2017 (11) TMI 1428

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....as the 'Act') against the order of the Income Tax Appellate Tribunal dated 10.11.2006 for the assessment year 2001-02. This appeal has been admitted on 17.03.2010 on the questions of law (A) and (E), which are quoted as below: '(A) Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was confirmed the action of the CIT invoking the jurisdiction under Section 263 of the Income Tax Act on the facts and circumstances of the case? (E) Whether the Income Tax Appellate Tribunal rightly not considered that the interest under Section 234 A, 234B and 234 C of the Income Tax Act was payable by the appellant in the proceedings under Section 263 of the Income Tax Act?" In short, during t....

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....ssed under Section 263 of the Act, the assessee filed an appeal before the Tribunal which has been dismissed, giving rise to the present appeal. Learned counsel for the petitioner submits that admittedly it is a case where the Assessing Officer had accepted the gifts after conducting proper inquiry into the matter. In that inquiry the donors had been examined. They had confirmed the fact of giving the gifts to the assessee and the said gifts were also shown to have been given through banking channel. Further, the amounts were found to have been recorded in the books of account of the donors. Therefore, the assessing officer did not make any mistake in accepting the gifts. Learned counsel for the petitioner further submits that the rea....

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....ing considered the argument so advanced, we find that clearly an inquiry had been conducted by the Assessing Officer on the material aspect of the transaction. The identity of the donors, as also the genuineness of the transaction and the creditworthiness of the donors had been questioned by the Assessing Officer. As to the identity of the donors and genuineness of the transaction there is no dispute and the CIT has also not doubted the correctness of the approach for the finding reached by the Assessing Officer. The only doubt that has been created is as to the creditworthiness of the donors. In this regard we find that the Assessing Officer had questioned the donors as to the source of money from which the gifts had been made to the as....