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2015 (6) TMI 519 - AT - Income TaxUnexplained expenditure u/s.69C - the amounts remitted toward the father’s medical treatment - Held that:- There is no doubt in the present case as to the source; the assessee’s sister, Ms. Hapiping C. Chiang, who is working with Canadian Trust Company, having adequate income/ capital. It is the nature of the credit, however, that the assessee has not been able to satisfactorily prove, so that to that extent it becomes an unexplained credit. In fact, ‘gifts’ are considered as income, i.e., generally, only on account of the inability to explain or substantiate the nature of the sum credited, which includes the credit to, as in the instant case, the assessee’s capital account, even as there is little to doubt qua its source. Thus once there is an unexplained credit, it is open to the AO to hold it as the assessee’s income and no further burden lies on the Revenue to show that it is from a particular source. To state differently, the credits would constitute a valid ground for including the same as income u/s. 68, that is, separate and distinct from that for being unable to prove or explain satisfactorily the source of the expenditure. - Decided against assessee. In sum, the facts and circumstances lead to an unmistakable conclusion of the assessee’s father being critically ill, and the assessee’s sister, living far away, showing her concern and responsibility toward her father as well as appreciation for her brother in looking after him - her father, with whom he was staying, and being in a position to, contributing thereto as her moral obligation. We, accordingly, confirm the addition of ₹ 8,85,102/- found credited to the assessee’s capital account in his accounts as his income for the foregoing reasons.
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