shri Deepakkumar Trivedi. This person has nowhere been produced in support of gift claim. It is seen from the paper book page no. 5 that donor's declaration is dated 07-10-2003 giving a sum of Rs. 15 lacs without any consideration or caveat. Page no. 8 of the paper book is in the nature of gift instrument/demand draft containing name of the Dubai based exchange company. The donor's name or any corresponding entry is nowhere found therein. Pages 9-10 comprise of passport details. Page no. 11 is the donor's affidavit showing substantial fortune of 100 million Dirhams. Pages 12 to 47 are donor's bank account and Indian Millenium Deposits receipts in US dollars. Pages 48 to 52 reveal donor's India visits on more than 60 occasion between 14-04-2003 to 02-11-2007 i.e. corresponding to the assessment time period. The question that arises for consideration in this factual backdrop is as to whether the case in hand involves execution of a valid gift. 10. We have given our thoughtful consideration to the qu....