TaxTMI 
TaxTMI 
2007 (7) TMI 289
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.... of the assessment year 1997-98 upholding the addition of Rs. 4 lakhs on account of non-resident Indian gift given to the assessee. 2. At the hearing, it is claimed that the following two substantial questions of law would arise for determination of this court : "(i) Whether, on the facts and circumstances of the case, the hon'ble Tribunal was correct in law in confirming the addition of Rs. 4 lakhs received by the assessee/appellant as a bogus gift even though the same had been received through banking channels and it had been proved that the parties were known to each other? (ii) Whether, on the facts and circumstances of the case after having proved the credibility and capacity of the donor, it was further necessary for the done....
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.... children of the donor, his relatives and friends in Chandigarh. It was further held that the Assessing Officer did not bring on record any material to prove that the gift was not genuine and that the assessee had received the gift from a close friend on account of the assessee's ill health. The Commissioner of Income-tax (Appeals) also recorded his finding that the donor had the capacity to make the gift and, therefore, the genuineness of the gift could not be doubted. The Commissioner of Income-tax (Appeals) placed reliance on the judgment of the Tribunal in the case of R. K. Syal v. Asst. CIT [2000] 66 TTJ (Chd) 656 in (ITA No. 1165/Chd/1996), to support the conclusion that once the affidavit of the donor affirming the gift has been file....
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..... The assessee claims that the amount of Rs. 4 lakhs was donated by Shri Arun Wangoo for the treatment of the assessee due to his ill health. So, however, even before us, in response to a query from the Bench, learned counsel for the assessee fairly conceded that there is no evidence to establish that the assessee was suffering from any serious ailment which required financial assistance. Moreover, the assessee has also failed to establish the financial capacity of the donor to make the gift. The bank account filed at this stage does not establish the financial credentials of the donor. The bank statement placed on record reveals that the said account was opened on July 10, 1995, with the deposit of Rs. 1,00,300. A sum of Rs. 8,42,250 has b....
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.... established then a gift cannot be rejected merely on the ground that there was no occasion to make the gift. She has further submitted that there is evidence on record to prove beyond doubt the financial capacity of the donor. In that regard she has drawn our attention to the affidavit filed by the assessee to which reference has been made in the assessment order. 7. After hearing learned counsel and perusing the paper book, we are unable to accept the contention raised by learned counsel for the appellant-assessee. In paragraphs 13 and 14 of the order passed by the Tribunal, categorical findings of facts have been recorded that there was no occasion for the donor to make the gift and the plea of gift for the treatment of the assessee o....