TMI Blog2011 (9) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... ing addition of Rs. 3,00,000/- u/s 68 of the I.T. Act as unexplained cash credit on account of gift received." 2. As is evident from the corresponding assessment order passed u/s 143(3) read with section 254 of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'], dated 07-10-2008, the issue had once gone upto the ITAT, Ahmedabad and vide order dated 01-12-2006 in ITA No.1631/Ahd/2006 (AY 2002-03), it was restored back to the file of the Assessing Officer ['AO' for short]. Consequence thereupon the case was again fixed for hearing. It was noted by the AO that the assessee had received total gifts of Rs. 3,00,000/- from three persons, viz., Malchand C Jat, Bhanupratap B Sarswa and Bhanwarlal B Ojha, of Rs. 1,00,000/- each. The assessee's main contention was that their PAN Cards, Bank Passbooks, Acknowledgements of returns along with declaration of deed of gift were filed before the Revenue authorities, therefore, the gifts were genuine. On the other hand, the Revenue Department had asked the assessee to produce those donors. Those donors could not be produced though a number of opportunities were granted to the assessee. Even in the second round of assessment proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case and materials on record, it is seen that during the original assessment proceedings and also in the fresh assessment proceedings pursuant to the order of Honourable ITAT, assessing officer has tried to make inquiry of donors from whom the gift has been received. However, it has been found by him that donors never resided at the addresses mentioned in the return of income, and assessee has also failed to give recent address of the donors. It is also seen that assessing officer asked assessee to give details relating to new address of donors during the course of fresh assessment proceedings but however, assessee did not make any compliance. In view of such facts, it is not possible to make proper verification of gifts received by assessee. Although, assessee has filed various details as mentioned above yet it is not possible to fully verify the genuineness and creditworthiness of donors thus, addition made by assessing officer is confirmed." This order of Ld. CIT(A) in now challenged before us. 4. From the side of the assessee, the learned AR Mr. Hardik Vora appeared and his main contention was that the Tribunal has observed that the Revenue should not shirk its responsib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that merely by filing income-tax return a transaction by itself cannot be accepted as a genuine transaction especially when a donor has to testify the genuineness of the transaction of gift. He has strongly pleaded to affirm the addition. 6. I have heard both the sides carefully. I have also perused all the orders delivered in the past. Since the learned AR has pleaded that the directions of the Tribunal were not adhered to by the AO, therefore, I deem it proper to reproduce some of the relevant observations of the respected Coordinate Bench as follows:- "11 Coming to the present case, it is revealed that the assessee, to discharge the onus put on him has furnished the gift-deeds duly confirming factum of gift executed by all the three donors, their PANs in support of the fact that all the three donors were existing income-tax payers, copies of acknowledgements, for all the donors for furnished their returns of income for Asst Year 2002-03 and copies of capital account and balance sheets of all the three donors for the Financial Year 2001-02 duly showing the factum of gifts given to the assessee and also the financial position of the donors. 12. In view of above facts, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notices u/s 131 could not be served. Rather, it was informed that efforts were made to contact them personally but they were not available at the given addresses. At that time as well the respected Coordinate Bench has commented that the stand of the Revenue can be accepted if it declares that PANs allotted to them were illegal and bogus. In the second round of proceedings that mystery has also been resolved and no ambiguity was left when on verification and on personal inspection it was found that the addresses given to the Revenue Department as per Income-tax returns filed or as per the addresses given for allotment of PAN cards were bogus. In any case, admitted factual position is that the donors were not produced by the assessee before the AO. This preliminary onus of production of donors for verification of genuineness of the gift was admittedly not discharged by the assessee. However, attempts were made from the side of the Revenue to trace them. Indeed, it is next too impossible to catch hold a person for income-tax proceedings if he is not available at the address provided to the Revenue Authorities. Rather, it was the duty of the assessee to inform the correct addresses of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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