2017 (6) TMI 405

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....d 5.12.2007 under Section 144(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') to the assessee seeking her explanation as to why the amount of Rs. 10,07,749/- which she had invested in purchasing a property be not added to her income under Section 68 of 'the Act'. In response to the above notice she furnished her explanation stating that she had received a gift of Rs. 10,07,749/- from her mother Smt. Angoorie Devi, who had sold her jewellery to M/s Brijwasi Jewellers and had made the gift of the sale proceeds to her. The mother of the assessee appeared as a witness and her statement on oath was recorded wherein she admitted having sold her jewellery to the aforesaid jeweller and making gift to the ....

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.... is not found to be satisfactory. Under Section 69 of the Act, the assessee is only required to furnish explanation with regard to the source of investment failing which such investment is liable to be added to the income of the assessee. The assessee in response to the notice issued for making addition under Section 68 of 'the Act' had furnished an explanation that the investment in the property was made by her by receiving a gift from her mother through banking channel which she has generated by selling her jewellery to M/s Brijwasi Jewellers. The receipt of the jeweller showing the genuineness of the transaction was produced and so was the mother in the witness box who deposed that she had sold her jewellery and had gifted ....