2019 (1) TMI 1276

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....f the assessee. However, the Assessing Officer [for brevity "AO"] found that the maternal uncle and the assessee had business transactions and there was supply made by the proprietorship firm of the maternal uncle to the assessee's firm. There was an outstanding credit balance of Rs. 72,55,783/- in the account of the maternal uncle as maintained by the assessee. The assessee, on crediting the capital account in the subject year of Rs. 75 lakhs, also debited the business account of the maternal uncle; thus wiping off the outstanding credit of Rs. 72,55,783/-. 2. The AO issued notice proposing an addition under Section 41(1) of the Income Tax Act, 1961 [for brevity "the Act"]. The assessee replied that Rs. 75 lakhs was a gift from the ....

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....s and in the circumstances of the case and in view of the fact that the assessee had a trading liability of Rs. 75.55 lakhs to the donor, is not the so-called gift of Rs. 75,00,000/- received by the assessee in the nature of remission of liability and taxable under Section 41(1) of the Income Tax Act? (4) Whether, on the facts and in the circumstances of the case and nomenclature being irrelevant and "the taxing authorities were not required to put on blinkers"; "entitled to look into the surrounding circumstances to find out the reality (82 ITR 540 at 545 (SC), the Tribunal is right in law in interfering with the assessment of Rs. 75,00,000/- invoking section 41(1) of the Income Tax Act? (5) (a) Whether the Tribunal is ri....