TaxTMI 
TaxTMI 
2012 (3) TMI 621
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....Expenses and Travelling Expenses which were incurred for the purpose of business and same were justified keeping in view of reasonableness and business exigency of the assessee. 3. Grounds taken by the Revenue in I.T.A.No. 381/Ind/2010 reads as under : 1. On the facts and in the circumstances of the case , the ld. CIT(A) has erred in directing to delete the addition made u/s 68 of the Income-tax Act, 1961, in respect of gift claimed to have been received in the form of RIB Bonds from an NRI without appreciating the ratio laid down by the Hon'ble Supreme Court in the case of Sumati Dayal vs. CIT, (214 ITR 801) AND CIT VS. p. Mohan Kala & Others, (291 ITR 278) that apparent is not always real. 2. On the facts and in the circumstances of the case , the ld. CIT(A) has erred in directing to delete the addition made u/s 68 of the Income-tax Act, 1961, in respect of the credit shown in the name of M/s. Ranjeet Securities Limited. Without appreciating the facts brought on record by the Assessing Officer in the order. 4. Rival contentions have been heard and records perused. Facts of the case are that the assessee was engaged in the business of transportati....
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....of the donor as well the address of the relative of the donor presently residing in India and the appellant was not even having the proof of receipt of RIB through post. The AO also lastly held that the appellant could not establish the claim of old obligations of his father on the donor Shri Manubhai. The Assessing Officer has then discussed the issue of widespread malice of havala transactions converting black money into white money and referring to the amendment made in provision of Section 56 of Finance Act No.(2), Act 2006, Hon'ble Finance Minister's speech and judicial decisions as referred on page 8 concluded that the amount of Rs. 14 lakh was liable to be added as unexplained u/s 68 of the Income-tax Act. 4.1.1 The AO in his report dated 22.2.10 has broadly reiterated the stand taken in the assessment order and has briefly narrated the assertions made in the affidavit filed by the donor and has further stated that the Affidavit does not establish that the transaction of gift was genuine and he has further stated that in the Affidavit, the donor has merely claimed that the appellant was known to him and gift was given to him without furnishing details I evidence....
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....maturity of RIB Bond ( which he acquire in gift from Shri Harish Batra and same were credited in the personal bank saving account and &.607501- introduced out of Income Tax refund which were also lying in the personal saving bank account of earlier year the said bank balance was also duly shown in the balance sheet enclosed with return of income for the assessment year 2003- 2004 & 2004-2005. However same fact can also verified from the already submitted copy of saving bank pass book & return of income filed with Income Tax Return. Thus as per above discussion kindly be considered amount of gift of RIB &.13392501- in place of &.14.00 Lac. 9. Moreover, donor was also visited in India but due to his short visit he left India after executing one affidavit on 02/01/2009 before notary public Mumbai regarding confirmation of gift made to appellant and the said Affidavit was remitted to assessee from USA which received to appellant on 20/01/2009 by airmail, for said proof I am enclosing the physical copy of envelop, executed affidavit along with copy of passport for your ready reference. 10. I hereby further stated that the appellant has established the identity, genuine....
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....s visited to India but he could not come in your office due to his urgent work in USA, hence he executed one affidavit in Mumbai But and same was sent from USA due to return back to USA bay his urgent work. xvii) The RIB certificate issued by SBI in the name of Shri Harish Batra against US dollars is by itself an evidence to proof the identity of Shri Harish Batra. 11. By virtue of above facts there is no room of doubt regarding non genuineness of the gift made by Shri Harish Batra to the Assessee. In any view of the matter the assessee was able to establish the nature and source of the money. The nature and source of the money found deposited in the Bank Account of the assessee was the maturity of the two bonds which were purchased by Shri Harish Batra on 31st October, 1998. Therefore so far as year under consideration is concerned the nature and source are fully established. There is no evidence brought out by the AD which show that the deposit in the bank account is income of the Assessee. Hence it is requested that kindly be deleted whole addition of the Assessee on account of two RIB Bond Your appellant is relied on the under noted Judgment H Kanchan Singh v/....
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....additional evidences. Further still, the contention of Addl. CIT that the appellant's Case was distinguishable to the facts of the case before Hon'ble Allahabad High Court in as much as address of NRI in India was available and was not so provided in case of the appellant also do not hold good as the Indian address of the donor at Mumbai is very much indicated in the Affidavit filed which is now furnished. Further, such Bonds were acquired as stated by the Deponent Donor from SBI, Nariman Point Branch, Mumbai only. The other assertions made in Affidavit also in the least prima-facie establish the continued relationship between the donor and the appellant. Thus, in these facts neither the identity of the donor can be doubted nor his creditworthiness. Only issue which remains to be examined is the genuineness of such gift transaction. Hon'ble Allahabad High Court n the case of Kanchan Singh (supra) has categorically held in para 22 of its order the reasons for deciding the issue in favour of the assessee Smt. Kanchan Singh as has been extracted by the appellant in his written submissions and hence the facts being materially the same as noticed in the case of the aforesaid....