9911796707
TMI Blog2022 (8) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... bsequently, the case of the assessee was selected for complete scrutiny through CASS on the ground of large exempt income. The Assessing Officer thereafter issued statutory notice u/s 143(2) to the assessee. However, there was no response from the side of the assessee. The Assessing Officer during the course of assessment proceedings noted that the assessee is a Non- Resident Indian and filed her return of income declaring income of Rs.1,27,330/- from house property besides claiming exempt income of Rs.1,01,00,419/-. Since there was no response from the side of the assessee to the statutory notices issued by the Assessing Officer, the Assessing Officer completed the assessment u/s 144 of the I.T. Act by making addition of Rs.1,01,00,419/- a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Assessing Officer and the rejoinder of the assessee to such remand report, the learned CIT (A) dismissed the appeal filed by the assessee. While doing so, she noted that Ms. Nirmala Jayanarayan Rathi is the mother-in-law of the assessee and has submitted return of income with the I.T. Deptt. for the A.Y 2014-15 wherein the gross total income was declared at Rs.33,24,747/- and the income tax was paid at Rs.8,57,821/-. Similarly, for the A.Y 2015-16 she has declared the gross total income at Rs.35,40,261/-and income tax paid was at Rs.9,18,536/-. For the A.Y 2016-17, the donor has submitted her return of income declaring the gross total income at Rs.31,85,436/- and income tax paid was at Rs.8,10,794/-. The assessee has received an amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kaging Corporation on the ground that the transaction is a contrived one. 6. Aggrieved with such order of the learned CIT (A), the assessee is in appeal before the Tribunal by raising the following grounds of appeal: "1. On the facts and in the circumstances of the appellant's case and in Law, the Ld. CIT(A) erred in confirming the action of AO in making addition of Rs. 1,00,00,000/- in respect of gift received by appellant from her Mother-in-Law despite the fact that gift received from relative is exempt from tax. 2. On the facts and in the circumstances of the appellant's case and in Law, the Ld. CIT(A) erred in confirming the action of AO in making addition in respect of gift received by appellant from her Mother-in- Law des ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidences which were accepted by the learned CIT (A) and the additional evidences along with the submissions made by assessee from time to time were forwarded to the Assessing Officer who gave two remand reports. We find the learned CIT (A) after considering the remand reports of the Assessing Officer and the submissions of the assessee sustained the addition made by the Assessing Officer. While doing so, she held that the amount of Rs.1.00 crore received by the assessee from her mother-in-law as gift is not in the nature of gift and the colour is painted to the transaction to make it exempt. Similarly, without assigning any reason, the learned CIT (A) sustained the addition of Rs.1,00,419/- being the share of profit from Shree Packaging C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence between the dates in the bank statement and the date of cheque in the gift deed, the same cannot be a ground to disbelieve the gift since the cheques were presented after few days of receipt of the gift and therefore, there were minor difference in the date of cheque mentioned in the gift deed and the date of clearance in the bank statement. Once the assessee has received the gift, it is immaterial to know the purpose for which the amount has been spent or why the amount is transferred to Ms. Manju Damani who is also a partner in Shree Packaging Corporation. 9. We find some force in the above argument of the learned Counsel for the assessee. The identity of Smt. Nirmala Jai Narayan Rathi is established since she is the mother-in-law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount reflected in the Bank statement which is due to delay in presentation for clearance etc., the assessee, in our opinion, has established all the 3 ingredients of provisions of section 68 i.e. identity and capacity of the creditor/donor and the genuineness of the transaction. Once the gift is treated as genuine, it is immaterial what the assessee does with that money thereafter. So far as the allegation of the learned CIT (A) that the assessee did not furnish the details of Smt. Manju Damani is concerned, we find she is a Partner in Shree Packaging Corporation which fact has been admitted by the learned CIT (A) in her order. Since the assessee in the instant case has provided the identify and creditworthiness of the donor and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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