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2017 (11) TMI 1428 - HC - Income TaxRevision u/s 263 - AO accepted the factum of gifts without making any further inquiry - Held that:- Clearly an inquiry had been conducted by the Assessing Officer on the material aspect of the transaction. The identity of the donors, as also the genuineness of the transaction and the creditworthiness of the donors had been questioned by the Assessing Officer. As to the identity of the donors and genuineness of the transaction there is no dispute and the CIT has also not doubted the correctness of the approach for the finding reached by the Assessing Officer. The only doubt that has been created is as to the creditworthiness of the donors. In this regard we find that the Assessing Officer had questioned the donors as to the source of money from which the gifts had been made to the assessee. The donors on their part explained that the money had come to them upon sale of certain properties. Thus, the inquiry had been made by the Assessing Officer and the conclusion drawn by him is consistent with the information provided by the donors. It cannot also be lost sight of that the amount of donation is only ₹ 75,000/- for each gift. Thus, the total disputed amount is only ₹ 1,50,000/-. Thus where certain inquiry appears to have been made pertinent to the issue in hand and the conclusion drawn by the Assessing Officer was consistent that the material that came on record as a result of those inquires and the total amount itself be small, we find that in view of the judgment in the case of Krishna Capbox(2015 (3) TMI 17 - ALLAHABAD HIGH COURT), the reasoning of CIT that further inquiry should have been conducted by the Assessing Officer cannot be sustained. - Decided in favour of the assessee and against the revenue.
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