2022 (11) TMI 665

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.... [AO] u/s.143(3) of the Act on 30-12-2016. The sole ground urged before us is the confirmation of addition of gift of Rs.50 Lacs u/s 56(2)(vii) as made by Ld. AO. No other ground has been urged in the appeal. 2. The Ld. AR, drawing attention to the documents, assailed the impugned order confirming the addition and submitted that the facts would establish that there was constructive gift from the donor to the assessee. The Ld. Sr. DR controverted the arguments of Ld. AR and submitted that gift received by the assessee from donor is not covered under exception clause of 56(2)(vii). Having heard rival submissions, the appeal is disposed-off as under. Assessment Proceedings 3.1 The assessee being proprietor of rice mills was scrutinize....

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....essee's uncle confirmed the transaction of gift through his letter dated 05.12.2016 and the gift has been transferred by his son and daughter-in-law under his instruction for the welfare of the assessee and his family. The assessee also submitted that the ingredient of Sec.68 r.w.s. 56(2)(vii) were fulfilled and the gift received from paternal uncle comes in exception clause and the term 'relative' include paternal uncle. Regrading financial capacity of the donor, the uncle was stated to be assessed to income tax and owned many businesses. 5. However, Ld. CIT(A) held that the assessee did not submit any documentary evidence to prove that the son and daughter-in-law had the capacity to make the payment of Rs.50 Lacs to the assessee. Mere ....