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2017 (6) TMI 867 - AT - Income TaxAddition u/s 68- ingenue gift receipts - creditworthiness of the donors not proved - Held that:- The documents produced by the assessee to prove the creditworthiness of the donors itself showed that they did not have capacity to make the gifts, their respective capital and income earned during the year, as reflected in their balance sheet showing insufficient funds. Even the explanation of the assessee that they had liquidated their entire advances given to others to make the impugned gifts does not appear to be credible considering that no prudent person would liquidate his entire assets to gift it to somebody when there was no occasion to do so either and also considering the fact that the donors were ill and required treatment in hospitals and on medication. Addition made is warranted since after the assessee discharged its onus of proving the genuineness of the transaction by filing relevant documents, the Assessing Officer pointed out from the very same documents that the creditworthiness of the donors was not established, which we find the assessee has not been able to displace since no credible explanation was offered nor were the donors produced for cross examination when asked by the Assessing Officer to do so.- Decided against assessee. Addition on Long term Capital Gain by applying the section 50C - Held that:- In the case of the assessee transfer had taken place by virtue of agreement to sell only. Therefore, in the said case since no value has been assessed by the stamp duty value, therefore, provisions of section 50C of the Act would not apply in the case of the assessee. The word ‘assessable’ inserted u/s 50C of the Act w.e.f. 1.10.2009 would not apply to the assessment year under appeal i.e. assessment year 2009-10. Thus we are of the view that section 50C is not applicable in the present case and the addition made by the Assessing Officer by applying such provisions is, therefore, deleted. - Decided in favour of assessee.
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