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2014 (8) TMI 632 - HC - Income TaxRevision order passed by CIT u/s 263 – Genuineness of gift – Onus to prove the identity of parties - Held that:- The Commissioner is empowered to exercise jurisdiction where he is satisfied that the order of the AO is erroneous in so far as it is prejudicial to the interests of the Revenue - Following the decision in Malabar Industrial Co. Ltd. v. CIT [2000 (2) TMI 10 - SUPREME Court] - the pre-requisite to exercise of jurisdiction by the Commissioner suo motu under it, is that the order of the Income-tax Officer is erroneous in so far as it is prejudicial to the interests of the Revenue - Mere identification of the donor and showing the movement of the gift amount through banking channels is not enough to prove the genuineness of the gift - Since the claim of gift is made by the assessee, the onus lies on him not only to establish the identity of the person making the gift but also his capacity to make a gift and that it has actually been received as a gift. Relying upon Tirath Ram Gupta v. CIT [2006 (9) TMI 166 - PUNJAB AND HARYANA HIGH COURT] - a gift cannot be accepted as such to be genuine, merely because the amount has come by cheque or draft through banking channels, unless the identity of the donor, his creditworthiness, relationship with the donee and the occasion are proved - Unless the recipient has proved the genuineness thereof, the gift can very well be treated to be an accommodation entry of the assessee's own money, which is not disclosed for the purpose of taxation - The Tribunal has fallen into an error while setting aside the order of the CIT asking for fresh assessment - However, there is no dispute of the fact that the donor, Smt. Kamlesh Ahuja, was the real aunt of the assessee and the amount of ₹ 1 lakh, as gifted by her can only be excluded from the purview of fresh assessment proceedings – Decided in favour of Revenue.
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