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2012 (11) TMI 504 - ITAT DELHIIncome from Undisclosed Sources - Validity of Gifts - In the present case gift was made by unrelated donor to the assessee. There was no relationship between the assessee and the donor and no occasion was also specified for making the gifts. Furthermore, the Assessing Officer has noted that no evidence has been furnished with the original return of income proving the identity, creditworthiness and genuineness of the alleged gift.. Under the circumstances, the inference made by the authorities below that gifts were bogus is quite cogent enough. Burden is on the assessee to rebut the same, and, if he fails to rebut it, it can be held against the assessee that it was a receipt of an income nature. As decided in case of [Rajiv Tondon v. Asstt. CIT 2007 (7) TMI 40 - HIGH COURT , DELHI] held that:- The taxing authorities were entitled to look into the surrounding circumstances, which they did, and come to the conclusion that the gifts could not be said to be genuine. The reason offered by the assessee did not appear to be reasonable, much less acceptable. Therefore, there was no error in the view taken by the Tribunal.The burden is on the assessee to take the plea that, even if the explanation is not acceptable, the material and attending circumstances available on record do not justify the sum found credited in the books being treated as a receipt of income nature." There is no infirmity in the order of the lower authorities on this issue and accordingly, addition is sustained - In the result, Appeal filed by the Assessee stand dismissed. Penalty u/s 271(1)(c) – Held that:- Following the decision of court in case of [ Hindustan Steel v. State of Orissa 1969 (8) TMI 31 - SUPREME COURT] held that :- "An order imposing penalty for failure to carry out a statutory obligation is the result of a quasi-criminal proceedings, and penalty will not ordinarily be imposed unless the party obliged either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation. Penalty will not also be imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act, or where the breach flows from a bonafide belief that the offender is not liable to act in the manner prescribed by the statute." – levy of penalty is dismissed – in favour of assessee.
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