TaxTMI 
TaxTMI 
2017 (1) TMI 781
X X X X Extracts X X X X
X X X X Extracts X X X X
....Act on account of alleged gift. 4. I have heard the rival submissions and perused the orders of lower authorities and materials available on record. The facts of the case are that during the year under consideration, the assessee introduced fresh capital of Rs. 4,56,000/-. On being asked to furnish the capital introduced, the assessee produced his father Shri L. Anand Rao for examination from whom he has received cash gift of Rs. 4,56,000/- on 10.12.2008. The assessee's father Shri L. Anand Rao in his statement recorded on 19.12.2011 stated that he has made cash gift of Rs. 4,56,000/- to his son during the financial year 2008-09 out of agricultural income. The Assessing Officer observed that Shri L. Anand Rao was an agriculturist and is not assessed to income tax. Except a memorandum of gift, no other evidence has been furnished. The assessee is required to prove prima facie the capacity of such donor to make cash gift of Rs. 4,56,000/- on 10.12.2008 and genuineness of transaction. The assessee has submitted that his father Shri L. Anand Rao is looking after cultivation of agricultural land of 26.65 acrres and yielding income from cultivation and have sufficient savings from agr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... year 2009-2010 during which he gifted the amount of Rs. 4,56,000/- to the F.Y. 2011-12 relevant to the assessment year 2012-13 during which the agricultural income was only Rs. 3,15,000/-. That means during the F.Y. 2008-09, i.e. three years back the income from agriculture is definitely very meager for which Sri Rao had no substantial amount to gift to the assessee. Vide Q.No.8, it was asked to file the certificate from the authority concerned mentioning the extent of agricultural income earned during the F.Y. 2008-09 relevant to assessment year under consideration in response to which shri Rao expressed his inability to file the same. In the earlier statement, Shri Rao had also admitted of earning income by purchasing the paddy from the local cultivators and selling ti to different persons in addition to his own agricultural income. Vide Q. NBo.9, it was asked to furnish some of the cultivators alongwith confirmation letters with whom he had made transaction. Again Shri Rao expressed his inability to file the same. Similarly, in the statement given earlier Shri Rao had stated to derive agricultural income from 26.65 acres of land stood in the name of his father....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d maintains the bank account with SBI, Gunupur, Dist Rayagada and nothing was prevented him to receive the gift amount either in cheque or draft from the donor so that the genuineness gift given could have been verified on verifying the bank account. The donor also could have kept the amount in the bank at Gumuda and by withdrawing the amount from the bank the gift could have been given to the assessee so that nobody can disbelieve for the transaction of gift. Here the assessee neither proved the source of income of the donor nor the transaction of gift amount given to him." 6. In reply to the remand report, the assessee filed written submission dated 26.11.2013 and stated as under: "The humble explanation of the appellant most respectively show that during the course of appeal proceedings for the assessment year 2009-10, the LAO issued summons to the donor Shri Ladi Ananda Rao, father of the appellant in regard to genuineness of Rs. 4,56,000/- being gifted to the appellant. The said donor has admitted the fact of the said gift before the AO and submitted the evidence of agricultural lands in the form of mutation certificate, RI letter in evidence of agricultural income....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g giving cash gift of Rs. 4,56,00/- to his son (assessee) during the financial year 2008-09 out of his agricultural income. In support of the same, he filed a certificate from the Tahasildar, Padmapur vide certificate No.1799 dated 4.1.2012, wherein, it was stated that he earned agricultural income of Rs. 3,15,000/- and it has also been stated in the said certificate that the agricultural income pertains to F.Y 2008-09 relevant to A.Y. 2009-2010 during which, he gifted Rs. 4,56,000/- to the assessee. Further, the father of the assessee Shri L Anand Rao also stated that he derived agricultural income from 26.65 acres of land which stood in the name of his father L. Laminarayana. 11. I find that after examining the father of the assessee Shri L.Anand Rao u/s.131 of the Act, the Assessing Officer could not bring on record any material to show that he has not actually given gift to the assessee or that he did not have source enough out of which he could have given the impugned gift of money in question. I find that the father of the assessee Sri L.Anand Rao duly appeared before the Assessing Officer and affirmed of giving gift in question to the assessee and also produced before the....