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2014 (12) TMI 641 - HC - Income TaxValidity of addition u/s 68 – Amount claimed to be exempted as gift received from non-resident Indians - Genuineness of transaction not proved by assessee - Held that:- The Tribunal was rightly of the view that these two persons are not related to the assessee - They are residing in two different countries - one in Dubai and the other in Singapore - There is no business relation or any other blood-relation between the assessee and these donors and there is no explanation as to why these two unknown persons, who are infact strangers, would give such a huge amount to the assessee as 'gift' - a simple 'gift-deed' on a plain paper has been placed on record and under normal circumstances such a 'gift-deed' can be accepted - However, ongoing through the 'gift-deed', the Tribunal found that no witnesses are there to identify the execution of the 'gift-deed' in accordance with law - The execution of the 'gift-deed' is not established in accordance to the requirement of law as may be applicable in the countries where the 'gift-deed' is executed. Originally in the transaction there is no mention of the word 'gift', but thereafter the word 'gift' has been added by way of interpolation – Tribunal rightly relied upon Commissioner of Income-Tax Versus P. Mohanakala [2007 (5) TMI 192 - SUPREME Court] - for the purpose of applying the provisions of Section 68 of the Income Tax Act, apart from there being a proper identity of the creditor and his credit-worthiness, the genuineness of the transaction should also be established - genuineness of the transaction is not established by the assessee – thus, the Tribunal has given cogent reasons for disbelieving the transaction and for holding that the transaction does not amount to a 'gift' – as such no substantial question of law arises for consideration – Decided against assessee.
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