Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (12) TMI 1037 - ITAT DELHIUnexplained investments - assessee alleged to have receipt it as gift - Non establish relation between the donor and the assessee with documentary evidence - addition made by the AO was non furnishing of requisite document during the assessment proceedings - DRP held that, since the basis of addition made by the AO was non furnishing of requisite document during the assessment proceedings, the panel, in the interest of natural justice and with the objective to arrive at true determination of taxable income of the assessee, considers it appropriate to take the additional evidence filed by the assessee on record - HELD THAT:- We have given credence to the following facts like Copy of UK passport of donor to prove his identity, date of birth and age of 72 years, Details of his personal residence and complete residential address, Copy of duly signed letter of confirmation from the donor stating that he had gifted a sum to his sister's son i.e. the assessee on 22.12.2015 to prove the genuineness of the transaction. A perusal of the bank statement of the assessee showing receipt of funds, also showing the details of remittance received by the assessee in his NRE account on account of said gift. Documentary evidence to prove that the assessee and donor are both UK citizens and non-residents and thus the documentary evidence to support and substantiate documents generally applicable in India such as gift deeds were neither relevant nor executed between them. A signed letter of confirmation was submitted before the AO. Details of PAN of donor in India to prove his identity and credit worthiness, Details of investments held by Donor in India in Bharti Airtel which were sold for approximately Rs. 2150 crores in 2005 to prove his credit worthiness. The relationship between the assessee's mother and the donor was established with a joint reading of the said affidavit along with the copy of Indian passport of the assessee's mother Smt. Sumi Malik. Copy of assessment order u/s 147/143(3) framed by colleague of the Ld. AO himself duly scrutinizing and accepting the sale of investments by the donor in AY 2007-08. In the instant case, the sale of investment being considered was to the tune of Rs. 19,80,37,899 as against gift of Rs. 6.87 crores, to establish the credit worthiness of the donor. Copy of ITRs of the donor for AY 2016-17 and 2017-18 declaring income of Rs. 4,12,79,631 and Rs. 20,11,631 respectively to establish the credit worthiness of the donor. Hence keeping in view in the facts narrated above, we hold that no addition is called for in this case.
|