9911796707
TMI Blog2015 (12) TMI 1458X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that there was a search in the premises of the assessee on 09.11.2006. After the search, the assessee filed return for the assessment year 2006-07 on 23.02.2007. In the assessment year 2006-07, the assessee gifted a sum of Rs. 5 lakhs to his son Shri R. Ganesan which was reflected in the return of income filed by the assessee and his son Shri R. Ganesan. In the assessment year 2007-08, the assessee gave a sum of Rs. 7 lakhs. Since the transaction was settled during the end of the year, the same was not reflected in the respective statement. According to the Ld. counsel, initially a sum of Rs. 5 lakhs was given as loan. Subsequently, it was converted into gift. When the assessee explained before the Assessing Officer that the enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee's son. According to the Ld. counsel, no specific query was raised either before the assessee or before his son about the return of the loan by the assessee's son. In the absence of any specific clarification either from the assessee or from the assessee's son, according to the Ld. counsel, the Assessing Officer cannot presume that the assessee's son has not returned the money. In the absence of any further material, other than the presumption, according to the Ld. counsel, the addition made by the Assessing Officer cannot be sustained. 3. On the contrary, Shri A.V. Sreekanth, the Ld. Departmental Representative, submitted that during the course of examination, the assessee explained, more particularly in response to Questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 2006-07 and Rs. 7 lakhs for the assessment year 2007-08. 4. I have considered the rival submissions on either side and perused the relevant material on record. In the assessment year 2006-07, the assessee, during the examination, explained before the Assessing Officer that he gave a loan of Rs. 5 lakhs to his son. The Assessing Officer found that the assessee's representative in his letter dated 30.09.2008 clarified that a sum of Rs. 5 lakhs was given to his son Shri R. Ganesan during the assessment year 2006- 07. However, the assessee, during the examination, clarified that what was given to his son is a loan. Therefore, the Assessing Officer found that the gift portion of Rs. 5 lakhs is a separate one and it cannot be linked to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent of Rs. 5 lakhs is not justified. Accordingly, the orders of the lower authorities are set aside and the addition made by the Assessing Officer stands deleted. 5. Coming to the assessment year 2007-08, reading of the assessment order clearly shows that the assessee and his son categorically admitted that payment and receipt of loan was to the extent of Rs. 7 lakhs. The Assessing Officer appears to have presumed that the sum of Rs. 7 lakhs would not have been repaid during the year under consideration, since neither the assessee nor the assessee's son claimed before him that the same was repaid. This Tribunal is of the considered opinion that when the loan transaction was confirmed and they claimed that it is not reflected in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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