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2015 (9) TMI 377 - ITAT CHENNAI

2015 (9) TMI 377 - ITAT CHENNAI - TMI - Income from unexplained source - gift received from the members of the assessee’s family - Held that:- The assessee had submitted cash flow statements, bank statements and affidavits from his wife and daughter in law for having received ₹ 23 lakhs. When the assessee had made such submissions, it is the duty of the Revenue to examine the veracity of the claim of the assessee by examining the source of the donee either by summoning them or by verifying .....

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ssessee for statistical purposes. - I.T.A.No.257/Mds./2014 - Dated:- 5-8-2015 - SHRI N. R. S. GANESAN AND SHRI A. MOHAN ALANKAMONY, JJ. For The Appellant : Mr. G. Baskar,Advocate For The Respondent : Mr. P. Radhakrishnan,JCIT, D. R ORDER PER A. MOHAN ALANKAMONY , ACCOUNTANT MEMBER: This appeal is filed by the Assessee, aggrieved by the order of the Learned Commissioner of Income Tax(A), Salem dated 31.12.2013 in ITA No.42/2012-13 passed under Sec.143(3) read with section Sec. 250 of the Act. 2. .....

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2010 admitting his income as ₹ 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 ₹ 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 admitted undisclosed investments to the extent of ₹ 61,38,000/-, however, while filing the return of income on 08.11.2011 th .....

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on examining the same rejected the details furnished by the assessee for the following reasons:- i) The gift deed wherein in plain papers and undated which had no evidentiary value. ii) The cash flow statement of the donors annexed to the income tax return was filed on 8.11.10 i. E. 14 months after the admission of undisclosed income by means of affidavit. ii) The loan from M/s. Balaji Jewelers is obtained on 19.03.2010 i. E., six months after the admission of the undisclosed income by means of .....

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he 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 d .....

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eyond the human probabilities to assume that a person, no matter how big a businessman he is, does not remember gifts given out of affection by a near relative, however small it may be, let alone a gift of ₹ 23,00,000/- given in cash on one day and incidentally by his own wife and daughter-in-law. 3. The gifts are supposed to have been given in cash and evidenced by an alleged gift deed on a plain sheet of paper, a photocopy of which was filed before the Assessing Officer. There is no othe .....

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Income Computation Statements of Smt. V. Jothi and Smt. R. Ramya, Rs. Other Income of ₹ 4,50,000/- and ₹ 2,00,000/- respectively has 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 ₹ 63,461/- and ₹ 5,487/-respectively. This establishes that the affairs have been so managed as to facilitate the arrangement of gifts to .....

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on 10-07-2009. 7. As stated earlier, the closing cash balances in the cash flow statements of Smt. VJothi arid Smt. R. Ramya are ₹ 63,461/- and ₹ 5,487/-respectively. This closing balance has been arrived at after taking into account not only the Other Income mentioned in para 5 above, but also after taking credit for gifts of respectively, ₹ 1,50,000/- and ₹ 5,50,000/-, received from the assessee, Sri R. Velusamy, after the date of recording of his sworn statement. This .....

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ssessing Officer and confirmed his order by observing as under:- 6.2 Ground No.22 to 2.4 and 2.6 pertains to the appellants claim that he is entitled to retract the statement taken u/s.131 at any time. As discussed earlier, the Assessing Officer by proceeding from the cash flow statement furnished during the assessment proceedings has accepted the retraction and proceeded with the fresh claim. 6.3 Ground No.2.5 pertains to the argument that the donors were regular assessees and with verifiable s .....

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s 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 The Assessing Officer has also accepted the retraction by proceeding from the cash flow statement furnished. In view of this the ground is not relevant. 6.6 Ground No2.9 pertains to the filing of returns on the same date does not mean an attempt to create evidence to match figure. The same is not accepted as the Assessing Officer has .....

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e statement shows that there is no mention, even of mixed case of funds, let alone gifts. There is no mention of any financial transaction between family members. This clearly lends credence to the conclusion that the gift theory is an afterthought. In fact, the appellants claim seems to be actually accepting that the receipt of gift is an afterthought, with an effort to match the figure. 6.8 Ground No.2.11 pertains to the claim that the source being explained, the sources of source should not b .....

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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 that the gift amount of ₹ 23lakhs received by the assessee is actually the assessee s inc .....

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