TaxTMI 
TaxTMI 
2014 (4) TMI 1121
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....han Kumar Palta 2. In this appeal the assessee has raised the following grounds: "1 Because the action is under challenge on facts and law whereby there was a pronouncement of the judgment on the date of hearing and the present order is the reasoning assigned to the said conclusion. Even further the ground of appeal No. 4 read with the written pleadings at paper book page 2, 26-29 does not flow from the order under challenge. 2 Because the action is under challenge on facts and law since there being discrimination for the likely placed other assesses with regard to the addition of Rs. 10,00,000/-. Even further paragraph 21 of the order dated 23.1.2009 fails to discern amongst the provisions of section 68 and or 69, which a wrong fi....
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..... 10 lakhs from Abinashi Lal Bajaj who was a personal friend for the last 25 years. The gift was made by Mr Bajaj out of love and affection. However, the Assessing officer vide letter dated 9.1.2006 asked the assessee to prove the gifts. The contents of the letter have been extracted by the Assessing officer as under: "You have received a gift amounting to Rs. 10 lakhs from Abinashi Lal Bajaj. The statement of Bajaj was recorded by the ADIT (Inv) II, Chandigarh. In his statement Shri Bajaj has stated that he has not made any gift to any persons; only pay order has been given in lieu of cash. It is quite clear from the above facts the gift is not genuine. You are requested to furnish the complete postal address of the person from whom ....
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....of the assessee that wrong advise was extended to it or there is any bonafide mistake. In view of these facts, we dismiss the condonation application filed by the assessee. Consequently, appeal of the assessee is dismissed in limine." Following the above the delay was not condoned. On merit also the LD. CIT(A) did not find force in the submissions of the assessee and referred to the decision of Hon'ble Supreme Court in case of CIT V. P. Mohankala (S.C) 291 ITR 278 and dismissed the appeal of the assessee. 5 Before us. the Ld. Counsel for the assessee mainly submitted that originally the assessee surrendered the amount of gift because the donor was not cooperative. However, the amount was surrendered with a condition that no penalt....
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....l was filed only when the assessee received penalty order. If the assessee wanted to wait for penal consequences then we find penalty u/s 271 (1) (c) was initiated in the assessment order itself which has been passed on 28.2.2006 which means the assessee was aware of the penal consequences at that time of point. In any case once any addition is made on agreed basis then no appeal should have been filed. Therefore the LD. CIT(A) has correctly rejected the prayer for condonation of delay. 8 As far as issue regarding merit is concerned it is not correct that the statement of the donor was recorded behind the back of the assessee. In fact the statement of the donor, Shri Abinashi Lal Bajaj was recorded by Investigation Wing and same was conf....
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....s my income for the Assessment year 2000-01. Subject to no penal action under the provisions of the Income tax Act In view of the above discussion and also facts of the case, the amount of Rs. 10 lakhs shown as gifts is treated as undisclosed income, which the assessee failed to prove the genuineness of the gifts and added towards the taxable income." From the above it becomes clear that the assessee has surrendered the amount after being fully cornered and therefore once the addition has been made on the basis of admission no appeal is maintainable. In any case the assessee has not been able to show any relationship with the donor and therefore there can not be any love and affection with the non relative and the assessee has not pro....