AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2009 (7) TMI 56
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed in concurring with the findings of the authorities below in treating the genuinely given gifts duly affirmed by way of affidavits, gift deeds, independent confirmations by the donors to the AO of the appellant and by filling copies of their respective Bank Accounts thus fulfilling all the three ingredients of a genuine gift of establishing the identity, creditworthiness and genuineness of a transaction, so that so the orders of the ITAT is bad in law and perverse and thus needs to be quashed." 2. The assessee claimed certain gifts but the Assessing Officer made addition to the declared income by treating the alleged gifts to be income from undisclosed sources. The said additions were confirmed on appeal by the CIT(A) as well by the Trib....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee had not discharged initial onus to produce the necessary evidence to support the genuineness of the transactions. The donors in their statements had denied to have given any gifts to Smt. Kusum Lata Thukral, the assessee. They have denied even the acquaintance with the assessee. They have also denied to have made the deposit of cash in their accounts and issue of drafts for the purpose of gifts. The ld. AR of the assessee has stated that the gifts received by the assessee are supported by the gift deeds, their affidavits and confirmations filed by donors in response to summons issued u/s 131 of the Act. We have gone through the gift deeds and affidavits. In case of gift deed alleged to have been signed by Smt. Neelam Arora, we....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lleged gifts through the accounts of the persons, who were not aware about the deposit of money in their accounts and purchase of bank drafts in favour of the assessee. 10. Hon'ble jurisdictional High Court in the case of Tirath Ram Gupta Vs. CIT (supra) has held that a gift is generally given out of natural love and affection 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 be genuine merely because the amount has come by way of a cheque or draft through banking channels unless the identity of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the case before us. Accordingly, we do not find any infirmity in the order passed by the ld. CIT (Appeals) confirming the addition of Rs.10,00,000/-as undisclosed income of the assessee." 6. It is clear from the above finding that there was no relationship between the donors and the assessee and there was no natural love and affection. The Tribunal has followed the judgement of this Court in Shri Tirath Ram Gupta Vs. CIT 304 ITR 145 (P&H), laying down that in absence of natural love and affection, the gift could not be accepted as genuine. 7. The above being undisputed position, mere fact that the assessee produced the confirmations of the gift deeds and the assessee was not allowed opportunity to cross-examine the donors, who disow....
X X X X Extracts X X X X
X X X X Extracts X X X X
....persons whose statements were recorded by him, before passing the assessment order under section 143/147 of the IT Act, 1961, on 31st March, 2004. The action of the AO was unacceptable in law. Naturally, there was nothing wrong upto the stage of recording the statements of the 4 persons referred to above. The proceedings conducted by the AO after recording the statements of aforesaid individuals, are liable to be set aside. The same alone are, therefore, set aside. It will be open to the AO to re-initiate the proceedings from the aforesaid stage if he is still of the same opinion. In the aforesaid eventuality, any further action taken by the AO would inevitably require him to allow the respondent assessee to cross-examine all the four witne....