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2010 (6) TMI 550 - AT - Income TaxGenuine or nongenuine gift – Addition of income of Rs. 30,00,000 - It is relevant to mention here that Mrs. Chandra Hingorani is not in any way connected to the assessee or to her family - Accordingly, the amount of gift of Rs.30,00,000/- is added to the income of the assessee as undisclosed income of the assessee and penalty proceedings for concealment of income are initiated separately - Gift, Its nature is credit in the hands of the donee because donee credited gift amount his/her capital account and being treated as own money/capital - The assessee is required to prove three important conditions, namely, (i) the identity of the creditor, (ii) the capacity of the creditor to advance the money, and (iii) the genuineness of the transaction - Apex Court in the case of CIT v Durga Prasad More (1971 -TMI - 6269 - SUPREME Court) and in the case of Commissioner of Income-tax v. P Mohanakala (22007 -TMI - 6558 - SUPREME Court) Two elements are essential in the gift, ‘giving’ and ‘taking - In the case under consideration gift is not given to relative, therefore, the burden is on the assessee to prove some element of bounty - In the result the Appeal of assessee is dismissed
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