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2007 (1) TMI 208 - AT - Income TaxAdditions made u/s 68 - Cash Credits - non maintenance of books of account - creditworthiness of the donors and genuineness of gifts - HELD THAT:- The finding of ITAT Ahmedabad in the case of ITO v. Dr. Jagdish J. Kansangara [1997 (9) TMI 134 - ITAT AHMEDABAD-A], squarely applies. It is apt to note that "a man may lies but the circumstances do not". No meters are available for examining the truth and correctness of statement made but the surrounding circumstances and the relevant fact will throw light on the genuineness or otherwise of any transaction. It is true that even stranger can give gifts and it is also held in some cases that there is no need for any occasion to give gifts. However, when all the circumstances like absence of relation, absence of occasion, no counter gifts, gifts from persons of no means to the so-called wealthy and influential persons etc., all put together lead to one and only conclusion that gifts are not genuine. A person who is speaking true will not shirk his responsibility as well as liability to say the same before any examining authority. In some cases a person may not be available instantly but why and in what circumstances he will not come forward to tell the truth should be demonstrated. None of the donors has stated any reason as to why they are not available for examination. The assessee has not been able to produce any such reason. Thus all the circumstances put together lead us to hold that the gifts are not genuine. It is seen that the assessee has prepared his statement of affairs. A statement of affairs is nothing but a balance-sheet of a person as on a particular date. Such statement can be prepared only from the books of account. Thus firstly it is incorrect on the part of the assessee to contend that he is not maintaining any books of account. The statement of affairs prepared is testimony of the same. Such statement also includes the receipt of gift. Thus once it is found that the gifts are not genuine and such gifts explain assets held by the assessee, the amount has to be treated as undisclosed income of the assessee and liable to be added as income. Thus, we hold that the assessee failed to prove the creditworthiness of the donors and genuineness of gifts. Accordingly the addition in respect of alleged gifts is to be upheld. In the result, all the appeal is dismissed.
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