TMI Blog2014 (1) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... ift in the mater, it is clear that the gifts in the matter are not genuine and rather arranged affairs of the assessee. The assessee failed to prove the occasion of the gift and the creditworthiness of the donor - Genuineness of the gift is also not proved – The decision in CIT Vs Shri Durga Prasad More [1971 (8) TMI 17 - SUPREME Court] and Smt. Sumati Dayal Vs CIT [1995 (3) TMI 3 - SUPREME Court] followed - the assessee has failed to prove the genuine gift in the mater - it is a case of no evidence to prove creditworthiness of the creditor and genuineness of the gift – Decided against Assessee. Addition on account of unexplained cash – Held that:- The assessee has not filed copy of acknowledgement of filing of return of income for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- on account of unexplained gift. The assessee has received gift of ₹ 3.5 lacs from her father Shri Vasudev Sharma on 01.04.2006 ₹ 1,00,000/- and on 22.09.2006 ₹ 2.5 lacs. This was received in cash and occasion being construction of residential house by the assessee. The AO required the assessee to produce donor for examination, but he was not produced. The assessee has merely filed a plain letter from the donor in which he has stated to have gifted ₹ 3,50,000/- on the above two days. It was claimed in the said letter that the gift is made out of his savings and advance given to the farmers, but the same was not supported by evidence. Full address of the donor has also not been given. The AO, therefore, held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts with Nagrik Sahkari Bank, Gwalior and Bank of India are filed in the paper book at page 30 to 33. He has, however, submitted that since gifts are given through cash, therefore, bank statement is not relevant. He has, therefore, submitted that the assessee has proved genuine gift in the matter. 5. On the other hand, the ld. DR relied upon the orders of the authorities below and decision reported in 291 ITR 306 (no relevant case law) and decision of Punjab Haryana High Court in the case of Tirathram Gupta vs. CIT, 304 ITR 145, in which it was held, a gift cannot be accepted as such to be genuine, merely because the amount has come by way of cheques or draft through banking channels unless the identity of the donor, his creditwo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficient agricultural income has been filed. Therefore, such documents would not support the case of the assessee. Further, the copy of three sale deeds have been filed to show that the donor has availability of ₹ 5,45,100/- on account of sale of 12.5 bighas of agricultural land at Chatarpur. The dates of sale deeds are 09.09.2002, 28.08.98 and 28.08.99. There is a wide difference of several years in the execution of sale deeds and the gift given to the assessee in assessment year 2007-08. It is not explained as to where the donor has kept money after selling the agricultural land. The copies of two bank accounts of the donor are filed in the paper book, in which no such amount of receipt of sale proceeds of agricultural land have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot taxable. Therefore, he did not file any return of income and has no PAN. It would show that the donor has no taxable income and in the assessment year 2007-08 under appeal, when gifts were given to the assessee, for the individual assessee the basic exemption limit was ₹ 1,00,000/- and for the persons having age above 65 years, basic exemption from Income-tax was ₹ 1.85 lacs. When the donor has no taxable income and was not filing any return of income, would clearly prove that he was not having sufficient means even to meet out the basic needs Therefore, there is no question of giving cash gift of ₹ 3,50,000/- to the assessee in the assessment year under appeal. No evidence of having any savings in past have been filed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in hand of ₹ 32,000/- as on 01.04.2006. The AO, however, accepted cash in hand at ₹ 7,000/- and made addition of ₹ 25,000/- being unexplained cash. At the appellate stage the claim of the assessee was not substantiated through any evidence. Therefore, the appeal of the assessee was dismissed. 8. After considering the rival submissions, we do not find any merit in this ground appeal of the assessee. The ld. counsel for the assessee referred to PB-34, which is balance sheet as on 31.03.2006, showing cash in hand of ₹ 32,000/- which relates to preceding assessment year 2006-07. The assessee has not filed copy of acknowledgement of filing of return of income for the assessment year 2006-07 to show the said balance sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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