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2012 (5) TMI 599 - AT - Income TaxAddition u/s 68 - proof of gifts received - Held that:- Behavior of Smt. Swaran Kanta clearly shows that she has been investing her money prudently and keeping the same in the bank. When no cash has been withdrawn how she could have made a gift of ₹ 2.00 lakhs. In any case, an educated person like a Lecturer having a bank account would not have made gift in the form of cash. Applying the test of human probabilities as enunciated in the case of Hon'ble Supreme Court in the case of Sumati Dayal V. CIT, (1995 (3) TMI 3 - SUPREME Court) it is difficult to accept this gift. Considering the overall circumstances, we are of the opinion that the ld. CIT(A) has correctly held that gifts are not genuine and according we confirm his order. Unexplained capital introduced CIT(A) has correctly disbelieved the story of accumulation of cash which has been made by the assessee just to explain the introduction of cash. If the assessee was really rendering tuition the money would have been deposited in the bank or at least some expenses on account of personal expenses have been shown. Therefore, we confirm the order of the ld. CIT(A). Addition u/s 40A(3) - Held that:- The payments made by the franchisee-distributor to the principal are only on his (the latter's behalf); it being only entitled to a commission for the services rendered. The question of no separate payment being made by the payee-principal to the payer-agent, i.e., toward the remuneration or commission. Thus the provision of s. 40A(3) was found as not applicable in the facts and circumstances of the case. See Koottummal Groups V. ITO [2011 (6) TMI 502 - ITAT COCHIN] - Decided in favor of the assessee
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