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2015 (8) TMI 649 - AT - Income TaxAddition u/s 68 on account of gift received from NRI relative - Held that:- The assessee is a widow who has received a gift from her late husband's sister, who is an NRI based in Hong Kong. The gift was received on the occasion of her grand daughter's marriage. So far as the transaction of gift is concern, the same is evidenced from the bank statement of the assessee; remittance advice of Dena bank; bank statement of the donor, Smt. Kanakwari Nahata; foreign remittance advice issued by HSBC bank Hong Kong. It has been further brought on record that the money in bank account of the donor had come from M/s Keen Jade Ltd, a family owned concern, wherein the donor was one of the Directors, alongwith her husband and daughter-in-law. From the bank account of M/s Keen Jade Ltd, it is seen that on 5.2.2009 an amount of US$ 100,035. has been debited and has been credited to the bank account of the donor on 5.2.2009, itself. On the same date it has been remitted to the assessee's bank account in India. This fact is evident from the HSBC account of the donor. Thus, the flow of transaction and the financial capacity of the donor stands amply proved. Not only that, the assessee had also filed the Income Tax Return of M/s Keen Jade Ltd., wherein the donor has been shown as a Director of the Company. From all these details and evidence not only the genuineness of the transaction is proved but also the creditworthiness/ financial capacity of the donor. The assessee's primary onus has been discharged. Here, in this case, the donor is a close relative who has given the gift confirmation in a gift deed giving all the particulars of the gift to the assessee. The reasoning given by the ld.CIT(A) is purely based on hypotheses and premises, like the gift always needs to be reciprocal and why would younger sister-inlaw will give gift to elder sister-in-law without any reciprocity. Therefore, the findings of the ld. CIT(A) is reversed and the addition made u/s 68, stands deleted. - Decided in favour of assessee.
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