TMI Blog2012 (5) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... of these gifts, therefore, they were added to the income of the assessee. While confirming the addition, the Assessing Officer has made certain observations in his order that Shri Sanwar Mal Saraff and Shri Jai Singh Sethia and Smt. Kiran Bala Garag could not produced for verification. It was also observed that husband of the assessee has shown ignorance about receiving any gift for himself or by his wife, therefore, an adverse inference was drawn against the assessee and the impugned addition was made. The matter traveled up to the stage of Tribunal. The Tribunal confirmed the addition of ₹ 10 laks as gift received from Shri Sanwar Mal Saraff, Karta of M/s Sanwar Mal Vimal Kumar HUF from whom the gift was received. However, in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the particulars of gifts received; gifts were received through banking channels. Confirmation along with affidavits were filed. It was also submitted that copy of capital account in the books of Sanwar Mal Saraff Karta of M/s Sanwar Mal Vimal Kumar, copy of account of Oriental Bank of Commerce in the books of donor were also produced to establish that the assessee had received a gift of ₹ 10 lakhs. It was also explained that the donor had huge capital balance of ₹ 1.17 crores out of which a meager gift of ₹ 10 laks was given, therefore, the capacity of the donor is proved. Entries in the capital account of the donor were also explained along with an affidavit of Shri Sanwar Mal Saraff, Karta of M/s Sanwar Mal Vimar Kumar, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer, therefore, penalty cannot be levied. Reliance was placed on various case laws mentioned in the written submissions. 4. On the other hand, Ld. DR placed strong reliance on the order of the Assessing Officer as well as of CIT(A). It was submitted that gift was not found genuine and, therefore,, the same was added which has been confirmed upto the stage of Tribunal. The assessee has filed inaccurate particulars and, therefore, the Assessing Officer and Ld. CIT(A) were justified in levying and confirming the levy of penalty. 5. We have heard the rival submissions and considered them carefully. After considering the submissions and perusing the material on record, we are of the view that levy of penalty in the present case was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gift. Confirmation of gift, source of gift along with bank account of the donor and donee were filed. The major details in respect of gift was filed, therefore, as stated above that these details were not sufficient to be a genuine gift, therefore, amount of gift was added. This is not necessary that where any addition has been sustained, penalty is also leviable. There are numerous decisions wherein it has been held that it is not necessary that penalty is leviable if the addition is sustained. The explanation given by the assessee was not found false. This is only a case of the assessee that assessee failed to substantiate it, therefore, penalty is not leviable as held by Hon'ble Rajasthan High Court in the case of Shivlal Tak vs CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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