TMI Blog2011 (9) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... nd kept the money with him for assessee for five years. Dedcided against assessee. - TAX APPEAL NO. 52 OF 2010 - - - Dated:- 23-9-2011 - PRAKASH TATIA, P.P. BHATT, JJ. B. Poddar, Deepak Sinha and Piyush Poddar for the Appellant. Deepak Roshan and Amit Kumar for the Respondent. JUDGMENT Prakash Tatia, CJ Heard learned counsel for the parties. 2. This appeal is directed against the order dated 20.5.2010 passed by Income Tax Appellate Tribunal, Circuit Bench, Ranchi, (hereinafter referred to as ITAT) in I.T.A. No. 29/Ran/2009 for the assessment year 2005-06, by which ITAT has partly allowed the appeal vide order dated 20th May, 2010. The A. O. in the assessment order has made addition of Rs. 8 lakhs in the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the reasons given by the A.O. in details and thereafter held that because of the several reasons, the genuineness of the transaction is not proved and therefore, the gift cannot be recognized and the gift in fact has not been taken into effect. 4. Learned counsel for the appellant vehemently submitted that it is a settled law that the assessee can give the details of the donors for identifying him and give particulars so as to put the same before the Assessing Officer, which he did. It is none of the obligation and duty of the assessee to prove to the sources of the funds of the donor and search out from where he got the money. In this case the donor was a retired employee from a Company having bank accounts and he produced copy of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is creditworthy or not? and after considering the facts of the case we are of considered opinion that the Tribunal has not committed even error fact or error of law. The Assessing Officer has carefully examined the evidence produced by the assessee as well as his father-in-law, who appeared in response to the summoning of the Assessing Officer and who also submitted the documentary evidence as well the affidavit. After submission of the documentary evidence and affidavit, the Assessing Officer was supposed to decide the case according to the evidence available on record to find out the genuineness in the claim of the assessee, whether it is a gift or not as well was required to find out whether there is creditworthiness of the donor or not? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel than it will ultimately lead to holding that after admission of the such person (donor in this case) no inquiry with respect to creditworthiness of the donor could have been conducted by the Assessing Officer. In a case where there is reasonable reason even of prima facie nature that there is possibility that the donor or the creditor had creditworthiness and he has given certain amount to the assessee, then, in that situation the burden of the assessee stands discharged. In that situation the assessee cannot be asked to explain or prove the source of the creditor from where and how he got the money. Enquiry about creditworthiness of a person and creditors source for such credit are entirely different matters. Once credit in the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. Suppose if one creditor admits that he has given money to the assessee from his bank account and also submits statement of his bank account wherein there was no money, than whether in that situation the admission of such creditor given on even oath is binding upon the Assessing Officer? The answer would be no. The admission binds the author of admission and operate as estoppel against him but is not binding upon any other persons or authority. 6. Here, in this case the facts clearly indicates that the assessee was the son-in-law of the alleged donor and the donor was in employment and was getting salary and claimed that on different times of donation he was having cash, in total to the tune of Rs. 8.00 lakhs. His contention ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how he met his household expenses? The assessee and the donor were not asked to explain this position and also this could not have been subject inquiry in the assessee's proceedings. The argument may look attractive but having no substance. Since the case of the donor himself was that he paid this amount out of retirement benefit which he deposited in the bank and he produced the evidence in support of the said account and took his own specific stand is that he paid the amount out of funds of the gratuity, than even if the donor had other source of income and met with his household and other expenses from that other income than also that plea cannot help the assessee as fact in issue is that whether it can be believed that the donor went on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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