2006 (9) TMI 166

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....1. This appeal has been preferred by the assessee proposing the following substantial questions of law arising out of the order dated January 19, 2005, passed by the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, "the Tribunal") in I. T. A. No. 503/Chandi/2001, in respect of the assessment year 1997-98: "A. Whether, on the facts and circumstances of the case, the Income....

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.... about the business of the donor. The statement of the father of the donor, Shri Mukhtiar Singh was recorded and it was found that the gift was not genuine. On appeal, the Commissioner of Income-tax (Appeals) reversed this view taken by the Assessing Officer. On further appeal, the Tribunal set aside the order of the CIT(A) relying upon the judgment of this court in Lal Chand Kalra v. CIT [1981] 2....

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....dings recorded by the Tribunal. 5. A gift is generally given out of natural love and affection and without any consideration, which necessarily denotes the closeness between the donor and the donee. It can be given either on some occasion or to help a relative or friend. To see the genuineness of a gift, the test of human probability is the most appropriate. A gift cannot be accepted as such to....

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....was merely working as a watchman in a foreign country who gifted a sum of Rs. one lakh each to the assessee, two sons and two other family members, which is highly improbable. Further, as regards the relation of the assessee with the donor is concerned, the evidence on record put in by the assessee is contradictory. When the assessee was asked to inform the name of the donor, he did not know the s....