TMI Blog2012 (1) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- made by AO on account of unexplained gift received by the assessee from his brother who is NRI. 4. The assessee received gift of Rs. 55,00,000/- during the year under consideration through Demand Draft issued from NRI account of the donor who is brother of the assessee. The assessee was asked to furnish complete details of donor and to prove the creditworthiness and genuineness of the donor and also transaction. Assessee furnished a certificate issued by his brother Shri Abbas Ali. The AO found that certificate was not in a proper manner and in his view this was a fabricated. The AO noted that the same person Shri Abbas Ali had given an affidavit dated 13.11.2006 in search assessment proceedings and the signature in the present cert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be some difference in signature. However, the fact is that assessee had received the amount of gift through Demand Draft. Copy of passport of assessee s brother is also placed in the paper book at page 72. Copy of affidavit is placed at page 77. 6. On the other hand, the ld. D/R has placed strong reliance on the orders of the AO and ld. CIT (A). 7. After considering the submissions and perusing the material on record, we find that assessee deserves to succeed in this ground. It is seen that the amount gifted was received through proper banking channel. The details of gift received by assessee is tabulated at page 4 of order of ld. CIT (A). It is seen that the demand drafts were deposited in bank account of the assessee being bank acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is on record. Statement recorded in the subsequent year is also on record. Copy of passport is on record. All the details of business done by Shri Abbas Ali are mentioned in the affidavit. Therefore, in our considered view, all these details are sufficient to prove that the gift was genuine. Various case laws relied upon by ld. A/R mentioned in the written submission are in support of the case of the assessee. Therefore, we hold that gift was genuine. Accordingly, addition of Rs. 55,00,000/- is deleted. 8. Remaining ground in appeal of the assessee is against confirming addition of Rs. 2,00,000/- out of total addition of Rs. 9,94,149/- made by AO on account of difference between the actual sale consideration and the value adopted for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, considering that there are chances of on money payment in purchase as well as sale of the land and also considering that assessee may have received some on money on sale, the ld. CIT (A) found that it will be reasonable to restrict the addition to Rs. 2,00,000/- in the hands of the assessee. Accordingly, the ground of the assessee was allowed in part. 14. After considering the orders of the AO and ld. CIT (A), we find that assessee deserves to succeed in his ground whereas there is no substance in the ground of the department. Undisputedly, the assessee has sold business asset, therefore, provisions of section 50C are not applicable. There is no material to hold that over and above money has been received by the assessee. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income at Rs. 2,00,000/- against declared income of Rs. 1,41,275/- and thereby made an addition of Rs. 58,725/-. Similarly following the order for assessment year 2006-07, the ld. CIT (A) deleted the addition. Again we find that ld. CIT (A) has followed the decision of his predecessor for the assessment year 2006-07 and nothing was brought on record whether the appellate order for A.Y. 2006-07 was challenged before the Tribunal or not. Therefore, we see no reason to interfere with the finding of ld. CIT (A) on this account also. Accordingly the order of ld. CIT (A) is confirmed. 23. Ground No. 3 is against deleting addition of Rs. 42,882/- out of total disallowance of Rs. 1,07,206/-. 24. The AO made disallowance of Rs. 1,07,206/- out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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