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2017 (6) TMI 451 - AT - Income TaxAddition u/s 68 - genuineness of gift - eligibility of donor - occasion for gifting - Held that:- Since, the donor is an NRI, it may be practically impossible for him to travel to India for the recording of a statement and the assessee cannot be made to suffer on that account. The donor has referred in his affidavit to the help extended to the donor’s family in his childhood by the father of the donee as a reason for the gift but the Ld. CIT (A) has confirmed the addition on the footing that there was neither any occasion for the gift nor was there any quid pro quo on the part of the assessee- donee. This again, in our opinion, is not a cogent reason for disbelieving the assessee. Further, the department has not demonstrated with any cogent evidences as to how the contentions of the assessee were incorrect. Thus, it is our considered opinion, that on the facts of the case, the assessee had discharged his onus and the onus was on the department to demonstrate with ample evidence as to why the contentions of the assessee were to be disbelieved. Therefore we set aside the order of the Ld. CIT (Appeals) on this issue and direct the AO to delete the addition. - Decided in favour of assessee Disallowance of mould repairs and maintenance - Held that:- The assessee has produced copies of invoices/bills of the various amounts debited to the head ‘mould repair and maintenance’ and it is evident that most of the bills pertain to welding charges. The amounts paid towards welding charges range between ₹ 3000/- and ₹ 12,000/-. The assessee has also produced a copy of the ‘Moulds’ ledger account under fixed assets which shows purchase of ₹ 1,08,000/- against Bill No. 1264 on 15th of June 2004 which has been duly capitalised by the assessee. The assessee has also filed copies of assessment orders for assessment years 2013 – 14 and 2012 – 13 passed under section 143 (3) and has submitted that no such disallowance was made in these respective assessment years. Thus this addition also needs to be deleted as the assessee has been able to demonstrate that these expenses were essentially of revenue in nature and pertained to day to day repairs of the mould and not in the nature of capital expenditure as contended by the Department. - Decided in favour of assessee
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