2021 (5) TMI 79

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.... consideration as unexplained cash credit. 2. The assessee in the present case is an individual who is engaged in the business trading of sugar, atta and maida. The return of income for the year under consideration was filed by her on 26.10.2004 declaring a total income of Rs. 2,15,870/-. During the year under consideration, the assessee had introduced a fresh capital of Rs. 4,00,000/- and the source of the same was explained as gi ft of Rs. 1,00,000/- each received from four persons namely Mana Das, Mohanlal Sau, Nemai Chandra Dey s/o Bhudhar Chandra Dey and Nemai Ch. Dey s/o Bhupati Charan Dey. In support of her claim of having received the said gifts, tax particulars of the donors were furnished by the assessee along with the copies of ....

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.... the transaction cannot be established and therefore the said sum of Rs. 4,00,000/- was added to the total income of the assessee. Now, the gifts were made by account payee cheques dated 20.03.2004 and 25.03.2004 and the Finance Act, 1998 specifically stated that gifts from non-relatives can be accepted on and from 1st day of October 1998 till 31st day of August 2004, and only after such date the Finance Act, 2004 limited the acceptance of gifts from nonrelative upto Rs. 25,000/- only and any amount above and beyond Rs. 25,000/- shall be taxable in the hand of the donee. So it was well within the four comers of the law in accepting the gifts of Rs. 1,00,000/- each on 20.03.2004 and 25.03.2004 as enumerated by the provisions of the Finance A....

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....1.2004. It is hard to believe that all the purported donors, who are unrelated will file their return of income on the same date i.e. 08.11.2004 and showing identical income of Rs. 52,400/-. It is also not amenable to reason and logic that a person having limited income of Rs. 52,400/- would gift an amount of Rs. 1,00,000/- to an unrelated person." For the reasons given above and relying on certain judicial pronouncements as discussed in the impugned order, the Ld. CIT(A) confirmed the addition made by the AO u/s 68 by treating the gifts claimed to be received by the assessee as unexplained cash credit. Aggrieved by the order of the Ld. CIT(A), the assessee has preferred this appeal before the Tribunal. 5. I have heard the arguments o....