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2015 (9) TMI 389 - BOMBAY HIGH COURTAdditions u/s 68 - Maturity proceeds of RIB shown as gifts from unrelated Non Resident India - satisfactory explanation with regard to its nature and source questioned - Held that:- Assessee had led evidence to establish the capacity of the donor. This was evident from the fixed deposit certificates as well as bank statements pertaining to the period when subscription was made to RIB Bonds by the donor. Insistence on the part of the revenue seeking to examine the financial capacity of the donor in the previous year relevant to the subject assessment year is in the present facts uncalled for. This is so as his present capacity will not determine his capacity at the time of purchase of the RIB Bonds. Two authorities have come to a concurrent finding of fact that the capacity of the donor to make the gift stands established on the basis of the documents which were placed before the Assessing Officer. This finding of fact with regard to capacity of the donor has not been shown to be perverse. Revenue could not dispute the concurrent finding of the two authorities that the gift was received from an NRI who had originally subscribed to the RIB Bonds. These bonds were transferable and in fact transferred to the respondent assessee by making a necessary declaration in that regard with the State Bank of India. So far as the other objection of the revenue that the decision of the Allahabad High Court in Kanchan Singh [2008 (5) TMI 641 - ALLAHABAD HIGH COURT] would have no application to the facts of the present case is not acceptable. The decision also dealt with gift made of RIB Bonds and it was held therein that capacity of the donor has to be examined with reference to the time when the donor subscribed to RIB Bonds and not its capacity at the time of the maturity of the RIB Bonds. Thus the issue arising for our consideration is essentially a question of fact. Two authorities have reached a concurrent finding of fact on the basis of evidence produced before them that the amount of proceeds on the maturity of RIB Bonds was not hit by Section 68 of the Act. This view is reasonable and possible on the basis of the evidence on record - Decided against revenue.
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