TMI Blog1987 (3) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... ersons who gifted the money were not assessed to tax. Some of the gifts had been received by drafts. Theses drafts were issued by New Bank ofIndia, Mawna and though they were in different names, they were stated to have been obtained by one Shri Subhash Chander, who had signed the applications. The assessee was asked to produce these persons for examination. After some time the assessee wrote a letter to the ITO on 11th Feb., 1980 stating that the assessment was time-barring assessment and as the donors were residing outside Delhi and places like Alwar and Meerut. it was not easy to produce all of them within this period. The assessee, therefore, stated that she had decided to buy peace by surrendering certain amounts of gifts totalling to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of Rs. 50.000. The CIT(A) noted even before him the authorised representative of the assessee, who expressed his inability to comply with the request of producing the parties and substantiate the gifts, the CIT(A) did not agree with this was not a fit case for penalty and he, therefore, held that the assessee had concealed her income. As the alleged donors were not genuine persons and had not donated the amounts. The identity of Shri Subhash Chander was not established in spite of repeated requests. The CIT(A) held that the assessee had offered initially a false explanation and surrendered only because she could not substantiate her claim. 4. Before us the ld. counsel for the assessee submitted that it is normal practice that on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... willing to produce as many donors as the ITO wanted to be produced. The assessee asked for the necessary date. A request was made that these persons may be called under s. 131 of the IT Act and they may be examined. The assessee offered to pay their cost. It was also pointed out that it was difficult for some of the donors to come in the specific date and some time may be allowed for their appearance. Referring to the earlier offer, the assessee stated in para 10 of her letter as under: "10. In para, 3 of your letter you also referred to the proceedings dt.11th Feb., 1980. In these proceedings, the assessee wanted to seek peace and to avoid multiplicity of proceedings and thus agreed to surrender 13 items. It was never the case of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some further amount and agreed to be assessed on an income of Rs. 50,000 inclusive of the income already returned. It was stated that these amounts were surrendered with a conviction that there would be no charge of interest or penalty in respect of the amount surrendered. Our attention was also drawn to the fact that the assessment was made assessee moved the ITO for waiver of interest as agreed to between the ITO and the assessee. 5. The ld. counsel further submitted that the receipts were by drafts or cheques and the cash receipts were only Rs. 6,000. Thus, the receipt were through banking channel and there is no allegation that there were credits in those bank accounts immediately before the gifts were given. It was further submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment that had taken place so that he could defend the case. We have considered this case. While coming to our conclusion, we have considered the facts of the case and the final arguments. The salient features of this case are that the total amount of gift which had been given at the time of marriage were Rs. 1,85,881, The most of these gifts have been accepted by the ITO. Though the disputes was raised about several items, the ITO specifically referred to items totalling to Rs. 10.700 in respect of which he was not satisfied. In respect of gift to the extent of Rs. 1,33,000 the ITO has found that they had come from person who were taxpayers. In respect of others, where the total gifts were Rs. 52,888 the donors were not assessed to tax. Aff ..... X X X X Extracts X X X X X X X X Extracts X X X X
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