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2014 (8) TMI 688 - PUNJAB AND HARYANA HIGH COURTGenuineness of gift - Whether the Tribunal is right in holding the gifts as genuine from 26 parties who were merely passing on the accommodation entries not only for the assessee but for other persons also – Held that:- An enquiry into the matter was got conducted and it was found that the donors were not financially capable to make the gifts of such huge amounts in favour of the assessee and they had no relations nor was there any occasion to make the gift - unaccounted cash of the assessee was first deposited in different accounts in an organized manner, from where transfer entries were given to the donors, who at the same time made entries in favour of the assessee by way of bank drafts - the cash was paid by the assessee for depositing the same in the respective accounts of the donors and the cheques/ demand drafts were obtained for the amounts claimed as gifts - The gifts were found to have been made without any occasion or out of love and affection and it were rightly considered by the AO as not genuine - The capacity of the donors had not been established because they were found to be persons of small means as compared to the assessee. Relying upon Tirath Ram Gupta v. CIT [2006 (9) TMI 166 - PUNJAB AND HARYANA HIGH COURT] - a gift cannot be accepted as such to be genuine, merely because the amount has come by cheque or draft through banking channels, unless the identity of the donor, his creditworthiness, relationship with the donee and the occasion are proved - Unless the recipient has proved the genuineness thereof, the gift can very well be treated to be an accommodation entry of the assessee's own money, which is not disclosed for the purpose of taxation - the Tribunal has fallen into error while ordering the deletion - the addition of the gift amount is maintained – Decided partly in favour of Revenue.
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