TaxTMI 
TaxTMI 
2015 (11) TMI 1267
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....en by the doctors. Hence, having regard to the submissions made in the affidavits, we condone the delay and admit both the appeals for hearing. 3. We shall first take up the appeal filed for AY 2003-04. The only issue urged in this appeal relates to the assessment of Rs. 25,90,343/-, being the gifts received by the assessee by way of India Resurgent bonds. The assessee had credited the above said amount in his capital account. On examination, it was noticed that the assessee has claimed to have received "India Resurgent Bonds" as gits from various persons and their equivalent rupee value was credited in the capital account. The assessee merely submitted copies of Bonds along with copies of transfer forms to show that the bonds have been transferred to the assessee's name. Before the AO, the assessee could not furnish confirmation letters from the concerned donors. Since the assessee did not furnish evidences to prove the identity and credit worthiness of the donors and the genuineness of the transactions, the assessing officer assessed the gift amount cited above as income of the assessee. The Ld CIT(A) also confirmed the same. 4. The Ld A.R submitted that the assessee has re....
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....acing heavy reliance on these documents to contend that the gifts were genuine. 7. However we notice from the assessment order that the assessee has admitted before the assessing officer that the donors were "third parties" and hence it would not be possible for him to collect the details that were called for by the assessing officer. There should not be any doubt that the "Gifts" are given out of natural love and affection, that too without consideration. Hence, in respect of claim of gifts, it is imperative to show that there existed a relationship between the donor and donee. It is further required to be shown that there was an occasion or reason, which prompted the donor to give gifts to the donee. It is also required to be shown that the gifts were given out of natural love and affection. In the instant case, admittedly the assessee has failed to prove the nature of relationship between him and the concerned donors and also failed to furnish any explanation with regard to the reason/occasion which prompted the donor to give gifts to the assessee. In fact, the assessee himself has admitted before the assessing officer that the alleged donors are third parties. When the donor....
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.... (c) Assessment of interest income of Rs. 2,16,088/- 9. The first issue relates to the computation of Long term capital gains on sale of four flats. It is stated that the assessee and his wife had purchased these properties jointly. They have three daughters. The spouse of the assessee expired intestate in the year 2000. Hence, prior to the sale of the properties, the assessee and his three daughters entered into a Memorandum of Understanding (MOU), as per which the daughters agreed to take 18% of the sale consideration towards their right over the share of their mother in the properties. Accordingly, the assessee deducted 18% of the sale consideration from the total sale consideration and computed capital gain upon the remaining 82%. The AO did not agree with the submissions of the assessee for the reason that the capital gains is required to be computed on "full value of consideration" as per sec. 48 of the Act. The AO also observed that the assessee has failed to show that the daughters have paid tax on their respective share. Accordingly, the AO did not allow deduction of 18% of sale consideration, being the share of daughters of the assessee. The Ld CIT(A) also con....
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.... AO noticed that the possession was obtained only on 03-09-1998 and accordingly allowed indexation benefit from FY 1998-99. The Ld CIT(A) upheld the view of the AO and hence the assessee is contesting this decision of Ld CIT(A). Before us, the Ld A.R placed his reliance on the agreement dated 19-12-1997 and contended that the indexation benefit should be given from FY 1997-98. However, the Ld A.R could not contradict the finding of the Ld CIT(A) that the assessee obtained actual possession of the property only on 03-09-1998. Even otherwise, the assessee has failed to establish as to how he would be entitled to indexation benefit from FY 1997-98 merely on the basis of sale agreement. Hence, we do not find any infirmity in the decision of Ld CIT(A) on this issue. 13. The next issue relates to the assessment of gifts received by the assessee by way of India millennium Deposits. Since the assessee failed to furnish the details that were called for by the AO, the assessing officer assessed the gifts as income of the assessee. The Ld CIT(A) also confirmed the same. In the immediately preceding year, the assessee had received gifts by way of India Resurgent bonds and the same was asses....