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2016 (1) TMI 527 - ITAT JAIPUR

2016 (1) TMI 527 - ITAT JAIPUR - TMI - Addition as undisclosed income - revenue not accepting the fact that the said amount was gifted to the assessee by her father - Held that:- The appellant has submitted a confirmation dated 17/11/2011 from Shri P.M. Lodha where he had confirmed that he had gifted a sum of ₹ 3.90 lacs in cash to her daughter Smt. Neelmani Jain (Appellant), wife of Shri B.K. Jain on 10th of July, 2008. Further in the said letter, it is stated that the amount has been gif .....

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he same date, the money was gifted to the appellant and thereafter the appellant after spending a part of amount, deposited remaining amount of ₹ 3,59,031/- in her and her sonís bank accounts. As regards, non appearance of the donor Shri P.M. Lodha before the Assessing Officer, it was submitted that the donor Shri P.M. Lodha is over 85 years of age and because of his age he could not appear before the Assessing Officer. However, he has submitted his statement dated 17/11/2011 as well as pr .....

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the amount. So given the above factual position (substantiated by appellant through appropriate documents), the identity, creditworthiness as well as genuineness of the gift transaction has been proved and in the light of above, the addition made by the Assessing Officer and confirmed by the ld CIT(A) U/s 68 of the Act is deleted. - Decided in favour of assessee. - ITA No. 09/JP/2014 - Dated:- 21-10-2015 - SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YADAV, AM For The Assessee : Shri N.S. Vyas .....

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the Bank account of the petitioner s father and gifted to her daughter. 3. Without prejudice to the above, the authorities below have further erred in confirming the addition of ₹ 3,90,000/- whereas the credit entry in the books of account is only ₹ 3,59,031/-. 4. That the facts mentioned by the AI as well as authorities below are not correct as the entries are duly confirmed from the petitioner s father bank account. 2. The assessee has raised four grounds of appeal. However, the ef .....

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the course of assessment proceedings while examining bank accounts of the assessee, the Assessing Officer found that there are two cash deposits amount to ₹ 59,766/- and 2,99,265/- in the bank account of son of the assessee namely Master Vishwakrit Chordia and the assessee herself. The assessee was asked to submit the source of the said deposits. In response, the assessee submitted that she has received a gift of ₹ 3.90 lacs from her father Shri P.M. Lodha. In support of her content .....

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ther noted that if Shri P.M. Lodha was having any intent to give gift to her daughter then he could have given such gift through cheque, as both of them were having bank account at same place. Instead of giving gift through cheque, Shri P.M. Lodha went to the bank with a cheque in his own name, withdrawn cash of ₹ 3.90 lacs, brought it home and then gifted it to his daughter. No gift deed was executed at that time. Then after 15 days, out of the gift so received, the assessee carried the c .....

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he identity and the creditworthiness of the donor can be accepted as proved but the genuineness of the transaction is not proved for the reason that the donor was not presented for cross examination and contents of confirmation dated 17/11/2011 of Shri P.M. Lodha is nothing but a self serving statement. He relied on the decision of Hon'ble Supreme Court in the case of CIT Vs. Durga Prasad More (82 ITR 540) and held that the surrounding circumstantial evidences show that Shri P.M. Lodha has n .....

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d and bank account of the donor Shri P.M. Lodha. The assessee further submitted that genuineness of the gift cannot be disputed due to the fact that donor have sufficient cash in hand with him, withdrawn from his bank account and gifted to her daughter. As regards, the withdrawal of ₹ 40,000/- noted by the Assessing Officer, the assessee submitted that the donor has withdrawn funds amounting to ₹ 1.60 lacs from his various bank accounts, such as HDFC Bank, Andhara Bank and ICICI Bank .....

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urther the ld CIT(A) endorsed the fact in respect of withdrawal of ₹ 40,000/- by the father of the assessee by saying that person with substantial annual income will definitely have his personal expenses commensurate to its income. The ld CIT(A), therefore, held that genuineness of gift is never proved by the appellant since all surrounding circumstances do not support the appellant s claim. 5. The ld DR has vehemently supported the orders of the ld. Assessing Officer as well as ld CIT(A). .....

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sessing Officer, the assessee has failed to prove the source, accordingly, it is in the nature of undisclosed income. In this regard, it is noted that the appellant has submitted a confirmation dated 17/11/2011 from Shri P.M. Lodha where he had confirmed that he had gifted a sum of ₹ 3.90 lacs in cash to her daughter Smt. Neelmani Jain (Appellant), wife of Shri B.K. Jain on 10th of July, 2008. Further in the said letter, it is stated that the amount has been gifted as his natural love and .....

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