TMI Blog2003 (8) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that it is a device to introduce assessee s unaccounted income in the form of gift". During the assessment proceedings the Assessing Officer found that the assessee has received gifts of Rs. 2,35,000 from the following parties : Rs. 20,000 7-2-1997 From Shri Champak S. Shah of USA from his NRE SB A/c No. 2288 with Bank of Baroda, Dudhia Talao, Navsari vide Cheque No. 858658 Rs. 50,000 22-3-1997 From Shri Vasant D. Shah, by cheque No. 646511 from his NRE SB A/c. No. 27242 with Bank of India, Khar Branch, Mumbai Rs. 50,000 22-3-1997 From Shri Vasant D. Shah, from the NRE Account No. 150 with State Bank of Hyderabad, Andheri Branch, Mumbai vide Cheque No. 616104 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given to you is only copies of gift declaration deed and the declaration need not be made on that date. There might be some mistake in the dates mentioned. What is material, however, is that the donor has parted with money and the donee has accepted. There is no need to make such writing on stamp paper as according to the provisions of transfer of property act, for transfer of movable property, no document is required. However, that by itself would not mean that the gifts become non-genuine. However, I would deal with the queries raised by you : ( i )Family history of two donors, their occupation, etc. is enclosed. ( ii )Shri Champak C. Shah has been staying USA since more than 25 years and I understand that he is having investment of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sources of money from which the donors have made the gifts. 5. I trust this meets with your requirements and it is not necessary for you to pursue the line on which you are thinking and considering as a device". The Assessing Officer did not satisfy with the explanation of the assessee and added Rs. 2,35,000 as unaccounted and unexplained money introduced in the form of gift with the following observations : "I have gone through the assessees arguments, however, I am unable to accept his contentions. The assessee does not consider the so called gift deeds as an important irregularly liable to be rejected as an after thought idea and action. It is true that the gift declarations are not to be made on the date of gift, but when the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransactions done with the banks also denote that the funds of the NRIs. Have been utilized by the assessee for converting his No. 2 money earned during the year under consideration. This is quite possible, because as stated and vehemently argued by the assessee, the non-residents are knowing to him since long, came together and accommodate him in this matter. Thus, giving of gift to the assessee by NRIs is not all accepted but the factum of accommodating the assessee in the adjustment of unaccounted income by way passing amount by cheques from the account of the NRIs to the account of the assessee in the guise of gifts is accepted in the facts and circumstances of the case. The preparing of gift documents subsequently in the old dates also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40 years. Also, the appellant is in constant and continuous touch with the family of the donors. In such circumstances, the genuineness of the gifts from two persons of Rs. 1,70,000 and Rs. 60,000 respectively cannot be doubted. Considering the overwhelming evidences produced by the appellant and after discussing the case with the Assessing Officer, I hold that the appellant had established that the gifts are genuine and the donors had the capacity to give the gifts. The Assessing Officer is not justified in adding the amounts of gifts as unexplained income of the appellant, without bringing any material on record to support such conclusion. The addition made by the Assessing Officer is hereby deleted". The ld. AR submitted that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. A.R. After considering the totality of the facts of the case we find that the assessee has proved by evidence and material the identity of the donors genuineness of the transaction and capacity of the donors. Under the circumstances the genuineness gifts cannot be added in the total income of the assessee. The donors are known to the assessee over 40 years and they were the same community. There is no evidence or material on record on which basis a contrary view can be taken that than the view taken by the CIT(A). In the light of the above discussion we do not find any infirmity in the order of the CIT(A). We therefore confirm the order of the CIT(A) whereas he deleted the addition of Rs. 2,35,000 on account of NRI gifts. 5. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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