Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (5) TMI 924 - AT - Income TaxAddition u/s 68 - Gift received by the assessee from his brother in USA - Deemed unexplained income of partnership - creditworthiness of the donor - HELD THAT:- We have considered the issue. Without going into the legalities of the addition made by the A.O. u/s 68, we are of the opinion that there was no case for treating the gift received by the assessee from his brother in USA as unexplained income of the assessee. As seen from the facts available on record the assessee’s brother is also partner in various firms in India and he has substantial capital towards his credit in India. The assessee’s brother is also filing returns in India on the profits from firms and other incomes earned in India. As seen from the bank account furnished the assessee has large amount of credit as opening balance which was ignored by the A.O. in coming to the conclusion that the credits are only to the extent of US$16,500/- whereas the gift was to the extent of US $35,000. The opening credit of the month itself was about US $27,466. In view of these facts, we are of the opinion that the donor has creditworthiness to gift the amount to his brother and accordingly, the order of the CIT(A) is upheld. In the result, appeal of the Revenue is dismissed.
|