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2010 (9) TMI 853 - AT - Income TaxRevision under 263 - Order of AO erroneous and prejudicial to interest of revenue acceptng the genuineness of the claimed gifts - Held that:- To establish the genuineness of the claimed gifts the assessee had furnished all the possible documents and the donors Shri Radhey Lal Gupta, Shri Madan Lal Gupta, Shri Om Prakash Garg and Shri Shiv Prasad Gupta were also summoned, their statements were also recorded wherein they have confirmed the claimed gifts donated by them. Their affidavits were also filed in confirmation except in case of Shri Gopal Ram Gupta who died in between. There is no dispute about the identity of these donors. It has also not been denied that gift amounts have been paid through banking channel. Some of the donors in support of their source of income have furnished bank statements and some have furnished pension papers to support their source of gifts, their relations with the assessee also not in dispute. Under these circumstances, find no reason to agree with the allegation of the CIT against the AO that AO has completed the assessment on issue without making proper enquiry and without applying the correct legal provisions. In view of Max India Ltd. (2007 (11) TMI 12 - Supreme Court of India) and Malabar Industrial Co. Ltd. (2000 (2) TMI 10 - SUPREME Court) when an ITO adopted one of the courses permissible in law and it has resulted in loss of revenue or where two views are possible and ITO has taken one view with which the learned CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the Revenue, unless the view taken by the ITO is unsustainable in law. In favour of assessee.
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