TMI Blog2012 (7) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... ived by the assessee - copy of the donor’s bank account on which the cheque for the amount of gift was issued was also furnished to the Assessing Officer - gift deed was executed between the donor and donee and copy of gift deed was filed during the course of assessment proceedings - donor has explained further regarding the source of the cash deposits made by her in her savings bank account and has stated that these were out of the interest income received by her from time to time which was kept at home and the interest income was declared in her returns of income – Held that:- Assessee has discharged its onus of proving the identity and creditworthiness of the donor and the genuineness of the transaction of gift. The Revenue could not bri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the vehicle and telephone could not be ruled out and she relied on the order of the Assessing Officer and learned CIT(A). 5. We have considered the rival submissions. We find that the assessee is in the business of trading and arhat of cloth at the small town of Pilkhuwa in District Ghaziabad. The assessee is running the business with the help of its employees and the town of Pilkhuwa which is having narrow lanes, the places are reachable in a very short time due to less distance. However, the personal use of the car and telephone could not be ruled out. In the facts of the case, we consider that ends of justice shall be met if the disallowance out of car expenses and telephone expenses is restricted to 1/10th of these expenses on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 28.12.2007. During the course of the statement recorded by the Assessing Officer, the donor Smt.Anita Rani Singhal confirmed that she has gifted a sum of Rs.2 lakhs to Smt.Saroj Devi through cheque drawn on her savings bank account in Syndicate Bank in Pilkhuwa. She also confirmed her permanent account number and that she was regular income tax assessee and that her relationship with the assessee was that of friendship and she knew the assessee for the last about ten years. The donor further stated that the son of the donee was her husband s friend and that she used to visit the donee s house alongwith her husband. Regarding the source of deposit of cash amount in her savings bank account, the donor stated that the same was out of money ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the order of the Assessing Officer and CIT(A). 9. The learned counsel for the assessee, in his rejoinder, submitted that the donor has stated on oath during the course of her statement recorded by the Assessing Officer that she was visiting the assessee s residence alongwith her husband as both were the residents of the small town of Pilkhuwa. The donor has further explained that she had friendship with the donee for the last about ten years. He relied on the decision of Hon ble Delhi High Court in the case of CIT Vs. Ms. Mayawati 338 ITR 563 (Delhi) in support of his case that the donor need not be a relative of the donee. 10. We have considered the rival submissions carefully and have perused the orders of the Assessing Officer a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r permanent account number. She was assessed to tax for the past many years and the gift was made by cheque drawn on her savings bank account No.21275 with Syndicate Bank, Pilkhuwa. The donor had explained that her relationship with the assessee was that of friendship for the last about ten years and that the donee s son was her husband s friend. Both the donor and the assessee lived in the same town of Pilkhuwa and she has stated in her statement recorded by the Assessing Officer that she used to visit the assessee s residence alongwith her husband. In reply to a specific question regarding source of cash deposit in the savings bank account of the donor, she stated that she deposited the money out of her interest income received by her fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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