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2016 (11) TMI 1039 - AT - Income TaxUndisclosed gifts - Held that:- We are of the view that in the absence of anything to show that the transaction was by way of money laundering, additions could not be made towards gifts when the assessee has discharged his burden by proving the identity, genuineness and capacity of the donor. We further opined that gifts are normally made by relatives through natural love and affection and do not necessarily require any particular occasion. In the present case on hand, the assessee has discharged his burden by furnishing necessary details before the Assessing Officer. The Assessing Officer has summoned the donor and the donor has personally appeared before the Assessing Officer and admitted that he had given gifts to his brother. Under these circumstances, we are of the view that the Assessing Officer was not correct in coming to the conclusion that the assessee has not discharged genuineness of the transactions and capacity of the donor. Therefore, we direct the Assessing Officer to delete the additions made towards alleged gifts of ₹ 15 lakhs for the assessment year 2009-10, ₹ 22,90,000 for the assessment year 2010-11 and ₹ 43,00,789 for the assessment year 2011-12. In respect of the remaining amount of ₹ 21,16,611 for the assessment year 2011-12, we deem it appropriate to send the issue to the file of the Assessing Officer and direct the Assessing Officer to verify the claims made by the assessee with regard to sources of ₹ 21,16,611 and take appropriate decision in accordance with law.
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