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TMI Blog2015 (9) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... s not justified in confirming the order of the Ld. A. O, who had added the gift received from the members of the assessee's family amounting to Rs. 23 lakhs to the income of the assessee under the head "income from unexplained source". 3. The brief facts of the case are that the assessee is an individual, engaged in the business of transport, filed his return of income on 08.11.2010 admitting his income as Rs. 29,54,278/-. Subsequently, the case was taken up for scrutiny and the assessment u/s.143(3) was completed on 08.03.2013 wherein the ld. Assessing Officer made addition of Rs. 23/- lakhs as his income from unexplained sources. In the statement recorded U/s.131 of the Act on 23.9.2009 during the course of survey the assessee had admitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n gifts to the assessee in order to create source which appears to be sham. v) The cash flow statement filed in the case of assessee and the two donors appears to be after thought. The Ld. A. O further observed as follows in his order:- 1. The statement u/s 131 of the IT Act was given on 23.09.2009 which was confirmed three weeks later by an affidavit dated 16.10.2009. Even assuming that the assessee was not in a proper frame of mind on the date of recording of the statement u/s.131 of the IT Act, the very fact that statements made in the sworn statement was confirmed by an affidavit filed after about 23 days show that the assessee was fully aware of the facts being stated in the statement. 2. Even if there is a possibility that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been offered, for which no details are available. No such income has been offered in the earlier years. After taking into account this Rs. Other Income', the closing balances in the Cash Flow Statements is Rs. 63,461/- and Rs. 5,487/-respectively. This establishes that the affairs have been so managed as to facilitate the arrangement of gifts to the assessee, and clearly shows that the method of gifts has been adopted as an afterthought. 6. From the Bank Statements furnished by the Assessee, it is seen that the Assessee has deposited an amount of Rs. 10,00,000/- by cash in A/c No. 129100050301970 on 20-08-2009 and paid an equal amount to Smt. Jothi by cheque No.640151. No explanations have been offered for these transactions. Hence it is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tains to the argument that the donors were regular assessees and with verifiable source of income and that they were not brought in as an afterthought. This ground is not accepted on the simple reason that, whatever be the case, the fact that such a huge amount of gift was not kept track of and the nature of gift, make it a clear case of afterthought. 6.4 Ground No.2.7 states that the Assessing Officer was not factually correct and even if the gifts were not reliable the source was available. The same is not accepted as the Assessing Officer has diligently analysed the reasons for rejection of the argument. I am in agreement that the entire gift concept was a clear case of afterthought. 6.5 Ground No2.8 pertains to the right to retract Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epted in view of the fact that the entire concept of gift is an afterthought. 6.9 Ground No.2.12 pertains to the payment made into Bank account of the appellant's wife and cheques issued to daughter-in-law do not need any explanation. It is to be noted that essentially such transaction are also one of the basis of conclusion that the gifts are clearly an after thought. 6.10 Ground No2.13 pertains to the claim that suspicion, even if strong, cannot be the basis of addition. The same is not accepted as the assessment order clearly denotes the attempt to create evidence by way of gift from wife and daughter-in-law." 5. Before us, Ld. A. R. submitted that the Revenue had not examined the donors of gift but had simply arrived at a conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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