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TMI Blog2012 (8) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... he Law on the subject, the learned ITO has erred in Making addition of gift of Rs.5,50,000 U/s 68 of I.T.Act 1961. (2) On the facts and circumstances of the case, as well as the Law on the subject, the learned ITO has erred in Making addition of loan of Rs.2,00,000 U/s 68 of I.T.Act 1961. Ground of appeal for assessment year 2006-07 (1) On the facts and circumstances of the case, as well as the Law on the subject, the learned ITO has erred in Making addition of gift of Rs.2,50,000 U/s 68 of I.T.Act 1961. 2. The brief fact of the case is that the assessee had received gifts of Rs. 5.5 lacs from seven persons and loan of Rs. 2 lacs from two persons. The A.O. had given reasonable opportunity of being heard during the course of assessment p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the assessee u/s 68 of the IT Act. The assessee had shown loan from two persons, namely, Ved Prakash & Babu Lal for Rs. 1 lac each. The assessee furnished the confirmation of the loan account, balance sheet of the depositor and copy of acknowledgement of the return. The A.O. was not satisfied with the identity and creditworthiness of creditor. The bank account of the lender were verified by the A.O. wherein cash deposited in the bank account and on same date demand drafts were issued in favour of the assessee. There was hardly any balance in the bank account of the lender. The A.O. added these loan amount of Rs. 2 lacs u/s 68 of the IT Act in the income of the assessee as unexplained cash credit. 3. The assessee received gift of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concluded that the gifts totaling Rs. 5,50,000 and the unsecured loan totaling Rs. 2,00,000 represented the undisclosed income of the Assessee. The surrounding facts and circumstances clearly allow for such an inference to be drawn. 6.10 Given such facts and circumstances of the case which have been examined in detail in the backdrop of the pronouncements of the Hon'ble Supreme Court and the Delhi High Court, in the cases of P. Mohanakala and Rajeev Tandon, I have absolutely no hesitation in holding that the alleged gifts totaling Rs.5,50,000 and the unsecured loan of Rs. 2,00,000/- were absolutely bogus. Consequently, the additions of the said sums under the provisions of sec.68 will stand confirmed. Ld. CIT (A) has also confirmed the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ahd/2007 for A.Y. 04-05 had directed in paragraph 8 at page no.7 of the order is as under:- "We have considered the rival submissions, we find that the assessee has submitted all the details regarding gift, donors and gifts accepted through banking channels but the assessee could not provide further information. We find that the movement of gift through banking channel is not sufficient to prove the genuineness of the gift since the claim of the gift made by persons was no identified, creditworthiness of the donors was not provided and capacity of the donors also not proved. Therefore, we are of the view, that the assessee is given more time to prove his case and the Assessing Officer is directed to give one more opportunity to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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