TMI Blog2008 (5) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... aryani. The Assessing Officer required the assessee to explain the same and also recorded his statement under section 131 of the Act. The assessee filed the confirmatory letter of the donor, xerox copy of the passport of the donor, copy of the deed of gift and copy of the concerned bank to prove the genuineness of the transaction. The Assessing Officer, based upon the statement of the donee, i.e., assessee inferred that it was not a case of genuine gift particularly when the assessee had himself agreed to offer the same as income. Accordingly, he added the same to the total income of the assessee. Aggrieved by this, assessee carried the matter in appeal before the learned CIT(A) wherein it was contended that the statement of the assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant under section 131 of the Income-tax Act. The fact of executing the gift deed later on did not make the gift genuine. After perusing the whole of the statement recorded which contained 21 questions, I find that, there is considerable force in the arguments and claim of the learned Authorised Representative that some mental coercion was exerted, to extract the confession of the appellant, which is reflected in answer to question No. 20. Such a statement cannot be used against the appellant, in the light of the definite and corroborative evidence, which pointed towards the contrary facts. In case of the appellant all the direct evidences pointed towards the genuineness of the gift, identity of the donor and the creditworthiness o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The learned counsel for the assessee, on the other hand, contended that the assessee was a person of substantial means and drew our attention to the balance sheet of the assessee which showed a capital of Rs. 1.5 crores standing in his name; however, faced with temporary financial crunch, he asked the donor to give gift, hence, it could hot be said that (it) was capital building exercise. The learned counsel further contended that all the documentary evidences were produced before the Assessing Officer which met the requirements of law, however, the Assessing Officer extracted the statement of the assessee under mental coercion which resulted into surrender of this genuine gift as his income. But, immediately thereafter, the assessee r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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