TaxTMI 
TaxTMI 
2021 (4) TMI 398
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....addition kindly may be deleted and quested. 3. The Ld. CIT(Appeal)-2 failed to appreciate the findings of Ld. AO ward 5(2), Jaipur, in his remand report dated 09.10.2019, that "The Affidavits produced in the shape of evidences submitted by the A.R. of the Assessee, appear to the genuine and the sources of cash deposit appears to be explained" 2. Briefly the facts of the case are that the assessee had not filed return for AY 2010-11. On the basis of information that the assessee had deposited cash of Rs. 11,00,000/- in her bank account with HDFC Bank, notice U/s 148 was issued on 30.03.2017 in response to which return of income was filed on 29.04.2017 showing an income of Rs. 1,90,460/- which was assessed u/s 143(3) r/w 147 by the AO at Rs. 6,90,460/- creating a demand of Rs. 2,14,970/-. Addition was made for Rs. 5,00,000/- towards undisclosed investment on account of cash deposited in bank account. On appeal, the Ld.CIT(A) confirmed the addition and against the said findings, the assessee is in appeal before us. 3. During the course of hearing, the ld. AR submitted that the assessee had deposited cash of Rs. 17,25,000/- in her bank accounts. The source of these de....
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....t concurring with the AO, held that only on the basis of affidavit, which is a self serving document, the gifts cannot be accepted as genuine. 6. It has been held by the Delhi High Court in the case of CIT v. Shiv Dhooti Pearls & Investment Ltd. [2015] 64 taxmann.com 329 (Delhi) that in terms of section 68, assessee is liable to disclose only source(s) from where he has himself received credit and it is not burden of assessee to show source(s) of his creditor nor is it burden of assessee to prove creditworthiness of source(s) of sub-creditors. With the production of gift deed and identity of the donors and the genuineness of the transaction (gift on marriage) the assessee had discharged initial onus placed on her. In the event, the revenue still had a doubt with regard to the genuineness of the transactions in issue, or as regards the creditworthiness of the donors, it would have had to discharge the onus which had shifted on to it. A bald assertion by the CIT(A) that the credit worthiness of the donors remained unverified and simply on the basis of affidavit, gift shown cannot be accepted as genuine is a long drawn conclusion, and is of no avail. The revenue was required to ....
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....dence in support of affidavit sworn by him. 9. It was further submitted that the assessee would also like to place reliance on the decision of Hon'ble Supreme Court in the case of Behari Lal Ram Charan Vs. ITO 1981 AIR 1585. Though this decision was rendered in the context of Section 226(3), but the issue was with respect to validity of affidavit. In the appeal the Court held- (a) For reaching an objective conclusion that in his opinion the statement on oath made on behalf of the garnishee is false in any material particulars, the Income Tax Officer would have to give notice to the party concerned, hold an enquiry for determining whether the statement on oath is false and if so in which material particulars and what amount is in fact due from the garnishee to the assessee. In such an enquiry, he would have to follow the principles of natural justice and reach an objective conclusion. (b) Once a statement on oath is made on behalf of the garnishee that the sum demanded is not due from him to the assessee, the burden of showing that the statement is false is on the Revenue which would be bound to disclose to the garnishee all such evidence or material on which it....
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.... 2.5.1 During the present proceedings AR of the assessee filed additional evidence under rule 46A and the same was sent to Assessing Officer for his comments. Vide remand report dated 21.10.2019, Assessing Officer stated that they cannot be verified due to death of donors and according to him they appear to be genuine. However the creditworthiness of the donors remained unverified. 2.5.2. On perusal of above report, I find that in support of gift, assessee filed only affidavit of father in law of assessee which is self serving and not supported by any bank account, nor was there any evidence of source of donors. Therefore, simply on basis of this affidavit, gift shown cannot be accepted as genuine. Therefore, the addition made is hereby confirmed. These grounds of appeal are dismissed. 11. Further, ld. DR has relied upon the following decisions:- * M/s Nova Promoters & Finlease P. Ltd. v s. CIT (2012) 18 Taxman.com 217 (Delhi HC) * Blowell Auto P. Ltd. vs. ACIT (2009) 177 Taxman 261 (Punj & Haryana) 12. We have heard the rival contentions and perused the material available on record. The limited issue under consideration relates to s....