Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 7 - AT - Income TaxPenalty u/s 271(1)(c) of the Income Tax Act – Gift received from the foreign friends of the assessee - Assessee has received two credit entries in the bank account of the assessee amounting to Rs. 1 lakh and Rs. 5,46,575/- respectively from Amrit Dilawari and Shri Charanjeet P. Singh respectively - Held that:- It may be true that the assessee may not remember the full addresses but atleast the persons who is giving a sum of Rs. 1 lakh and Rs. 5,46,575/-, he should have known the State or city of U.S.A. where such donees were living, the assessee do not remember even that - This clearly shows that the gifts are bogus - Further a question was asked that on what occasion the gifts were given. The assessee had stated that the gifts were received because the assessee was in a great financial difficulty. This is totally wrong - Copy of bank statement has been filed by the assessee. First gift is shown to have received on 29.10.2002. On that date balance in the Saving Bank account was Rs. 42,17,965/- and in fact statement has been filed from period 10.8.202 before us throughout August to October, 2002 there has been a balance ranging from Rs. 40 lakhs to Rs. 58.95 lakhs. The second gift was received on 16.1.2003 and before receipt of gift, bank balance in same account is Rs. 12,33,939/- - Huge bank balance in the Saving Bank Account in the Financial Year 2002-03 clearly show that the assessee was not in any financial difficulty and therefore, it is clear that these are bogus gift - Explanation (1) to Section 271 (1)(c) would not be attracted – Fit case for levy of penalty – Decided against the assessee.
|