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2010 (12) TMI 1083 - AT - Income TaxAddition made on account of difference in opening balance – Held that:- In the assessee’s paper book, there are several entries and assessee tried to explain that this difference exists from the year 1998-99 - these documents were not examined by Assessing Officer and even the CIT(A) has recorded his finding that the assessee could not explain – thus, in the interest of justice, let these documents be placed before Assessing Officer, so he can find out exactly whether the difference is explained or not and accordingly decide this issue – the matter remitted back to the AO Decided in favour of Assessee. Addition made u/s 68 of the Act – Addition of gift made – Held that:- The assessee received two gifts and the assessee has filed details in respect of said gift received with the Assessing Officer - in the case of Smt. Ritaben Hirpara, the papers should be examined at the level of AO and decide whether the donor has capacity or creditworthiness to give the gift - that they have substantial incomes but AO is free to note the creditworthiness of the donor - As regards to identity, genuineness of transactions both are established by assessee before the lower authorities - to ascertain creditworthiness of the donor the matter remitted back to the AO. Nothing has been brought in respect of creditworthiness of the donor except confirmation - This being a gift from a non-resident Indian and this document will not suffice to prove the three ingredients as mentioned u/s.s68 of the Act - assessee is only able to prove identity and genuineness of the said transaction but her capacity or creditworthiness of the donor, he has not made any attempt to file the details - the gift received from Mrs. Varshaben Patel having no relationship with the assessee and particularly that the creditworthiness of donor is not established and same cannot be accepted as explained - the addition of the gift upheld added as unexplained u/s.68 of the Act – Decided partly in favour of Assessee.
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