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2014 (3) TMI 493 - AT - Income TaxGenuineness of the Transaction - Claim of gift was received through banking channels – Held that:- Held that:- On considering the particulars of the bank account from which the gift was given it was disclosed that the amount had been transferred from Account No. 3401 of the very same branch on the very same date - the account was in the name of Usha Motor Company and from the account two cheques transferring the amount were transferred in the names of Shri Sunil Kumar Garg and Shri Om Prakash - On the basis of the cumulous facts it was concluded that no amount has been given as gift and in-fact Shri Sunil Kumar Garg and the other persons were engaged in the business of providing accommodation entries on commission basis to various persons - these facts have been confirmed by the ITAT in the quantum proceedings passed in the case of both the assessees – Relying upon CIT vs Orissa Co-operation Ltd. [1986 (3) TMI 3 - SUPREME Court] - the bank account of the donor was operated only with the view to furnish accommodation entries has also been confirmed by the ITAT. The assessee is not required to prove the source of the source, but the primary onus of proving the gift to the genuine by adducing satisfactory evidence about three primary conditions lies on him, which remains undischarged - As a matter of fact, the evidence by way of bank account of the donor, collected by the AO and confronted to the assessee, directly proves the gift to be non-genuine – thus, the addition of the amount to the total income of the assessee upheld. Penalty u/s 271(1)(c) of the Act – Held that:- Whether penal action has rightly been invoked or not is a matter of fact - The principle of law laid down where the genuineness of the gift has been accepted is a distinguishable fact which is not present in the facts of the present case – there is no reason to interfere in the findings arrived in the order – Decided against Assessee.
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