TMI Blog2021 (5) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... were also furnished on record giving all the relevant particulars including the Permanent Account Number of the donors. As rightly contended by the learned counsel for the assessee, the primary onus to establish the identity and creditworthiness of the concerned donors as well as the genuineness of the relevant transactions involving gifts thus was duly discharged by the assessee by producing the relevant documentary evidence and without bringing on record any material or evidence to disprove or dislodge the claim of the assessee, the authorities below were not justified in treating the gifts received by the assessee as unexplained cash credit u/s 68 merely on the basis of doubts and suspicion - Decided in favour of assessee. - I.T.A. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... summons u/s 131 of the Act were issued by the AO to all the donors enquiring their personal attendance. However, none of the donors appeared before the AO for their examination. Even the assessee failed to produce the donors for the examination before the AO. Keeping in view this failure as well as the fact that none of the donors had blood relations with the assessee, the AO held that the identity and creditworthiness of the donors as well as the genuineness of the transactions involving gifts was not established. He, therefore, treated all the four gifts aggregating to ₹ 4,00,000/- as unexplained cash credit and addition to that extent was made by him to the total income of the assessee u/s 68 in the assessment completed u/s 143(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of the transaction, the gifts were made through account payee cheques, which itself is a third party corroboration authenticating the genuineness of the transactions. And regarding the creditworthiness of the person making gifts, they were income tax assessee and they made the gifts out of their tax paid accumulated capital, and to corroborate this please find enclosed the copy of their return of income acknowledgements, computation sheet of the year under consideration. Hence the addition to the tune of ₹ 4,00,000/- is illegal and done beyond powers vested by the statute and therefore it is requested to upheld justice by deleting the same. 4. The Ld. CIT(A) did not find merit on the above submission made on behalf of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material available on record. It is observed that all the four donors who had given the gifts in question to the assessee during the year under consideration were engaged in the business and in the returns of income filed regularly for the year under consideration, the business income earned by them was duly declared as is evident from the photocopies of their IT return acknowledgement placed at page no. 32 33 of the Paper Book. Moreover all the gifts in question were given to the assessee by the four donors by account payee cheques and their declarations confirming the gifts given to the assessee were also furnished on record giving all the relevant particulars including the Permanent Account Number of the donors. As rightly contended b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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