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2016 (7) TMI 103 - ITAT PUNEAddition u/s 68 - gifts received from two donors - bonafides and genuineness of gifts - Donors financial capacity to make the gift not established - Held that:- Statement of donors when read with underlying documents & return of donors etc. does not foster any confidence on the bonafides of the gift . Donors have meager resources to be assigned any capacity to gift such sizeable amount as claimed having regard to the capital available, yearly withdrawals made, yearly income generated etc. Gifts were given without there being any occasion to do so. Resources/capacity of donors for making such gifts does not exist at all. Such gifts by donors are clearly not befitting of a normal human conduct and are outside the bounds of rationality. Admittedly there is no blood relations between the donors and the assessee. The donors appear to be mere acquaintances. It is difficult to visualize that a person of this grim financial background will venture into giving a voluntary gift to the tune of ₹ 5 lacs or 7 lacs which is equivalent to his income of nearly 4 to 5 years. The purported gift would lead to almost total erosion of the capital of the person concerned. Apparently, the overall behaviour of the so called donors is thus very intriguing and does not accord with ordinary human conduct. When seen in totality, facts and circumstances are squarely against the assessee. Logical conclusion that follows from above is that the claim of receipt of gift from these 2 parties remains unproved and explanation offered in respect of credit towards gifts received is not credible or satisfactory. The credit in the form of gift is thus rightly assessed to tax as deemed income of the assessee. We also find merit in the alternative contention of AO that the Gift so made falls within the ambit of section 56(2)(v) which provides that the recipient of gift from a non-relative is assessable to tax. Assessee failed to show as to how section 56(1)(v) not applicable in the instant case. CIT(A) in our view, has rightly endorsed the contention of AO on applicability of S. 56(1)(v) also. - Decided against assessee.
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