TMI Blog2015 (9) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... gift requires a close association between the donor and the donee except where gifts are made for charity and philanthropic purpose. Mere fact that the amount paid had emanated from bank account of donor would not be sufficient to prove genuineness of gift. - Decided against assessee. - ITA No. 10 of 2015 (O&M) - - - Dated:- 1-9-2015 - Ajay Kumar Mittal And Ramendra Jain, JJ. For the Appellant : Mr Sachin Bhardwaj, Adv For the Respondent : Ms Urvashi Dhugga, Adv JUDGMENT Ajay Kumar Mittal, J. 1. Allowed as prayed for. The documents appended as Annexure R.1 (Colly.) are taken on record. CM stands disposed of. ITA No.10 of 2015 2. This appeal has been preferred by the assessee-appellant under Section 260A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 1,98,166/- on 31.10.2000 alongwith balance sheet as on 31.3.2000 showing gift of ₹ 10 lacs received during the year under consideration. The return was processed under Section 143(3) of the Act on 14.5.2001. On 4.3.2005, notice for reassessment proceedings was issued under Section 148 of the Act and was served on the appellant on 9.3.2005 stating that the appellant had concealed the income of ₹ 10 lacs in the garb of alleged gift which was chargeable to tax and which income had escaped assessment. In reply to the notice, the appellant stated that the original return filed by him may be treated as return filed in response to the notice. Subsequently, a notice dated 9.1.2006 was issued to the assessee under sections 142(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and affection with the non relative. The assessee had not produced any evidence to show close relationship between him and Abinashi Lal Bajaj. In his statement, Mr. Bajaj also stated that he had not made any gift to any person. Only pay order had been given in lieu of cash. It was thus clear that the gift was not genuine. The gift requires a close association between the donor and the donee except where gifts are made for charity and philanthropic purpose. Mere fact that the amount paid had emanated from bank account of donor would not be sufficient to prove genuineness of gift. The relevant findings recorded by the Tribunal read thus:- 8. As far as issue regarding merit is concerned it is not correct that the statement of the donor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted. 2. That unfortunately now the donor is not cooperating with us in the income tax proceedings. Therefore to avoid litigation and purchase peace I hereby surrender Rs .10 lacs as my income for the assessment year 2000-01 subject to no penal action under the provisions of the Income Tax Act. In view of the above discussion and also facts of the case, the amount of ₹ 10 lacs shown as gifts is treated as undisclosed income, which the assessee failed to prove the genuineness of the gifts and added towards the taxable income.' From the above, it becomes clear that the assessee has surrendered the amount after being fully cornered and therefore once the addition has been made on the basis of admission no appeal is maintai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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