TMI Blog2022 (11) TMI 1049X X X X Extracts X X X X X X X X Extracts X X X X ..... plete in all aspects. In any case, we find that this gift is only received by the assessee from grandmother which has been accepted by the grandmother in her gift deed as well as in her affidavit. Hence, the same would be exempt from tax in terms of Section 56(2)(vii) of the Act as the same falls within the meaning of relative . It is not in dispute that what is received as gift is only jewellery weighing 417 gms. Hence, what is received is only gift in kind. Accordingly, the provisions of Section 68 per se could not be invoked in the instant case. It is trite law and the bare reading of the provisions of Section 68 are very clear that the said provisions could be made applicable only for sums received in cash or cheque or demand draft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) was justified in confirming the addition made u/s.68 of the Act in respect of jewellery in the sum of Rs.11,25,900/- in the facts and circumstances of the instant case. 3.1. We have heard the rival submissions and considered the materials available on record. We find that assessee is an individual engaged in the business of construction activity deriving income from business and also deriving income from house property, capital gains and other sources. The return of income for the A.Y.2015-16 was filed by the assessee on 31/08/2015 declaring total income of Rs.21,15,210/-. There was a search and seizure action conducted in Balaji group of cases on 28/01/2015 wherein the premises of the assessee was also covered. Accordingly, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here. iii. There is no corroborative evidence furnished to prove the ownership of the impugned jewellery in the hands of the donor. iv. The assessee has not furnished any IT/WT return to prove that the donor actually held the impugned jewellery with her. v. The assessee has neither disclosed this jewellery in the Balance Sheet while filing the Income Tax Return nor has filed a Wealth Tax Return in respect of this jewellery claimed as received under 'Will'. vi. Despite searching the residential and business premises of the assessee, no such gift declared was found by the search team which shows that the gift deed so furnished is only an afterthought. vii. During the course of search, statement of the assessee as well a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o support this, the assessee has furnished gift deed from the grandmother together with an affidavit in non-judicial stamp paper confirming the fact of gift. In the said affidavit, it had been categorically stated by the donor i.e. grandmother that the said gift has been given out of her Streedhan. She has also stated that she is deriving only agricultural income from the agricultural lands owned by her and the said income being exempt, she has not filed her income tax returns. We find that the ld. CIT(A) had disputed the fact of owning of agricultural lands by the grandmother. This fact has been duly countered by the ld. AR before us by filing the relevant evidences justifying ownership of agricultural lands by the assessee and her family ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. assessee herein and the gift is complete in all aspects. In any case, we find that this gift is only received by the assessee from grandmother which has been accepted by the grandmother in her gift deed as well as in her affidavit. Hence, the same would be exempt from tax in terms of Section 56(2)(vii) of the Act as the same falls within the meaning of relative . It is not in dispute that what is received as gift is only jewellery weighing 417 gms. Hence, what is received is only gift in kind. Accordingly, the provisions of Section 68 of the Act per se could not be invoked in the instant case. It is trite law and the bare reading of the provisions of Section 68 of the Act are very clear that the said provisions could be made applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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