2007 (3) TMI 223

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....was correct in law in upholding the order of the Commissioner of Income-tax (Appeals) deleting the addition of Rs. 20 lakhs on account of gifts alleged to have been received by the assessee ?" 3. The brief facts of the case are that the assessee in the present case filed the Income-tax return for the assessment year 1995-96 on October 31, 1995 declaring an income of Rs. 1,04,249. This assessment was made under section 143(3) of the Act on March 2, 1998, accepting the declared income of the assessee. Subsequently, this assessment order was examined by the Commissioner of Income-tax (Central-2), New Delhi under section 263 of the Act who set aside the assessment on August 2, 1999, with a direction to examine the identity, genuineness and c....

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.... under section 68 of the Act. 5. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) who held that these two gifts made are genuine and as such the addition made was deleted. 6. Being dissatisfied with the orders of the Commissioner of Income-tax (Appeals), the Revenue filed an appeal before the Income-tax Appellate Tribunal and vide the impugned order the appeal of the Revenue was dis- missed. 7. It has been argued by learned counsel for the Revenue that the assessee failed to furnish the financial capacity and credit-worthiness of the donors and there was no natural love and affection between the assessee and the donors. The assessee did not appear before t....

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.... instant case, we find that though the assessee had admittedly produced the bank statements, the Assessing Officer did not raise any query with regard to the capacity of the donors to make the gift. From the assessment order, we find that the only ground on which the genuineness of the gifts has been doubted is the alleged failure on the part of the assessee to establish relation ship between the donor and the donee" 10. Similarly in Sajan Dass and Sons [2003] 264 ITR 435 (Delhi), it has been laid down that (page 438) : " A mere identification of the donor and showing the movement of the gift amount through banking channels is not sufficient to prove the genuineness of the gift. Since the claim of gift is made by the assessee, t....