TMI Blog2019 (9) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... ation from the donor, copy of acknowledgment of return of income and computation of income were submitted to the AO during the course of the assessment proceedings. We restore the matter back to the file of the A.O. for deciding the issue afresh in terms of our above direction. Disallowance of interest on the plea that interest bearing funds have been diverted for non-business purposes - HELD THAT:- From the record, we found that before the A.O. the assessee has submitted statement of interest free fund available with the assessee in the form of his capital to the tune of ₹ 26,08,598/- and also interest free unsecured loan. Thus, the interest free funds available with the assessee was much more than the interest free amount gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31.05.2011. The donor is assessable to Income Tax. The AO has added this gift as undisclosed income of the assessee by observing as under: (i) The gift has been made in cash. (ii) The gift is shown to have been received on 31.05.2011 but in the Gift Deed, the date is mentioned as 28.09.2011. (iii) The annual income of the donor was only ₹ 2,49,712. (iv) The donor was not produced before the AO for examination. 3. By the impugned order, the ld. CIT(A) confirmed the action of the A.O. against which the assessee is in further appeal before the ITAT. 4. It was argued by the ld. AR of the assessee that the addition made by the ld. AO is b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ynthetics P. Ltd. v. CIT (2002) 256 ITR 331 (Raj.) 7. From the record we found that income of the donor during the year was ₹ 2,49,712/-. She was mother in law of the assessee having sufficient cash in hand as on 31/03/2011. For this effect, the assessee has also filed statement showing availability of cash on the date of gift. The donor was aged about 71 years at that time. However, due to poor health, she could not appear before the A.O. Mere non-appearance before the A.O. could not be made reason to disbelieve the genuineness of gift when other documentary evidences so filed support the fact of gift. From the record we found that the confirmation from the donor, copy of acknowledgment of return of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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