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2016 (9) TMI 380 - AT - Income TaxAddition in respect of gift receipt - genuineness of gift received from outside India - Held that:- In the matter of gifts, assessee is required to discharge the onus of submitting complete detail 'of gifts before the AO. He should have established (i) the identity of the donor; (ii) credit worthiness of the donor; (iii) genuineness of the transaction; (iv) occasion: (v) relationship of the donor and donee; (vi) evidence of natural love and affections. The human probability has to be considered as to why donor is prompted to give gift to the assessee. This question is required to be answered because as contrary to loan, in the case of gift, donor loses his hard earned capital in favour of the donee for ever whereas in the case of loan the creditor retains the right to recover the money from the assessee. Therefore, onus is heavier on the assessee in a case of gift as compared to the case of credit. In case of credit, if identity of the creditor is known and creditworthiness of the creditor is established then onus is shifted to the Revenue to show that credit is not genuine. But in the case of gift all the three ingredients are necessary to be established by the assesses and merely by giving evidence of identity and credit worthiness of donor, genuineness cannot be taken to be established automatically, 'therefore, test of human probability assumes importance so as to show that there were reasons which prompted the donor to forgo his hard earned capital in favour of the donee. In view of the above we hold that assessee has failed to prove that gift is genuine. Accordingly, we confirm the addition - Decided against assessee
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