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TMI Blog2016 (12) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessment proceedings the Assessing Officer observed from the various details filed by the assessee that he has purchased Zirayat agricultural land vide Gut No.217, Area of 2Hectare and 44AR at Tamalwadi, Tal. Tuljapur, Dist. Solapur at the cost of Rs. 8,05,220/- which includes stamp duty and other charges from one Shri Yoginath Shivuogippa Hungund, resident at 19/1, Vidya Nagar, Shelgi, Solapur. 3. On being questioned by the Assessing Officer it was submitted that the above property has been purchased by the assessee along with his brother Shri Sitaram Murarilal Gupta . The assessee has contributed Rs. 3,14,220/- and his brother Shri Sitaram Murarilal Gupta has contributed Rs. 4,91,000/-. As regards the source of the assessee, it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Bank Ltd., therefore there was no necessity on her part to keep huge money with herself. He further noted that if it is presumed as per the letter of Smt. Kavita D. Gupta dated 11-08-2011 that she is running a fire cracker business and Rakhee business since last 15 years, then why she has not done the transaction through banking channel, i.e. bank. This according to the Assessing Officer means that the money kept by Smt. Kavita D. Gupta belongs to the assessee only and not of herself. Simply the funds have been diverted through Smt. Kavita D. Gupta and she has not proved the genuineness of running of business by producing the relevant details. He accordingly treated the above amount of Rs. 3,14,220/- as unexplained investment u/s.69 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it for getting the accounts audited the assessee was opting for presumptive tax as per provisions of section 44AF. Merely because the assessee does not own shop license and has not routed her money through banking channel the same cannot be a ground for rejecting the capacity of the donor and the genuineness of the transaction. Referring to the decision of Hon'ble Supreme Court in the case of Umacharan Shah & Brothers Vs. CIT reported in 37 ITR 271 he submitted that a mere suspicion on the part of the Assessing Officer does not entitle him to make any addition. He submitted that although the wife of the assessee had written letter to the Assessing Officer, however, the Assessing Officer has not summoned her to record her statement. He accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lain the source for such investment in the agricultural land, the assessee submitted to have received cash gift of Rs. 3 lakhs from his wife Smt. Kavita D. Gupta. The assessee also submitted income-tax returns and PAN Number of Smt. Kavita D. Gupta and an affidavit regarding such gift. However, the Assessing Officer disbelieved the credit worthiness of Smt. Kavita D. Gupta on the ground that she has not maintained any books of account, has not obtained a shop license, money was not routed through banking channel although she maintains a bank account with Solapur Janata Sahakari Bank Ltd. He therefore came to the conclusion that the money gifted by wife of the assessee infact belongs to the assessee. I find the CIT(A) confirmed the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not have doubted the business of the wife of the assessee merely on the ground that she has not produce the shop license. 11. So far as the objection of the Assessing Officer that money has not routed through banking channel although the wife of the assessee is maintaining a bank account is concerned, this in my opinion should not be a ground under the facts and circumstances of the case to disbelieve the gift. Since the assessee in the instant case has substantiated the identity and credit worthiness of the donor and the genuineness of the transaction, therefore, the CIT(A) in my opinion should not have confirmed the addition made by the Assessing Officer u/s.69 of the I.T. Act to the extent of Rs. 3 lakhs. 12. So far as the decision o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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