2023 (1) TMI 852 - AT - Income Tax
Addition u/s 68 - information received in IDS system that the assessee has made huge cash deposit in her bank account - HELD THAT:- Assessee vehemently tried to justify that the assessee was having sufficient cash balance of Rs. 6,75,000/- on 16/06/2009. Assessee has received a gift of Rs. 3.50 lacs from her bother in law. To substantiate the genuineness of such gift, assessee filed confirmation of donor. In the confirmation, the donor has confirmed that such gift was given to assessee to meet out the education expenses of her daughter in law.
AO has not investigated fact independently before disallowing the claim of Gift from close relative. Considering the confirmation of the donor we allow the Gift as genuine.
So far as other deposits and withdrawal of cash is concerned, the explanation given by the assessee does not inspire confidence, as the assessee on one hand took stand that the money was deposited for the education of her daughter in law and on other hand that her son was remitting money to her. However, still keeping in view the age, status and family back ground of the assessee, further allow benefit of doubt of Rs. 2.00 lacks, which the assessee may have received from her close relative and other family member on various occasions. Thus, the assessee is given further relief of 5.50 lacks and remaining addition of Rs. 4,88,785/- (10,38,785 – 5,50,000) is upheld. In the result, the original ground No.1 of the appeal is partly allowed.