TMI Blog2014 (6) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee stands discharged and the onus shifts upon the AO to prove that the assessee’s explanation as well as the evidences are not tenable on the basis of any material collected by way of enquiry. Simply because such a transaction of gift has not been mentioned in the income tax return of income of the donor filed in India, it cannot lead to any inference that he did not had the capacity - being a resident of U.K., he is required to disclose the source in the return of income filed in the U.K - factum of gift transaction is between son and father, there was no reason to hold that such a gift is not genuine – thus, the order of the CIT(A) is set aside – Decided in favour of Assessee. - ITA No. 7072/Mum./2011 - - - Dated:- 18-6-2014 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer entry. The gift was said to have been given by a son to his father out of natural love and affection. The Assessing Officer rejected the assessee s contention on the ground that there was no particular occasion or reason for giving the gift. Besides this, the assessee has also shown expenditure under the head house repairs to the tune of Rs. 19,26,414, for which the assessee could not given satisfactory explanation probably to cover these expenditures, assessee must have shown these gifts. On these grounds, he added amount of gift as income of the assessee. 3. In the appellate proceedings, the assessee submitted that he has discharged his primary onus of establishing the identity, capacity of the donor and genuineness of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cument or by an oral delivery. There is nothing in the law that the said gift deeds need to be registered either in India or in U.K. from where the gift deed has been sent. Regarding the Assessing Officer s allegation that the assessee could not give the explanation regarding the expenditure incurred in house repairs to hold that the gifts have been shown only to cover such expenditure is without any basis or any nexus between the house repair expenditure and the gift. 5. The learned Commissioner (Appeals) held that despite adducing various documents, the capacity of Mr. Abhay Popatlal Ruparell, remitting the money has not been proved. The copy of acknowledgement of the return of income which has been filed in case of the donor is the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a British company viz. Commerce International G.B. Ltd., and is also a permanent resident of U.K. He has given the gift to his father for sums aggregating to Rs. 21,16,265, which he has duly confirmed, firstly, by way of two gift deeds dated 2nd October 2007 and 26th November 2007, and secondly, by appearing before the Assessing Officer in India and duly deposed before him about the factum of the gift. The source of the gift has also been shown partly from joint bank account of Mr. Bharat Popatlal Ruparell (brother of the donor) and the donor himself, and partly through the remittance made by the company Commercial International G.B. Ltd., which has remitted the amount directly in the bank account of the assessee as per the directions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not been authenticated by the laws of London, he submitted that there is no such law that the gift deeds have to be executed on stamp paper or it needs to be authenticated under any law of U.K. It is sufficient requirement of law, if the gift has been given by the donor and has been accepted by the donee. Thus, he concluded that there is no other material on record to show that the genuineness of the gift can be doubted. 7. The learned Departmental Representative, on the other hand, submitted that the assessee was required to prove the capacity of the donor by showing his income tax return reflecting such factum of gift out of the source disclosed in the balance sheet, or by his personal bank account. In the absence of these evidences ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee and also certificate of Mr. Bharat Popatlal Ruparell, and Mr. Abhay Popatlal Ruparell, confirming that an amount of U.S. dollar 29,993, was remitted on 23rd November 2007, to the assessee from their joint Bank account; thirdly, the inward remittance transaction advise reflects that the said amounts have been routed through drawee banks at London and New York and received in Axis Bank in India, belonging to the assessee. Besides this, copy of bank account of the assessee reflecting the amount received through remittance from abroad. These documents are prima facie sufficient to hold the genuineness of the transactions and also the source of the credit entries made in the assessee s book. The creditworthiness and the capacity of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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