TaxTMI 
TaxTMI 
2024 (5) TMI 392
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.... the Revenue has raised the following grounds: - "1. Whether on the facts and the circumstances of the case, the Ld. CIT(A) erred in deleting the addition of Rs. 1,01,85,001/- made by the AO u/s 68 of the Act, since assessee hasn't furnished documents in order to justify the sources of gifts rendered by the gift rendered to the gift receiver as the onus lies on the assessee to prove its claim of gift. 2. Whether on the facts and the circumstances of the case, the Ld. CIT(A) erred in deleting the addition of Rs. 1,01,85,001/- made by the AO u/s 68 of the Act, since assessee has filed to satisfy all the three conditions viz. identity, creditworthiness and genuineness of the transaction in respect of the gifts received by the assessee?" 3....
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....shed a copy of the gift ledger as per his books of accounts and his bank statement for the period 01/04/2019 to 31/03/2020. During the assessment proceedings, the assessee also submitted that the gifts have been received from blood relations and out of their own source of income duly mentioned in the gift deed. As regards the creditworthiness of the gift givers, the assessee furnished the copy of their ITR and the computation of income. 5. The Assessing Officer ("AO") vide order dated 18/09/2022 passed under section 143(3) read with section 144B of the Act did not agree with the submissions of the assessee and held that the source of gift advanced by the gift givers to the assessee is unacceptable. The AO further held that the assessee has....
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....accounted has credit u/s 68 of the IT Act, 1961 and added back to the total income of the assessee as the sources of gifts rendered by the gift donors to the gift receiver couldn't be proved as the onus lies on the assessee to prove genuineness of its claim of gits received from the blood related Gift renders. Penalty proceeding 271AAC is also initiated separately for this act." 6. The learned CIT(A), vide impugned order, allowed the appeal filed by the assessee and deleted the addition made by the AO on the basis that the AO has made huge additions but has not made any reference with regard to identity, creditworthiness, and genuineness of the gift givers. The learned CIT(A) further held that the AO has not made any effort to rebut th....
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.... effort has been made to ascertain and examine capital available and also credit in the bank accounts. The appellant has submitted all possible documentary evidences and details as stated in above paras. in view of these facts the addition of Rs. 1,50,000/each in respect of unexplained gift from Urmila Dalal (Mother) and B.M. Dalal (HUF) is also deleted. - "The grounds of appeal are accordingly 'Allowed'." Being aggrieved, the Revenue is in appeal before us. 7. We have considered the submissions of both sides and perused the material available on record. During the year under consideration, the assessee received gift total amounting to Rs. 1,01,85,001 from the following parties:- Sl. No. Name of the party Amount (in Rs. ) Relatio....
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....orming part of the paper book on page 31, we find that Mr. Sunil B. Dalal earned a total income of Rs. 37,48,84,100 during the year under consideration. Therefore, we are of the considered view that Mr. Sunil B. Dalal had sufficient creditworthiness to gift Rs. 97,35,000 to the assessee. From the perusal of the assessment order, it is evident that the AO has also not disputed the creditworthiness of Mr. Sunil B. Dalal. Further, in view of the fact that the donor/gift giver is the younger brother of the assessee, the genuineness of the transaction cannot also be doubted in the facts of the present case in the absence of any contrary material being brought on record by the Revenue. 10. In respect of the gift of Rs. 1,50,000 received from Smt....
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....ear 2020-21, forming part of the paper book from pages 39-42, we find that Smt. Pragnya Shah had an interest income of Rs. 8,45,318, which resulted in a total income of Rs. 7,74,920 as per her return of income. Thus, we are of the considered view that in view of the aforesaid facts the creditworthiness of Smt. Pragnya Shah cannot be doubted to give a gift of Rs. 1,50,000 to the assessee. Further, in the absence of any contrary material being brought on record by the Revenue, the genuineness of the gift of Rs. 1,50,000 to the assessee by his sister cannot also be doubted. 12. As regards the gift of Rs. 1,50,000 received from B.M. Dalal HUF, it is the claim of the assessee that the karta of the HUF is his father, and the said HUF by way of c....